The developer of Grants Pass’ new homeless shelter and a neighboring service provider are ending their working relationship, raising questions about the shelter's future.
Elk Island Trading Group and the Mobile Integrative Navigation Team, or MINT, announced Friday that their arrangement will end Oct. 15 after lease negotiations broke down. MINT has been paying for security, utilities and trash service at Parker's Place Village.
The city awarded Elk Island a $1.2 million grant last year to build the 150-bed shelter.
The project helps Grants Pass comply with a lawsuit settlement that requires the city to provide space for 150 homeless people.
Under the grant agreement, Elk Island must provide wraparound services, like case management and mental health support, to residents. MINT had planned to provide those services.
MINT Board President Scott Nelson said the nonprofit had hoped to work with Elk Island through a partnership, rather than a lease agreement.
"The amount of funding that Elk Island was requesting for a lease agreement exceeded the amount of money that we had available to run the operations and meet those desired obligations," he said.
Elk Island Operations Manager Bernie Woodard gave a different account.
"They didn't want to do a partnership," he said. "They wanted to do a lease."
At one point, a proposal called for MINT to pay Elk Island $45,000 a month in rent, Woodard said.
MINT reported annual revenue of about $441,000 for the fiscal year ending in September 2025, according to its federal Form 990. At $45,000 a month, its rent would have totaled $540,000 a year.
Nelson said MINT's existing revenue supports its charitable work in the community.
"But that's certainly not enough money or funding to run a 150-bed low-barrier shelter," he said.
The social services nonprofit United Community Action Network, or UCAN, allocated funds to MINT to pay for utilities and other operational expenses at Parker's Place Village. A MINT spokesperson said the organization has submitted receipts but has not been reimbursed.
Woodard said rental income would have helped offset Elk Island’s financial risk. He said the company could be required to repay the city’s grant with 9% interest if it fails to meet key terms of the agreement.
“If this thing goes sideways within five years or whatever, I’m going to be responsible to pay that, or Elk Island Trading Group is going to be responsible to pay that,” he said. “These things don’t ever go the way you expect.”
MINT said it withdrew from the lease negotiations. Woodard described the decision as mutual and said the organizations had different philosophies.
Woodard said he is considering what to do next.
"What the hell do we need to do today to make this better and keep moving forward, so we can make a change in these people's lives," he said. "Not just the people that are out there in homeless situations, but it's the community."
Woodard said he’s pursuing partnerships with other local providers and expects to make an announcement soon. He said those organizations would not pay rent and instead operate through a partnership.
With MINT no longer funding security and utilities, Woodard said, "those are things that I have to work out."
MINT operates next door to Parker’s Place Village and will continue providing its own services, including an inclement weather shelter, case management and health care. The nonprofit also plans to continue serving meals to Parker’s Place Village residents.
Elk Island still plans to build a hygiene facility with showers and bathrooms on MINT’s property.
In separate news releases, both organizations acknowledged the importance of the other’s work and said services for homeless residents must continue.
Both sides had previously been excited about the partnership, and Nelson said the split is discouraging because of the project's potential.
"That potential still exists, and MINT will continue to find ways to do that," he said. "It just won't be with [the] partnership of Elk Island moving forward, and so that is a little disappointing."
Woodard said he remains focused on the original mission of Parker's Place Village.
"Hopefully, all of the imperfect things that either myself or MINT does, people forgive us a little bit and let us keep working on the positive things that we're trying to do," he said.
Woodard is still working to finish construction, including stormwater drainage. The site was initially supposed to be completed by June 1. He said the city has extended the deadline to Nov. 13.
City Attorney Stephanie Nuttall was not available Friday to answer questions about the agreement.