The San Francisco Municipal Transportation Agency (SFMTA) Board finally approved the project agreement legislation for the Potrero Bus Yard Modernization Project in March. The project agreement approval was quickly followed by approval by the San Francisco Board of Supervisors in late March and a $742 million tax-exempt bond financing in early April.
The bond issuance, which was run through conduit issuer the California Municipal Finance Authority, will finance the demolition of the existing Potrero Bus Yard and the construction of a new four-story bus yard facility on the site. The issuance is divided between a Series A of approximately $490 million and a Series B of $250 million in tax-exempt milestone bonds. The project agreement for the Bus Yard Modernization includes two construction milestone payments of $125 million each, as well as a long-term availability payment. The issuance received an initial rating of A2 from Moody’s Ratings.
