Oakland will remove a large homeless encampment in front of Home Depot’s store in the Fruitvale neighborhood in coming months and offer its occupants accommodations in shelters or an RV parking site, city officials said.

The site is one of two near the Home Depot that have gotten the city’s attention after the company raised concerns about employee safety and store security. The city has given residents of a smaller group of RVs behind the store a few weeks before their vehicles are towed.

On Friday, tensions flared at the larger site as an Oakland real estate developer and landlord who says he is tired of the city’s permissive approach to homelessness offered residents $1,000 each to leave. But occupants of the encampment and activists instead shouted him down, and none took up his offer.

The encampment is home to nearly 100 people living in vehicles, makeshift homes and tents. The city is still working to identify a location for the RV safe parking site.

“It’s going to take some months to implement,” said Joe DeVries, an assistant to the city administrator. “I think it’s going to work, it’s going to be challenging.”

Once the RV site is open and the other residents are given an option to move into a shelter, people will be prohibited from setting up camp outside the store, he said.

The city’s decision to eventually remove the encampment didn’t involve last week’s actions at the site. Complaints from Home Depot prompted the search for a solution.

Home Depot says the encampments pose safety risks, and some members of the City Council have said they could cause the hardware store to leave.

On Friday, the real estate developer, Gene Gorelik, wearing an elf costume and a hat that said “Make Oakland Great Again,” offered residents cash to leave.

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“Free money — I need 10 people to play,” Gorelik announced on a bullhorn while standing on a boom lift rented from Home Depot. He also had workers blow up large eagle balloons next to the camp.

Gorelik organized a Facebook event, Operation Save Home Depot, and offered residents of the homeless encampment money if they promised to leave and move to a lot owned by Peralta Community College District.

Residents of the encampment were ready for Gorelik.

“Don’t take his money,” Markaya Spikes told another resident Thursday. Spikes has lived at the encampment for several years.

Gorelik, a developer at Oakland Redevelopment Group, was sued by the city attorney’s office in 2017. He was accused of harassment and the illegal eviction of a 64-year-old tenant.

On Friday, people chanted, “Housing is a human right, fight fight fight,” and “Upgrade, don’t evict.”

“It’s ridiculous,” said Candice Elder, the executive director of East Oakland Collective. Elder organized the counterprotest to “support the curbside community.”

Curtis James, 65, who lives in a tiny home at the encampment, sat in a chair near the homeless advocates and watched as Gorelik set up the boom lift.

“We don’t bother anybody,” James said. “There is no violence here. It’s just frustrating. It bothers me, but I just know I have to hold my ground and stay strong. It is what it is.”

Margaret Smith, a spokeswoman for Home Depot, said Gorelik has no connection to the hardware chain.

Gorelik declined to comment during the protest, citing safety concerns. He waited on the boom lift, with a leaf blower that had cash in it next to his feet, until about 9 a.m. before packing up his truck and attempting to leave.

But protesters blocked his truck from driving out of the lot, urging Gorelik to “walk home.” Several Oakland police officers had to escort Gorelik out of his truck and walk him to the Home Depot parking lot.

The residents of the encampment said they aren’t responsible for the crime at Home Depot and are nervous about being moved to a shelter or a safe parking site.

Spikes, who has an 8-year-old daughter, doesn’t have an RV, but if she did, she might not be eligible because the RV parking sites don’t allow children. On Thursday, she said she already started packing her tiny home — a 8-by-10-foot home donated by the Oakland School for the Arts — because she said she was worried she would be forced to leave soon.

She said her experiences with shelters didn’t go well.

“Sending us to a shelter is not solving the situation,” Spikes said. “All that is doing is out of sight, out of mind.”

Sarah Ravani is a San Francisco Chronicle staff writer. Email: sravani@sfchronicle.com Twitter: @SarRavani