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Denver Council Approves $30 Million Urban Alchemy Contract to Operate Aspen Shelter

The vote followed warnings that rejecting the bid could force a winter shutdown of the 289-unit site.

Overview

  • City Council voted 9-4 after a tense debate that highlighted concerns over Urban Alchemy’s past performance in other cities.
  • The agreement covers 2026 through 2028 and replaces The Salvation Army, whose contract ends this year.
  • A separate $3 million contract authorizes Urban Alchemy to handle certain 3-1-1 mental-health calls.
  • Housing officials say the shelter deal is performance-based with active monitoring and possible termination for poor results.
  • Urban Alchemy’s prior issues in San Francisco and Austin were raised, while the nonprofit said problems were addressed and noted 70 local hires.