The following letter from Kim Grimsley Ritchy was sent to the members of the Greensboro City Council and other top staff in addition to being submitted as a letter to the editor of the Rhino Times.  it is written in part in response to an emergency county housing effort announced by Chairman of the Guilford County Board of Commissioners Skip Alston recently in the Rhino Times.

Good morning City Council members and Management,
When the IRC went 24/7 in 2024 we spent the majority of the year advocating for new leadership, safety, transparency and accountability at the Interactive Resource Center.  At year end there had been over 3400 – 911 calls placed to or from the IRC (Interactive Resource Center) at 407 East Washington Street.
Ultimately positive change happened once Bennita Curtain was seated as the Executive Director in November 2024.  I’m happy to report that I have been keeping up with 911 Calls/CAD from the IRC and as of August 1, 2025 the calls are down close to 900% and the IRC has been able to implement new and existing programs to get back to helping provide assistance/resources to the unhoused in Greensboro, but they are still struggling with attaining the funding they need to maintain some of their programs and most importantly keeping safety and order.
I will never understand how Michelle Kennedy remained in her position as long as she had, given all of the city funds she was awarded for various projects that cost the city taxpayers millions of dollars…….  After watching Tuesday’s City Council Meeting I figured it was time for an honest recap on the amount of taxpayer dollars wasted.  Hopefully after you have read through this recap you will have a better understanding as to why the Greensboro citizens are frustrated with the surplus vehicle donation to Black Mountain.  From what I have been told the city is currently in a severe fund deficit and the majority of the CoC nonprofits have suffered a significant amount of financial loss due to the amount of available grants and city/county funding available.  We have 3 college kids that are in schools that were severely affected by Helena so we are well aware of the severity and loss and we have been going our part as well.  But the lack of transparency in this situation paired with Michelle Kennedy costing our city and it’s taxpayers millions of dollars is where the problem lies.  Sharon Hightower and Hugh Holston were asking the right questions at the most recent city council meeting and the majority of you made it personal.  I can think of 15 local organizations that could utilize these vehicles right now.  These are the questions that should be asked every time the city council is awarding taxpayer dollars.  Election time is around the corner and I can tell you that all the candidates should be supporting the police (that’s a no brainer), the leaf collection situation and red light cameras are the least of my priorities.  Addressing homelessness, the mental health crisis, supporting youth mentorship programs and creating affordable housing are on the top of my list.  City council transparency needs drastic improvement.
Here are just a handful of news links that support my findings:
Takeaways:
  • November 2021 – Neighborhood Development/Michelle Kennedy proposed  this to the city.  The city first approved over $3 million in funding to purchase the Regency Inn in November 2021. Partnership Homes bought the Regency Inn but did not acquire the estimated $10 million needed to renovate it. In May 2023, the City Council approved the second effort to turn the Regency Inn into a permanent supportive housing facility with Step Up On Second. January 2024, Partnership Homes still owned the Regency Inn and, despite the recent frigid temperatures, the Regency Inn was vacant.  The city puts out over 3.3 Million for this project which is supposed to be a permanent housing solution.
  • May 16, 2023 –  City Council meeting, the City Council appeared to attempt to hold Kennedy to some of the same standards as other city department directors.  The request from Kennedy was that the City Council pass a resolution authorizing the city to enter into a contract with Step Up on Second Inc. to operate the Regency Inn as a permanent supportive housing for homeless people.  Councilmember Zack Matheny questioned the terms of the resolution the council was being asked to approve, which was not included in the agenda packet but was provided to council members shortly before the meeting.  City staff offered to explain what the resolution should say, and Matheny said, “You can verbalize it, but we’re not voting on what you tell us.  We’re voting on what she [Mayor Nancy Vaughan] just read.”  Matheny continued, “First of all, the whole process is kind of screwed up.  We always talk about going to RFP [request for proposal], but the statement was made, ‘We chose Step Up.’”  Zack questioned the city manager if Michelle Kennedy bypassed the RFP process, when they chose Step Up, so there wasn’t an RFP process.  Kennedy said, “There was not an RFP.”  This project never went through the appropriate RFP process, Michelle Kennedy Selected the California based company called Step Up on Second.
