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Committee backs Transbay bond measures to refinance bridge loan and fund terminal work
Summary
The Government Audit & Oversight Committee recommended two Transbay bond resolutions — up to $90 million in CFD special tax bonds and up to $315 million in TJPA tax allocation bonds — to refinance a city bridge loan, refinance a TIFIA loan for estimated savings and fund project costs; the committee voted 3–0 to send both items to the full Board of Supervisors.
The Government Audit & Oversight Committee on April 16 recommended that the Board of Supervisors approve two bond resolutions to support the Transbay Transit Center project.
The committee voted 3–0 to send a resolution authorizing up to $90 million in Community Facilities District (CFD) special tax bonds and a second resolution authorizing up to $315 million in Transbay Joint Powers Authority (TJPA) tax allocation bonds to the full board with positive recommendations.
Anna Vandegna of the Comptroller’s Office of Public Finance told the committee the financings would be used to pay off the outstanding city bridge loan (about $76,000,000), refinance the federal TIFIA loan to achieve approximately $20,000,000 in debt‑service savings, and fund tenant improvements, program and capital reserves and issuance costs. Vandegna said the CFD proceeds and the TJPA proceeds would, as necessary, help take out the bridge financing and that portions of both financings would fund issuance costs and a debt service reserve.
Erin Rosen, identified in the hearing as a TJPA finance official, told supervisors the TJPA must present financings to the Board of Supervisors under state joint‑powers authority law so the board can find a public benefit to the financing. Supervisor Aaron Peskin pressed whether the tax allocation bond portion listed to pay judgments and settlements would be sufficient; the TJPA speaker said it would cover litigation proceeds tied to contractor or subcontractor claims.
Vandegna presented estimated financing metrics used in staff analysis: the CFD bonds were modeled with an estimated 4.4% interest cost and an estimated total debt service of roughly $158,000,000 over a 30‑year term; the TJPA tax allocation bonds were modeled with an interest assumption of about 3.86% and an illustrative debt service estimate of roughly $538,000,000. She cautioned that recent municipal market volatility has prompted a more conservative marketing and sale schedule with closings pushed into May and June.
The chair moved the committee recommendation and the clerk recorded a unanimous 3–0 vote (Peskin, Haney, Marr). The items will appear on the Board of Supervisors agenda unless otherwise stated.
