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SALT LAKE CITY — Salt Lake City Councilwoman Lisa Adams fears the $7 million cost of the controversial Sugar House homeless resource site may cause Utah lawmakers to hesitate on granting the second tier of $27 million in state funding for homelessness this year.
"I'm worried the Legislature may look at (the cost) as not a good use of their money," Adams told Mayor Jackie Biskupski's chief of staff David Litvack during Tuesday's council meeting.
Her concern comes amid hard pushback from neighbors living near the 653 E. Simpson Ave. site, worries about its $7 million price tag, and now a resident-driven fundraiser to collect $10,000 to cover the earnest money fee if the city backs out of its purchase agreement.
Biskupski was not present at the council meeting because she was in Washington, D.C., for the United States Conference of Mayors, but Litvack listened to Adams' concern.
After the meeting, Litvack said there is no movement in the mayor's office to reconsider the Sugar House site. When asked if the cost could impact the lawmaker's resolve on its commitment to provide $27 million over three years — the first tier provided last year — Litvack said: "I don't know."
"I think we are being responsible," Litvack said, but acknowledged there's no guarantee that the Legislature will provide the second tier of funding this year, which is why its a top priority for the city in the upcoming legislative session.
"But I don't think this is something we need to run away from," Litvack added.
The mayor's chief deputy added the city agreed to pay $55 per square foot for the property, a price he said is "in the low end" for Sugar House's hot real estate market and that the size of the site allows for "additional areas for mitigation."
While Adams joins one other City Council member — Erin Mendenhall — in opposition to the Simpson Avenue site, other council members are standing by the choice, with some concerned that backing off the property may open the door to even more pushback from the other three homeless resource center sites and perhaps increase the bed size of the other facilities.
"The council and the mayor's office and the county are very committed to our four sites," City Council Chairman Stan Penfold said.
Adams said a lack of support from her other council members "doesn't mean I'm not going to keep saying, 'Please think this over.' "
The councilwoman said the price — including $300,000 to settle a lawsuit the property's owner had filed against the Utah Transit Authority — and ongoing leases of the property's current tenants is enough to "rethink" the site.
In the council's formal meeting later Tuesday, several dozen Sugar House residents again urged city leaders to reconsider the Simpson Avenue site
Among them was Emily Pennock, who is helping spearhead the Go Fund Me page* to collect $10,000 to cover the earnest money if the city backs out of its purchase agreement.
"That money was set aside for the homeless so we believe that money should be used for the benefit of the homeless. When the Simpson site is removed, we want to make sure the budget is where it was before," Pennock said.
Pennock said she and other residents are not "phased" by lack of support from city leaders.
Adams said while she appreciates residents' enthusiasm, she thinks the city should pay for the $10,000 earnest money if the city ever backs out of the purchase agreement.
*KSL.com does not assure that the money deposited to the account will be applied for the benefit of the persons named as beneficiaries. If you are considering a deposit to the account, you should consult your own advisors and otherwise proceed at your own risk.
