MTC Ignores Pending State Audit and Approves Real Estate Speculation Deal

September 29, 2011 14:00 pm · 31 comments

The Metropolitan Transportation Commission (MTC), with a 10 – 6 vote decided to move forward with the $179 million acquisition and renovation of an office building in San Francisco.  MTC Commissioners immediately went into a closed door session and began private negotiations for the real estate deal.

In response, Senator Mark DeSaulnier (D-Concord), Chair of the Senate Transportation and Housing Committee, issued the following statement:

“MTC is disconnected from those they serve,” said DeSaulnier.  “By refusing to await an independent review by the State Auditor, today MTC became a prime example of what is wrong with government.  MTC needs to be held accountable for their use of toll payer money.  I am also concerned that if MTC is spending reserve revenues for this acquisition, there may not be sufficient funds available for an emergency.”

“MTC has not demonstrated an immediate need to spend $179 million of toll payer funds on a building in San Francisco,” said DeSaulnier.  “After MTC’s behavior I plan on introducing comprehensive legislation next year to drastically overhaul regional governance in the nine county Bay Area region.  Government needs to be more transparent and responsive to the people they serve.”

The Senate Transportation and Housing Committee will also hold hearings this fall to examine MTC’s governance structure and statutory scope of authority.  The Committee’s review may include but not be limited to the following:  (The State Auditor is also scheduled to examine much of this.)

  • How did the MTC AdHoc Committee (charged with making a recommendation to the Commission on this deal) do its research to make its recommendations?  Did it meet in public?  If not, why not?  As the Committee took an official vote, was the AdHoc Committee governed by the Brown Act?  If so, how did the AdHoc Committee comply with the Act?
  • The promise MTC made with voters to spend excess toll proceeds for transportation improvements:  Is it legal and appropriate for MTC/Bay Area Transportation Authority (BATA) to spend toll revenues on the purchase of an office building?
  • Should the Commission have sought legislation to amend the law to provide the authority for this deal?  The Legislature regularly analyzes changes in law to provide specific statutory authority for real property acquisitions and disposal.  Why didn’t MTC/BATA seek such authority for this project and the creation of the Bay Area Headquarters Authority, where it could be fully vetted and debated in public?
  • Where did MTC/BATA get the $179 million available for this project? 
  • Are there projects that will not be built because MTC/BATA is tying up toll revenues for decades to pay off bonds issued to finance the building? 
  • If there are no projects to spend this money on, doesn’t that imply that the tolls are too high and can be lowered? 
  • If these are bond proceeds, does that mean MTC/BATA issued too many bonds and are keeping tolls unnecessarily high to support them?

Give us your opinion on this issue….

{ 31 comments }

1 the Shi ite September 29, 2011 at 2:13 PM

Another reason Amerika is effed up. THE TOLL MONEY SHOULD BE USED ON BRIDGE MAINTENANCE AND REPAIRS. PERIOD.

If they need a building, let them move into an OLD VACANT building.

“Where did MTC/BATA get the $179 million available for this project?”
The whole overpriced TOLL crap is a Pyramid scheme. It’s Ripping off you and I the taxpayer and toll payer.
Where’s all the BART protesters? Let them protest this.

2 Dragon September 29, 2011 at 2:25 PM

Go, Mark DeSaulnier!

I was very upset when I read this story the first time around. Nice to know that an elected official is actually looking out for us.

3 funny man September 29, 2011 at 2:34 PM

revolution, its the only solution. take over sacramento first….then DC. its the only way to be sure.
i apploud our senators actions. the mtc like the bbqnazis and other nanny agencys must GO!

4 MikeT September 29, 2011 at 2:34 PM

Ya mean that the letter That Mark DeSaulnier sent to them last week did not scare them to death, and and make them pull out of the deal?? I’ll be damned. I guess that was a total waste of ten minutes of Marks time. What a ass. If you have no pull, keep your mouth shut.

5 Dave September 29, 2011 at 2:36 PM

This is a govt building, there is no need to be in SF and have a shiny office building and address like a fortune 500 company. Companies pay money to have a fancy address and high end furniture for one reason only and that’s to woo the clientele and to stroke executive egos.

Like the previous poster stick them in one of millions of vacant sq ft already existing in more affordable areas

6 gjashley September 29, 2011 at 2:51 PM

Moving the MTA to Concord would ‘connect them to their users’ better, we have lots of vacant office space and, hey look, a BART station too!

