Treasure Island to receive roughly $12 million in state infill funds for roads, conduit and YBI repairs

Acting TIDA staff told the board that approximately $12,000,000 in state Infill Infrastructure Grant (IIG) funds has been redirected to the Treasure Island Development Authority to support immediate infrastructure work serving new housing.

"Approximately $12,000,000 is now being reallocated to TIDA," Joey Benasini, TIDA vertical development project manager, told the board, explaining the funding comes through the Mayor's Office of Housing and Community Development (MOHCD) from the California Department of Housing and Community Development's IIG program.

Benasini said the reallocated funds are being proposed for three primary uses. The largest single use would be to help close an $8 million gap in the Treasure Island Road improvement project, a roughly $45 million effort to widen the roadway, add a bus-only lane and improve multimodal connections between San Francisco and the Bay Bridge corridor. A second use would cover a late-added requirement for a 2-inch "shadow conduit" to accommodate future supervisory control and data acquisition systems in stage 2 (estimated $500,000 to $1,000,000). The third would help satisfy a remaining $2.5–3.0 million obligation on roadway work on Yerba Buena Island, including the West Side Bridges retrofit and Hillcrest Road improvements.

Benasini said the IIG award originated with a 2023 $45 million catalytic IIG allocation that the Mayor's Office had applied for on behalf of several regional projects. Portions of the original award were delayed elsewhere, prompting MOHCD to identify shovel-ready projects on Treasure Island and Yerba Buena Island that could use the funds.

Acting Director Jamie Cruben said the IIG reallocation will change some near-term budget assumptions. "Because MOHCD was the initial applicant, that department has gone through an accept-and-expend process and the funding will go first to MOHCD. MOHCD will then distribute the proceeds to TIDA via MOU or an interdepartmental agreement," Cruben said; staff told the board they will finalize agreements and integrate reimbursements consistent with IIG guidelines.

Board members responded positively to the news during the informational presentation, calling the reallocation "a big deal" and praising coordination among city agencies. Several commissioners asked follow-up questions about how the reallocation affects the authority's budget and runway for other projects; staff said some of the IIG proceeds are expected to free up prior developer obligations and that roughly $6.5 million of the reallocated funds are assumed to be spent in the coming fiscal year.

The presentation was informational; staff said next steps include finalizing reimbursement agreements with MOHCD, coordinating with development partners to incorporate the funds into project budgets, and returning to the board as implementation details are confirmed.

What happens next: TIDA staff will finalize agreements with MOHCD to administer reimbursements, integrate funds into project budgets and bring any required project-level contract or appropriation actions back to the board for approval.