SAN DIEGO (KGTV) — San Diego Mayor Todd Gloria plans to put a 1,000-bed homeless shelter on a property at Kettner Boulevard and Vine Street, at the edge of Little Italy, and not far from the San Diego International Airport. The San Diego City Council is scheduled to hear the proposal early next week. But that will come after a published review from the City's Independent Budget Analyst which claimed the city is overpaying for the lease.
The Office of the Independent Budget Analyst issued the report on July 15. It questions the city's deal, the effectiveness of a large shelter, and the cost of running the facility.
The independent budget analyst says the rate the city agreed to for the building is not the market rate. Gloria, speaking to reporters Wednesday, strongly disagreed.
"With all due respect to our independent budget analyst, he's wrong," Gloria said. "You can find market comps in the area that show more than that. There is a parcel that is very similar to what we're proposing at Kettner and Vine just a few blocks away. It's currently on the market for $2.25 per square foot. A reminder, the lease that we have struck is at a $1.95 per square foot."
The report also noted that smaller shelters have been more successful than one large shelter, like the one Gloria is proposing. Gloria said he understood that but pointed out it is more cost-efficient to purchase one property, and it would incredibly difficult to find enough properties to address the need.
Based on the report's information, ABC 10News asked Gloria if perhaps setting up 10 shelters instead of one large shelter is a better option.
"You're suggesting 10 separate sites while criticizing my proposal for being too expensive, but not necessarily explaining how you're going to cover rent payments at 10 locations," the mayor said.
Neighbors like Patty Ducey Brooks oppose the plan.
"We shouldn't be paying this kind of rent for this property," she said. Ducey Brooks feels the budget analyst's report amplifies many of the concerns neighbors have been raising for months.
"A 1,000-person facility is dangerous. It's toxic on its own. You can't put that many diverse populations together and make it work," she said.
Gloria, though, says this is the best way to tackle the homelessness crisis. The report claims the shelter would cost $30.7 million per year to run. Gloria believes that number needs context. He points out the report does not detail the amount the city spends on services now to help the homeless, like ambulance rides, paramedic help, city clean-ups, and emergency room visits.
Despite the report, Gloria's proposal is slated to be heard by the City Council next week. Council President Sean Elo-Rivera is not glossing over that report either.
"This is why we, as the council, empowered the independent budget analysts to bring on expert real estate analysis, to ensure that the council is well informed before we make real estate decisions," Elo-Rivera told ABC 10News. "What the independent budget analyst said in the memo is something that gives the whole council a lot to think about."
Elo-Rivera praised the report as he continued to explain where he stands ahead of a potential vote.
"I am concerned about the above market rate," he said. "There's a number of concerns and I think that the independent budget analyst did a very good job of laying those out."
Gloria said he answered reporter questions on the budget analyst review Wednesday, hoping to clear the record.
"What I have to do now is make sure that the facts are out there," Gloria added.
But those facts are being viewed differently, especially in the budget analyst's report. "There's so many damning elements to the report," Ducey Brooks said. "You can't just pull one thing out and say, 'this is the worst.' It's just, it's a very bad plan in every aspect."
