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Mesa debates next steps for Off the Streets shelter after Sun Air renovation; staff say move saves money but federal rules pose risk
Summary
Staff told the council the Sun Air renovation—funded with ARPA—will allow the Off the Streets emergency shelter to operate on a secured campus with ADA upgrades and internal hallways, reduce annual operating costs compared with the current leased Windmir site, and add food support; council asked staff to return with more analysis of federal recapture risk and nonprofit partnership options.
City staff briefed the council on the Sun Air renovation and the Off the Streets emergency shelter program, describing operational changes, client services and financial tradeoffs. Candace (city staff lead) summarized the site purchase, ARPA funding and the renovation timeline: the city closed on Sun Air in November 2023, construction began in January 2025, and staff expect a certificate of occupancy in late March or early April with participant intake in the summer.
Staff emphasized program differences between the Windmir (leased) location and the city‑owned Sun Air site: Sun Air gives controlled campus access, interior hallways, ADA upgrades and the ability to join two rooms for larger families through staff‑controlled keys. Candace said the transition reduces the number of rooms but increases flexibility to house families, seniors and domestic‑violence survivors, and allows the city to add two grab‑and‑go meals per day because of operational savings.
Budget and funding questions dominated council discussion. Candace said the acquisition and renovation were paid with ARPA funds and that Maricopa County contributed $4 million for purchase under an intergovernmental agreement requiring a 10‑year minimum shelter operation or repayment. She warned there is uncertainty about how the U.S. Treasury might treat ARPA funds if the city later sold or repurposed the property, and staff estimated a worst‑case recapture exposure of roughly $9.2 million in federal funds unless Treasury disposition rules allowed returning only sale proceeds.
Program managers described Off the Streets operations and outcomes. Josani Goodman said the program is a structured, case‑managed shelter with stays up to 90 days and reported a positive exit rate of roughly 86% and 489 unique clients served in calendar 2025; she noted that as of March 1, 30 family units (57 children) would be displaced if the program were removed. Assistant Chief Dom Sterland described the police partnership and said co‑response options and case management are more effective than enforcement alone: "We can't arrest our way out of homelessness," he said.
Councilmembers were split. Some urged caution and asked staff to seek clearer federal guidance and explore nonprofit or faith‑based operator options; others urged moving to Sun Air to secure services, reduce annual operating costs and avoid further strain on emergency services. The council directed staff to return with options, additional financial clarifications and potential partnership models while continuing current operations.
