San Diego council asks IBA, Housing Commission and staff to analyze downtown shelter site and pursue Veterans Village expansion

San Diego — The City Council on Feb. 10 directed city staff, the San Diego Housing Commission (SDHC) and the Independent Budget Analyst (IBA) to analyze potential shelter solutions and pursue specific near‑term bed expansions following a staff presentation on candidate sites.

Sarah Jarman, director of the Homelessness Strategies and Solutions Department, presented options staff had identified through an RFQ/RFI and council referrals, noting both near‑term conversions and longer capital projects. Staff recommended three sites for further evaluation: the City Operations Building (preliminary build‑out estimate ~$45.2 million; ~46 months), the Old Central Library (internal, class‑5 rehab estimate ~$86.8 million; ~46 months), and a privately owned mixed‑use property on 2nd Avenue (staff said tenant improvements would likely be minimal and estimated a 9–12 month timeline if pursued).

On operating cost estimates, staff provided rough averages for per‑night costs by type: safe sleeping sites (~$47 per space/night), congregate shelters (~$74/bed/night), semi‑congregate (~$81/bed/night), and non‑congregate (~$102/bed/night). Jarman also identified ongoing efforts that replaced soon‑to‑be‑lost capacity and noted an expected opening this spring of expanded safe‑parking (H Barracks) and a future Rachel’s Promise Center for Women and Children (roughly 210 beds; housing commission to review this Friday).

Public testimony: More than two dozen speakers urged faster action and varied approaches. Advocates with lived experience recommended smaller shelters and more supportive services; housing developers and operators urged cost‑effectiveness and questioned multi‑year timelines for large retrofits. One speaker urged the council to consider a 1,000‑space parking lot at Silver Strand State Beach as a temporary option; others raised concerns about moving large numbers into single facilities and asked for cost‑benefit analyses.

Council action: After discussion about cost, timelines and equity, Councilmember Whitburn moved — Councilmember Elo Rivera seconded — to request the IBA work with HSSD, SDHC and the City Attorney to: (1) analyze how the 2nd Avenue (Catholic Charities / privately proposed) site could be financed and what the city’s 30‑year costs would be; (2) pursue options with Veterans Village of San Diego (VVSD) to expand beds; and (3) direct staff to pursue redevelopment options for the Old Central Library through the Surplus Lands Act process so the market can indicate redevelopment potential. The motion also asked staff to return with findings and cost estimates. The motion passed unanimously, 7–0 (Councilmembers Campbell and Campeo absent).

Why it matters: Council and staff stressed urgency — shelter capacity frequently operates at or near capacity and the city recently had to replace beds quickly when sites closed — but several councilmembers expressed concern about large capital projects with long timelines and high estimates. The action balances near‑term expansion options (like VVSD and the 2nd Avenue property) with a direction to test long‑er options through established processes for surplus city property.

Next steps: Staff and the IBA will produce analyses of the 2nd Avenue financing and 30‑year cost projections, pursue discussions to expand beds with Veterans Village, and continue the surplus‑lands process for the Old Central Library; the council asked for updates to be returned in coming months.

Sources: HSSD presentation to City Council, Feb. 10, 2025 (Item S‑400); public testimony and council motion recorded in meeting minutes.