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City manager Steven Weaver proposes one-year hotel pilot to house unsheltered residents
Summary
City Manager Steven Weaver outlined a one-year pilot to place up to five individuals in hotel rooms at Boots and Saddle at a city-funded cost of $54,000, with Horizon Healthcare providing case management for $7,500; council will need to approve the hotel agreement because it exceeds $50,000.
City Manager Steven Weaver told the Casa Grande study session staff is recommending a one-year pilot that would place up to five people experiencing homelessness in hotel rooms paid for by the city.
"Most proposals averaged about $70 per night. However, the Boots and Saddle hotel offered a significantly more affordable option by providing 5 rooms for a full year at a total cost of $54,000," Weaver said, adding that Horizon Healthcare would provide administrative oversight and case management for an administrative fee of $7,500 for the year.
Weaver said the pilot is intended to start on a manageable scale so staff and nonprofit partners can evaluate outcomes before considering expansion. Participants would typically stay about 90 days, engage in services such as employment assistance, substance-use recovery programs and mental-health support, and sign an agreement to participate in case management. Weaver said participants who do not engage or make progress may be replaced by others deemed ready to participate.
Horizon Healthcare, selected from proposals submitted by CHIPS and CARA as well, will serve as lead case manager and the primary point of contact for participant intake, placement in hotel units and coordination with other community providers. Weaver described two agreements staff will finalize: a memorandum of understanding with Horizon Healthcare for program administration and a lodging agreement with Boots and Saddle for accommodations; hotel charges will be billed monthly throughout the pilot.
The city manager said staff has applied for tribal grants to support homelessness initiatives and expects to launch the pilot as soon as the MOUs are finalized. "Staff anticipates launching the program as soon as the agreements are finalized with implementation expected within the next week," Weaver said.
Because the Boots and Saddle lodging agreement totals more than $50,000, Weaver said the council will need to take formal action on that contract before it can be executed.
Council members pressed staff on details during a question-and-answer period. One council member confirmed the $54,000 hotel cost and Weaver confirmed the $7,500 administrative fee. Council members asked whether the hotel owner would help manage access and whether additional hotel space or common areas could be used; Weaver said the current offer covers five rooms but the owner could make more rooms available if the city were to commit more funding or receive additional grants. He also said the hotel has a common area for registered guests.
Weaver acknowledged infrastructure and cost barriers that had made an outdoor transitional site impractical — staff had estimated operating costs for such a facility at roughly $300,000–$600,000 annually plus significant upfront development expenses — and said the hotel pilot is an alternative approach that reduces those immediate capital needs.
Next steps include finalizing the two agreements, beginning placements, periodic reporting to council on participation and outcomes, and returning to council with a comprehensive evaluation before considering any extension beyond the one-year pilot.
