by Jim Scarantino | Oct 15, 2021 | General
Local laws can no longer stop religious organizations from hosting the homeless on their property. Tent encampments, tiny homes, safe parking programs, RV living and church buildings used as dormitories and apartments cannot be prohibited by municipal codes or county ordinances.
In 2019 the Washington Legislature enacted a set of laws that explicitly authorize religious organizations to “host the homeless” anywhere on their property, inside or outside buildings. Cities and counties are prohibited from imposing conditions other than those necessary to protect public health and safety. “Necessary” means no less restrictive alternative can be found. Even if “necessary” to serve those goals, the conditions imposed by a city or county may not “substantially burden” the decision of the religious organization regarding the location of a temporary tent encampment, tiny homes village, safe parking program or use of buildings to host the homeless.
The laws are dense, packed with a litany of restrictions on the powers of local government. RCW 35.21.915 applies to most cities and towns. RCW 36.01.290 applies to counties.
This is true separation of church and state. The sovereignty of churches was recognized in medieval times—or so Hollywood tells us in films where the king’s pursuit ends at cathedral doors. Here, in the real world, the legislature has recognized a limited, but still robust sovereignty for church properties.
These laws remain untried and untested in Jefferson County. Earlier in the year the Housing Solutions Network began meeting with churches to encourage hosting programs. Now two churches are going to put the new laws to use. New Life Church Assembly of God in Port Townsend has announced a safe parking program—allowing people to sleep in their cars and RVs. The church already has an RV on its property. The full program, which will accept up to five vehicles to start, is expected to launch mid-November. Another religious organization is on the brink of initiating a safe parking program and I will leave that announcement to them.
These programs would otherwise be illegal under Port Townsend’s prohibition against tent and RV camping. All zoning restrictions are likewise unenforceable against church programs to shelter the homeless.
The tiny home village at the Port Hadlock Community United Methodist Church is not an exercise of that church’s authority to override county ordinances. The quaint village of attractive shelters sits on church property covered by a long-term lease with OlyCap. The project was done in compliance with the county’s regulations, not despite them. That project has motivated other religious organizations to step up and pitch in. I write this article in the hope that it motivates someone to approach their church leadership to consider their own homeless hosting program, be it as modest as providing refuge to just one fellow human being.
In this article I use “churches” and “religious organizations” interchangeably, though the latter term is far broader. The latter term would apply, of course, to a mosque or temple. It also applies to a Unitarian fellowship or Quaker meeting. It would also apply to the home churches scattered around our area, each of which, conceivably, could undertake their own hosting program on residential properties.
This is huge in a small way.
Churches do not need to exhaust the process and bear the cost of obtaining a conditional use permit. All that is required is for the church to hold a public meeting where concerns of neighbors and others may be aired. Then the project may proceed without further ado, even over strenuous objection from neighbors and city officials. (More on that below, under the heading, “Grace.”)
The law, incredibly, puts the burden for providing public notice for the meeting on local government. The religious organization can act quickly, giving the city just 96 hours notice. Then it is up to the city to put out word in newspapers, on its website or via street signs near the meeting place.
The city or county can’t stop the project. It is exempt from all the laws used to delay and frustrate housing development and efforts to shelter the unhoused. There are only a few narrow exceptions, none of which would apply to a safe parking program or tiny home village. Port Townsend’s pre-existing emergency tent encampment rules might apply to a tent encampment, but would not govern RVs on a church property. I also conclude that a church could place mobile homes on its property despite any contrary local regulations.
In the case of a response to a declared emergency, the church can accept homeless on its property without any notice to government or public meeting. The Jefferson County Board of County Commissioners declared a housing emergency in 2017, and reaffirmed that declaration in 2019. That is a sufficient emergency declaration to obviate the legal necessity of scheduling and holding a public meeting. Any church in Jefferson County that takes in someone washed up at their door in need of shelter is on solid footing in immediately letting them pitch a tent, park an RV, move into the church or an outbuilding, or occupy a tiny home.
