Denver’s Hotel-to-Homeless Shelter Conversion Faces Delays and Challenges
Denver officials celebrated the acquisition of a 96-unit hotel last year, envisioning it as a comprehensive homeless shelter offering a range of supportive services, including case management and therapy. The city touted the recently updated Stay Inn hotel, with former Mayor Michael Hancock expressing pride in transforming another hotel into a shelter.
Despite the high hopes, 15 months have passed, and not a single homeless individual has moved into the $9 million property. Mayor Mike Johnston’s administration has cited renovation delays and zoning issues as reasons for the holdup.
According to Derek Woodbury, spokesperson for Denver’s Department of Housing Stability, a contractor needs to be assigned to complete renovations before the shelter can open. This process has been stalled due to a change in direction with partner selection. The department was previously in negotiations with a potential partner but determined they were not the best fit.
The project has faced multiple delays since its inception. Initially announced in May 2021, the plan aimed to use federal funding to purchase the hotel, with an expected opening by the end of that year. However, Congress did not pass the bill containing the funding request until December 2022. By then, the purchase price had increased to $9 million, and the hotel remained empty.
The four-story building, featuring an elevator, lobby, and community space, was supposed to have 89 of its 96 units converted to include micro-kitchens. The property, already furnished with essential amenities, still requires structural repairs and electrical system updates, which contribute to the unclear renovation costs.
Both the former and current administrations have shared the vision for supportive housing at the Stay Inn site, recognizing the urgent need for additional supportive housing units in Denver. The hotel is seen as an ideal property for conversion to housing opportunities for people exiting homelessness.
District 8 Councilmember Shontel Lewis emphasized that zoning is a significant barrier to the project’s realization. The property needs to be rezoned, which involves a lengthy process. Lewis noted that she inherited the project as a new councilwoman under a new mayor with different plans to address homelessness.
Currently, the hotel’s windows are boarded up, and increased security is noticeable in the area. Nearby, the city’s “micro-community” features 54 mini shelter units serving as temporary housing for homeless individuals. Homeless individuals like Keith, who recently arrived in the area seeking shelter, highlight the ongoing need for immediate and effective solutions. Keith, holding a sign asking for money, emphasized his desire for a job, reflecting the broader needs of the homeless population.
The city continues to navigate these challenges, aiming to fulfill its vision of transforming the Stay Inn into a functional homeless shelter, thereby addressing the critical issue of homelessness in Denver.
