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Denver City Council delays homeless shelter deal amid unpaid bill

Denver City Hall

Denver City Council voted unanimously on Monday to postpone approving an $11.5 million contract extension that would continue to house the homeless at a hotel in the 4600 block of Quebec Street.

The resolution, if passed, would extend an agreement between the City and County of Denver and Quebec Hospitality LLC, which runs the Comfort Inn, thus securing another 11 months of housing at a monthly rate of $120 per day, per room, for non-congregate units.

Although the contract with the hotel owner expired back in February, it has continued to operate unpaid, according to city officials.

“The owner agreed to let the city continue using the facility while the city developed a long-term, sustainable, and outcomes-driven plan for the site,” Derek Woodbury, director of communications for the Department of Housing Stability (HOST). “After the city determined this location would be a key part of the All In Mile High strategy throughout 2025, the city brought forward the formal contract, which was agreed to by both the city and the owner.”

Some council members expressed concern.

“City Council has three purviews: legislation, land use and the budget,” District 10 Councilmember Chris Hinds said. “By asking us to vote on a contract that took effect almost a year ago is not giving us the authority to do our job. I look forward to a stronger, more proactive dialog with the executive branch, although I will say I want to be consistent with my votes.”

District 8 Councilmember Shontel Lewis expressed frustration with Denver Mayor Mike Johnston and his administration, citing the lack of an overall plan that would map out host site contract performance and associated metrics.

Johnston’s citywide program has spent nearly $150 million to provide shelter to homeless people. Last month, HOST received poor marks during a recent audit which said it suffers from “poor organization,” and could not provide documentation on the tens of millions of dollars of shelter-related spending.

If the hotel contract is not approved, city officials said a new contract or amendment would need to be created to ensure the hotel owner was paid through the end of this year.

However, if the city doesn’t have an ongoing contract with the hotel, approximately 133 individuals may be required to vacate — and that concerns city council, too.

At-Large Councilmember Serena Gonzales-Gutierrez suggested the city consider creating two contracts — one that would remedy the outstanding payment and another that would address the city’s shelter need for 2025.

“We get through, and we get to the point we need to get to, but we build some time to be able to plan for the upcoming contract, versus doing what we did this last time, which was we had no contract, we went almost a full year without paying it, and now we’re trying to pay it, and we’re trying to add to it without actually having a full, you know, bedded plan,” she said.

The resolution will return to council on Dec. 16.


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