Taxpayers Association Joins in Opposition of Proposed Kettner and Vine Shelter Lease

Ahead of the City Council’s meeting Monday afternoon, the San Diego Taxpayers Association is the latest group to call for a delay in approving the proposed 30-year lease for a 1,000-bed homeless shelter.

The planned lease of the former print shop at Kettner Boulevard and Vine Street in Middletown would create the city’s largest homeless shelter yet. But an analysis released Friday by Independent Budget Analyst Charles Modica and City Attorney Mara W. Elliott has raised concerns.

The report acknowledges the need for shelter space, but says that the cost of the shelter would be above market rate. Over the course of the 30-year lease, San Diego would pay $72 million in rent.

Additionally in the proposal being presented to the council, the city would have authorization to spend up to $18 million to renovate the structure for planned utilities. These utilities include a commercial kitchen, laundry facilities, dining areas, indoor and outdoor recreation areas, showers and restrooms.

Annual operating costs are estimated to be at $26.4 million with onsite services including job training, meals, housing navigation and behavioral health services.

The taxpayers association, a nonpartisan group of individuals who work to promote effective government on behalf of all taxpayers within the county, have their own concerns surrounding the report. In a statement released Monday morning, the association declared that taxpayer interests are one of the many issues not considered by the current plan.

“Delaying and going back to the drawing board is an opportunity for the city of San Diego to show taxpayers it is learning from its past real estate blunders,” said Haney Hong, president and CEO of the taxpayers association. “But the fact that we’re here nonetheless shows the city has a long way to go to earn taxpayers’ trust with their dollars.”

The taxpayers association is urging the council to address multiple concerns, including how the cost of the lease was assessed and the failure to issue a request for proposals to explore more competitive options. And, like other critics, the association urges reconsideration of whether the property’s temporary lease term is the best way to reach the city’s long term goals around homelessness.

The City Council is scheduled to vote on the Kettner and Vine lease on Monday, July 22. at 2 p.m.

City News Service contributed to this report.