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
- Bus Yard Preliminary Agreement
- NEPA Clearance
- 2024 Accomplishments
- Funding Updates
- Presidio Project Seeks RAISE Grant
- Potrero Project Pursues Funding
- Kirkland Project to Apply for Low or No Emissions Grant
- Outreach and Engagment
Recent Approvals
Bus Yard Preliminary Project Agreement Approved
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.
Project Receives NEPA Clearance in Record Time
On December 23, the Federal Transit Administration (FTA) completed a review of the Potrero Yard Modernization Project. The FTA granted the Project a categorical exclusion under the National Environmental Policy Act (NEPA).
The process to get NEPA clearance took just under a year. This is in record time according to a 2020 study from the Council of Environmental Quality which lists the average timeline for clearance at around 4.5 years.
The project team first applied for clearance in early March and completed the process at the end of December. With national clearance, the project can use federal funds immediately if granted them.
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 the California Environmental Quality Act (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.
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. The SFMTA is re-applying for federal funding for the project from the U.S. Department of Transportation’s (USDOT) 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 able to be reconsidered under expedited review. The Presidio Bus Yard Modernization project stands out as California’s lowest transit funding request and is the only such proposal that incorporates housing — a new, innovative approach to transit facility development.
At least 5% of RAISE funds nationwide must go toward planning projects such as this. The project’s mixed-use development model could offset facility costs through new revenue streams, allowing reinvestment into transit service.
As the eighth-largest transit agency in a major U.S. city, Muni serves 45% of Bay Area transit riders. Modernizing Presidio Yard is essential for boosting transit reliability and capacity at key transit hubs to benefit thousands of daily riders.
Your support can help set a national precedent for transit modernization through this joint development project and long-term community investment.
Potrero Pursues Funding
The SFMTA and PNC continue to pursue federal funding opportunities to offset bus yard facility costs. In October 2024, the SFMTA hosted a site tour for U.S. Senator Alex Padilla’s office to highlight the need for a new facility and the many benefits a modernized yard will provide to San Francisco. This year, the project intends to submit for a Bus and Bus Facilities grant for the second time.
Kirkland looks for No or 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. Funding from a grant would be used to transform the yard to be able to house battery electric buses. The transition requires full electrification of the yard. It presents an opportunity to upgrade facilities and streamline Muni operations while adding charging infrastructure and electrical service upgrades from PG&E. The project would eliminate pollution and engine noise from the buses and move forward the city's transition to a 100% zero-emission fleet.
Outreach and Engagement
Potrero Tours are 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 last Potrero Yard tour of the year. 15 people came to explore this century-old yard ahead of construction next year. The team plans to offer tours early this to continue engaging with the community on this project.
