October 02, 2008

By Sanne Specht
Mail Tribune

MEDFORD — The City Council on Wednesday held off on releasing more than $200,000 in promised block grant money to help create a homeless teen shelter in downtown Medford.

More time is needed to review the business plan of the fledgling organization, Hearts with a Mission, council members said.

"I keep getting told to 'take it on faith,'" said Councilman Bob Strosser. "If it's my wallet, I'm entitled. I'm allowed to take a leap of faith. But this is public money."

The council voted unanimously May 2 to give more than $200,000 in federal funds in the form of a community block grant to Hearts with a Mission to help purchase and renovate a house on Edwards Street, transforming it into an emergency shelter for homeless teens.

Strosser has since voiced concerns over giving such a large amount of money to "an unproven entity" at such an early stage in its development. Strosser and other council members said Wednesday they would prefer the new nonprofit had its business plan worked out in detail.

"We voted to approve the money based on approving the business plan. These questions may not be popular. But we are required to perform due diligence," Strosser said.

Kevin Lamson, founder and president of Hearts with a Mission, said in an interview Monday the proposed shelter will provide boys and girls age 10 to 17 with a secure environment for 72 hours and link them with other service agencies.

Lamson's organization needs the block grant to purchase the property to develop the teen shelter to garner support and prove it will work, he said. Once licensed as a residential care facility, the shelter would be eligible to receive funding through contracts with Jackson County Department of Human Resources, Lamson said.

"We need to get open before any agency can work with us. Until it's open, it's just a concept," Lamson said, adding he did not understand why the council was taking so long to release the check.

The $202,800 in federal grant money covers only the cost of purchasing the house. Lamson estimates building expenses and initial renovation to transform the home into a nine-bedroom shelter will cost an additional $395,000. That money will come through "individual donations, foundation, corporation, and in-kind support from local businesses," according to the organization's business plan. Operating expenses will be $381,000 annually, Lamson estimated.

"As soon as we're done with our building plans, we will be able to go to the community," Lamson said.

Lamson, who worked in the automotive industry, said he's worked with nonprofits for the past four years but has never run a shelter. He became involved in the issue of homeless teens in 2006 and joined the county's Homeless Youth Task Force, he said.

"It was confirmed that the only thing that would help was to open a shelter," Lamson said. "We can all work together on this. The bottom line is these kids need a place to go. In a lot of cases, there's no safe place for them to go."

The May hearing was to consider the allocation of $614,230 in Community Development Block Grant funds. Hearts with a Mission requested $216,000. The amount has since been reduced to $202,800.

Strosser said Wednesday he wants to see clear performance guidelines and measurable monitors of success. The city and the nonprofit have a contract that states the grant money must be returned if Hearts with a Mission is not "successful" in five years. The requirements for that term must be clearly spelled out, Strosser said.

"How do we measure success, or not success?" he said.

Lamson's plan shows $150,000 in projected program income from the "faith community." Lamson said Monday he expects to rely heavily upon members of local churches, particularly when it comes to helping feed teens at the faith-based shelter.

"Part of practicing their faith is to serve the needy," said Lamson.

Lamson confirmed Councilwoman Jill Stout is now a board member for Hearts with a Mission. Stout was not a board member when the council approved the block grant in May, he said.

In September, Stout noted her affiliation with Hearts with a Mission before voting to approve the funds pending a business plan. The business plan shows Stout has donated $20 to the organization. Stout was not present at Wednesday's meeting.

The nonprofit's business plan will be discussed at the Oct. 9 council study session. The matter will be voted upon at the council meeting on Oct 16.

Reach reporter Sanne Specht at 776-4497 or e-mail sspecht@mailtribune.com.