I think every church should have a foldable cot and inflatable mattress ready in a closet, and, if they have the space, an RV, mobile home and/or tiny home available for such emergencies. “Anyone who sets himself up as ‘religious’ by talking a good game is self-deceived. This is the kind of religion that is hot air, and only hot air. Real religion, the kind that passes muster before God the Father, is this: reach out to the homeless and loveless in their plight, and guard against corruption from a godless world.” 1 James 26-27 (The Message translation).
Constitutional Foundations
This extraordinary development of legislatively carving out refuges from local laws—laws that have contributed greatly to the affordable housing and homelessness crises—is the result of courts’ recognition that serving the homeless is an expression and practice of religious beliefs. The protections of the First Amendment to the United States Constitution and Article I, Section II of the Washington State Constitution operated long before the legislature acted. The right of religious organizations to use their property is actually broader than the statutes in question, which, as the Municipal Research Service Center of Washington has stated, merely attempted to codify and recognize judicial rulings.
The First Amendment right of a church to use its property to care for the homeless was recognized by Congress in the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIP). This law applies the same prohibition against substantially burdening the use of church property. What constitutes “substantial burden”? As explained by the Seattle University School of Law Homeless Rights Advocacy Project: “A substantial burden exists if the religious organization would have to endure additional delay, uncertainty and expense….” Faith is the First Step: Faith-Based Solutions to Homelessness, Means & Rankin (2018).
The rights of a religious organization are even greater under the Washington State Constitution. Washington’s constitution guarantees, “absolute freedom of conscience in all matters of religious sentiment, belief and worship” so long as the practices are not “inconsistent with the peace and safety of the state.” In 2009, in City of Woodinville v. North Shore United Church of Christ, the Washington Supreme Court held that a temporary moratorium on homeless encampments constituted a substantial burden on the church’s religious beliefs and practices and therefore violated the state constitution. The Washington Supreme Court has employed the same “no less restrictive alternative” and “substantial burden” analysis found in the new statutes.
Either We Have An Emergency, or We Don’t
The legislature recognized that we have a dire homelessness crisis, and did not hem or haw about turning religious organizations loose to do something about it.
Churches had encountered one regulatory obstacle after another in seeking to use their property to help the homeless. Winning a lawsuit years down the road was a hollow victory to a church that could barely meet its own overhead, let alone pay for lawyers and legal costs. Very few churches can shoulder the costs of fighting government. And as the cases worked their way through the courts, people in need were denied help.
The legislature disarmed local government, nearly completely.
Zoning and building codes, and enforcement discretion and abuses, are sometimes used to stop projects incrementally instead of issuing an outright permit denial. No more death by a thousand cuts. A city can’t wear down a religious organization by requiring costly insurance. It can’t impose hope-killing time limits or permit fees. It cannot limit the number of homeless being helped, or restrict shelter to only tents, or only RVs or only cars or only tiny homes and then regulate those units to death.
Religious organizations must reasonably comply with fire codes. They must provide portable toilets and wash stations if there is no access to bathrooms. Electrical wiring must, of course, be inspected for safety. The law says that a local government can enact an ordinance requiring a memorandum of understanding (MOU). But the local government can demand very little in the MOU. Mostly it can make recommendations for the religious organization to accept or reject.
Local code enforcement officers and community development directors may not like seeing their powers and discretion nearly cancelled on properties under their jurisdiction. The legislature heard from churches and homeless service agencies about how those powers were being abused to kill their programs. Even if the obstruction was unintentional, merely a routine enforcement of local regulations, the legislature said, “Enough. We have a real emergency. Get out of the way and let religious organizations do what they can to help.”
