Peoria council approves up to $80,000 reimbursement to Lula, $105,000 grant to Dream Center to expand shelter capacity

Peoria City Council on Tuesday approved emergency reimbursements and a shelter expansion grant to help people living in encampments find temporary shelter this winter.

The council voted unanimously to authorize reimbursable payments to Lula NFP for documented motel costs (not to exceed $80,000) through the end of February 2025, and to award Dream Center Peoria a $105,000 grant to expand its shelter capacity for up to three months.

The actions followed an extended discussion about how to balance immediate life‑safety needs during a cold spell with longer-term strategies for mental‑health treatment, detox and permanent supportive housing. Council members and staff said the payments are reimbursements — not direct contracts — and will require documented invoices reviewed by city finance staff before payment.

“Kayshi Bernard,” a Lula NFP representative who spoke at the meeting, told the council: “We’re deeply grateful and just to be clear, the amount of residents that we've had stay in our transitional pop up shelter is 61 as of right now. There is nobody left in camp as of right now.” That public comment was cited by several council members as evidence the motel approach had eased immediate risk for many individuals and made case management easier.

City staff said Lula began arranging motel rooms on Jan. 3 without prior city commitment; Council Member Riggenbach said Lula’s initial, self‑funded effort cost about $16,000 for the first ten days. Corporation Counsel Hayes explained the city prefers a reimbursement model to reduce direct liability exposure from operating or contracting for third‑party shelter placements.

Community Development Director Joe Doolin briefed the council on the Dream Center award, saying the center’s expansion focuses on couples and women and is intended to add temporary bed capacity that can be evaluated for effectiveness over the winter.

Several council members pressed for measurable follow‑up. Council Member Oiler (Euler) asked staff for weekly updates on the number of people sheltered, the number still unsheltered and plans to move people from temporary placements into longer‑term housing. Council Member Riggenbach and others emphasized case management and coordination among service providers, citing Phoenix Community Development Services, OSF’s street medicine team and Salvation Army planning.

Not all council members were comfortable with the amended dollar total. One member said they would have voted for a smaller, immediate amount and stressed that motel rooms are a short‑term fix; others argued the larger, two‑month reimbursement is a pragmatic next step while shelter capacity and mental‑health projects are developed. Multiple members urged the council to prioritize a regional mental‑health center and more permanent housing solutions in conversations with state legislators.

Doolin also told the council that two larger shelter/capacity projects — the Phoenix project and a Salvation Army expansion — are expected to start in the coming months and could conclude around June 2026, but he said both are multi‑year, multimillion‑dollar undertakings that will not replace immediate winter shelter needs.

Votes at a glance

- 25‑9: Motion to approve reimbursable grant award to Lula NFP to reimburse motel costs for unsheltered individuals, amended to reimburse through Feb. 28, 2025, not to exceed $80,000; moved by Council Member Riggenbach; seconded by Council Member Gordon Young; outcome: approved (unanimous). - 25‑10: Motion to approve grant award to Dream Center Peoria in the amount of $105,000 to expand existing shelter capacity; moved by Council Member Riggenbach; seconded by Council Member Allen; outcome: approved (unanimous).

What it means

Council members and service providers described the reimbursements and the Dream Center award as emergency, transitional measures intended to reduce immediate harm and make it easier for outreach teams to connect individuals to housing and services. City staff said the payments will be vetted through the grants and finance departments and that future recommendations for longer‑term funding may be presented as winter needs evolve.

Public comment and service‑provider testimony were central to the council's deliberations: Lula and Dream Center speakers described clients’ improved readiness for case management once sheltered; several council members called for more targeted mental‑health capacity, detox beds and recovery housing to reduce repeat homelessness.

Ending

Council members asked staff to provide regular progress updates to track who remains unsheltered, how motel and shelter stays transition into longer‑term placements, and what additional city or regional investments will be needed. The council did not commit new permanent shelter facilities at the meeting; future capital or recurring operating requests will return for separate approval.