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Council defers decision on Lexington Hotel as shelter partners pursue funding
Summary
After engineers and the insurer reported repair costs could exceed value, the council unanimously deferred action on the Lexington Hotel for 60 days to pursue preservation referrals, possible HUD‑aligned shelter partnerships and additional legislative funding.
City staff reported that engineers and an insurance adjuster found repair and remediation costs for the Lexington Hotel approached or exceeded its value; the insurer offered $300,000 restricted for demolition while demolition estimates ranged from $700,000 to $1.2 million. Human Resources Director Marcus Largo asked Council for guidance; staff proposed a 60‑day postponement to allow shelter partners and legislative requests to develop funding and operational plans.
Emily Ellison, Executive Director of Battered Families, described the organization's ability to pursue HUD‑aligned shelter construction and federal reimbursements and asked the city to partner on a shelter that could meet HUD specifications for youth and family services. Council voted unanimously to defer action 60 days to pursue additional funding, Gallup MainStreet review and potential alternative lease structures to limit city liability.
