PHOENIX - The Transbay Transit Center in San Francisco is expected to run an operating deficit that may be borne at least in part by taxpayers.
The Transit Center, envisioned as a grand gateway for the Bay Area that would service both the northern section of California's planned high-speed rail project as well as regional and long-distance buses with a final target price of about $6 billion is expected to lose money when its opening phase opens in December, officials said. Planners were banking on the high-speed rail project, still years from completion, bringing large numbers of passengers through the center.
It will open as a bus terminal hosting commuter service from the East Bay and a few intercity buses.
Financing for the project's $2.3 billion opening phase comes from a wide variety of sources, including San Francisco debt, voter-approved sales tax increases, a Mello-Roos financing district, and a Federal Transportation Infrastructure Finance and Innovation Act loan.
The transit hub is overseen by the Transbay Joint Powers Authority, and was built to replace a dilapidated bus terminal. Officials are worried about how to fund the costs of operating the large facility, estimated at as much as $20 million annually, in the absence of the train passengers.
"We are currently negotiating an agreement with an entity to manage operations and maintenance for the new Transbay Transit Center," said Scott Boule, a spokesman for the TJPA. "This entity will also be responsible for several revenue-generating activities including retail leasing, events, advertising, sponsorships, and naming rights. These revenues will offset annual operations and maintenance costs for the facility. We are still working through the final details and hope to bring an agreement to the TJPA Board for consideration very soon."
