The cost of building the Transbay Transit Center, which the San Francisco Chronicle describes as “essentially a big bus terminal with room for a railroad in the basement,” has increased $247 million over the initial projection, and now is expected to cost taxpayers $2.1 billion.
It could get worse. Transportation officials are warning that the cost of the project, which is only halfway done, could climb another $244 million.
A review by a private consulting firm found that the cost increases are due in part to an improving economy that has increased construction costs, but the firm also reported that the joint powers authority overseeing the project has repeatedly provided inaccurate estimates based on overly optimistic assumptions. (Source: San Francisco Chronicle, September 9.)