A hotel in southeast Denver will be converted into a non-congregate shelter for families with children. Some neighbors are not pleased with the move.
Denver City Council approved a sale agreement between the city, East Hampden Hotel Fee LLC and Hampden Heart LLC to purchase the Embassy Suites in the Hampden neighborhood for $30,900,000.
The city intends to use the 205-room hotel, located at 7525 E. Hampden Ave., as a shelter and transitional housing space through Mayor Mike Johnston's House1000 initiative. The site will be managed by the Salvation Army and will also provide wraparound services.
The purchase agreement also comes with a master lease that allows families to move into the hotel before the end of the year.
But if some neighbors had it their way, the contract wouldn't have passed.
During a community meeting on the project, some residents expressed concerns about the proposed shelter, including safety, neighborhood well being and operational transparency. Some of those same issues were brought up during the courtesy public hearing at Monday's council session.
About 49 people signed up to speak, with 33 people in support of the proposal and 16 against.(Not all 49 people spoke during the hearing.)
Business owner Sheri Huang spoke against the project out of concern for the safety and wellbeing of their business. Michael Moroney and several other speakers echoed those concerns regarding safety, noting that there have been several police calls to the Comfort Inn shelter in District 8, including a stabbing in October.
Kara Hamersky also spoke against the project, coming to tears when discussing possible increases in crime and a lack of transparency on the selection process by the mayor's office and District 4 Councilmember Diana Romero Campbell.
"This administration seems to be more concerned with skipping steps and expediting this process," Hamersky said. "My ask is this, slow down the process. Slow down and be transparent...Our valid concerns have been disregarded and even villainized in the media."
Several speakers suggested a phased approach in bringing families into the shelter. They also wanted the city to sign an agreement that the shelter would only be for families with children.
But many others spoke in support of the project.
Christopher Miller said he intends to visit businesses near the shelter and welcomes the families that may live at the site.
"District 4 is a great place to raise a family and a great place to welcome so many families. We all need a helping hand at some point in our lives," Miller said.
As far as safety is concerned, Councilmember Paul Kashmann asked about calls coming from the Comfort Inn and whether safety may be an issue at the site.
Denver Police Chief Ron Thomas acknowledged they'd received a large number of calls, but said other large dwelling facilities do as well.
"While there are higher call volumes, there's actually a very low instance of police reports," Thomas said. "Very, very few drug offenses. Very, very few violent events."
Thomas added his support for the project and said ultimately police respond to more illegal encampments than issues at hotel shelters.
As for a phased approach, Cole Chandler, Mayor Mike Johnston's Senior Advisor for Homelessness Resolution, said the city will initially move about 138 families into the site, and the rest of the units will be filled over time. He also said the city would sign an agreement stating that the site only be used for families with children.
So, what are the details of the contract?
The site was listed for sale in August and was identified as a potential location for affordable housing. Initially, the city was asked to lease the site as a shelter while affordable housing developers gathered funds for the site. But, according to city documents, Denver determined it was in their "best interest to acquire the hotel for immediate occupancy with the intent to sell to a redevelopment partner in the next 3-5 years."
The city intends to purchase the site for $21 million with a potential closing in March 2024. In the interim, the city will rent the property. Per the contract, if necessary, the city will lease the property for up to a year at a monthly rental rate of $825,000, which if done would amount to $10 million. However, those additional funds are more of a cushion and may not be used.
Later, the city would sell the property to an affordable housing development partner, but that wouldn't be for three to five years.
With the approval, the site is the first hotel shelter in District 4 under the mayor's housing plan.
The district was originally slated to host a micro-community at 5500 Yale Ave, also in the Hampden neighborhood, but the proposal was nixed "based on the criteria [the city has] identified, including economic viability, projected site yield and consideration of other viable options," according to city officials.
All of the council members in attendance supported the plan. Councilmember Shontel Lewis said she was glad to see District 4 adding a shelter to the area, as her district is currently hosting nearly half of the city's shelter beds.
Councilmember Serena Gonzales-Gutierrez said the process of getting the shelter online could have been better, but the city is in a crisis and moving slowly isn't an option.
Romero Campbell said she's listened to residents who both support and oppose the project, but families are in need. She said she will continue asking the mayor's office to support the district in terms of business support and safety concerns.
"I hear the concerns and the suggestions from the community members who want to make sure the district remains a safe and thriving neighborhood," Romero Campbell said. "If this shelter does not open, it could mean life or death for some families this winter...Fear should not drive this decision making."
