Portland officials are hitting the brakes on a proposal to move the family shelter to the city-owned building on Cumberland Avenue that now houses the school district’s central office.

Councilors on the finance committee, facing a $14 million price tag for renovating the building into housing, chose not to move forward with the proposal last week. Now the city will go back to the drawing board to decide the future of both the 56,000 square-foot central office building and the Chestnut Street family shelter.

The estimated cost of renovations to the building between Cumberland Avenue and Portland Street would’ve triggered a referendum vote, something councilors opposed as the current shelter operates far below capacity.

Earlier this month, the family shelter was serving 15 families, or about 34% of its capacity. If renovated, the Cumberland Avenue building would’ve provided space for up to 49 families.

The city currently leases four apartment buildings on Chestnut Street that make up the shelter, but began looking at other options as the leases were set to expire June 30. Staff has said temporary leases have been agreed upon at two of the buildings, giving officials until fiscal year 2028 to find a new location.

Following an initial committee discussion about the high renovation cost, staff and the city’s consultant looked at cost-cutting options. However, Assistant City Manager Dena Libner told councilors last week that those options would result in only about $500,000 in savings.

She said building-wide upgrades for HVAC, electrical and plumbing would cost between $7 million and $8 million alone.

City councilors said the costs made it clear that options for the family shelter — and what to do with the school administration building — deserve more exploration, which could include whether to sell the property that the city purchased in 2014.

Councilor April Fournier, who chairs the finance committee, said a project of that size and cost should have community partners, and she questioned whether the Cumberland Avenue building is the right location. She suggested that the city’s housing and economic development committee take a look at whether the city should keep the building.

Councilor Wes Pelletier said he’s “not in a place where I want to sell” the building, but said he opposed putting a local bond issue on the ballot. According to the charter, bonding of more than roughly $10.1 million would trigger a referendum.

Pelletier said he’d like to see the building become a day space for homeless individuals, but acknowledged that any decision would come with funding needs, and that many questions still remain regarding state funding for shelters next year.

“Everything in me wants to kick the can down the road, but I’m also cognizant of the pressure that might put on our system and families, so it’s not easy,” he said.

While the city mulls its options for the building, the Bayside Neighborhood Association is continuing to lobby for using the the bottom floor, with an entrance on Portland Street, as a community center.

Tom Blackburn, president of the neighborhood association, told councilors Monday that they’ve been “perplexed” by the resistance among officials at their idea for the space.

He said Bayside “only wants what other neighborhoods have,” and that the neighborhood doesn’t want to see a day shelter or warming shelter there.

During public comment Monday, Portland resident Steven Scharf said the city should conduct a “thorough look” at the Cumberland Avenue building, and if it’s determined that it doesn’t align with what the city needs, it should be sold.