Central Subway work starts amid problems TRANSPORTATION Federal funding no slam dunk; critics and merchants might sue

Heavy equipment in place for the construction of the Central Subway project through downtown San Francisco, Calif., along Fourth Street, between Harrison and Bryant Streets, on Friday July 13, 2012. Heavy equipment in place for the construction of the Central Subway project through downtown San Francisco, Calif., along Fourth Street, between Harrison and Bryant Streets, on Friday July 13, 2012. Photo: Michael Macor, The Chronicle Photo: Michael Macor, The Chronicle Image 1 of / 13 Caption Close Central Subway work starts amid problems 1 / 13 Back to Gallery

Noisy, dusty, traffic-tangling construction is under way on the Central Subway, yet uncertainties and challenges continue to dog the $1.6 billion project.

Construction crews are building the staging area on Fourth Street beneath the Interstate 80 skyway, where two tunnel-boring machines will start the excavation of the 1.7-mile subway to Chinatown and debris will be hauled out.

But the Municipal Transportation Agency is still awaiting word on whether - and when - it will get a $942 million federal funding guarantee it's been awaiting for months, and the House of Representatives' transportation bill includes an amendment by Rep. Tom McClintock, R-Elk Grove (Sacramento County), that could take away future funding for the project.

The subway also faces unanticipated challenges in Union Square, where opponents may sue to stop a station in the park, and in North Beach, where merchants are fighting plans to close lanes on busy Columbus Avenue, where the tunneling machines will be removed.

Despite the plethora of problems, transportation agency officials say they're optimistic the Central Subway will move forward.

"The Central Subway will not only improve transportation within San Francisco, but it will also enhance connections to the regional and statewide transit network," said Ed Reiskin, director of transportation for the agency. "The project has been vetted by every level of government and given high marks every step of the way."

The subway, in the works since 2000, is an extension of the T-Third Muni Metro line that will connect the Caltrain station at Fourth and King streets to Chinatown and is projected to carry 35,000 riders a day by 2030.

Last stop: Chinatown

Municipal Transportation Agency officials say the rail line, scheduled to open in 2019, will deliver reliable transit service to the underserved northeastern section of the city, especially Chinatown, which has the city's most transit-dependent population.

Critics such as Save Muni say the project provides too little benefit for too much money and fear that operating it will deplete other Muni service.

Kristen Holland, a transportation agency spokeswoman, said the city expects to get the federal funding guarantee in September. She anticipates the McClintock amendment will be tossed when conflicting House and Senate bills are reconciled in conference committee, probably in the fall.

Critics in North Beach

A more immediate problem is North Beach opposition to plans to dig a big hole to remove the tunnel-boring machines. Although the subway will end in Chinatown at Stockton and Clay streets, the agency approved plans years ago to keep digging to North Beach, making it easier to remove the machines and giving the subway a head start on future extensions to North Beach and Fisherman's Wharf. The agency lacks funds to build a North Beach station or go to the wharf now.

North Beach merchants say they weren't given enough warning of plans to close a single lane of Columbus, between Union and Filbert streets, to relocate utilities, and to shut down two lanes soon after for 18 months of digging. Business owners fear noise, dust and gridlock will drive tourists away.

'Dust flying in the air'

"North Beach is such a great place to live and visit," said Jon Golinger, president of the Telegraph Hill Dwellers. "But you wouldn't want to sit in front of Mario's Bohemian Cigar Store Cafe eating a sandwich with dust flying in the air."

Municipal Transportation Agency officials have met with merchants and Board of Supervisors President David Chiu, who represents the area, to try to work out a deal that will allow construction while satisfying merchants.

Chiu has backed the subway but objects to how the construction will affect his district.

"I'm deeply frustrated by the nonexistent outreach to North Beach, but I am committed to continuing to work with merchants, neighbors and the SFMTA to find a real alternative to the current extraction plan," Chiu said.

Threatening to sue

But if digging starts before merchants are satisfied, some of them are threatening to sue.

City officials already anticipate litigation from subway foes Save Muni challenging plans to build a station in Union Square, based on an arcane section of city law requiring voter approval of any nonrecreational construction in a city park.

The city attorney's office, citing a 1981 court opinion on a sewer project in a park, considers the law inapplicable. Others say the Municipal Transportation Agency could persuade a judge that the subway is recreational because it would take people to and from the park.

Meanwhile, on Fourth Street, pile drivers pound and dust flies as crews prepare to start tunneling early next year. Save Muni wants the transportation agency to stop work at least until federal funding is guaranteed.

"The MTA's motivation is for public relations: to create a sense of inevitability to get funding," said Howard Wong, a member of the group. "They're moving ahead with this to fund their staff rather than protecting taxpayers."