San Diego MTS Board of Directors approves $174 million capital improvement program

The San Diego Metropolitan Transit System (MTS) Board of Directors approved a $174 million capital improvement program for Fiscal Year (FY) 2024. The board also approved an exclusive negotiating agreement with the San Diego Foundation to assist with redeveloping a land parcel adjacent to the 12th and Imperial Transit Center for up to 47 floors of housing.

“Two priority issues for MTS are creating more housing that promotes transit use and keeping the transit system in a solid state of good repair for our riders,” said MTS Acting Chair and District 3 San Diego City Councilmember Stephen Whitburn, “It was a good day for MTS on both of these fronts. The $174 million Capital Improvement Program addresses some major capital priorities, and the agreement with the San Diego Foundation is a great step to potentially create hundreds of new affordable units in downtown San Diego.”

For the agency’s $174 million FY 2024 Capital Improvement Program, bus and trolley vehicle replacement will use up 48 percent of the funding, followed by facility and construction, rail infrastructure improvements and other major initiatives. Top funding allocations include:

• $60 million – 63 new buses including battery-electric, compressed natural gas and propane powered buses.
• $36.8 million – Clean Transit Advancement Campus project (future all-electric bus division).
• $22 million – New trolley vehicles. There are 47 Trolleys that need to be replaced by 2025. Funding will be added to the $167.9 million previously funded to replace aging vehicles in the fleet.
• $10.1 million - Imperial Avenue Division overhead charging infrastructure.

The exclusive negotiating agreement with the San Diego Foundation will allow the agencies to negotiate terms of a potential development or collaboration agreement for a competitive solicitation for the property adjacent to the 12th & Imperial Transit Center in downtown San Diego. MTS estimates a redevelopment on the 2.5-arce site can manage up to 500 affordable and market-rate housing units. To help fund housing developments, the foundation recently established a new Housing Impact Fund, which aims to raise $400 million for development and preservation of affordable and workforce housing. MTS has made significant progress redeveloping its park and ride lots into affordable housing in recent years. Other properties MTS is in the process of redeveloping or actively looking to redevelop include:

• Grantville Trolley Station- 374 units
• Palm Avenue Trolley Station – 390 units
• Rancho Bernardo Transit Center – 100 estimated units
• Beyer Blvd Transit Center – 100 estimated units
• El Cajon Transit Center – 400 estimated units
• E Street Transit Center – 170-390 estimated units