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The cost to San Rafael of the Andersen Drive crossing of the Larkspur-San Rafael segment is significant.

The street was extended by San Rafael in the mid-1990s to cross the tracks on a "temporary road." In July 1997, the California Public Utilities Commission informed the city that by the time SMART planned to operate on the section, the city had to build and pay for restoring the crossing.

The estimated cost for that was million in 2012.

In 2010, the agency received a federal earmark of .5 million for technical, environmental and engineering design on the segment.

In late 2011, the SMART Board authorized the sale of bonds, with the proceeds to be put into an escrow account until the fate of the effort to repeal the sales tax was decided.

In January 2012, SMART completed final negotiations to start rebuilding the 43-mile (69 km) Initial Operating Segment (IOS) between Airport Blvd Santa Rosa and the Civic Center Station in San Rafael at a cost less than originally budgeted.

Because it lacked the 2/3 majority needed for passage, that measure failed.

Sonoma-Marin Area Rail Transit (SMART) is a passenger rail service and bicycle-pedestrian pathway project currently under construction in Sonoma and Marin counties of the U. When complete, it will serve a 70-mile (110 km) corridor between Cloverdale in northern Sonoma County and Larkspur Landing in Marin County.

The SMART District was established by state legislation in 2002.

This funding was initially thought sufficient to bring the line to completion by 2014, but the economic downturn resulted in a plan to build the project in phases.

In November 2006, Measure R, a proposal for funding though an increase in sales taxes, received a combined 65.3% "yes" vote in the two-county District, with 70.1% in favor in Sonoma County and 57.5% in favor in Marin County.

The first phase to open, a 43-mile (69 km) segment between Northern Santa Rosa and Downtown San Rafael, had long been planned for late 2016,) of an area in Novato known as the “Mira Monte Marina.” The purpose of this purchase is to restore the area and preserve tidal wetlands and habitat, which is all a part of SMART’s environmental mitigation program.

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According to SMART General Manager Farhad Mansourian, “This will not only address the 2.2 acres (8,900 m) of project impacts that were determined through the environmental review process for the next stage of construction, but ensures a local source for potential future mitigation needs for the rail and pathway project.” Measure Q, a 0.25% sales tax, passed by voters of the two Northern California counties in 2008.