San Diego Mayor Scraps Plan for Large Homeless Shelter at Warehouse

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San Diego Mayor Scraps Plan for Large Homeless Shelter at Warehouse
Homeless ShelterSan DiegoMayor Gloria
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Mayor Todd Gloria has abandoned a plan to convert an empty warehouse into a shelter for over a thousand homeless individuals in San Diego. Facing significant opposition and financial concerns, the project has been put on hold. The city is now exploring alternative locations for a new shelter, including two city-owned properties and a privately owned site.

A plan by San Diego 's mayor to transform an empty warehouse into a shelter for over a thousand homeless individuals has been abandoned. After a year of negotiations and multiple hearings, Mayor Todd Gloria announced that the proposed homeless shelter campus at Kettner and Vine could no longer proceed. Gloria initially unveiled the idea in April of last year, stating that 'It is inhumane to leave folks on the sidewalk. It is far better to get them indoors, connected to care.

' The shelter, planned for the Middletown neighborhood, faced immediate controversy. Critics pointed to its substantial annual cost, estimated in the multimillions, while residents expressed concerns about the influx of unhoused individuals accessing the services offered. The city will now present alternative proposals to the San Diego City Council, including a privately owned property on Second Avenue requiring lease negotiations and two city-owned properties: the old Central Library and the city operations building. The old library is located at 820 E. Street downtown, while the city operations building is situated on First Avenue between A and B streets, across from City Hall. While Gloria maintains that the Kettner and Vine shelter was the most cost-effective option for a permanent shelter program, he remains dedicated to expanding shelter capacity. He stressed that 'getting people off the streets and out of the riverbed and canyons is not optional. That is why we are continuing to push forward with real solutions, identifying new sites and taking the necessary action to bring more people indoors.' The city council postponed a decision on the shelter in July after facing criticism for months. A city spokesperson revealed in June that refitting the 65,000-square-foot vacant commercial building would cost approximately $18 million, with an initial annual operating expenditure of $30 million, excluding a $1.9 million annual lease payment for a 35-year term. The city's Independent Budget Analyst (IBA), an independent office responsible for reviewing and publishing reports on the mayor's budget, advised the council to exercise caution, warning that the deal could result in another costly real estate misstep similar to 101 Ash Street. The IBA acknowledged the need for shelter space but cautioned that the lease rate was above market value, potentially costing San Diego $72 million over 30 years. 'The proposal represents an opportunity to change the city's current approach to shelter by pursuing permanent emergency shelter and potentially provide needed replacement and new shelter beds,' the IBA report stated. 'However, the proposal also comes with an above market rate lease, as well as significant upfront and ongoing costs associated with rent, lease operating, tenant improvement and program operating costs.' The city council revisited the proposal in December during a closed session. Specific details regarding the negotiations remained undisclosed to the public as they pertained to confidential matters. However, Charles Modica, the city's independent budget analyst, urged city leaders to explore all available options. 'Council should consider any and all proposals in the context of the city’s overall finances and the $258 million shortfall projected for the upcoming fiscal year,' Modica stated.

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