Not satisfied with the $160 million discount they were given on their purchase of the 101 First Street site, the site upon which the 1,070-foot Salesforce Tower is being constructed, Boston Properties is protesting the rate at which they will have to contribute to a Community Facilities District (CFD) which was designed to help fund the development of San Francisco’s Transbay Transit Center.
The owners of 41 Tehama and the 50 First Street parcels have also formally joined the fight against the Special Tax which the CFD establishes, a tax which was designed to equal 0.55 percent of their developments’ values.
At the heart of the protests: the city’s formulas overstate the value of the developments and their tax burdens.
In fact, as one of the protest letters points out, the city’s formulas could result in a tax burden to the Salesforce Tower which would be “over $100 million” higher than previously anticipated. Another $60 million and Boston’s cost basis for their development could effectively be back to where they originally bid.
A public hearing on the establishment of the Community Facilities District for the Transbay Transit Center will be held by San Francisco’s Board of Supervisors tomorrow at 3PM.
Cost overruns have already added $300 million to the cost of constructing the $1.9 billion Transbay Transit Center. And unless the City can raise $24 million in private donations and grants, the development is slated to open without its signature rooftop park as dollars are being diverted to complete the terminal’s construction.