Grace
Religious organizations would be well advised to show neighbors and city officials the same love and grace they want to show the homeless. Port Townsend residents near churches no doubt fear the prospect of another Fairgrounds encampment disaster. The Fairgrounds tragedy was an example of government neglect and incompetence. Ironically, it was government insistence on onerous, counter-productive regulations that exacerbated the problems. By the city insisting its unrealistically burdensome and costly regulations be enforced, OlyCap, the only agency with the resources to have competently managed the Fairgrounds as an emergency shelter, had to stand back. The Fairgrounds became a Wild West complete with violence, criminality, disease (addiction the most prevalent) and the loss of life.
Religious organizations need to dispel those fears and work closely with local government, service providers and law enforcement to show how to care properly for the homeless. They are not likely to start with the hard cases—the seriously mentally ill and drug addicted. They just don’t have the resources and skills. They are likely going to start with the “easy yesses.” These programs require background checks and are closely coordinated with law enforcement. Social service agencies are engaged to help the churches and the guests. These programs have been very successful elsewhere for many years, with no reports of harm to the surrounding neighborhoods.
Overlake Christian Church in Redmond, for instance, has been hosting young men in its safe parking program. These are individuals early in their working lives who don’t have the cash for “first, last and damage deposit.” By saving up money while they are holding an entry-level job, many have been able to stand on their own feet and move into their first apartment. OCC’s parking program keeps the temporarily homeless from becoming the chronically homeless.
However a church chooses to proceed, it must have a heart for everyone impacted. It is not easy. I have been the point of contact for a campaign by a neighbor of my church who wants a homeless couple moved from where they have set up a stable, healthy home. Their nice RV is separated from the neighbor’s house by a tall, solid fence, and is well over 100 feet from the property line and mostly obscured by an outbuilding. The couple is quiet, tidy and considerate. I find the repeated complaints incomprehensible. I try to see it from the neighbor’s eyes, but can’t. Maybe that comes from growing up in a city of row houses and twins. I just don’t get it.
I strive to respond with courtesy. I pray for compassion and a softening of hearts. I pray for myself that I don’t pridefully stand on the law. But I realize that the law that allows churches to help the homeless is the product of a considered democratic and thorough legislative process. Those bills passed overwhelmingly. Because the homeless may live on church property under the clear terms of the law, they have as much right to eat and sleep where they are as anyone else. I cannot surrender their rights. They would be devastated by the message that they count less than others merely because they have less than others, and that all those professions of love were unreliable. Defending their rights under the law—gracefully—is doing justice.
One Life At A Time Does It
Forget about “ending homelessness.” It’s not going to happen, and there’s nothing a religious organization can do to make it happen. There have always been homeless in this nation. The recent epidemic is, however, truly unprecedented. It has been caused, we are finally learning, not by “the failures of capitalism.” It was capitalism that built apartments and starter homes for generations (and all those affordable row houses in my home town). Exclusionary, aka “snob” zoning and building codes endlessly ratcheting up the cost of construction are the antithesis of free enterprise, by the way.
We have learned that our epidemic of homelessness is caused by the “catastrophic and profound loss of community.” That is the on-the-streets, in-the-trenches observation of the Mobile Loaves and Fishes Ministry of Austin, Texas, the organization behind the ground-breaking and successful Community First! housing development for the chronically homeless.
It is also the conclusion of scholars not beholden to the homelessness-industrial complex, that too often has leveraged the homelessness epidemic for political power and lucrative grants that continue and increase regardless of results. “Homelessness is a condition of disengagement from society–from family, neighborhood, friends, church, and community,” Alice Baum and Donald Burnes wrote in perhaps the definitive book on homelessness. Christopher Rufo, who has produced some excellent documentaries in addition to his scholarly writings, reached the same conclusion, but calls this societal disintegration “disaffiliation.” See my April 20, 2021 article, “Our Fifth Column in the Fight Against Homelessness: Churches.”
This is an opportunity to connect with people who have lost meaningful connection and the sense that they are loved. The genuinely friendly smile delivering a cup of hot coffee to someone who has spent the night in a cold car… you’ve just shown them Jesus without saying a word beyond, “Good morning.”
