The Board of Supervisors yesterday unanimously approved the original agreement to fund Transbay District transportation upgrades, like the downtown rail extension to the Transbay Transit Center, through development charges. Although supervisors had announced a compromise agreement two weeks ago, some developers apparently backed out of it. City Hall officials decided to move forward with the original agreement, since those developers threatened to file a lawsuit either way.
The disagreement arose after Transbay developers began to fight the establishment of a special property tax, called a Mello-Roos tax district, which they had agreed to in 2012 to help fund local infrastructure projects, like the extension of Caltrain and California high-speed rail to the Transbay Center. The developers, who still must approve the Mello-Roos agreement in a vote, hired former Mayor Willie Brown to lobby for a lower tax rate, since property values (and thus projected taxes) have skyrocketed in recent years.
“Kudos to the Supervisors for supporting the original Mello-Roos agreement, rather than delaying the vote again or agreeing to further concessions,” said Livable City Director Tom Radulovich. “Any project of this size is going to be subject to lawsuits and threats of lawsuits. Shame on these developers for seeking to reap all the benefits of the Transbay project, their beneficial re-zoning, and San Francisco’s booming land values, without any portion of this enormous windfall going towards the public good.”
Under the compromise agreement announced two weeks ago, the developers would have paid the same maximum of $1.4 billion in taxes, but spread over 37 years instead of 30. Supervisor Scott Wiener said this would have retained “every penny” of the original deal, but some said the economics would’ve worked out in the developers’ favor. The SF Chronicle penned an editorial on Sunday blasting the “unwarranted tax break to developers” and “huge giveaway”: