Grants Pass has warned the developer of Parker’s Place Village that it is failing to meet the requirements of its homeless shelter grant agreement, citing concerns about resident safety, access to services and documentation of public spending.
Elk Island Trading Group responded with two proposals: work with the city to continue the project or sell the property to the city for an estimated $821,000 after crediting the grant funding.
The city of Grants Pass awarded Elk Island Trading Group about $1.2 million last year to develop the 150-bed homeless shelter. In a Sept. 11 notice, the city said Elk Island is “not delivering on its promises to the City.”
The notice alleges Elk Island failed to provide services such as case management and mental health support, provide copies of service agreements and use a resident intake and tracking system.
"Corrective action is required or the City will pursue appropriate remedies," the notice reads.
The city also said it had not received supporting documentation for grant payments to Elk Island.
"Of the approximately $984,000 that has been distributed to date, less than half has been deemed verified, and additional documentation has been requested and promised but not delivered," the notice reads.
Neither Elk Island Operations Manager Bernie Woodard nor the Grants Pass city attorney responded to requests for comment.
The notice also identifies possible material breaches, including intentional acts or omissions that jeopardize anyone's health, safety or security. The city cited assigning male and female roommates who do not know each other to the same room and allowing a minor to live at the shelter.
Other possible material breaches listed in the notice include failing to use an operations manual on-site, not paying subcontractors — which could lead to a lien on the property — and intentionally refusing to comply with the agreement.
Under the grant agreement, a material breach could allow the other party to declare a default and terminate the agreement. Elk Island could be required to repay the grant in full, plus 9% interest, or the city could purchase the site.
It remains unclear which remedies the city is considering.
Elk Island outlines two possible paths forward
Elk Island proposed two options: continue working with the city on the shelter or sell the property to the city for an estimated $821,000.
In a Sept. 30 proposal following a meeting with city officials a week earlier, Elk Island valued the property at $2 million. The company proposed subtracting the city’s grant funding from that amount to calculate the purchase price.
In supporting documents, Woodard described the shelter's difficulties in securing state funding for ongoing operations. The city's grant only covered construction costs.
Woodard also criticized what he described as the city’s unwillingness to help Elk Island pursue operating funds for Grants Pass and Josephine County.
He pointed to the shelter's accomplishments, including providing a 150-bed facility that allowed the city to close three downtown resting sites. Grants Pass had agreed in a lawsuit settlement to provide space for 150 homeless people.
Woodard also wrote that bringing residents to one location makes it easier for law enforcement, health care providers, outreach workers and other service organizations to reach them.
But he described an increasingly difficult relationship with the city, saying Elk Island had not been included in relevant private meetings and disputing some of the city's concerns.
"EITG wants Parker's Place Village to be successful for the Grants Pass community," Woodard wrote.
A city acquisition, he continued, might be the "most practical path forward."
Elk Island and the local nonprofit MINT also recently announced plans to end their working arrangement Oct. 15. MINT had planned to provide services at the shelter.
Parker’s Place Village was supposed to be completed by June 1. Construction remains unfinished, and the city has extended Elk Island’s deadline to complete stormwater work until Nov. 13.