7 KJ September 29, 2011 at 3:03 PM

According to an article in the Mercury News: “MTC advisers place the building value at about $96 million…. The commission had agreed in July to buy the building for $105 million…” http://www.mercurynews.com/news/ci_18996194

They are willing to pay more than the building is worth — in a depressed real estate market. Huh?!

The only reason I can see as to why they want to move to this building is because it’s close the ball park.

I agree with gjashley: They could move to Concord, get a great building, for a ton less money — or they could stay where they are in Oakland.

8 Concord Dave September 29, 2011 at 3:08 PM

Tar and feather them!

9 Claytonian September 29, 2011 at 3:53 PM

One of the justifications that the MTC is using for the purchase of this over-sized and vacant building is that other regional agencies can move into it as well; some of the agencies they cite are the BCDC and ABAG. However, ABAG has already stated that they don’t want to move from their offices in Oakland. I wonder how the other agencies feel?

No matter what the justification, it appears that staff and the MTC board are out-of-touch with the general population. Do they not realize how this will work against them? Don’t they understand that there will be negative reprecussions. Why are they taking such action? They are slitting their own throats. This appears to be self-aggrandizement.

I hope that the legislature rips them apart. These regional goverments need more oversight anyway. As it stands now, they don’t have to answer to anyone, so they have no fear and don’t care what the public thinks.

10 Jim September 29, 2011 at 4:04 PM

This is why we should stop approving bonds…they’ll tell you anything to get the money and do what they want later on…does anyone rememeber what the water district said about the resevoir out in Brentwood? Whata great family area it would be, etc..They sold us a bill of goods and then you can’t even swim in it…What a crock…it’s the same with the bridges and the roads….what a joke…we approve bond measures and they spend it like they want..take away their ability to write checks and you’ve solved a lot of problems

11 Randome Task September 29, 2011 at 4:10 PM

unbelieveable how the MTC just takes what they want and pays what ever its not their money dont stand for this garbage folks write to 7 on your side or even just a news station and get the message out that the MTC is a bunch of fraudulant bastards that knew what they were doing when they raised the tolls and told the ignorant public that it was for the roads and then turn around and rigth in front of our faces take 179 million dollars and use it at their leisure. where is the govorner where is the public servants that are suposed to slap these fools when they get out of hand …..yep ill bet most of em are getting a piece of said millions and turning the other way if you dont have a problem with this then no drying when they raise the tolls again and your state tax to pay for roads and such in the next 2 years ….if they can be this obvious then well i guess we are all that stupid. do something i am writing state and federal offices and bitching at no end this is outrageous and people should be in jail for this crap its no better than a ponzi scheme takeing your money and getting nothing in return ….you cant tell me your ok with this …if so then it is all over because when it gets out that Californians are this stupid than every crook bearing a public office shield will fleece us till we all drop dead

12 anon September 29, 2011 at 4:22 PM

Jim,
I remember the California lottery was supposed to be the Savior of the Schools :)

13 ... September 29, 2011 at 4:24 PM

MTC is not accountable to anyone, even the state. It has a permanent and unstoppable flow of ever increasing cash. The monster the state created is now too big to control. Nothing will happen with all of this political posturing other than MTC will waste almost 200B toll tax dollars to pump up the ego’s of the board members. Wonder why Willy is not on that board, probably not enough graft money in it for him.

We can thank the 1970 CA legislature and Regan for this.

14 Lime Ridge September 29, 2011 at 4:49 PM

I bet that more of the top employees live in SF instead of Oakland and they just don’t want to keep commuting to Oakland.

I checked the website but couldn’t dig up any details about where they live …

15 Claycordian September 29, 2011 at 4:58 PM

Is there any way to find out which board members voted in favor of this? These board members are all elcted officials somewhere else (county supervisors, etc) We should work to get each of them defeated in their own election next time, and they will no longer be able to serve on the MTC, or ABAG, or BAAQMD.

16 Chuckie September 29, 2011 at 5:08 PM

You’d think that a transportation agency would want to be located in a building near, a BART station, for instance. O maybe someplace with easy freeway access. The PH BART station has lots of vacant buildings nearby. I think the Concord BART station has the same potential.

The MTC idiots should lower tolls if they have so much money burning a hole in their pocket, or maybe free up some cash so cities and counties can fix roads.

Follow the money and corruption. You just know that there is something fishy about the entire deal. Send the FBI in as soon as they’re done at Solyndra.

17 anon II September 29, 2011 at 5:24 PM

If they have that much money to blow, does that mean we are being 90% overcharged for bridge tolls?
They want the SF location so all their employee’s have to cross a bridge to get there.

