Welcome to the first edition of the SFMTA’s Building Progress Program newsletter. The Building Progress Program is a $2+ billion, multi-year effort to repair, renovate, and modernize the SFMTA’s aging facilities to keep San Francisco moving and transition to an all-electric fleet. Our flagship project, the Potrero Yard Modernization Project, achieved a number of major milestones throughout 2024 with key approvals to close out the year.
In This Issue:
Recent Approvals
The Potrero Yard Modernization Project closed the year with a major milestone. On December 10, 2024, the San Francisco Board of Supervisors unanimously approved the preliminary Project Agreement for the new Potrero Bus Yard. The agreement is with Lead Developer Potrero Neighborhood Collective.
The project will replace an obsolete, century-old bus yard with a modern, four-story bus maintenance and storage facility. The new space will be more efficient. Repairs to buses will be faster, and this will help make Muni more reliable.
Check out the video below to learn more about this recent milestone. You’ll hear from maintenance staff who work at Potrero Yard. They understand firsthand how a new yard will improve San Francisco transit as well as the working conditions for staff.
This Project is the first infrastructure public-private partnership (P3) developed by the City of San Francisco. The agreement 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%-like-new condition. The Lead Developer also will be responsible for any increased costs or project delays, not the city. This allows the SFMTA to move the project forward with minimal risk of impacts from growing costs, like inflation. The final Project Agreement for the bus facility is anticipated in spring 2025.
Potrero Neighborhood Collective also continues to advance the project’s affordable housing component. The project would be the nation's first- known joint development of a bus maintenance facility with housing – with up to 465 units of affordable housing to support the city’s housing goals. A separate housing agreement is anticipated in spring 2025 as well.
Potrero Project Receives NEPA Clearance in Record Time
On December 23, 2024, the Federal Transit Administration (FTA) completed its review of the Potrero Yard Modernization Project. The FTA granted the Project a categorical exclusion under the National Environmental Policy Act (NEPA). They determined the project qualifies as a categorical exclusion under NEPA, as it is consistent with existing land use and zoning requirements and is for a transportation use.
The project received its NEPA clearance in just under a year—practically record time. Projects like Potrero sometimes require a more complex NEPA review, which have historically averaged 4.5 years to complete (this refers to an Environmental Impact Statement, see Addressing NEPA-Related Infrastructure Delays). The speed of this clearance was thanks to the FTA's leadership and prioritization of this project as well as the extensive California Environmental Quality Act (CEQA) analysis, engagement and the project's pre-approvals.
With the completion of this milestone, the project is able to utilize federal funds and will be re-applying for federal grant funding later this year.
2024 Accomplishments
Potrero Yard is Shovel Ready
- January: Environmental Clearance. In January 2024, the SF Planning Commission voted to certify the Final Environmental Impact Report under CEQA.
- March: Entitlements Granted. In March 2024, the Mayor signed legislation to approve entitlements for the project. This followed unanimous approval by the Board of Supervisors. To facilitate development of the project, the entitlements legislation amends the General Plan, Planning Code and Zoning Map. It also creates a Special Use District that allows housing and commercial spaces to be built on the site, expanding the site’s function beyond just a transit facility. The entitlements also permit increased building heights, with the transit facility reaching 75 feet and allowing housing to reach up to 150 feet.
- Spring: 100% Final Schematic Design Submitted. In spring 2024, Potrero Neighborhood Collective submitted the 100% Final Schematic Design for the new bus yard. This comprehensive blueprint represents four years worth of community listening sessions, survey results, Working Group meetings and community events. All of these were dedicated to incorporating the community's wants and needs for the future of the bus yard.
This rendering of the new Potrero Yard shows a coach approaching the main bus facility entrance along Mariposa Street. (Arcadis / IBI Group)
Funding Updates
Presidio Yard Project Submits RAISE Grant Application
Rebuilding the SFMTA’s 112-year-old Presidio Bus Yard is the second major modernization project in the Building Progress program. As Muni serves 45% of Bay Area transit riders, modernizing Presidio Yard is essential for boosting transit reliability and capacity at a key transit facility to benefit thousands of daily riders.
The project re-applied for federal funding for the fourth consecutive year from the U.S. Department of Transportation’s RAISE grant program. Designated as a Project of Merit (because its 2024 application advanced to the Highly Rated List but was not selected for funding), the project is now being reconsidered under expedited review. At least 5% of RAISE funds nationwide must go toward planning projects such as this. The Presidio Yard Modernization Project stands out as the lowest funding request for a transit project in California. It is the only such proposal that incorporates the potential for housing or other mixed-use development at a transit site. This project provides an industry-changing model for transit agencies across the country of how to unlock new revenue streams to fund transportation through joint development. We hope the fourth time’s a charm for a RAISE grant award for Presidio Yard.
The SFMTA's oldest facility is Presidio Yard, built in 1912.
Potrero Yard Project Pursues Federal Funding
The SFMTA and Lead Developer Potrero Neighborhood Collective will again pursue federal funding opportunities to offset bus yard facility construction costs. In October 2024, the SFMTA hosted a site tour for U.S. Senator Alex Padilla’s staff to underscore the need for a new facility and the many benefits a modernized yard will provide to San Francisco. The project intends to submit for a Bus and Bus Facilities grant in 2025.
SFMTA staff welcomed a representative from the office of Senator Alex Padilla to the Potrero Bus Yard.
Kirkland Yard Electrification Seeks No- and Low- Emissions Grant Funding
The Kirkland Yard Electrification Project is also a repeat seeker of federal funds. The Kirkland Bus Yard houses an aging diesel-hybrid fleet in a 75-year-old facility. The project will upgrade yard infrastructure to transition to a 100% zero-emission fleet. Additional funding is needed to transform the yard to be able to support electric battery buses. The full electrification of the yard presents an opportunity to upgrade some facilities while adding charging infrastructure and electrical service upgrades from PG&E. The transition to battery electric buses would eliminate the impacts of pollution and engine noise from the bus's facility.
Outreach and Community Engagement
Potrero Tours were a Holiday Hit
'Twas two weeks before the new year,
and all through the yard,
came neighbors and friends
from near and from far.
Residents from around the Mission and Potrero neighborhoods took advantage of the last Potrero Yard tours of the year. People came to explore this century-old yard ahead of construction later this year. The team will continue to offer tours until the yard closes for construction.
Community members attending a public tour of Potrero Yard.