Portland officials on Thursday will discuss a proposal to spend nearly $14 million to renovate the school district’s central office in Bayside into a shelter that could house up to 49 families.

City leaders have been in talks regarding the future of the current family shelter on Chestnut Street ahead of the lease expiring next month, and have viewed the district’s central office, a 56,000-square-foot, city-owned building between Cumberland Avenue and Portland Street, as a top option for a long-term shelter.

According to a staff memo released this week, city councilors have preferred investing in city-owned property and in the central office building specifically. After discussing the option with school officials, the city contracted with a design firm to develop a concept and cost estimate for the move.

The estimate for design and construction came back at $13.9 million, with annual operating expenses of $3.8 million. The existing shelter cost $2.7 million to operate this year.

The city’s Finance Committee is scheduled to discuss the proposal during its meeting at 5 p.m. Thursday.

Mayor Mark Dion said Tuesday that there doesn’t appear to be a consensus yet among councilors, but he called the preliminary cost estimates “significant.”

Staff said the Cumberland Avenue building is significantly larger than the current shelter, which can accommodate about 40 families, and would provide each family with individual sleeping quarters. A separate floor would be renovated as office space for city staff and service providers.

Each apartment-style unit in the current shelter is shared by multiple families, and guests travel to various offsite locations to access services. Last year, Councilor Kate Sykes said she was shocked by the accommodations during a tour of the space.

The memo said the additional space would also allow for dedicated areas for children to play and for school-aged kids to do homework.

City staff said until last year, demand for the shelter outpaced available space there. That has changed as a result of the federal government’s hardline shift in immigration policies.

As of Monday, the family shelter was serving 15 families, or about 34% of its total capacity. 

In March, the city announced the closure of its shelter for asylum seekers in the Riverside Industrial Park due to the sharp decline in use, and at the same time reported a similar drop at the family shelter.

Discussion about a new family shelter location have taken place as school officials also consider reducing the district’s physical footprint as enrollment declines. Employees there also have expressed concerns about the central office building being an “unhealthy” workspace.

The staff memo said the proposed renovation design and estimated cost is for only the top two floors of the building, as the basement-level floor has been used only for storage by the school district and Portland police due to water damage.

Making that space usable would cost an additional $5 million, and officials have discussed the possibility of using the space for a winter emergency shelter and/or day space.

The Bayside Neighborhood Association, meanwhile, has been lobbying to use the bottom floor, with an entrance at 28 Portland St., as a community center, with members stating that the building has enough space for both uses.

Tom Blackburn, president of the neighborhood association, told councilors this week that the closure of Bayside’s immigrant welcome center last year left a need for community space in the diverse neighborhood.

He believes the group can secure council support for such a project, and that despite mold issues on the ground level, the association is fully prepared to address it, he said on Tuesday.

According to the association, the Cumberland Avenue building was constructed in 1900 and has been home to Goodwill, the Portland Nash Automobile dealership and a paint store since.

The city purchased the property in 2014.

The city plans to extend leases at two of the four Chestnut Street buildings for the coming fiscal year.

Editor’s note: This story was updated on May 5 to correct the time of Thursday’s Finance Committee meeting to 5 p.m.