San Diego’s $1 Billion-Plus Homeless Shelter Program Faces Scrutiny

San Diego’s $1 Billion-Plus Homeless Shelter Plan Faces Scrutiny

San Diego Mayor Todd Gloria’s ambitious plan to convert a long-vacant warehouse into a 1,000-bed homeless shelter has hit a roadblock as key policymakers raise concerns over the lack of details surrounding the project.

The $1.9 million annual lease for the 65,000-square-foot warehouse, which sold for $13 million, has raised eyebrows due to its escalating costs over the next 35 years. With payments exceeding $92 million, and additional costs for extensions, the shelter would cost the city over $1.1 billion.

The mayor has not specified how the annual $30 million operating costs will be covered, leading to questions about the city’s spending on homelessness. A recent state audit found that San Diego failed to properly track spending on homelessness programs.

While Gloria touts the shelter as a key part of his plan to address homelessness, critics argue that the focus should be on creating more housing and assistance programs to prevent homelessness in the first place.

The proposed shelter has also raised concerns about the city’s past real estate deals, particularly the controversial 101 Ash Street transaction that cost taxpayers over $200 million.

As the city grapples with a structural budget deficit and potential cuts to existing homelessness programs, the lease for the new shelter site has been postponed for further review.

City officials, including Council President Sean Elo-Rivera, are calling for a thorough vetting of the lease terms and operational plans before moving forward with the project.

The mayor’s office maintains that the shelter will have a positive impact on the city’s homelessness crisis, but critics are urging caution to avoid repeating past mistakes in real estate deals.