Committee recommends fee‑waiver ordinance for downtown rail extension projects to full Board

The committee voted Feb. 5 to send to the full Board a planning code amendment that would authorize conditional waivers or reductions of Transportation Sustainability Fees and Eastern Neighborhoods Infrastructure Impact Fees for projects along the downtown rail extension (DTX) if the project sponsor agrees to enhanced foundation or shoring systems that mitigate impacts to the tunnel.

Planning staff said a project seeking the waiver must enter into an agreement with the Transbay Joint Powers Authority (TJPA) to select an enhanced foundation type, and an independent cost validator will verify that enhanced foundation costs equal or exceed baseline foundations; eligible projects could receive fee waivers commensurate with verified net increases in foundation cost.

Staff cited an approved, eligible project near the portal (655 Fourth Street) as an example where the waiver could help advance construction. Operating Engineers Local 3 testified in support, saying the waiver would stimulate construction and jobs. The committee approved the recommendation to send the ordinance to the full Board with a positive recommendation.

The ordinance requires interagency coordination among Planning, TJPA and OEWD and includes procedural safeguards such as third‑party cost validation.