La Jolla philanthropists Ernest and Evelyn Rady broke ground Monday, Nov. 9, on a new Salvation Army campus in downtown San Diego that will replace the organization's demolished headquarters with a 200,000-square-foot facility serving people experiencing homelessness.

The project, called the Rady Center, is backed by a $50 million donation from the Rady family, FOX 5 San Diego reported. The new facility will provide temporary housing for more than 100 additional people, along with food, job training and health services, according to the station.

The old Salvation Army headquarters on the site had served the community for more than 50 years before demolition cleared the full city block.

"I'm very excited about everything taking place here today," Major Anthony Barnes of the Salvation Army said at the groundbreaking, according to FOX 5. "The old building gone, the new dream about to be fulfilled and so much hope taking place in San Diego."

Ernest Rady, founder and CEO of American Assets Trust, told FOX 5 the gift aligned with the Salvation Army's own goals. "What I hope to accomplish is the same thing the Salvation Army hopes to accomplish … to help people who need help," Rady said. "I'm so very proud and pleased to have been able to do this small share to help those in San Diego who can benefit from the help."

Two-phase build

The project will go up in two phases, according to the Salvation Army's project page. Phase one includes interim and transitional housing with wraparound services. Phase two will add permanent affordable housing for ultra-low-income residents.

Planned services across the campus include a community health clinic, food pantry, case management, youth programs, senior meals and workforce development, according to Hoodline. Wakeland Housing and Development Corporation is the lead developer managing design, financing and construction, the Salvation Army's project page states.

Phase one is expected to open in 2028.

Rady family's giving history

The Radys are among San Diego's most prolific donors. Their name is on Rady Children's Hospital-San Diego, where the family has invested nearly $400 million over the years, according to a 2019 announcement from the hospital. That total includes a $60 million gift in 2006, $120 million in 2014 to establish the Rady Children's Institute for Genomic Medicine and a $200 million gift in 2019 to redevelop and expand the campus.

The family also donated $15 million toward the Rady Shell at Jacobs Park, the San Diego Symphony's outdoor venue that opened in 2021, and $30 million to UC San Diego to establish the Rady School of Management.

Ernest Rady, a native of Winnipeg, Canada, moved to San Diego in 1966 and built his career in real estate, insurance and financial services. He and Evelyn signed the Giving Pledge in 2018.

What to know

The Rady Center's total project cost has been reported differently over time. The Salvation Army's project page describes it as a $100 million effort. NBC 7 San Diego posted in October that the project carries a $185 million price tag. Those figures have not been publicly reconciled.

The Salvation Army's project page also notes the Radys are contributing $20 million specifically for construction plus funding an endowment, with total campaign fundraising from multiple donors exceeding $50 million. FOX 5 attributed the full $50 million to the Rady family.

Construction is underway on the downtown site. Phase one is set to open in 2028.