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14. Request for Sinopah House Assistance - Western Montana Mental Health Center4D City of Kalispell Post Office Be, 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758 REPORT TO: FROM: SUBJECT: MEETING DATE: The Honorable Mayor Boharski and City Council Susan Moyer, Community Development Director Chris A. Kukulski, City Manager Western Montana Mental Health Center Request For Assistance For Sinopah House August 20, 2001 BACKGROUND: The attached letter from Western Montana Mental Health (a non-profit) seeks $10,000 in funding assistance to construct an eight -bedroom Therapeutic Group Home for homeless, adolescent girls with severe emotional disturbances (SED) as part of the Mental Health Center "Kalispell Campus" development, a 2+ acre site up in Buffalo Commons. Western Montana Mental Health (WMMH) has a $57,000 gap in being able to create a debt -free building that would reduce reliance on State subsidies for facility costs and allow more of their funding to be used for staffing and direct services. They are requesting City and County each contribute $10,000 to the construction costs for the girls' home. This will enable WMMH to utilize more of the revenues from their State contract for operating revenues and case management support. RECOMMENDATION: Staff asks Council to approve the payment of $10,000 assistance to the construction of the new girls youth home. Sinopah House as well as the Tenant Base Rental Assistance for Samaritan House were two of the top three affordable housing needs identified during this year's public hearings process. By encouraging these non -profits to apply themselves through a special HOME Funding process for Community Housing Development Organizations (CHDOs), the City was able to live up to its commitment to the Second Avenue West Senior Housing Project. Ultimately, the $10,000 donation is considerable less than the Community Development Department and the City would have invested were they to be pursuing these projects on behalf of the non -profits. As in the Samaritan House request for assistance, the Community Development Loan Revolving Fund #2880 is the suggested source for payment. Much of this account is Program Income funded through previous housing activity grants. FISCAL IMPACT: The $10,000 investment by the City of Kalispell will assist in a $537,000 investment by Western Montana Mental Health in our community. ALTERNATIVES: As suggested by Council. Respectfull ubmitted, Susan Moyer, Director Community Development Date Compiled: August 7, 2001 Attachment: WMMH letter of request. Chris A. Kukulski, City Manager Patricia Kent Bldg T-9. Fort Missoula Missoula, MT 59804 7 August 2001 Susan Moyer, Director Community Development Department City of Kalispell PO Box 1997 Kalispell, MT 59903 Dear Susan: This letter is to request your consideration of a $10,000 grant towards the construction of the new Sinopah House, an eight bedroom, Therapeutic Group Home for homeless, adolescent girls with severe emotional disturbance (SED), to be developed by the non- profit W. MT Mental Health Center. Sinopah House was created in 1994,ao address aglaring gap in the mental health system: homeless, SED girls did.not have a;treatment option anywhere within the re ion; notwithstanding the many.placement,options for young men. Consequently, out of state placement, away from family, friends and school was the only choice, disrupting even further and already fragmented life. Sinopah now. provides.8 of just 20 beds throughout the entire state for adolescent SED girls. The current Sinopah House is inappropriate in both location and size, the floor plan does not allow adequate supervision, and extraordinary funds are required to make the current home fully accessible. In addition, the home is in need of significant repair. The new Sinopah House will be designed to meet the special needs of the residents and will be located on the Mental Health Center "Kalispell Campus", a 2+ acre site currently under development on Windward Way. All Center programs will be co -located on the Campus within separate and architecturally distinct buildings, to better serve clients and enhance treatment coordination among providers. The Campus is also proximate to Kalispell Regional Hospital. Extensive on -site supportive services include 24/7 awake staff who work not only with the residents, but therapeutic sessions can include families, teachers and anyone who plays an important role in their lives. Residents continue to attend their school while at Sinopah. Average length of stay is 18 months. Operating revenues are dependent upon a State contract and additional Mental Health Centen support ofabout $10,000 annually: Because of the critical need for Sinopah, the financial goal of the new Sinopah House is create a debt -free building, thereby reducing reliance on State subsidies for facility costs and enhance the longterm, viability of Sinopah House. BEAVERHEAD • DEER LODGE • FLATHEAD • GRANITE • LAKE • LINCOLN MADISON a MINERAL 0 MISSOULA • POWELL • RAVALLI 0 SANDERS 0 SILVER BOW Page 2 Susan Moyer 7 August 2001 Total development cost is estimated at $537,000. Participating funders include: FHLB Seattle: AHP grant $56,000; W. MT Mental Health Center and Garden City CHDO: $62,000 equity. Proposed funding: HOME program $358.000. Additional grant funding of $57,000 is needed. City of Kalispell funds would go directly towards construction costs. and reduce the $57,000 gap. Construction will commence in August'0I with occupancy by spring 2002. A detailed Sources and Uses Statement is attached. I hope this provides you with the information you need. Should you have any questions or need anything further, please do not hesitate to contact me at 728-6870 xl 14. Thank you for your consideration. Sincerely, t Patricia Kent Director of Housing and Development USES Land Acquisition: Construction 4,500 s.f @ $85. s.f. Construction Contingency Interest/Loan Fees/Appraisal/ Furnishings/Telecom/ Appliances Arch./ Proj. Mgr/ Dev. Fee 5% Admin. Total: SOURCES HOME Grant AHP Grant GC CHDO/Equity MHC Architects donation Loan/other grants Sinopah Sources and Uses 31,500 $382,500 $ 20,000 $ 10,000 $ 20,000 $ 39,100 25,000 8,900 $537,000 $358,000 $ 56,000 $ 25,000 37,090 3,910 57,000 Total $537,000