At the site of the proposed 1,000-bed homeless shelter building on Kettner Boulevard and Vine Street on Monday morning, there were two events going on simultaneously.
On one side of the 65,000-square-foot building, concerned citizens and local residents held signs that said things like, "Protect our Community" and "Stop the Mega Homeless Shelter at Kettner and Vine."
"I am completely against this," said nearby resident Ed Moore. "I think it destroys neighborhoods. I don’t think it will have the beneficiary effects for people that Mayor [Todd] Gloria wants it to have. I am scared to death of this thing."
On another side of the building, community activist Shane Harris was holding a rally not to target the location of the proposed shelter but, rather, the financials of the proposed lease agreement.
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"I wholeheartedly oppose a lease agreement that will tie San Diegans' hands for decades to come,” said Harris, president of the People's Association of Justice Advocates.
Harris proposed that any city council vote on the lease be suspended for at least 60 days, during which time the city will hold community input sessions in all nine council districts to discuss the lease terms.
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"I am not against the unsheltered, but I am for protecting the management of money and city resources that people have an investment in," Harris said. "We have a history in this city of mismanaging resources.”
The city council discussed Harris’s proposal and the financials of the lease Monday in a closed-door session. According to the Union-Tribune, developer Douglass Hamm recently bought the building for $13 million. Under the terms of the lease revealed earlier this month, he would lease the site to the city for 35 years beginning, at $1.9 million a year, with increases of 3% each year. The property would cost the city roughly $92 million in rent over 35 years.
Gary London a senior principle with London Moeder Advisor, is a real-estate investment advisor who pays attention to San Diego real estate transactions.
San Diego mega-shelter floor-plan gallery
"It appears the city is paying about three times the value for this site," London said. "They’re probably overpaying the lease by at least a dollar a square foot.”
London said that, not only is the cost to the city higher than average for industrial space, but it would be better served using city-owned land for the shelter.
"I think the deal has to see a lot of improvements before it passes my real estate smell test," London said. " It seems like a lot of financial lift when there are viable alternatives.”
A city spokeswoman confirmed to NBC 7 on April 5 that retrofitting the 65,000-square-foot vacant commercial building at Kettner Boulevard and Vine Streets would cost the city an estimated $18 million.
There has been no forum for public debate on this project, which is a point of contention for local residents. That is expected to change at an upcoming city council meeting, during which officials will publicly discuss the project before any vote is taken.
Project at a Glance
- 1,007 beds
- 5,060-square-foot kitchen
- 67 showers
- 67 restrooms
- Outdoor dining areas for 180 people
- Smoking area
- Pet-relief area
- 1,200-square-foot outdoor play area
