SFMTA Board of Supervisors approves preliminary project agreement for new Potrero Bus Yard
On Dec. 10, the San Francisco Municipal Transportation Agency (SFMTA) Board of Supervisors approved the preliminary project agreement for the new Potrero Bus Yard, marking a major milestone in the Potrero Yard Modernization Project. The agreement with lead developer, Potrero Neighborhood Collective (PNC), is the SFMTA's first public-private partnership.
The project will replace an outdated bus yard with a modern, four-story bus maintenance and storage facility. SFMTA notes the new space will be more efficient, helping the agency transition to an all-electric fleet.
SFMTA notes the next step for the project is to select the design-build contractor who will build the bus facility. Once the selection process is completed, the project agreement will be finalized to include the bus yard's fixed price. The final agreement is expected to be considered by both the SFMTA Board of Directors and the SFMTA Board of Supervisors for approval in spring 2025.
The agency notes PNC also continues to advance the project’s affordable housing component. A separate housing agreement is anticipated in spring 2025 as well.
Bus Yard agreement is unique
The agreement:
- Creates bus transit infrastructure that will be integrated with housing and commercial spaces.
- Outlines the bus yard commitments to local hiring and economic inclusion.
- Uses a novel approach to financing, operating and maintaining the bus yard. The lead developer will operate and maintain the new building for 30 years. At the end of 30 years, the facility must be in 80 percent like-new condition.
- Specifies that the lead developer would be responsible for any potential increased costs or project delays, not the city, which allows SFMTA to move the project forward with minimal risk of impacts from growing costs like inflation.
Key milestones of 2024
SFMTA notes the Potrero Yard Modernization Project made a lot of progress in 2024. Some additional key milestones include:
- In January, the SF Planning Commission voted to certify the final environmental impact report under the California Environmental Quality Act.
- In March, San Francisco Mayor London Breed signed legislation to approve entitlements for the project. SFMTA notes this followed unanimous approval by the board of supervisors. The entitlements legislation amends the general plan, planning code and zoning map. The approval allows the project to reach up to 150 feet and allows housing and commercial spaces to be built on the site, which was once zoned just for transit use.
