San Diego mayor agrees massive shelter proposal needs further review

California Construction News staff writer

San Diego Mayor Todd Gloria’s proposal to convert a 65,000-sq. ft. commercial building into a massive 1,000-bed homeless shelter and resource campus will return to city council in September.

Gloria last week announced a tentative 30-year lease deal for the site, at a cost of $1.95 per sq. ft. and an estimated $12.5 million in facility maintenance costs over the term.

However, after more than seven hours of public testimony at a council meeting, the “Hope @ Vine” proposal was shelved for more work and another review by council in a few weeks.

“The city would be making $72 million to $73 million in lease payments, not including additional maintenance and property taxes,” Independent Budget Analyst Charles Modica said at the meeting. “We would be paying $13 million to $18 million for upfront tenant improvement costs.

“The present value of those amounts in today’s dollars total $47 million for leasing a building whose combined purchase and improvement costs total $31 million.”

Mayor Gloria released a statement on July 25 saying he respects the need for further work and review on the proposal.

“In that time, we will continue to work with the City Attorney’s Office to address the feedback we’ve received from the city council, as well as convene the working group to develop a design and preliminary operations plan,” he said.

“As Mayor, I am resolute in further expanding shelter because the status quo on our streets is unacceptable. In September, it is my hope the city council will share the same goal.”