Inside the commercial building at Kettner Boulevard and Vine Street in Middletown on Thursday, April 4, 2024. / Photo by Vito di Stefano for Voice of San Diego

Mayor Todd Gloria’s office late last week called off a crucial Thursday hearing on a proposed plan to transform a warehouse near downtown into a 1,000-bed shelter following questions about the proposed lease deal.

Our Lisa Halverstadt broke the news Friday that Gloria’s office decided not to brief the City Council’s Land Use and Housing Committee on a proposed 35-year lease for the Middletown warehouse after the Independent Budget Analyst’s Office raised “an issue that merits additional analysis and possibly negotiation.”

Independent Budget Analyst Charles Modica told Halverstadt his office has significant questions about the lease, including whether the proposed lease payments match market rates. City Council President Sean Elo-Rivera, meanwhile, said he wants to ensure the City Council gets a closed-door briefing on the proposed lease before it votes on the deal.

Read the full story.

In sorta related news: The city’s 101 Ash St. debacle and the city’s history of real estate scandals have fueled concerns about Gloria’s shelter pitch. On Friday, the Union-Tribune revealed the city has halted talks with a real estate developer who wanted to turn the infamous tower into a residential project.

Bill Aims to Force State Accountability for Sexual Predator Placement

San Diego backcountry communities have fought the release of sexually violent predators in their neighborhoods for years. A new bill might help them do that. 

On Tuesday, the Senate Public Safety Committee approved a bill by State Sen. Brian Jones to force the Department of State Hospitals to take ownership of the process for placing violent sex offenders in housing. SB 1074 would require the director of state hospitals to sign off on rental leases before they’re signed, and make public safety a top priority in placement of sexually violent predators, known as SVPs.

Our Deborah Brennan has more on what you need to know about the bill in the latest Sacramento Report. Read more here.

The Mayor’s Budget Proposal

Mayor Todd Gloria in downtown on Jan. 10, 2024. / Ariana Drehsler for Voice of San Diego

Mayor Todd Gloria on Friday unveiled a proposed budget that relies on a series of one-time moves and cuts to close a projected $137 million deficit.

Among those moves, as detailed by the Union-Tribune: nixing $30 million in planned rainy day fund contributions, pulling $15 million from the city’s housing agency and skipping an annual contribution to a fund backing climate-friendly projects in low-income communities to free up $8.5 million.

Also on the chopping block for the fiscal year beginning in July: the city’s Office of Immigrant Affairs and its Cannabis Social Equity Program plus smaller cuts to other programs and departments.

There are some additions: The U-T reports that the budget includes about $18 million for the proposed mega shelter and a new safe parking site near Liberty Station for people living in vehicles, roughly $60 million for emergency flood prevention.

What’s next: Gloria is set to present the budget to the City Council later this month. The City Council will hold budget hearings in early May and then Gloria will release a revised budget on May 14. The City Council must vote on the proposed budget by mid-June.

VOSD Podcast: Things That Used to Be Things

This week on the VOSD Podcast, hosts Scott Lewis, Andrea Lopez-Villafaña and Jakob McWhinney discuss the endorsement battle that threatened to splinter an already weak political faction — and ultimately led to the emergence of a new San Diego Republican party leader.

The crew also gets into what we learned about how virtual schools are performing. McWhinney crunched the numbers and shares the full story on the pod.

Listen to the full episode here.

Want more? Our Scott Lewis rounded up what you need to know about what went down with the Republican Party of San Diego County and the questions that remain.

Read the Politics Report here.

In Other News

The Morning Report was written by Lisa Halverstadt and Deborah Brennan. It was edited by Andrea Lopez-Villafaña.

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