The warehouse at Kettner and Vine proposed for a new homeless shelter is seen through a security fence, June 26, 2024.Chief among the IBA's concerns is the rent the city would pay to lease the 65,000-square foot warehouse, which is sandwiched between Interstate 5 and the San Diego International Airport.
The property owner, Douglas Hamm, has agreed to chip in $5 million to help cover the estimated $18 million price tag of installing new bathrooms, showers, a commercial kitchen, an improved HVAC system and other improvements. The city would also not pay any rent until 19 months after the start of the lease.
Independent Budget Analyst Charles Modica told KPBS he disagrees with city staff's decision not to conduct an independent appraisal of the property. Staff said such an appraisal is warranted only when the city is purchasing a property, but not for leases.