Resolution approving Contract No. 1334, Infrastructure Facility Project Agreement (“Project Agreement”), with PRG - Potrero Properties LLC, for the design, construction, and financing of a bus storage and maintenance facility for the Potrero Yard Modernization Project, which Project Agreement provides for 1) a 30-year term commencing after substantial completion, scheduled for 2030, and expected to end in 2060, 2) two milestone payments of $65,000,000 at or around financial close and $250,000,000 during construction, 3) a $5,000,000 development fee payable after substantial completion, 4) annual availability payments commencing approximately one year after anticipated substantial completion and continuing through the end of the term, projected to start at approximately $33,000,000 with an estimated cumulative total of approximately $980,000,000 5) potential delay event or termination compensation, all as provided in the Project Agreement and for an estimated not to exceed amount of $1,396,433,595 expressed in nominal dollars and subject to adjustment on the terms of the Project Agree

This resolution approves a $1.4 billion Infrastructure Facility Project Agreement (Contract No. 1334) between the San Francisco Municipal Transportation Agency (SFMTA) and PRG - Potrero Properties LLC. The agreement is for the design, construction, and financing of a modern bus storage and maintenance facility at 2500 Mariposa Street as part of the Potrero Yard Modernization Project.

Financial Details:
The total estimated cost is $1,396,433,595 over a 30-year term, expected to end in 2060. This includes two milestone payments totaling $315,000,000 ($65M at financial close, $250M during construction), a $5,000,000 development fee, and annual availability payments projected to start at $33,000,000 with a cumulative total of approximately $980,000,000. The resolution also approves the issuance of up to $900,000,000 in tax-exempt obligations by the California Municipal Finance Authority to help finance the project.

Project Scope & Timeline:
The facility, scheduled for substantial completion in 2030, will replace the outdated 1915 bus yard and support the SFMTA's transition to a zero-emission fleet. While initial plans included significant housing above the facility, recent modifications eliminated this "podium housing" component, reducing the overall residential units by 409. A separate 104-unit residential building on Bryant Street remains part of the project. The project's predevelopment period and financial close dates have been extended multiple times, with the latest IF Financial Close set for March 31, 2026, and Infrastructure Facility Substantial Completion by November 30, 2030.

Environmental & Zoning Approvals:
The project has undergone extensive environmental review, with the Final Environmental Impact Report certified on January 11, 2024. The Board of Supervisors also approved amendments to the General Plan and created the Potrero Yard Special Use District (SUD) on March 12, 2024, to facilitate the project's height (up to 160 feet) and bulk requirements, and to permit residential and commercial uses alongside the public transit facility. Federal environmental review (NEPA) is ongoing for potential federal funding.