|ARCHES Madison Street - 6,900 SF for $6,016/mo|
The May 16 minutes indicate CAA CEO Jon Reeves asked the board to approve an offer of $2.1M (up from the maximum of $2M approved in March), with $.5M down (up from the $.4M approved in March), $.5M in contributions from unnamed partners, and the remaining $1.1M financed by the seller at 5% over 25 years. The reason given for the email meeting was that the offer had to be made by May 18. The board approved the arrangement unanimously. The action was not ratified at the May 22 Board of Directors meeting, or its June 22 meeting, or its August 24 meeting.
The minutes of the June 27 email meeting indicate that Reeves asked the board to approve financing the entire $1.6M at 6%, also over 25 years. The reason given for the email meeting was that CAA needed to close on the property by COB June 30th (even though the board had known since March that closing had to occur by June 30th). The board approved the arrangement unanimously. The action was not ratified at the next meeting of the Board of Directors, August 24, 2017.
In the end, by a process unknown, Reeves agreed to pay the seller two, quarter-million balloon payments, one by the end of next year, the other by the end of 2019. In that way, Reeves kept the monthly debt service at around $10K/mo, just what it would have been under a 25-year term. If the board agreed to this arrangement (which you'd think they'd have had to), the action doesn't appear in the published record of CAA meetings.
|"Unavailable" at CAA|
Now what would make a CEO of a non-profit that's funded almost entirely by state and federal tax dollars want to withhold his organization's bylaws? One would think he'd be glad for the interest, especially considering publicity for ARCHES has lately been the order of the day, with Reeves and/or CRP Director Jimmy Jones touring civic meetings -- the Salem City Club, the Downtown Salem and West Salem Rotary Clubs, the Demo Forum at Kwan's -- and anywhere else there's presumptive donation potential.
|ARCHES Seeking Funds for Staff and Renovations|
A late September report to the CAA board said that the ARCHES "Day Center remains partially open...as we wait for the full renovation process to complete." Interesting how that's worded, because we were down there the other day, and the "renovation process" hadn't even begun.
|AC & Co to Prepare Plans|
|Not ARCHES 1st Floor (No Photos of Bldg per ARCHES staff)|
It's a shame no one thought about that when they approved spending almost $.5M of Oregon's Emergency Housing Assistance and State Homeless Assistance Program funds on...some really nice offices for CAA staff. (EHA funding requirements discussed in a previous blog.)
|Photo Courtesy jcosmonewbery2.blogspot.com|
It's all very well to say that clients are receiving assessments and referrals, etc., but those services don't constitute a "day shelter", and they didn't begin by June 30 either. For the first month, the Golden ARCHES building didn't even have working phones.
So, since late June, when CAA closed the Madison Street facility, all the homeless in need of day shelter have been over at HOAP, where they can get a hot meal, do laundry, take a shower and get peer support and counseling. Or, they're getting a meal and a shower at the Union Gospel Men's Mission, or Simonka House. Or, they're at the library, the mall, or area coffee shops, trying to stay dry and warm. And, barring an emergency declaration from the City permitting a change in use that would at least allow people to come inside the Golden ARCHES building en masse, out of the weather (but not provide them access to hot meals, showers, laundry facilities, or classes), the situation over at ARCHES is not going to change any time soon.
We're talking months, maybe years. It was hard to find a reputable builder willing to take on small jobs like the ARCHES renovations even before construction costs began rising dramatically in response to demand following this year's fire and hurricane devastation. Now, it's anyone's guess how long such small projects will have to wait to be completed. Even CDBG and HOME programs (projects) funded in 2015 and 2016 that are as big or bigger than the Golden ARCHES project are stalled, and they've been ready to go for some time.
We don't know what made OHCS approve spending EHA and SHAP funds on the Golden ARCHES, but we can guess, based on the smoke that's been blown on the CAA board over the past few months. Things like, "coordinated entry has become one of our signature programs, and has had enormous impact on homeless services around the state", even though there are no actual numbers or even anecdotal evidence to back that claim.
And, "we have organized a broad[,] community[-]based approach to the PIT count", even though ARCHES staff had had, at the time that report was made, only one, totally disorganized meeting about the count.
And "we're also participating in the development of the new Marion County SIT teams", even though all CAA did was write a letter of support for one of the teams, and send staff to the first couple of meetings. (We would know if CAA had participated in the development of the SITs, as we actually did participate in their development.)
|ARCHES' Draft FY 2017-18 Budget|
CAA management reports are put on the board's "consent calendar" (which should be for action items, but, never mind). Over the last six months, not one of the reports prompted a single question from the board, according to the meeting minutes.
CAA Directors owe CAA a duty of care. That means they must exercise the level of care over CAA's affairs that they would use to manage their own affairs. Can anyone imagine starting a new business -- which is basically what the ARCHES co-location project is -- and not having a single question about it the three months before and after it launches? No, but that's what the CAA BOD did, at least according to the meeting minutes.
Oh, wait, there was some discussion at the September meeting, after all. The minutes indicate that Director Linda Bednarz "commented on how well everyone works within the agency and pointed out how amazing the partnerships to provide amazing services to clients are within ARCHES, CRP, and CCR&R." Amazing, indeed.