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Brad Bollinger: Railroad Square transit-oriented development gets new chance

With last month’s agreement allowing developers of the SMART transit-oriented development near Railroad Square to purchase the 5.3 acre site, the unique and visionary project now stands a chance of moving forward.

The $180 million project had been mired in a dispute over what the land was worth.

There were some claims the property could fetch $10 million to $15 million. But the project’s development partners argued, apparently successfully as of last month, that the value was likely closer to zero given the important but costly public elements and the presence of toxics.

Until the true market value could be determined through testing and a realistic appraisal and it could be shown that developers would have the freedom and ability to deliver on their promises, the project stood little chance of securing financing.

The Sonoma Marin Area Rail Transit development, with its Food and Wine Center, parking, affordable and market-rate housing and retail, now has that opportunity.

Still, huge hurdles remain.

The developers need to raise $25 million to get the project off the ground. They will be seeking funding through the 2006 voter-approved Proposition 1C bonds aimed at transit-oriented and infill development. They are also looking at other bond financing and the Bay Area Metropolitan Transportation Commission.

The developers of SMART and nearby projects already have invested millions of their own dollars in large part because they sense the opportunity to be part of a visionary project.

“I love the site,” said one developer, calling it “a balance between preservation and the environment.” And the project has “so many uses that are very good for the community,” he said.

The Railroad Square area was once the heart of Santa Rosa, and it could be again.

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Brad Bollinger is editor in chief and associate publisher of the Business Journal. He can be reached at bbollinger

@northbaybusinessjournal.com or 707-521-4251.