SAN DIEGO — A new city report is raising questions about the potential $30-plus million annual cost for San Diego Mayor Todd Gloria’s 1,000-bed homeless shelter at Kettner Boulevard and Vine Street.
The Office of the Independent Budget Analyst said in an 18-page report that the deal brokered between the mayor and developer is above market rates. That means it's more expensive than comparable rental properties.
Further, it said money would be diverted from new affordable housing – considered a more permanent long-term solution to homelessness, the report said.
ABC 10News obtained the report Tuesday, which also raised questions about how the deal came about and if the city should seek competitive bids for such a massive project.
The report comes as Gloria, a Democrat, has touted the mega shelter as a key cornerstone project to getting re-elected in November.
Gloria declined to be interviewed.
The report also said the shelter could take money from other city services.
And it encouraged the city to seek bids for a massive shelter, while it also noted that smaller 100-bed shelters have produced better results.
Opponents of the shelter told ABC 10News they plan to hold a press conference Friday to continue their fight to not have the shelter near their homes.
The City Council is scheduled to consider the plan at its July 22 meeting.
“Transparency in real estate transactions is critical to protecting the City and avoiding the mistakes of the past,” said Council President Sean Elo-Rivera. “After several weeks of discussion in closed session, it is important for members of the Council to see the terms of the deal and address the proposal in a public setting.”
Click here for the full report.
