Proposed 1000-bed shelter at Kettner and Vine

In the next few years the city will lose 1,602 shelter beds, as redevelopment plans elbow out the old central library women's shelter, 16th and Newton, and others.

One big solution? A proposed 65,000 square foot 1,000 bed mega-shelter at Kettner Boulevard and Vine Street in Middletown that would veer from the current scattered site approach (opponents refer to the block-long facility as "concentrated poverty").

Councilman Raul Campillo: "We really need a far better price."

City of San Diego

But the Hope at Vine shelter, set to be voted on by the city council on Monday, has faced intense opposition. After hearing from 100 speakers, followed by a long debate into the night, the council voted 7-2 (Lee and Moreno voting no) to delay a potential vote until next week to allow more analysis and negotiation of the terms.

"We really need a far better price," said councilmember Raul Campillo, citing the substantial improvements the city will have to make to the building, which will cost $73 million dollars in rent and an estimated $12,468,288 in operating expenses from the General Fund over 30 years.

Douglas Hamm, the developer who owns the building, said he was agreeing to a deal that is "in fact below market." After receiving multiple offers for it, he has "realized it's perfect for the city's biggest need. It just does not exist anywhere else in San Diego," he said, describing it as having "a sanctuary feeling on one side."

The project has the potential to include a wide range of services onsite, officials said — a key to success. The Convention Center, which had significant wraparound services when it housed people during Covid, had a 36 percent positive exit rate, claims the city.

Charles Modica: "We have not seen testing for asbestos or lead at this site."

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"I oppose any plan that doesn't have a direct path to permanent housing," said Joy Banks, a resident who has "lived experience." Last year, 600 unhoused San Diegans died on county streets. "Hope at Vine is real action," said mayor Todd Gloria. "It will significantly enhance our capacity to address homelessness."

Opponents of the project include the San Diego Taxpayers Association, while an analysis released by City of San Diego's independent budget analyst Charles Modica and City Attorney Mara Elliott listed concerns such as the lease being over market rate for comparable properties.

"I think it's critical to review the city's condition assessment of the building," Modica said at the meeting. Other concerns he raised: The lease and tenant improvements need more review. Also, the city has not had a competitive bidding process. And no appraisal has been done.

It will take $18 million in up-front improvement costs to convert the building to a shelter. "We have not seen testing for asbestos or lead at this site," Modica said.

When and if it passes, it will still take several months to come online, councilmember Joe LaCava said. City staff said they would continue looking for other options, and the potential to expand safe sleeping lots.

Former state assemblywoman Lori Saldana pointed out that the state auditor found that in 2020-2023, San Diego had millions of dollars unused that could have been spent on housing people. "This is sounding more like Ash Street, throwing good money after a bad business deal. This is not politics, this is people's lives."