The Middletown Mega Shelter Plan Is Dead

Mayor Todd Gloria’s plan to transform a Middletown warehouse into a 1,000-bed homeless shelter campus is officially dead. 

After months of holding on, Gloria finally acknowledged the obvious on Friday: The Hope @ Vine shelter concept expected to cost the city about $30 million to operate each year and millions more to lease is no longer viable. A massive city budget deficit for the upcoming fiscal year likely loomed large in that decision. 

“After a year of negotiations and multiple hearings, we have come to the conclusion that the proposed homeless shelter campus at Kettner and Vine can no longer advance,” Gloria said in a Friday statement. 

Gloria emphasized that he remains committed to delivering new shelter beds. City officials are set to present other options to the City Council on Monday. 

Among them, Gloria said Friday, are a private property on Second Avenue that the city could lease, the old Central Library and the City Operations Building which now houses a fire station and city permitting staffers and planners who are set to move out in coming months.

Gloria’s announcement about the Kettner and Vine shelter ends his nearly year-long campaign to get a largely reluctant City Council to sign off on a pricey lease deal and a shelter plan that drew criticism from homeless advocates and neighbors. 

Gloria’s mega-shelter pitch ignited controversy almost immediately after his April press conference outside the roughly 65,000 square foot former print shop at Kettner Boulevard and Vine Street. Real estate pros quickly criticized proposed above-market lease rates and questions swirled about the warehouse owner’s intentions. Homeless advocates and nearby Mission Hills residents chimed in with concerns about whether the city could successfully operate such a large shelter. 

Last July, after nabbing more favorable terms that were still above market rate, Gloria took a deal to city councilmembers that he argued would allow the city to site a longterm shelter at a unique and ideal location. City budget analysts and attorneys slammed the lease proposal. The City Council ultimately voted 7-2 to postpone its vote on the mega-shelter lease after a slew of questions and follow-up requests. 

The City Council hasn’t taken a public vote on the proposal since.  

Gloria said this fall that the city had negotiated a better deal with property owner Douglas Hamm, a real estate investor, after getting input from councilmembers and that he still hoped to move forward. 

“The deal terms are getting more favorable – from my perspective – for the city. As soon as we have a deal that I can stand behind, I’ll take that back to the City Council,” Gloria told Voice of San Diego in October. “If we can’t get one, and that’s a possibility, then we’ll cease negotiations and we’ll move on to other options.” 

The failure of a proposed city sales-tax hike in November – and likely, less than favorable feedback from the City Council during the latest of many closed-door briefings on the shelter pitch in December – cemented the death of the Hope @ Vine plan. 

That same month, some councilmembers publicly expressed frustration that Gloria’s team had penciled the shelter plan into the city’s five-year budget outlook despite a lack of City Council approval. 

Now Gloria has acknowledged the mega-shelter isn’t happening. 

Hamm, who for months held on and continued talks with the city amid significant criticism, expressed disappointment.  

Hamm put his warehouse property on the city’s radar via a cold email in October 2023 that noted he thought it could be uniquely suited to help address the city’s homelessness crisis given its size, location and the fact that it isn’t in the immediate vicinity of any homes or businesses.  

“From day one, I believed the property at Kettner and Vine had the unique attributes to be part of that solution and improve the lives of thousands. I still believe that, even as it has become clear that a deal with the city is no longer viable,” Hamm wrote in a statement. “While I’m disappointed in this outcome, I’m proud of the thoughtful effort we put forward. ‘Hope at Vine’ was an ambitious idea grounded in a genuine desire to do what’s best for both the property and the neighborhood.” 

Gloria expressed similar sentiments on Friday – and said he remains committed to opening more shelter beds. 

“While I continue to believe the proposed shelter at Kettner and Vine was the best and most cost-effective option for a permanent shelter program, I remain firm in my commitment to expand shelter,” Gloria wrote in a statement. “Getting people off the streets and out of the riverbed and canyons is not optional. That is why we are continuing to push forward with real solutions, identifying new sites and taking the necessary action to bring more people indoors.”