Grants Pass council issues notice of intent to award $1.18M addressing-homelessness grant to Elk Island Trading Group with conditions

The Grants Pass City Council voted Nov. 19 to issue a notice of intent to award the city’s addressing-homelessness capital grant to Elk Island Trading Group and to advance a grant agreement with conditions meant to protect neighbors and ensure accountability.

Background and selection: The city issued an RFP on Sept. 4, 2025, offering up to $1.2 million in capital funding for an applicant that could deliver a 24/7-managed, low-barrier, ADA-compliant shelter site with capacity for 150 individuals within six months. Four proposals were received; Pathways to Stability scored highest but failed to provide required property-security documentation and was disqualified. Staff recommended moving forward with Elk Island Trading Group, the second-highest scorer, after Elk Island provided a signed letter of intent from an adjacent landowner and a reciprocal use agreement with Mint.

Grant terms and safeguards: Staff presented a draft grant agreement that would provide roughly $1,179,000 in capital funding for land acquisition and shelter build-out. Key contractual requirements: the grantee must deliver a 24/7-managed, ADA-compliant low-barrier shelter site with capacity for 150 individuals within six months of agreement execution; the grant is structured as reimbursement where possible, requires monthly progress reports and quarterly/annual program reporting, and includes material-breach remedies (notice and cure, withholding or repayment of funds, and in a worst case the city could require repayment plus 9% interest or exercise an option to purchase the property for $1). The agreement was revised to clarify it is contingent on adoption of a transitional-housing text amendment to Title 9.04.0.01(j) of the municipal code unless such a change would create an unreasonable public-safety risk.

Operational model and partners: Applicant Bernie Woodard described a modular village built with Conex container units, on-site toilets/showers and a central intake and medical/first-aid unit, 24/7 security, camera monitoring covering common areas, storage under elevated beds, and wraparound services provided by partner Mint. Dr. Scott Nelson (Mint) described Mint’s navigation, medical and employment-training contributions. Staff emphasized funds would be disbursed primarily on a reimbursement basis with strict documentation requirements.

Council debate and conditions: Councilors pressed staff and the applicant on low-barrier definitions, whether drug testing could be required (staff said a blanket mandatory testing requirement is very unlikely to be compatible with low-barrier standards), unit sizes, staffing and operating sustainability, prevailing-wage issues for construction, and remedies if the project failed. Several councilors and many public speakers urged caution or said the applicant lacked adequate on-site medical/detox capacity; many others — including health professionals and neighborhood residents — voiced strong support for the Elk Island plan as a workable, timely solution.

Community-panel amendment: Council approved an amendment requiring the grantee to establish a community panel that will meet at least monthly and include representatives from Grants Pass Police, a city council member, Elk Island and neighborhood representatives; the panel must develop a written plan to address community concerns.

Vote and funding: The motion to issue the notice of intent and proceed with the grant agreement (funding recommended half from the land-and-buildings fund and half from opioid-settlement funds) passed 5–3 (Yes: Indra, Rob, Seth, Rick, Joel; No: Kathleen, Victoria, Eric).

Next steps: Staff will issue the notice of intent to award, allow a seven-day protest period, and — if unresolved — execute the grant agreement with the clarified contingencies, accept the promissory-note/restrictive-covenant/deed-of-trust package and begin administering reimbursements and reporting requirements. The city emphasized that no ongoing operational funding is committed beyond the capital grant.