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City of Wilmington moving forward on plans for a new homeless shelter

(Left to right) Red, Russ, Pastor Jamie Thompson, Leroy, and volunteer Janice Fladd share breakfast at Anchor United Methodist Church in downtown Wilmington. Leroy makes coffee, helps serve the meals, and cleans up each Sunday. Various volunteer groups provide meals for those experiencing homelessness.
Madeline Gray
/
WHQR
(Left to right) Red, Russ, Pastor Jamie Thompson, Leroy, and volunteer Janice Fladd share breakfast at Anchor United Methodist Church in downtown Wilmington. Leroy makes coffee, helps serve the meals, and cleans up each Sunday. Various volunteer groups provide meals for those experiencing homelessness.

Last year, Mayor Bill Saffo pushed for the city to develop a new very low-barrier shelter in Wilmington after a lot of pushback on an ordinance aimed at curbing the homeless population downtown. Those plans have been quietly percolating in city hall ever since, and may soon become more solidified — and public.

Last September, amid tense conversations about a new ordinance aimed at curbing the homeless population downtown, Wilmington's city council promised a low-barrier shelter. Now, those discussions have started to move towards a plan.

The city put out a Request for Information (RFI) in January, which came back with six proposals from various local, state, and national organizations. Wilmington staff now seem ready to meet with one organization to plan a path forward.

The request for information sought providers for a 24-hour campus with extremely low-barrier shelter operations and services. That would mean a homeless person can sleep there, even if they are high, drunk, or have a criminal record.

The city also sought case management, housing navigation, trauma-informed care, crisis management, supportive counseling, and Housing First (a model that aims to stabilize individuals before demanding sobriety or other requirements), among other expectations. They also asked applicants to identify properties to be used as a shelter. The RFI closed on March 6, but it took more than a month for city staff to provide the respondent documents to WHQR.

Offers ranged from day shelter services alone, with an operating budget of $460,000 a year, to various offers for a 24-hour low-barrier shelter, ranging from $1.1 million annually to more than $6.5 million annually.

In the end, city staff say they’ve met with local nonprofit Leading Into New Communities (LINC) about potential paths forward, and will continue to engage with other partners about possible roles in the final shelter.

While discussions remain in the background at city hall, the plans are moving forward and a more polished proposal is likely to come before City Council in the coming months.

There were a number of local organizations that threw their hats in the ring: Living Hope Day Center, The Healing Place, and LINC.

The city also heard from Lumberton-based Stephens Outreach Center, Colorado-based AC Disaster Consulting, and Tarheel Care.

LINC’s local offer

LINC seems to be the top candidate so far, and their pitch to the city was very specific, noting sites within the city the organization considered promising.

LINC’s expected annual budget came to $1,571,840, including staff, client services, and food – separate from site acquisition and construction costs, which they also detailed in their application.

LINC has a long history in Wilmington, operating since 2000, serving people who are formerly incarcerated. That includes a transitional living campus with 45 beds that has operated since 2012, recently completed a second facility and has a third in the works.

In its bid with the city, LINC discussed its partnerships with medical groups and highlighted its transitional housing approach to rapidly support those coming out of incarceration. LINC also operates permanent supportive housing beds, and has ongoing case management across its housing strategies.

A low-barrier shelter, it seems, would be another link in the chain of support for the organization. For the 40-bed shelter LINC proposed, there would be 26 staffers.

LINC's proposal for staffing their 24/7, low-barrier shelter.
City of Wilmington/LINC
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WHQR
LINC's proposal for staffing their 24/7, low-barrier shelter.

LINC also proposed specific sites as options for the shelter: The former Mercy House at 411 Red Cross, a block from the food bank Mother Hubbard’s Cupboard, or LINC’s own property at 1019 Princess St.

LINC provided substantial details about using 7,000 square feet of the first floor for shelter operations.

“The long-term development concept also includes efficient housing units on the upper floors, creating a mixed-use model that integrates emergency shelter with affordable housing and support services,” according to LINC’s application.

This would require a rebuild of the site — the existing building on that property appears to be one story. LINC said it would seek funding from various sources to ensure long-term sustainability, and expects developing the project would cost $10 million and be completed within three years. A sketch of the proposed building by Romero architecture shows a five-story building on the corner of Princess and 11th.

