by William G. Reinhardt, editor—

A year and a half after its commercial close, the DBFOM developer of the Presidio Parkway in San Francisco arranged favorable project financing on June 14 for the $365-million phase 2 of the project to replace Doyle Drive, the unsafe approach road to the Golden Gate Bridge.

The combination of low-cost debt financing, a design-build price less than Caltrans’s estimate, and a guaranteed O&M price well below even the developer’s estimate will result in annual availability payments to Golden Link Concessionaire (GLC) of $28 million over 30 years. That is about 20% less than the $35 million affordability cap set by the State Transportation Commission in approving the P3 project in 2010.