Laguna Beach is moving all of their homeless away from the beach to a parking lot:
Homeless Plan: Ambitious or Ridiculous?
That's the same thing they do in L.A. This is why they have such a serious problem in skid row. On the one hand, it focuses the services to one area-- that's good. On the other hand, cities who enact this plan tend to spend more money policing skid row than people that don't.
The main problem I see is that it is segregation. And the problem with segregation is that it increases fear, which increases dehumanizing acts. People who are afraid of others feel freedom to do to those they fear they wouldn't do to "normal" people. This is why it's just a bad idea, overall.