Taylor County homeless shelter project at crossroads

Plans to remodel an existing multifamily home into a homeless shelter has hit a snag that threatens to derail the effort.

The nonprofit group, Taylor County Supportive Housing (TCSH), is working to establish a shelter in the city of Medford called Taylor House. The goal is for the facility to provide immediate shelter needs while serving as a place to transition those faced with homelessness into independent living. Currently, homeless individuals in the region are given motel room vouchers when available.

TCSH previously received a $320,000 community development block grant funds to purchase a building, make renovations as needed and get a facility opened. Of that amount $260,000 was earmarked for the purchase, design work and rehabilitation. Under terms of the grant, the funds pass through the county to the private group.

A committee of city and county members helped locate a property in the city of Medford and earlier this year it was purchased by the county for $124,000 and transferred to TCSH. Things were progressing according to plans until the group and the county received the engineering estimate saying renovations to the building would cost between $500,000 and $550,000.

The grant is being administered by Sheldon Johnson of Northwest Regional Planning Commission (NWRPC). He explained to members of the county’s executive committee on Sept. 29 that there are additional sources of funds which the county could seek. Specifically a grant program with $16 million set aside for communities to apply for COVID-19 related impact projects opened earlier last week. As with the CDBG funds, the county would have to apply for the grant funding.

The major risk to the county is that if the shelter fails to meet the deadline of December 31, 2022 for opening, the county will have to repay the total amount of the grant regardless of what has been spent up to that point.

At the time the county authorized the CDBG grant, it was with the condition that no county funds be spent on the project. Board member Chuck Zenner brought the issue to the county’s executive committee meeting saying he felt it needed action.

Zenner said he felt the $500,000 estimate for renovating the building was excessive and said he could see it costing closer to $50,000 than it would be $550,000.

Johnson agreed and said there are factors dealing with the federal guidelines tied to the grant funding which would make the project more expensive. County board member Lester Lewis agreed that the price may be inflated, but said it was likely closer to the $250,000 to $300,000 based on actual labor wages paid in the area. The challenge, he said is that no contractors in the area need the work. He also raised questions about the house that was purchased saying it was going to take a lot for it to be redone.

“I am having a hard time that we have to pay $250,000 to upgrade a house that we paid $124,000 for in the first place,” said committee member Scott Mildbrand. “I am stunned. What are we even talking about this for, we are putting good money after bad.”

Jessica Mudgett of TCSH said they feel the county still will have no additional financial obligation for the shelter project. She said her request is that the county apply for the supplemental funds from a new grant program. TCSH will pay for the labor involved with the grant application out of their fundraising dollars.

“This project needs to move forward,” Mudgett said, noting that through August $16,000 has been spent putting homeless people in the area in motel rooms.

County board member Mike Bub questioned the timeline between application and approval. Johnson said that they were told that the projects would be reviewed as they were submitted but that there are steps which must be taken including a public hearing before an application can be submitted. Since it would have to go to the full county board to approve submitting the application, the earliest it could be submitted is on October 27.

Bub said getting the additional funding is the only way the project, which is currently in hold, can move forward. “To me that is the only alternative that we apply and get more funding,” he said, noting that in hindsight building a new structure might have been easier. “Sometimes remodeling can be more expensive than starting from scratch,” he said.

The challenge is that under the current contract for the CDBG funds, the facility is supposed to open in February 2022, but that is being amended to push back any opening. Regardless the project must be completed by December 31, 2022.

Lewis expressed concern at the risk to the county of needing to pay back the funds for both grants if the project was not completed by the end of next year. “It is a gamble and I think a really big gamble,” he said.

Mudgett noted that in working with the engineers they requested a 45-day turnaround for the renovation project. Lewis noted that unless there were penalties written into the contract, it is unlikely they would meet that deadline.

“In my mind it is way too much a risk for Taylor County,” Mildbrand said.

Mudgett disagreed as to the risk to the county, noting that the department of administration staff suggested seeking the additional COVID-19 program funds and were supportive of the project.

One of the challenges if the county were to pull the plug on the shelter, is that the house belongs to TCSH and they would have to go about getting it back from the group in order to attempt to sell it to recoup expenses.

“I think it is a huge risk for the county,” said finance director Larry Brandl.

Any action on if the grant application would be done will take action by the full county board.

Committee members voted to send the grant application request to the full county board .

Following the meeting, TCSH board member James Stokes made the following statement on behalf of the organization: “Homelessness isn’t merely an individual problem, it is a communal issue, that while it goes largely unseen in our community, it is there and it needs to be remedied. The building of a shelter sends a clear message that we, here in Taylor County, care for all people, regardless of circumstance.”

In other business, committee members approved the sale of property on Hwy 102 which has been purchased and leased to the state to house a released sex offender. The county had received $32,000 in rent over the 16 months the individual lived there. The individual has since relocated to Texas. The county sold the property for cash through a realtor for $150,000. After commissions and fees are paid, the final total to the county will be about the $140,000 that board members paid to purchase it.