For the first six months of the year, The Salvation Army ran Mayor Mike Johnston’s All In Mile High individual shelters without being paid for its work.
The organization has been tapping its reserves, essentially floating the city a non-interest loan for millions of dollars while the Johnston administration, the nonprofit church and City Council debated the finer points of the contracts.
This week, Denver City Council approved contracts and spending, and the city is finally getting caught up on what it owes.
The contracts were mired in controversy.
Homeless advocates pushed lawmakers to cut ties with The Salvation Army, arguing the organization was ill-equipped to run shelters.
Criticisms surged after a Salvation Army employee with a criminal history was accused of sexually assaulting a guest. There were also cases of high-profile violence and overdoses taking place at shelters. Residents complained about health and safety issues. All the while, the organization struggled with staffing.
“I have lost confidence in The Salvation Army to be able to provide the services that I believe that my constituents deserve in my district,” said District 8 Councilmember Shontel Lewis. “Thus, I will not be supporting this contract or any Salvation Army contract moving forward.”
The Salvation Army spokesperson Jennifer Forker argued “individuals with personal grievances” have spread “false claims and misinformation” about the organization.
Despite this, she wrote in a statement: “Every day The Salvation Army shelters up to 1,800 people, including at least 300 children — work no one else stepped up to do — and we do it with professionalism and care. We remain steadfast: with open hands, compassionate hearts, and a deep sense of purpose.”
A split vote on three different contracts
Council passed three contracts with the nonprofit church on seven-three votes, with council members Lewis, Sarah Parady and Chris Hinds opposing the funding.
The city will pay:
- $8 million for the Tamarac Family Shelter
- $4 million for the Stone Creek non-congregate shelter.
- $7 million for The Aspen shelter.
“We thank Denver City Council for their continued trust in our work,” Forker said. “Sheltering our most vulnerable and challenging neighbors is the work The Salvation Army has long been called to do. Our staff have saved lives, including 167 people at just one shelter. We’ve also helped rebuild countless lives.”
The city has spent more than $174 million in contracts with the organization since 2020.
