Committee backs MOU to pursue Encampment Resolution grant to convert El Rey Motel into low-barrier navigation center

The Housing & Land Use Committee voted to recommend City Council approve a memorandum of understanding among the City of Salinas, Monterey County and the Coalition of Homeless Service Providers to apply for the State of California's Encampment Resolution Grant (round 5). The county will serve as the lead applicant and grant administrator.

Keisha Lopez, homeless services manager, said the joint proposal centers on converting the city-owned El Rey Motel into a low-barrier navigation center. The city would request $2.3 million in the joint application: approximately $1.1 million for capital improvements to convert and rehabilitate the motel for interim shelter operations, and $1.0 million to partially support operations for the Salinas Outreach and Response Team (split as $500,000 per fiscal year for two years). Lopez said the total estimated grant application is about $8 million and the application would propose serving roughly 80 individuals in the Davis Street corridor encampments.

Lopez said the Encampment Resolution Grant supports person-centered, low-barrier services aligned with Housing First principles and would fund repair and rehabilitation of the El Rey site, operator staffing and navigator services, and partial operations for the city's outreach team. She said the city acquired El Rey with the intention of developing interim or permanent housing, but that current zoning limits the facility to emergency shelter or transitional uses and that repairs are necessary before the property can be used.

Committee members asked how sustainability beyond the grant period would be addressed; Lopez said the long-term strategy would involve transitioning operations to a nonprofit operator where feasible and that applying for grant funds is necessary to make the site operational and marketable. Members also asked whether encampment-cleanup activities would be eligible; Lopez clarified the Encampment Resolution Grant funds services (outreach, case management and operations) rather than the physical cleanup costs handled by public works or county operations when the encampments lie on county property.

Public comments included requests to include people with lived experience in planning and neighborhood concerns about concentrations of unsheltered people between Chinatown and the El Rey area.

Motion and outcome: Council member Sandoval moved and Council member Salazar seconded a motion recommending City Council approve the MOU and for the county to serve as lead applicant for the Encampment Resolution Grant; roll call recorded Salazar Yes, Sandoval Yes and Chair Barajas Yes; the motion passed.