Low-income housing development seen as key for downtown’s future

Erin Neff

Thursday, Dec. 23, 1999 | 11:12 a.m.

Will Newbern's vision stretches beyond the run-down motels, quickie markets with their brisk alcohol sales and past the vagrants trolling block upon block nightly seeking booze, drugs or willing companions.

From the third-floor patio area of his housing complex under construction, Newbern instead sees a future downtown filled with market-rate housing, grocery stores, dry cleaners and cafes.

"That's why we're here," said Newbern, president of The Tom Hom Group real estate investment firm based in San Diego. "We see real potential."

Campaige Place, a 320-unit single-room-occupancy (SRO) complex being built on Stewart Avenue at Eighth Street, is scheduled to open Feb. 28.

Its opening will provide not just decent, safe housing for low-income service industry workers downtown. The success of the $12 million project is viewed as critical to future downtown housing development.

Casino maids, line cooks and cashiers stop by the construction office trailer every day asking on-site property manager Cheryl Carter about leasing options.

They are amazed not just by the $495 and up monthly rent for the furnished efficiencies, they are ready to sign a lease where security is the No. 1 concern.

"They can't wait for us to open up our model," Carter said. "This is something downtown really needs."

Campaige Place -- named for Newbern's daughters Camille and Paige -- will have strict security measures including electronic card-key access, electronic gate, 24-hour guards and stringent guest policies.

"Some of these places are getting $500 a month, and they have no security, no pest control, no tenant control," Newbern said, looking out at other downtown housing options. "We've really tried to give tenants a place that's safe."

Teresita Gonzalez, a 29-year-old housekeeper at a downtown hotel-casino, said she currently lives with a boyfriend and pays a weekly rate for a place she is scared to call home.

"There are prostitutes outside, and we've seen drugs all over the place," Gonzalez said, walking near the construction site Wednesday morning. "We don't have a car, and we need to live down here, so I would love a place that's safe."

The federally funded project faced delays after it was first approved due to the lenders' fears of the neighborhood, located just east of City Hall but amid an area of high crime and hotels offering daily rates.

Now as construction of the four-story wood frame complex with unique architectural features begins to add height and hope to the area, interest in adjacent property is also piquing.

"The immediate effect of us moving in is land prices are going up," Newbern said.

Scott Brown, Tom Hom's executive vice president, said his company paid roughly $14 a square foot for its property two years ago. The owner of the adjacent block is asking $32 a square foot, he said.

The Tom Hom Group has been involved in the revitalization of downtown San Diego and has built two SROs and other market-rate housing projects there.

SROs and other affordable housing typically precedes market-rate housing, Newbern said.

"If you don't have this kind of housing early (in the process), the land prices get too high to develop it later," Brown said.

The SRO units range from 168 to 224 square feet. Each unit features a mini kitchen with microwave, refrigerator, a two-burner stove and garbage disposal and a full bath.

Each unit has a phone, color TV, cable with HBO and air conditioning. Housekeeping, weekly linens, parking, on-site laundry and workout rooms are featured.

"All they need to move in is clothes and some pots and pans," Carter said.

City Councilman Gary Reese said he considers the SRO a "first step" for other downtown housing and commercial development.

"Hopefully some of those good people who want that safety factor in their lives will move out of those other places," Reese said. "We need to have some more housing downtown."