Some neighbors balk as Motels4Now buys Knights Inn motel to continue homeless program

SOUTH BEND ― The Catholic charity that runs the Motels4Now low-barrier housing program has bought the motel where guests stay and plans to operate there through the end of 2024, leaders say.

Our Lady of the Road’s purchase of the former Knights Inn motel follows a $1.5 million American Rescue Plan grant from the city of South Bend announced earlier this week. Most of the money was used to buy the $1.25 million property at 3233 Lincoln Way W., according to Margie Pfeil, a program organizer.

More: Funding for Motels4Now hits a crossroad

Leaders at the charity were heralding the timing as “providential” on Thursday at a clinic blessing performed by Bishop Kevin Rhoades, of the Diocese of Fort Wayne-South Bend. Three weeks ago, when they scheduled for the bishop to pray over the Motels4Now site, the program’s future was dire. It had become clear that St. Joseph County officials would not provide funding past March.

But the city’s gift to clinic leaders was called “the worst news you can give me” by the manager of a wig and beauty store directly next to Motels4Now. He and an employee at another nearby business told The Tribune they had been hoping the homeless program would shut down and move away before this summer.

Since August 2020, Our Lady of the Road has rented the site to run Motels4Now, a low-barrier shelter and transitional housing program for people who are chronically homeless.

Anas Suleiman, who has managed Unique Beauty for his father since around the start of the pandemic, said he’s been losing money for months despite the location’s last owner turning a profit. He largely blames the “chaos” next door.

He claims Motels4Now guests often linger in his parking lot and often he finds it covered with beer cans and litter. A few times, he said, he’s found human feces. After that, he paid to install security cameras.

Meanwhile, a Unique Beauty about a mile down the road is earning profit, he said. Suleiman said he’s heard that some of those customers avoid his store. His goal was to make it to the end of 2023, but on Thursday he was wondering if Our Lady of the Road would buy his shop so he could shut it down.

“You can only go so long without making money,” he said.

Viewpoint: It would be irresponsible to commit more county funds to Motels4Now

Members of the St. Joseph County Council cited similar complaints by business owners as part of their rationale not to grant $875,000 to Motels4Now this spring. The county had already given the program $3.3 million of relief money.

Councilor Amy Drake also doubted the program’s core tenet, “housing-first,” which argues people need stable shelter where they can safely store their possessions, shower and sleep well before they can begin to heal.

Since its inception, Motels4Now has housed about 600 people, according to Pfeil. Nearly 150 guests have found permanent housing after staying at the motel. Mental health and addiction treatment through a partnership with Oaklawn Psychiatric Center has reached nearly 450 guests.

Part of the city’s agreement with Our Lady of the Road calls for enhanced security measures at Motels4Now. Pfeil noted security cameras installed in the parking lot that are monitored remotely in the event of a reported incident.

Pfeil said the city’s grant gives leaders time to plan the New Day Intake Center, which they hope will functionally replace Motels4Now by spring 2025. Various sites for that center are being considered. The city has pledged $4 million to help build the intake center, as well as $500,000 a year for operating costs.

Pfeil said buying the hotel will also allow for program leaders to repair rooms and office space, improving what has become a run-down motel.

Her main argument is a moral one, however. She’s been making it since she looked out her kitchen window in Monroe Park in the summer of 2020 to find nearly 100 people living in tents.

“All of us in the local community are responsible for it,” Pfeil said.

“This is a collective action problem,” she added. “If we really don’t want to have tent encampments in South Bend, this is a missing piece in our provision as a whole community in the continuum of care for those on the street: a housing-first, low-barrier approach.”

Email city reporter Jordan Smith at JTsmith@gannett.com. Follow him on Twitter: @jordantsmith09

This article originally appeared on South Bend Tribune: South Bend charity buys building to continue Motels4Now program