  • January 22, 2024  Step Up on Second Inc. is in legal and financial trouble, having been named in a $100 million lawsuit filed by the state of California.  According to an article in the Los Angeles Times, California Attorney General Rob Bonta is demanding that Shangri-La Industries return more than $100 million in homeless funds to the state and put seven properties in receivership. The article states, “According to the complaint, Shangri-La took out loans on six of the seven properties without obtaining approval from the state or recording the required affordability restrictions on the properties.”  The Regency Inn has been vacant since winter of 2022.  Huge taxpayer financial loss but more importantly several years lost supporting housing solutions for the homeless.
  • 2022 The Pallet shelters were purchased, costing the city $535,014, this effort was led by Michelle Kennedy. The first year the project had drawn criticism from members of city council as well. Councilmember Zack Matheny was wary about the project. where he advocated for more permanent housing instead of “putting a Band-Aid on what we’re experiencing in our community right now.”  Nancy Vaughan said “This is a lost opportunity,” .  She said “We are spending this money on a one-time thing for the Pallet shelters when we should be investing it in something else, but we are in a position where these are life and death decisions,” Vaughan continued.“It’s not a good alternative, but it’s the only alternative,” she said.  More funds supporting temporary housing versus permanent housing, this is just the cost of the actual pallet shelters in 2022, this number doesn’t reflect utilities, set up/breakdown, security, case workers, maintenance, etc…...
  • 2023 The city projected the Doorway Project to cost $193,660 that year, from December 2023-March 2024. The IRC was the only applicant in 2023 and 2022 according to Housing and Neighborhood Development Director Michelle Kennedy and Assistant Director Cynthia Blue. Michelle Kennedy had a relationship with Kristina Singleton at the IRC.  When Michelle stepped down from City Council and took the Director of Neighborhood Development job , from what I read it seemed very controversial,  she advocated for Kristina to get the Executive Director of the IRC position and they worked hand and hand with Michelle.
  • February 27, 2023 The Greensboro City Council unanimously voted to approve a contract to acquire the old Glenwood United Methodist Church at 1417 Glenwood Ave. on the Tuesday, Feb. 21 meeting, led by Michelle Kennedy.  The contract for acquiring the property is with Christ United Methodist Church, which merged with Glenwood.  The city agreed to pay $30,000 and donate four lots to Habitat for Humanity in exchange for the church property valued at $1.4 million.  The city plans to use the old church building to create a hub “for neighborhood-based services in partnership with City departments, nonprofits and community organizations,” according to the agenda.  Three adjacent lots come with the property which the city plans to develop for housing. Nobody on the City Council asked and Kennedy didn’t provide any information on the estimated cost of turning the old Glenwood Methodist Church building into city offices and a neighborhood hub.  As of today the property sits empty as well as the lots and I have even heard that the city wants to sell the property.  
  • April 25, 2024 – After months of delays, the city of Greensboro appears to be cutting ties with Step Up on Second, the organization it tapped to convert the Regency Inn into housing for the chronically homeless. 
  • June 18, 2024 Summit Executive Center – The city voted 6-3 to purchase the half-acre property at 817 Summit Ave., which is the old Summit Executive Center Apartment Complex, for $950,000.  The property is very old, and it’s in terrible shape, leading some members of the council to wonder why it hasn’t been condemned. It’s a property with a history of code violations, asbestos and bed bugs, so several members also didn’t understand how it could possibly be worth almost $1 million.  “I know you’ve got the votes, and more power to you, but this is not the right way to use our money,” Councilman Zack Matheny said. “There are no interested buyers. There is no reason for us to pay three times tax value,” he said. The City seeks proposals from experienced, qualified real estate development firms/teams for the new construction or rehabilitation of structures on the property for affordable rental housing. This RFP earmarks up to $1.8M in federal Department of Housing and Urban Development housing assistance for eligible households.  “Facilitating the development of affordable rental units like this project is critical in the face of increasing housing demands,” said Michelle Kennedy, director of the City’s Housing and Neighborhood Development Department. “Part of our continued efforts is to ensure everyone in the Greensboro community – regardless of their financial situation – has access to quality housing options.”  As of today the property sits empty!  
