Residents accuse city of opaque handling of crisis center property and ARP funds; speaker says she will report to federal oversight

Residents used public comment at the May 4 meeting to press the council for clarity about a property and federal American Rescue Plan (ARP) funds they say were intended for a crisis or behavioral health center.

Elizabeth Edgel told the council that ARP funds allocated to build an inpatient behavioral treatment facility were diverted and that a property was later sold for $1 and exchanged in ways she said violate ARP rules. "When you use public funds from the federal government to build a facility, the facility is expected to have a 15 to 20 year lifetime," she said, and if that lifetime is not met, federal authorities want explanations. Edgel said she plans to report the transactions to the U.S. Treasury Inspector General, the Pandemic Response Accountability Committee, the Government Accountability Office and the State Board of Accounts.

Neil Cring, who works with unhoused neighbors and neighborhood outreach, said public property originally designated for behavioral health and substance‑use treatment had been conveyed to a faith‑based organization with little apparent public process. He said the faith‑based group's clinic currently serves residents of the mission and the speaker expressed concern it will not function as the crisis services previously provided.

Council members did not present a detailed response or documentation at the meeting and acknowledged confusion. At one point a speaker said, "We didn't know," reflecting the lack of clarity on the floor. The transcript does not record a formal city statement or an explanation of the transactions raised by residents.

Residents asked the council to investigate and to restore a public process for allocating property and funds for behavioral‑health services. The council did not schedule a public hearing or take a formal vote on these claims during the meeting.