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Clark County moves to reallocate $130,000 in 14-06 funds after Lumen Fidelis insurance shortfall
Summary
After staff said Lumen Fidelis could not meet county insurance requirements for a Recovery Hotel project, councilors directed staff to reallocate the $130,000 14-06 funding; staff will return the reallocation for formal approval at a Tuesday meeting and may consider Weaver Creek as a recipient.
Clark County councilors signaled they will move $130,000 in 14-06 affordable-housing funds away from a planned Lumen Fidelis project after staff said the nonprofit could not meet the county's insurance requirements.
Jordan Bogie, a senior policy analyst, told council that the funds were originally directed to support work at the Recovery Hotel on Highway 99 operated by Lumen Fidelis and that a modular kitchen had been approved as a concession after building ownership complications. Bogie said the county's risk-management team recommended against waiving insurance requirements. "Their concessions they would need from the county to move forward are to accept their current insurance, and waive our typical insurance requirements," Bogie said. He added risk management's position: "The recommendation is not to reduce below our minimum insurance standards."
Why it matters: The 14-06 funding stream is derived from state remittances tied to affordable-housing sales-tax credits and is intended for housing-support projects. Council direction will determine whether this previously earmarked money is returned to the county fund and reallocated to other local housing initiatives.
Council deliberations: Councilors said they were concerned about placing the county at risk by reducing insurance standards. One councilor said, "it doesn't sound like Lumen Fidelis is really serious about executing this project a year and a half later." Another asked whether the organization lacked the ability to obtain appropriate insurance or simply could not afford it; staff said the barrier appeared to be an inability to pay for an updated policy.
Next steps: Council informally agreed (thumbs up) to reallocate the funds and directed staff to return the item at the next formal meeting for final consideration and possible reallocation to the Weaver Creek affordable-housing project. A staff member said that if council preferred, the funds could be moved back into the 14-06 fund and re-designated later if Lumen Fidelis resolves its contracting and insurance shortcomings.
No final contract award or funding decision was recorded at the Aug. 27 meeting; council provided direction to staff to bring a formal reallocation ordinance or agenda item on a Tuesday meeting for adoption.
