One financial collapse, a city well over budget and many months later, the development firm that bid out to foot the bill for 1,000-foot-tall Transbay Tower is now set to pony up $115 less than they originally agreed to -- $235 mill as opposed to $350. The new agreement, approved by Transbay's Board of Directors, has the developer paying most of the money up front, at the closing of the land sale, with the rest paid out over the next few years. The price cut will keep Transbay on track where it might have formerly fallen by the wayside in this sad economy, and give the Transit Authority a larger and much-needed cash infusion in the immediate. The developer wouldn't have been able to raise the $350 large until it was able to lease out half the tower's space -- very unlikely to happen before construction is set to begin in 2010. But! More hoops! T-Tower still has to make its way through the rezoning process before ground can be broken. So don't expect any new oppressive shadows for at least a couple more years.
· City Insider: Tall order [SF Gate]
· Deal cuts price developer will pay for Transbay land by $115 million [SF Business Journal]
· Previously [Curbed SF]
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