Critics of the plan have said the Metropolitan Transportation Commission, which guides policy for region’s host of transit agencies, should not use toll money to purchase the new headquarters, at 390 Main St. in San Francisco. The relocation plan drew particular heat since the MTC’s proposed bid for the building — $105 million before renovation costs — was nearly twice as much as the $60 million that the U.S. Postal Service sold the property in 2009.

East Bay officials in particular criticized the proposal, saying the MTC should pursue new headquarters in its longtime Oakland home. Disabled activists also said the new location was too far from local transit options. In response to these criticisms, the MTC rescinded an earlier approval of the relocation plan, in favor of forming an ad-hoc committee to explore its other options.

Despite the concerns, the ad-hoc committee has recommended again that the MTC should move forward with the relocation effort to 390 Main St.. The committee detailed a number of findings supporting its decision, noting that market prices have appreciated considerably since the post office sold the building.

The committee also said that the new location is only four blocks from the Embarcadero BART station, and that a van would be available to provide shuttle service for disabled passengers.

Although the MTC plans on spending nearly $180 million to purchase and renovate the building, the agency actually projects to net $49 million over the next 30 years by renting out the property to other tenants, according to agency spokesman Randy Rentschler. The agency has said it’s essential to purchase the new building to accommodate its growing staff.

San Francisco Supervisor and MTC Commissioner Scott Wiener said the relocation plan is a good idea. “Over time, this will pay for itself,” Wiener said. “This committee conducted an extensive analysis of various options, and it was not even a close call.”

State Sen. Mark DeSaulnier, D-Concord, an opponent of the move, said that using toll funds for the project was inappropriate.

“Commuters must travel Bay Area bridges daily to get back and forth to work,” DeSaulnier said in a letter addressed to the MTC. “They expect that their toll fees go to road repair and bridge maintenance, not for real estate speculation.”

On Wednesday, the MTC will vote once again on the relocation proposal.

Middling returns?

$179 million: Cost to purchase and renovate 390 Main St.*
$60 million: Cost that the USPS sold the building for in 2009
$49 million: Rent revenue the MTC projects to net over the next 30 years

*Includes contingency costs

Source: MTC

wreisman@sfexaminer.com

Article source: http://www.sfexaminer.com/local/2011/09/mtc-reiterates-desire-move-san-francisco

The hallmark of the American labor market, and consequently the wider economy, has long been the mobility of our work force.

From “going West” to “teleworking,” we go where the jobs are.

Unfortunately the uniquely disastrous state of the current housing market is changing all that.

One in four homeowners with a mortgage are now “underwater” on that mortgage; their home is worth less than their debt.

“Mobility deteriorates when you’re under water because you can’t get out from under the house without bringing money to the table,” says Mark Fleming, chief economist at CoreLogic. “So, it reduces mobility, which has an impact on the labor markets and the efficiency of labor markets in terms of people finding new jobs and people moving to where the jobs are located.”

Some borrowers, in good markets, can afford to rent out their homes and move to the new location. If the rent covers the mortgage payment, they can afford it, and many are doing just that. The trouble is, the bulk of those looking for new jobs are unemployed and likely behind on their mortgage payments already. For them, renting is probably not an option. Their last resort would be a short sale, where they negotiate with the bank to let them sell for less than the value of the loan, with the bank taking the hit.

That’s not as easy as it sounds.

Page 1 of 2 | Next Page
Show Entire Article

‘Sugar High That Has Buoyed US Economy Is Wearing Out’

El-Erian: Why Fed Is Unlikely to Have Third Round of Easing

Economy Falters, Stocks Tank: What’s an Investor to Do?

Bonds Rise on Weak Data; 10-Year Yield Below 3%

Mortgages Still Cloud Bank of America Outlook: CEO

More Top Stories

Article source: http://www.cnbc.com/id/43238517?__source=RSS*blog*&par=RSS