  • September 12, 2024 Michelle Kennedy presented an RV option to add to the existing Doorway project pallet homes at the city council meeting.  Leasing two RVs that include two bathrooms and a shower in each trailer would cost more than $70,000.  Meanwhile, 30 more pallet homes that include two beds and a bathroom in each unit would cost upwards of $800,000.  During a work session, Greensboro City Council members unanimously approved the RV option.  It’s just a really … innovative approach and a very cost-effective approach. This works out to about $17 a night per person. That’s significantly less than what we would spend putting people in hotels,” Thurm said.  The city leased two 40ft RV’s that housed 14 homeless in each RV if they were packed in there like sardines.  Mind you this wasn’t just for a night it was supposed to house people from November to March 31.  The city had to spend money on water/sewage, electricity and other things to make this work, they didn’t think about all of this before they approved the 2 RV’s.  I’m sure this had to cost well over $100,000 since close to $80,000 was put towards leasing the RV’s.  All so the city could say they had temporary housing for an additional 28 people over the winter months.  This program was a problem from the beginning.  The city council never asked the right questions from the beginning, it was all about the numbers.  I attended this meeting and asked valid questions AFTER the meeting, none of which they could give me accurate answers.  But the city council approved the RV’s, it was a numbers game instead of a permanent solution.  We have 6 people in our family and own a 36 ft RV so entertaining the thought of housing 14 people in 1 RV for several months is ludacris.  Those funds could have been distributed towards hotel/motel vouchers where they could have negotiated monthly rates in the amount of $900/$1000 a month.  The Oaks Motel on Summit charges $1100.00 a month for a 2 bed 1 bath room, they charge $900 a month for a 1 bed 1 bath room.  Over $100,000 in taxpayer funds thrown away on temporary solutions.
  • October 28, 2024 The Regency Inn was Demolished. This was only after the city bought it back and no telling what the demolition cost!  At least they are utilizing it as a temporary location for the Doorway Project pallet  homes from April 2025 – October 2025.  Supposedly they will be removed and relocated back at Paloma Park for the winter.  I do believe the Doorway Project has been a great TEMPORARY solution but it’s not resolving Greensboro’s housing issues.
  • July 11, 2025 – City News – A City review committee recommends Raleigh-based nonprofit DHIC, Inc. to develop the former Regency Inn property at 2701 North O.Henry Blvd. DHIC’s proposal calls for two construction phases that will yield 114 living units for seniors and families at an estimated development cost of more than $29.5 million.  “There were several strong and interesting proposals reviewed by the committee,” said Assistant City Manager Nasha McCray. “Many in our city are excited to see this property move to the next stage of development and to partner with an accomplished developer such as DHIC.”   We are going on 4 years of nothing, let’s see what’s next.  
  • July 15 Consent Agenda item -At the City Council Meeting – Jason Hicks brought up the matter in relation to a proposed donation of two surplus vehicles to the town of Black Mountain, where Kennedy now serves as planning director. Hicks contends that the donation would be inappropriate because Kennedy had been copied on emails related to the vehicles as well as because of the alleged claims against her.  When asked to clarify if she was saying that Kennedy had been fired, the mayor said in a text: “I was not privy to discussions between HR and Michelle. I was told she resigned. I am sorry if I misspoke.”  Michelle Kennedy has cost our city hundreds of thousands of dollars but part of the responsibility falls on the city leadership’s lack of followup or investigative work in the beginning.  I’m not sure why there hasn’t been more investigative  work done on her and allocations of funds given how much money she has cost our city. Allegedly Michelle Kennedy, former housing director, was forced to resign from her position in April which cost the city taxpayer dollars more money in a severance package.
  • August 19, 2025 Greensboro News and Records front page news.  Debate over surplus vehicles grows intense.  Kennedy left the city in the spring after finalizing a $132,500.00 Severance agreement with the city of Greensboro.  The city council awarded Black Mountain 2 Surplus Utility Vehicles valued at $9100.  I’m all about giving back, especially when it’s “my” own money.  But what I would like to know is why Greensboro surplus vehicles in our municipal aren’t being donated to the numerous nonprofits in our city that could benefit from this type of resource.  
There’s no way that I could stand in front of the city council and make this point in 3 minutes or less.
Hopefully this will shed some light on why so many people feel as they do things.
Have a wonderful weekend,
Kim
Kim Grimsley-Ritchy

President Kim Grimsley Designs, LLC

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