This rendering of the proposed building on 11th and Princess shows an ambitious effort to run a transitional complex in addition to a low-barrier shelter.
LINC/City of Wilmington
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WHQR
This rendering of the proposed building on 11th and Princess shows an ambitious effort to run a transitional complex in addition to a low-barrier shelter.

Notably, the city hasn’t picked an exact strategy. Staff are discussing possible paths forward with LINC and are still in talks with other organizations, so the exact shape of the program is in flux.

Other local options

The Healing Place and The Living Hope Day Center ILM also put in proposals to the city.

Living Hope, which is facing a budget crisis and is set to lose its operational space at the end of 2026, offered a proposal for a day shelter to be open 5 days a week. The organization stated its value as helping individuals become “housing ready,” as many of the chronically homeless individuals the center serves face barriers to becoming housed. It noted partnerships with existing programs and health organizations that use the day shelter to meet with clients.

The Healing Place of New Hanover County provided information more in line with the city’s request for information. The detox and rehab center already operates overnight shelter beds and longer-term detox and rehabilitation beds. It offered to launch and sustain a 40-unit shelter “focused on stabilization, recovery, and permanent housing outcomes.”

The Healing Place already operates with programs that include case management, housing navigation, life skills development, and emergency shelter, in addition to the recovery-oriented services.

The Healing Place did not identify a potential site for the shelter, but noted a number of local medical service partners. Its proposed staffing levels were slightly lower than LINC, at 19 staff, but did not include kitchen staff.

The overall proposed budget was $2.175 million annually for all needs.

Other applicants

On the high end, Colorado-based AC Disaster Consulting came in with a $6.5 million annual budget for a staff of 35 people, plus contractors. The organization has created new shelters in Denver and works with Bayaud Works to staff and operate the shelters.

The organization pointed to several short-term efforts to note its expertise in developing and operating shelters, with the longest-term example being emergency operations for cold weather in Denver, starting in 2021. It also runs a shelter there, as of 2023.

Those operations come with housing navigation and other stabilization efforts. “On average, our current length-of-stay is around three to six months, with a success rate of 75% stability after one year,” according to ACDC’s application.

Their offer for a 40-unit, 24-hour shelter came with a promise of grant-management and grant-sourcing.

ACDC was by far the most expensive proposal.

Lumberton-based Stephens Outreach Center, Inc., also put in a bid. The organization serves adults experiencing complex behavioral health, social, and housing stability challenges across the state, according to its application.

That organization runs group homes and involves low-barrier engagement models, crisis stabilization, and housing-focused service delivery.

Stephens Outreach Center couldn’t provide a site, however, and it requested formalized healthcare partnerships and security and overnight supervision infrastructure. Its staffing notes are somewhat vague, but they do state that extremely low-barrier shelters require enhanced staffing to maintain safety and help guests stabilize. They expect the cost to range from $1.11 to $1.85 million annually.

One other North Carolina organization also offered a proposal: Tarkeep Care, with Helping Hands of Lower Cape Fear as its primary partner.

That collaboration, according to their application, “ensures residents receive both shelter and healthcare support needed to rebuild their lives.”

Their 17-staff proposal would start with a shelter opening halfway through year 1, with year 2 bringing in healthcare integration to generate “Medicaid-eligible reimbursement revenue,” with year 3 moving towards long-term stability via federal grants, corporate sponsorships, Medicaid, and donations.

The cost would be an annual $1.59 Million to operate, with Tarheel Care proposing the acquisition of underutilized commercial property for “a purchase price not to exceed $1.5 million. Renovations estimated at $100,000 would allow the building to be converted to a 40-bed shelter with dormitories, medical respite areas, counseling rooms, and administrative space.”

The organization suggested properties along Market Street or a “warehouse-style” property with an open layout.

City staff are still in talks with various applicants, but expect to bring something more concrete to city council after budget season.

Kelly Kenoyer is an Oregonian transplant on the East Coast. She attended University of Oregon’s School of Journalism as an undergraduate, and later received a Master’s in Journalism from University of Missouri- Columbia. Contact her by email at KKenoyer@whqr.org.