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Committee clears authority to negotiate Caltrans leases for two temporary navigation centers
Summary
The committee authorized real estate staff to negotiate leases with Caltrans for two temporary navigation centers—Division Circle (125 beds) and Fifth & Bryant (80 beds)—and heard funding and cost estimates including a $10 million state allocation tied to Division Circle and an estimated $7.9 million development cost for some sites.
The Budget and Finance Committee on Feb. 1 endorsed a resolution authorizing the Department of Real Estate to negotiate purchase, sale or lease agreements with Caltrans to house temporary navigation centers for people experiencing homelessness.
John Updike of the Department of Real Estate framed the item as lease negotiations for two Caltrans properties: a Fifth & Bryant on-ramp facility and Division Circle (246 South Van Ness). "This would enable us to move forward with that without further board authority," Updike said, while noting the city's code limits his signing authority to one-year leases and renewals if necessary.
Emily Cohen of the Department of Homelessness and Supportive Housing outlined project designs for the two sites: Division Circle would be a temporary structure serving about 125 people, and Fifth & Bryant would use modular trailers for roughly 80 people. Cohen said $10 million that Assemblymember Phil Ting helped secure at the state level will be used for Division Circle and related Bayshore work; other funds will support Fifth & Bryant.
The Budget Analyst said development costs for the two Caltrans sites were estimated at about $7.9 million, and combined operating costs were likely to exceed $7 million per year. The analyst recommended approving the resolution giving negotiation authority but suggested care about sites that have not yet been fully identified.
Public comment was supportive of the proposal as a needed response to visible homelessness. The committee moved the item to the full board with a positive recommendation and as a committee report.
Next steps include negotiating lease terms with Caltrans, confirming site-specific funding, and returning to the board for final authorizations and appropriation of operating funds.
