Developers who are building towers around the Transbay Transit Center in SoMa are fighting to reduce a special property tax that will be levied on developments in the area. The biggest loser could be the downtown rail extension to bring Caltrain and California high-speed rail into the terminal, as more of the funds for the regional rail hub and other long-term projects would have to come from taxpayers.
The group of developers is backed by former mayor Willie Brown, who registered as an official lobbyist to work for them in July (he also recently lobbied “pro bono” for AnsoldoBreda, the manufacturer of Muni’s current train fleet). Brown previously helped create the Transbay Joint Powers Authority to oversee the massive package of projects centered around what’s been called the “Grand Central of the West,” expected to open in 2017.
SF Chronicle columnists Phil Matier and Andrew Ross reported in July:
Brown confirmed for us that he is representing Boston Properties — builder of the 61-story Salesforce Tower — and more than a half dozen other property owners.
In exchange for the city allowing them to increase the height and density of their projects, the property owners agreed two years ago to be assessed up to $400 million to help pay for a Transbay Transit Center rooftop park and other public improvements to the area.
Only now, thanks to skyrocketing property values and changes in the city’s methodology for calculating the assessments, the developers — paying into what’s known as a Mello-Roos special district — could face up to $1.4 billion in charges.
The Board of Supervisors was expected to approve the agreement creating the Mello-Roos district on Tuesday, but D6 Supervisor Jane Kim postponed the item one week. “We wanted additional time to be able to brief all of the offices on this issue, but also talk to the multiple parties involved,” Kim said at the meeting.