Monroe County Council’s proposed budget for 2027 added $1 million for Beacon’s housing project on West Third Street, the Beacon Center.

County council voted for the $1 million to be paid through its Economic Development Local Income Tax budget during its meeting Tuesday night. The $1 million will go towards closing a $4 million funding gap needed to complete the housing project.

Beacon is a nonprofit organization proving support for those in poverty. The support includes housing, daytime and overnight shelters, food, financial services and social services.

Beacon’s Executive Director Forrest Gilmore told WFIU News that the Beacon Center will provide affordable housing, especially for people with disabilities, and it will also offer an integration of services which he expects will improve Beacon’s effectiveness.

“We really focus on quality of service in this,” Gilmore said during the meeting. “And so while there is some expansion of shelter beds, for example, the real focus was on what are the solutions that our community needs. And how can we bring together a center that really improves the quality of service for people struggling with homelessness, so that they get out of homelessness, not just sit in it and remain in it."

The $4 million loss comes from anticipated funding from the New Market Tax Credit which fell through. The total estimated cost for the Beacon Center is $21 million, Gilmore said during the meeting.

About $2 million of the $21 million will be operational reserves, he said. It will give a move-in fund for the first five years to help adapt to additional costs such as maintenance, utilities and staffing. Beacon has been able to raise a little over $14.2 million. Gilmore added during the meeting the organization has “a good beat” on another $2.5 million.

Read more: Construction for Beacon's housing project for homeless starts in December

County Commissioner Julie Thomas proposed either giving $500,000 this year and committing to $500,000 next year. Thomas, however, noted that giving Beacon the $1 million all at once would provide immediate help and be a better route.

Council’s President Pro Tempore Peter Iversen noted how homelessness is being criminalized, adding, “I think anything we can do to strengthen the social safety net here in this community is worth doing. So I'll be supporting this.”

Due to the funding challenges, the Beacon Center will be completed in two phases.

Phase one, beginning in December, will provide 20 Permanent Supportive Housing apartments and two work exchange apartments. It is fully funded.

Construction on phase two won’t begin until the funding gap is closed, Gilmore said during the meeting. Phase two will consist of a daytime shelter and an emergency overnight shelter. The day center will have services from HealthNet and Centerstone, and downtown resource officers will have an office in the facility.

“So the timeline could be very quick if we're able to raise that money quickly, and there might not be a significant delay between phase one and phase two,” he said during the meeting. “Conceivably, we could even begin phase two while phase one is going, but that will all depend on fundraising.”

Gilmore said during the meeting Beacon intends to return to its donors for financial support and possibly discussing adding a year to the five-year pledges.

“Our top donors, if they were to extend a year, it would be $2 million,” he said. “We don't expect that we could acquire that full $2 million, but we think that $1 million from our donors would be a reasonable expansion possibility.”

Gilmore said they are also looking at local foundations as potential sources of revenue.

“If they all were to come through, they could get us pretty close, if not all the way there,” he said.

Thomas also said they have asked the city to contribute as well and will encourage city council members to do the same.

When County Council President Jennifer Crossley asked Gilmore if conversations have started with the city, Gilmore said legal issues have prevented negotiations.

“We haven't worked out any kind of detail at all at this point,” Gilmore said. “The mayor has expressed, as well as the planning department, strong interest in its completion and its success. So we are very grateful for that support.”

County council’s 2027 budget is scheduled for a first reading on Oct. 6, with adoption set for Oct. 20.