The Greensboro City Council at the Tuesday, Oct. 19 meeting is scheduled to approve a loan of over $3 million to turn a motel on US-29 in northeast Greensboro across from the Wal Mart shopping center into a homeless shelter.
According to the agenda, the City Council plans to approve a no interest deferred payment loan of $3 million to Partnership Homes Inc. to purchase the Regency Inn and Suites motel at 2701 N. OHenry Blvd. But that’s just a drop in the bucket for the total cost of the project, which is $13.1 million.
The proposal submitted by Partnership Homes calls for the motel to provide a non-congregate homeless shelter location through the winter partnering with the Interactive Resource Center (IRC), YWCA and Greensboro Urban Ministry.
The proposal calls for the future conversion of the motel to permanent supportive housing for the chronically homeless at a cost of $13.1 million. The City of Greensboro is contracting with the Corporation for Supportive Housing to provide technical assistance to convert the motel to supportive housing operations and provide options for rehabilitation financing.
The preliminary site design work has already been completed by Teague, Freyaldenhoven, Freyaldenhoven Architects and Planners LLP.
The purchase cost of the land and building appraised at $2.4 million is $2,750,000. The loan also covers $40,000 for repair and cleanup, $75,000 for architectural design, testing, surveying, attorney’s fees, inspection, insurance, a Phase I Environmental report and other expenses. Partnership Home Inc. receives a $100,000 administrative fee and there is $8,500 for furnishings and equipment, a $37,500 operating reserve, $20,000 contingency and $66,000 for other expenses.
According to the development budget, the initial $3 million loan from Greensboro is just the starting point for the costs of the project, which totals $13.1 million with total construction costs of $7.3 million, total soft costs of $1.6 million, developer and consultant fees of $904,000 and other expenses of $660,000.
As a city councilmember, Michelle Kennedy was unsuccessful in her attempts to get a permanent supportive housing project passed. As Director of the Neighborhood Development Department, Kennedy is in charge of the project for the city.