
Please contact Every Council Person and attend the City Council Vote on Monday July 22 2pm . This is the LAST Vote and chance to Stop this Proposal.
Please take action Now!
CITY COUNCIL PLANS TO VOTE MONDAY ON KETTNER AND VINE LEASE
MONDAY July 22nd, 2PM
202 C Street
12th Floor
Bring your signs. Opportunity to speak during public comment or cede your time to others.
CITY OF SAN DIEGO INDEPENDENT BUDGET ANALYST REPORT AND
CITY ATTORNEY WARNINGS TO COUNCIL MEMBERS
The City Council is planning to vote MONDAY on the Lease Agreement for the Kettner and Vine Shelter. The San Diego Independent Budget Analyst released a detailed report this week and we have included a few excerpts below. In addition, according to CBS 8 the City Attorney issued a warning to city council members about several red flags concerning the lease.
The City of San Diego Independent Budget Analyst released a report this week regarding Kettner and Vine, following are a few excerpts.
Proposed Lease is 25% above market rates
As part of the final lease terms, at the City’s expense the owner would complete tenant improvements to the building that are expected to total slightly less than $18.0 million, as will be detailed in the proposed lease as Exhibit B. Notably, Exhibit B is not available for review at the time of this writing (of the Budget Analyst's report) and is pending additional negotiation.
The proposed lease is not competitive with market rates for similar properties and is likely to further trend above market due to the high annual rent escalator
Underlying Process for Identifying Shelter Properties Lacks Competition
Due Diligence Conducted but May Lack Independence
Hazardous materials, such as asbestos and lead, were not tested at the proposed site. The landlord, however, will be responsible for any remediation measures, if required, including any remediation required to complete tenant improvements, prior to substantial completion. After the Substantial Completion Date, the City will be responsible for the remediation cost.
Proposal Lacks Ongoing Operations Funding Plan, Estimated to Cost up to $30.7 Million Annually
Specifically, the funding identified for the upfront Kettner and Vine tenant improvements would be diverted from new affordable housing, which is considered a more permanent long-term solution to homelessness.
Council may wish to evaluate the merits of the Kettner and Vine proposal, given that positive program outcomes will likely be more challenging to achieve with such a large shelter site.
Link to CBS 8 - https://www.cbs8.com/article/news/local/san-diego-city-attorney-finds-flaws-in-lease-of-kettner-and-vine/509-99d0f82e-f72d-4a3d-84a3-c6e49f3f1390
There is a real opportunity to tell the council members not to vote in favor or Kettner and Vine. Please plan on attending the meeting Monday afternoon.
Respectfully,
NO ON KETTNER AND VINE
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