As Newport Beach backs out of shelter agreement, Costa Mesa looks to city of Irvine
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Newport Beach’s recent backing out of an exclusive arrangement for partial use of Costa Mesa’s bridge shelter — a mutually beneficial deal that helped fund the 100-bed Airway Avenue facility — has the city looking for new municipal partners.
And now, it seems, an answer may be found in the city of Irvine which, having no brick-and-mortar shelter of its own, is interested in trying out a temporary agreement that would allow it to shelter its own unhoused residents and could lead to a more permanent partnership between the neighboring cities.
Costa Mesa city officials Tuesday will consider a memorandum of understanding that would allow Irvine to right away begin paying for beds on an as needed, as available basis at the cost of $163 per day through June 30.
The move comes just as Newport Beach begins winding down its obligations at the shelter. The city had been paying Costa Mesa $1,359,225 annually for exclusive access to 25 beds but, as of the end of the year, reduced that commitment to just 20 beds, agreeing to pay separately if more space was required.
Beginning June 30 and through 2026, Newport Beach will lose that exclusive access, instead paying for beds as needed and only if they are available. After the end of the year, the years-long partnership between the two cities will end completely.
The coastal city explained in a December staff report that Newport Beach has experienced a “significant reduction” of more than 80% in its homeless population, justifying the reductions.
“Consequently, Newport Beach has not used all 25 of its allocated bridge shelter beds at any time this calendar year,” the report stated, citing an average use of 15 to 18 beds.
The shelter opened its doors in April 2021. City officials say they’ve served at least 200 people over the last year.
Additionally, since the partnership with Costa Mesa began in 2020, state laws mandating cities that break up homeless encampments provide alternative access to housing have reversed, meaning municipalities are no longer obligated to fund such efforts.
But the city of Irvine takes a different view. Although census taking of unhoused individuals logs about 60 people each year, officials know the true need for housing is greater, particularly among public school families, according to Heather Dion, Irvine’s director of health and wellness, which oversees issues related to homelessness.
“We’ve identified, in partnership with Irvine Unified School District, a number of homeless families, and I’m not sure these families are getting picked up by the count,” Dion said Thursday. “They’re living in alternative housing arrangements — sometimes that’s their car, or some of them are on the streets or sometimes get themselves into interim housing.”
The city in 2021 implemented a program called “Irvine Cares,” which offers school families vouchers for reduced rent and wraparound services. So far, about 20 families comprising 46 children have been housed, Dion said.
Hoping to identify a more permanent solution, Irvine officials in 2024 embarked on a journey to spend $18.5 million for two parcels in the Irvine Business District for the purpose of constructing a brick-and-mortar shelter and job training center, dubbed “The Sanctuary.” But the effort was thwarted by public concerns about the buying process, and the city backed out of the deal, forfeiting a $1-million nonrefundable fee.
Dion said talks with Costa Mesa began sometime last fall.
Under its tentative agreement with Costa Mesa, Irvine would be able to refer clients to the shelter and make payments based on its actual use of beds through June, up to 20 beds per day, at which time the deal would be possibly renegotiated.
This flexible arrangement keeps potential revenue coming into the center while Costa Mesa figures out two pivotal operating agreements at the shelter set to expire at about the same time.
A $400,600 annual contract with Bracken’s Kitchen, which provides meals for residents, ends in April, while a nearly $2.3-million obligation to the nonprofit service provider Mercy House expires at the end of June. Costa Mesa plans to issue two requests for proposals in the coming months, according to a staff report produced ahead of Tuesday’s meeting.
In the meantime, were Irvine to fully occupy 20 beds in a given month, it would pay Costa Mesa $97,800 monthly, or $489,000 annually. Lower occupancy, just five beds, would bring in $24,450 per month, or an annual $122,250, the city estimates.
Dion said Irvine staff toured the Costa Mesa facility and found it suitable for the city’s needs.
“It’s one of the best I’ve seen, and I’ve toured a lot of shelters. It’s clean, well-managed and there are lovely amenities,” she said, pointing out that the site allows pet cats and dogs. “We’re really looking forward to it — we’re ready to get started.”
The Costa Mesa City Council will vote Tuesday on approving a memorandum of understanding with Irvine, before the matter comes to Irvine City Hall. If all goes as proposed, Irvine clients could begin moving into the shelter by February.
