$1 a year rent for MyHouse?

WASILLA — The Wasilla City Council on Monday night voted unanimously to support a grant application for the homeless shelter MyHouse as it seeks to reduce its operating costs.

In public comments before the council’s discussion, MyHouse founder and director Michelle Overstreet said the organization currently pays $5,000 per month in rent, and if all goes according to plan, the nonprofit could instead lease its current building from the city at a nominal rate of $1 per year.

Overstreet called the arrangement a “subsidy” from the city, which would be able to apply for grants that MyHouse cannot.

Former client, and now employee of MyHouse, Abby Lampley expressed her gratitude to the council for considering the plan.

“I want to thank you for consideration of helping MyHouse by possibly buying the building and leasing it out to us to help us stay sustainable and continue to help the youth,” Lampley said. “I am a former MyHouse client. I was a homeless, jobless young adult, but I’m a totally different person now. I’m working and making a difference in the community. Since my time with MyHouse, I’ve seen dozens of other kids in similar situations who are as successful as I am now.”

No one on the council doubted the sincerity or effectiveness of the MyHouse mission, but council member James Harvey did raise concerns about the city jumping too heavily into the real estate game, citing the ongoing Meta Rose Square dilemma, as justification for concern.

“I fully support MyHouse and everything they do and I love the service it provides to the community,” Harvey said. “My issue is with the city getting involved in real estate, the buying of property competing with other businesses and renting it out.”

Mayor Bert Cottle pointed out that the city already leases other buildings for $1 per year, including the buildings that house Valley Performing Arts, Iditarod Headquarters and the Wasilla Chamber of Commerce.

“What this would allow is grants that come to us that maybe (MyHouse) does not qualify for at this time,” Cottle said. “No. 1, we would never be on the hook for any money. The city council could, at a later point, sell that back to them, but this is just phase one of the project and gives them a chance to reduce their costs by $60,000 a year.”

Cottle said the owner of the building has been trying to sell it for some time, and Public Works Director Archie Giddings explained the process further.

“MyHouse can’t go out and get grants to purchase a building. The city is an eligible entity and can receive grant funding to purchase it,” Giddings said. “… but we don’t want to be on the hook for anything. The handling costs, all the day to day costs are on these operations.”

Giddings pointed out that there have been times when the city has jumped in to perform renovations, most notably a significant paint job on the historic Herning Building. Any action the city takes in that regard, would first have to be approved by the council, he said.

In earlier action Monday night, the council voted unanimously to appropriate $13,200 in funds from the State of Alaska Homeland Security and Emergency Management Award for the purpose of installing Automated External Defibrillators at the Curtis D. Menard Memorial Sports Center.

Cottle said such devices are already in place at the police station, library and other city buildings.

The council also voted 6-0 to move the purchase of a new Chevy Tahoe to a Nov. 27 public hearing, along with ordinance 17-23, which would accept $225,000 for youth court, public safety, and partnerships with the Palmer Police Department to include a sexual assault response team.

Monday’s meeting began with the swearing in of re-elected council members Stu Graham and Glenda Ledford, who ran unopposed in the October election. Ledford, who participated by phone for Monday’s meeting, took the opportunity to be sworn in last Monday along with Cottle, who fended off two challengers to win re-election.