18 sheila stanionis September 29, 2011 at 5:28 PM

Our tolls went up. Roads on bridges need repairs. The MTC are lining their pockets like all the CEOs of the BANKS. They don’t care about us workers who go without so we can go to work to try to put a roof over our heads for our families. Sacramento and Washington DC needs to investigate the MTC, pull all funds. Why get the finances from Sacramento or Washington DC for projects when they have all this extra money? I’m pissed off at the MTC decision.

19 Tar and Feather September 29, 2011 at 5:49 PM

At the next board meeting over there, a bunch need to go in, grab the directors, tar and feather them and send them on their way down Broadway. Will be good to see them trying to get a ride in Oakland, tared and feathered.

20 CHHRISTINE September 29, 2011 at 6:28 PM

The Tolls ARE too high.

Thank you for the efficient work and follow up on this situation.

21 Jeff September 29, 2011 at 7:12 PM

the entire 179 million is paid back to us !!!

22 Jeff September 29, 2011 at 7:21 PM

If the 179 million is toll money, and they have sufficient reserves as determined by an independent accounting firm, then all the bridges that raised the money should IMMEDIATELY BE FREE UNTIL THE ENTIRE 179 MILLION IS PAID BACK TO US !!!!!!!!!!

Mark D should DEMAND that we get our money back. It is OUR money !!

23 Dennis September 29, 2011 at 8:07 PM

Remember, all the bridge tolls go directly to SF as ‘General Funds’ to spend on huge Muni union wages, etc. The counties tried to sue for a portion of those tolls (after all, it is our commuters that pay them), claiming “taxation without representation” (no other counties are on the board), but the State supreme Court rules that bridge tolls/fees are not taxes.
That’s why when earthquake repairs and retrofitting were required, they had to get tax money elsewhere: there is no requirement that bridge tolls be set aside for actual use on the bridges, etc.

24 AnotherAnon September 29, 2011 at 8:38 PM

With this type of total disregard for public input and opinion, it may not be long before the beginning of civil disobedience in this country, otherwise known as rebellion, armed and otherwise. The teabaggers would welcome the opportunity, the open carry folks would welcome it, and what would the police be able to do about it: shoot their own countrymen?

25 Huh? September 29, 2011 at 8:58 PM

When infrastructure is crumbling these clowns want to speculate in real estate. This could be a violation of Bagley-Keene. AG?

26 the Shi ite September 29, 2011 at 9:01 PM

I’m Back. As I recall History, these bridges were paid for by the Public & for the Public benefit, not to be run like a Fortune 500 Business.
How much do all the Pimp Board of Directors make? And for what? What exactly do they do?
I’m just curious as to what earth shattering decisions that would have to be made regarding Bridges that have been standing for 50 years.

27 anon September 29, 2011 at 9:13 PM

As the old saying goes, “it may be correct, but it ain’t right”.

28 From Helo flyover country September 30, 2011 at 8:10 AM

Like the MTC even bats an eye at anything ole Markie D says. The MTC is a HUGE over grown mess and it only going to get worst. Truth be told would anyone want to work in an office building in downtown Oakland? Maybe we should get the ALL POWERFUL Concord city leaders to pass an ordiance banning the move, that will fix it just like our city’s smoking problem!

29 anon September 30, 2011 at 10:20 AM

I’m not a huge fan of Jerry Brown but he’s definitely good at reform and this would be a great thing for him to take up. He’s got to be intimately familiar with the MTC from this Oakland days.

30 bob armstrong September 30, 2011 at 11:29 AM

The MTC, like CARB and all the little carbs in the region are populated by fat cat “staffers” obcessed with the idea they are the smartest ones in the room. Mark DeSaulnier has no intention of stopping this with “legislation next year”. If he were serious, he’d get a judge to enjoin the process and force the issue. The “toll road” issue is just a scam to bring revenue to fat cats in $179mil offices. Honestly, does anyone think we are getting our monies worth from any level of government?

31 Huh September 30, 2011 at 12:13 PM

Commissioners from CCC

Federal Glover representing CCC
Amy Reinworth city councilperson Lafayette representing CCC cities

Oakland represents a good mid point for the areas encompasses by MTA. No need to build a landmark, look at me, transit building in SF.

Given the number of transit organizations in the Bay Area, Jerry time to pare the MTA.

My sentiments to be sent to Jerry tomorrow. Combine and pare transit agencies that receive state funds.

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