Santa Fe council approves Urban Alchemy contracts, ends Pete’s Place lease after heated public comment

The Santa Fe Governing Body on June 3 approved a four‑year, $7,948,133.59 street‑outreach and community‑based public safety contract with Urban Alchemy and voted to terminate the city lease with Interfaith Community Shelter (Pete’s Place) at 2801 Cerrillos Road. The council also approved a separate emergency, 12‑month contract that will provide $1.5 million to fund low‑barrier, 24‑hour shelter operations at the same site through July 31, 2026.

City staff framed the measures as an immediate response to escalating public‑safety and public‑health conditions around the shelter and the Harrison/Cerrillos corridor. "We are facing an untenable moment," Henry Hammond Paul, director of Community Health and Safety, told the council, citing large increases in 911 calls, overdoses and illegal dumping in the area. He said the city lacks sufficient shelter capacity and urged a combined strategy of outreach, short‑term shelter stabilization and longer‑term microcommunity sites.

The actions follow extensive public comment: several hundred people attended the special meeting and scores of speakers testified for and against the contracts and the lease termination. Supporters of Pete’s Place — volunteers, longtime donors and several service providers who operate on site — urged the council to keep the Interfaith Community Shelter operating and to invest in locally rooted solutions. "The Interfaith Shelter has provided critical services in this city for many years," Interfaith Executive Director Karina Lopez said during public comment. Opponents and nearby business owners pressed the council to take faster action on street conditions; multiple neighbors described repeated drug deals, used needles and public defecation in storefronts and parking lots.

Urban Alchemy representatives who appeared at the meeting described their approach as peer‑led, trauma informed and oriented to both inside‑and‑outside site work. "We take responsibility not only for inside the shelter ... but also the outside," Bayron Wilson, Urban Alchemy’s chief operating officer and co‑founder, told the council. Urban Alchemy said its model emphasizes hiring practitioners with lived experience, training in de‑escalation and harm‑reduction outreach, and operating small day‑service "oases" where people can get basic care and be connected to shelter or treatment.

Several speakers and members of the council highlighted the size of the awards: Interfaith’s city grant was cited in testimony as roughly $158,000 a year; the Urban Alchemy shelter contract approved for initial emergency operations is $1.5 million for 12 months and the street outreach contract totals about $7.95 million over up to four years. The disparity drew repeated criticism from residents and existing service providers, who said the city should have given local groups time to compete for the work or been more transparent about funding sources.

Council debate covered operational oversight, accountability and procurement. City staff said the first year of the outreach contract is covered by a combination of one‑time allocations and re‑prioritized homelessness dollars and that staff will seek state and other funding for later years. The contracts contain standard termination and appropriation clauses; the council asked for frequent implementation reporting. Director Hammond Paul said staff will present monthly updates and that the governing body or its Quality of Life committee will receive regular public briefings.

Council action - Lease termination (2801 Cerrillos Road, Pete’s Place): motion passed (see meeting record). The city will end the current month‑to‑month tenancy; Interfaith will continue some programs as feasible while the city manages the site for the emergency period. The governing body directed staff to avoid any lapse in shelter bed capacity during transition. - Street outreach contract with Urban Alchemy (up to $7,948,133.59 over four years): approved. The contract funds an 18‑person field team, two day‑service "oases" and related operations; staff said the program will coordinate closely with the police, fire department, park rangers and local providers. - Emergency shelter contract with Urban Alchemy ($1,500,000, through 07/31/2026): approved. City staff described the contract as a 12‑month stabilization measure to ensure no loss of beds while the city works on longer‑term facility and housing options.

Voices from the meeting - "The circumstances around Harrison have overwhelmed the community," City Manager Scott said in opening remarks; he asked the council to consider a comprehensive strategy of outreach, transitional housing and permanent housing. - "We don't want to live in a police state," Urban Alchemy staff said, explaining their community‑based public‑safety focus and saying the organization is not a security force. - Interfaith supporters and partner providers warned that terminating the lease would scatter volunteers and damage local relationships and the continuity of on‑site medical and navigation services that are already linked to other city and nonprofit programs.

Why this matters The council’s votes try to balance immediate neighborhood safety and public‑health risks with preserving access to low‑barrier shelter beds. Staff said the city is short of shelter space and that both outreach capacity and safe daytime options are necessary to reduce 911 calls and overdose responses. Residents, volunteers and providers who testified asked the council to prioritize local capacity and transparency in procurement; others pressed for faster action to remove hazards on a busy arterial.

What’s next City staff said they will provide monthly public implementation reports and pursue state funding and other sources to sustain the outreach work beyond the first year. Councilors and staff repeatedly said a longer‑term solution — larger shelter campuses and additional "microcommunity" safe‑outdoor sites — will be needed and that the council should expect periodic updates as those projects are developed.

Ending While decisions at the June 3 special meeting move short‑term money and management toward a new operator, many residents said the larger problem — housing affordability, mental‑health capacity and regional coordination — remains. The governing body directed staff to accelerate community engagement on next steps and to report implementation results back to the council on a monthly basis.