Boring Company Now Offering up to $60M for First Tunnels in San Antonio
The Boring Company has offered to spend up to $60 million USD of its own money to kickstart construction on its proposed transit tunnels in San Antonio as talks with the Alamo Regional Mobility Authority (RMA) continue — reports the San Antonio Express News.
Elon Musk’s Boring Co. has proposed a loop of tunnels to transport passengers between the San Antonio International Airport and downtown in Tesla electric vehicles (EVs). The company estimates the entire project could cost $247 million to $289 million.
Once completed, the Boring Co.’s projections indicate the loop could carry as many as 112,000 passengers daily on a route along U.S. 281, generating an annual revenue of up to $25 million for the Alamo RMA. These estimates assume that 10% of travellers who land at the airport will use the transit tunnels.
The tunnelling company originally offered $27 million to $45 million to start the project, according to Bexar County Engineer Renee Green. However, that offer has now been upped by about $15 million on the top end to sweeten the pot.
“That’s a lot of money that’s not coming from taxpayers to improve community transportation,” Alamo RMA Chairman Michael J. Lynd, Jr. said on Wednesday. “I don’t see anybody else coming and giving us $50 million that’s not funded by taxpayers in some way, shape or form.”
Lynd said earlier this week that negotiations with the Boring Co. have split the loop project into two segments. Alamo RMA Secretary/Treasurer David Starr said the $60 million offered by the Boring Co. are for the first phase of construction.
Negotiations with the Boring Co. began in March after the agency’s board voted in favour of exploring the potential project. Even so, the two parties are yet to sign any agreements. RMA officials have also remained largely quiet on the progress and status of the potential venture.
That said, continuing discussions and the Boring Co.’s raised offer suggest the discussions are advancing. In addition, Secretary Starr said this week that the Boring Co.’s determination and higher offer lend credibility to its plans.
“If the Boring Co. is willing to put the money into a project to prove out the project and expose themselves for $50 million to $60 million to prove out the project, that should be some credibility,” he said.