The Anchorage Assembly approved a roughly $2.3 million contract Tuesday to open more than 100 new emergency shelter beds — fewer than originally planned.
The vote comes as hundreds of people are currently without a permanent home during the coldest months of the year. All of the city’s current shelter beds are full: the 200 at its congregate shelter, plus another 200 managed by Henning, Inc.
Farina Brown, special assistant to Mayor Suzanne LaFrance, said the initial plan was for MASH Property Management to add another 200 beds to the city’s capacity.
“Given the short timeline that MASH had to work with, they were able to bring to bear an additional 132 beds,” Brown said, “which allows us to increase capacity as well as diversify the vendors that are bringing about non-congregate shelter beds “
MASH is run by former U.S. Sen. Mark Begich and Sheldon Fisher, former state revenue commissioner. All of the MASH-managed beds will be at the Alex Hotel in Spenard, at a cost of roughly $125 a night.
Assembly members voted 7 to 4 in favor of the contract with MASH. Randy Sulte was one of the no votes. He said he’s concerned that the cost per bed under Henning is much cheaper, at around $99 a bed at the Alex.
“We decided that we want to adopt two contractors, to provide some variety. And if I’m reading this right, that decision, if we approve, is going to cost us an additional $107,000 per month,” he said.
Sulte questioned why the city didn’t contract with Henning for all 400 beds the administration wanted to make available. Henning also operates shelter beds at the Merrill Field Inn and Henry House. Members Mark Littlefield, Scott Myers and Karen Bronga also opposed the contract.
LaFrance said she understands the concerns over cost, but she said there’s no guarantee that Henning would’ve been able to open the additional 200 beds. She also noted prior controversy around Henning’s operations.
“Significant concerns were raised with Henning and the risk of having just one vendor, and so that is why we’re here,” LaFrance said. “We need the beds.”
Assembly chair Chris Constant also expressed concern that former city homeless coordinator Alexis Johnson now works for Henning, after helping facilitate contracts with the company during her time in government.
“Those actions by the individuals who are in charge of the system set themselves up for a really nice landing outside of government, in which the checks are now occurring directly to them and their organization,” Constant said.
While MASH is operating about 70 fewer beds than the city originally wanted, Brown said the administration hopes to fill that gap by setting up a warming area for homeless residents and pursuing grants for rapid rehousing programs.
Wesley Early covers Anchorage life and city politics for Alaska Public Media. Reach him at wearly@alaskapublic.org and follow him on X at @wesley_early. Read more about Wesley here.
