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Committee backs $35M Transbay CFD bond authorization to advance Downtown Rail Extension
Summary
The committee forwarded a resolution authorizing up to $35 million in Community Facilities District bond proceeds to support Federal Transit Administration project‑development requirements for the Downtown Rail Extension (DTX); labor and construction unions strongly supported the move during public comment.
The Budget & Finance Committee on Sept. 15 voted to forward a resolution authorizing up to $35 million in CFD bond proceeds to support the Transbay Joint Powers Authority’s Downtown Rail Extension (DTX) project.
Alfonso Rodriguez, project director for the TJPA, told the committee the CFD proceeds would provide $30 million for FTA project‑development costs required to pursue the FTA New Starts program. Rodriguez said the funding would fill a gap created by delayed Regional Measure 3 proceeds tied up in litigation and would be combined with local and regional contributions and a planned federal grant application.
Anna Vendegna (comptroller/public finance) outlined a "not to exceed" bond of $35 million to fund $30 million of project costs, roughly $1 million in issuance costs and a debt reserve. The presentation included an estimated true interest cost of 3.12% and total debt service projected at about $56 million through final maturity in 2050.
The item drew extensive public support from building trades, construction unions and business groups, who urged rapid action to avoid increased costs and to keep the project on schedule for federal entry. "Any delay or hesitation is going to cost money," said Charlie Lively of Operating Engineers Local 3. Labor representatives emphasized jobs and economic recovery.
BLA did not produce a separate report for the committee; presenters said the TJPA Board had approved contingent authorization on Sept. 9. The committee forwarded the bond authorization to the full Board with a positive recommendation.
