The agreement calls for Hines to pay $160 million within 90 daysof the tower being approved by the San Francisco Board ofSupervisors–which is slated to occur in late 2009–and the remainderin $3 million annual installments over the ensuing five-year-period. Under the original offer, Hines was going to pay its $350million only after it achieved 50% preleasing, the typical hurdlefor construction financing.

In addition to the $235 million, Hines would pay the TJPA 0.5%of the building's NOI for 66 years, which is expected to total $10million. Beyond that, the agreement calls for Hines to pay the anadditional $50 million to build a park next door, atop the new masstransit terminal for which the TJPA hopes to break ground in2010.

Hines SVP Paul Paradis tells GlobeSt.com that the TJPAoriginally wanted the highest possible price for the developmentsite, which meant not selling it to the developer until after theprojected was approved, the preleasing hurdle had been met andfinancing had been secured.