San Diego City Council Tables Mega Shelter Proposal

Hours of public testimony and council discussion ends with direction for mayor to go back to the negotiating table; “A lot more work needs to be done”

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Opponents at San Diego City Hall during the July 22 hearing on the proposed mega shelter on Kettner and Vine. PHOTO: Macy Meinhardt/ Voice & Viewpoint

By Macy Meinhardt, Voice & Viewpoint Staff Writer 

In a high-stakes hearing on whether or not to adopt Mayor Todd Gloria’s bold proposal for a 1,000-bed mega homeless shelter in Middletown, San Diego City Councilmembers voted 7-2 to postpone the agreement of the lease terms, citing the need for more analysis, negotiations, and legal consideration on a real estate transaction of this scale. 

“I can’t support the lease proposed today. There are too many critical questions that remain unanswered in my mind,” said Council President Sean Elo-Rivera. 

Hundreds of community members spoke on the Mayor’s proposal for a 30-year lease on a warehouse space on Kettner and Vine. The space would serve as the largest consolidated homeless shelter in the region. Hours of public comment yielded a mix of support and opposition for councilmembers to weigh as they decided. 

The shelter would be the largest investment the city has ever made, with an annual operation cost of $30 million, monthly rent of $127,000, and an upfront cost of $13 million in renovation to make the space habitable.

Rendering of the shelter in Middletown. PHOTO: City of San Diego Economic Development Department

“We must do our due diligence on real estate transactions that have both a significant financial and programmatic impact. Our resources are limited and we cannot afford another large scale mistake,” said Councilmember Kent Lee, who along with Councilmember Vivian Moreno voted no on the lease terms all together. 

On top of the proposed 1,000 beds, the shelter, dubbed “Hope @ Vine”, would include 134 parking spots, a large commercial kitchen, 67 restrooms and showers, two outdoor dining areas, a smoking area, pet relief, outdoor play area, and offices for service providers. 

Further renderings of the proposed shelter, beds, common spaces, and showers. PHOTO: City of San Diego Economic Development Department

The mayor maintains that the congregate shelter is the pathway to significantly curbing the homeless crisis in the City, which has reached over 10,000 individuals. 

“Last year, 624 people experiencing homelessness died in San Diego County. That’s 12 people a week. One every 14 hours. Unsheltered homelessness is unsafe and unhealthy. That’s why we have shelters to begin with. But our shelters are full,” said Councilmember Stephen Whitburn, who supports the development of a large congregate shelter, while also in agreement that more work needs to be done on the lease terms. 

However, many residents at the meeting slammed the mayor for his proposal, citing concerns regarding safety, neighborhood impact, diversion of funds from other housing programs, and the overall question of whether or not homeless people will be receptive to a large indoor shelter space. 

“A mass shelter is not our solution. We’re asking you today to vote against creating drama and trauma. This is an expensive way to torture people who are experiencing homelessness, and none of us would be willing to go into it,” said one resident, who is currently homeless. 

In addition, many issues identified  in the Independent Budget Analyst’s Office dicey analysis on the shelter proposal were echoed by councilmembers. Key issues raised in the IBA’s report conclude that: the proposed lease is above market rate, lacked sufficient competitive consideration, and failed to present a due diligence checklist, including hazardous material testing. Additionally, the proposal lacks an ongoing operations funding plan and does not align with the Community Action Plan.

“I truly believe the real estate transaction at hand is not one that protects taxpayers,” said Councilmember Lee.  

Council President Rivera made a motion to return the recommended lease terms and come back with the following at next Tuesday’s council meeting:  

  1. Request that the Mayor’s office and city staff work with landlord and Office of the City Attorney to revise the proposed lease and return to council on July 30th with an updated lease agreement for consideration 
  2. Call for the Mayor and the city to declare a state of emergency on homelessness at a special City Council meeting on July 31st 
  3. Call for the Mayor to develop a short term action plan on homelessness to be presented to Council on Sept. 9 
  4. Continue to pursue long-term permanent shelter solutions that incorporate the germs of the City’s Project Labor Agreement 

“I don’t think anything’s off the table right now. I think there’s a lot of work that needs to be done in a short period of time from now until Tuesday,” said District 4 Councilmember Henry Foster. 

The hearing went from 2 p.m. to the late hour of 11:15 p.m. Stretching into the early hours of the morning, Mayor Gloria issued a statement after the vote stating that his administration is “happy” to continue refining the current proposal, saying that it is imperative councilmembers provide specific negotiating points. 

“We have a choice to make, and either choice comes with a cost. We can choose action and open a shelter, or we can choose inaction and leave people on the streets. The cost of action is measured in dollars. The cost of inaction is measured in human lives,” said Councilmember Whitburn. 

Voice & Viewpoint will continue to follow and provide updates of the Council and Mayor’s decision on the proposed mega shelter. Feel free to email us your thoughts at [email protected]