Committee forwards resolution to use opioid-settlement funds for emergency shelter renovation at 96 Third Ave West

The Administration and Finance Committee on April 28 voted to forward to full council a resolution (2025-R-45) that would authorize the mayor to expend opioid settlement funds to renovate and equip the city-owned building at 96 Third Avenue West for an emergency shelter providing integrated homelessness care and addiction-treatment services, to enter a memorandum of understanding (MOU) with Valley Health Services Inc. for construction and operation, and to redirect previously authorized operational funding to the new facility once it is declared operational.

Mayor Farrell summarized the request as three linked actions: (1) authorize expenditure of available opioid-settlement funds; (2) enter an MOU with Valley Health Services for renovation, equipping and operation; and (3) upon the new facility reaching operational status, redirect funds previously provided to Huntington City Mission to operational costs at the new facility. The mayor said the intent of bundling the items was to be explicit about the administration’s plan and to enable construction to proceed quickly so clients can get services sooner.

Committee members pressed for detail on the amounts and on safeguards. Council members were told the proposal contemplates up to $1,000,000 for construction/renovation/equipping and an additional $350,000 from opioid settlement funds in the fiscal-year 2025–26 operations allocation that could be redirected once the new facility is operational; the resolution text and staff comments reference prior council action (Resolution 2024-R-36) that had authorized opioid-settlement disbursements to the Huntington City Mission. City attorney Scott Dammer clarified that the capital allocation would be used to improve city-owned property and that, if Valley Health were to end participation, the city would retain ownership of the improvements. Dammer said the operational funds would reimburse expenses rather than be an unconditional payment to Valley Health.

Several council members asked for a more specific MOU and for clearer language to limit ambiguity about which funds might be redirected and under what conditions. Mayor Farrell and other speakers said partners expect the site to provide services for people with and without substance-use disorders, and noted Valley Health Services is a federally qualified health center (FQHC), which carries requirements around sliding-fee scales. The committee was told there is a letter of intent among partners that includes Prestera, Valley Health, Marshall Health Network and others; additional agreements — including any lease or service contracts — will come back to council as they are developed.

By voice vote the committee forwarded the resolution to full council with a favorable recommendation. Mr. Archer agreed to sponsor the resolution at full council.