The cost to rehab the dilapidated buildings at Pier 70 in the Central Waterfront area has jumped from $58 million to $74 million. The rising cost is not surprising given that the deal was originally estimated to be around $100 million. What's surprising is the reason for the cost increase. "The developers actually took a closer look at the various abandoned buildings and realized just how tough it was going to be to keep them from tumbling down around everyone's ears." Basically Orton Development, the group leading the rehab project, bid the job without knowing exactly what was needed to repair the 6 crumpling buildings, and the city accepted a bid without making sure the numbers were remotely accurate. Further, per the contract, the developer gets to recoup all costs before the city gets any money at all. That said, nobody at the Port Commission seems too upset. Project Manager Kathleen Diohep thought the project was going to be a city subsidy but "now it looks like we might make a little money a ways down the road."
·Price tag rising for rehabbing crumbling buildings at Pier 70 [SFGate]
·Pier 70 Project Finally Finds a Taker [Curbed SF]