With the legislature making it clear that little stands in the way of churches employing their resources to shelter the homeless, churches are without excuse in failing to act. It need not be an involved program serving dozens of people, requiring huge expenditures of volunteer time and resources churches may never have unless they accept government funds—a very unwise course for any church. Instead of a grandiose War on Homelessness, it could be as simple as letting a veteran pitch a tent below the stained glass, or a family who have seen their rental sold out from under them using a classroom to keep warm and stay together until they find a new home.
We tend to think in macro terms and set ourselves up for failure and self-recrimination. What difference will it make? The problem is so huge. It is beyond us. We are helpless against such odds.
“There are no great things, only small things done with great love.” That is my favorite quote from Mother Teresa. There is also the starfish story. It has been told many ways. I know this one:
One night a storm washed upon the beach thousands and thousands of starfish. They lay gasping for life on the sand as two men walked along the shore. One started tossing the starfish back into the water, a single dying starfish at a time, He was making no noticeable dent in turning the situation around. “Why bother?” the other man said. “What difference does it make?” His companion bent down to reach a struggling starfish and tossed it back into the sea. “It makes a difference to that one.”
Note to self: Pay attention to the bending down part of the story. That’s important, too.
by Jim Scarantino | Sep 25, 2021 | General
The specter of totalitarianism has revived the Port Townsend Free Press. A new team is stepping up to keep this exercise of First Amendment rights and free thinking alive.
The Jefferson County Board of Health has declared that “misinformation” is a public health crisis. In Congress, several Democrats have introduced legislation to give government the power to punish “misinformation.” Social media behemoths are coordinating with the federal government to deplatform individuals who express views those in power want suppressed.
Shades of Communist China. Or Australia, New Zealand and Great Britain, where police monitor social media and arrest those who honestly express their views and share facts and information uncomfortable to the ruling class.
The subject matter immediately at issue concerns COVID, its origins, vaccines, COVID’s toll, and the toll of lockdowns and mandates. But our Board of Health does not limit itself to COVID. It has declared that systemic racism—whatever that is—is a public health emergency. It has been flirting with declaring climate change—whatever that is—a public health emergency. A couple years back health concerns were even used as an excuse to try to impose a higher property tax to fund politically-connected groups engaged in housing activism.
The powers of the Board of Health and the Public Health Officer are nearly dictatorial when a public health emergency is declared. There are no brakes in the laws creating these powers. We are seeing declarations of “health emergencies” being abused to advance political and ideological agendas. I would submit that the latest round of extraordinary mandates and penalties are equally about submission and purging those who think for themselves as they are about fighting a virus. That is a a subject for future articles here… and they will be coming.
The Board of Health’s crisis, and that of government health authorities, is that they have squandered the credibility they once possessed almost without question. But instead of acting to regain that credibility, they are now resorting to force and coercion and nudging us towards totalitarianism.
Other nations and states have taken different approaches than we’ve seen in Washington and Jefferson County. Some of those places have had better results with less collateral damage. In other cases, without the heavy hand of draconian mandates, their COVID experience is no worse than ours. Is that misinformation, or just inconvenient facts that show our local leaders may have been wrong and caused unnecessary harm?
Government declarations of what constitutes “misinformation” are a big step towards censorship and the onset of a Dark Age where open, informed and robust investigation and debate is suppressed.
Enter the second-generation Port Townsend Free Press.
A trio of individuals with long histories in this community approached me and asked to continue this project. The Board of Health’s totalitarian actions prompted me to agree. These individuals are non-partisan. They have been active participants in the social and economic life of Port Townsend for decades. They are also very smart and very good writers.
They are:
Ana Wolpin: Ana’s professional and personal pursuits in Jefferson County have included publishing, business development, marketing, graphic design and community service. She was first General Manager of the Food Co-op, past president of the Jefferson County Economic Development Council, former Port Townsend City Council member, founding board member of Habitat for Humanity of East Jefferson County, co-founder of the Port Townsend Peace Movement and co-organizer of Smart Meter Objectors Group (SMOG). Currently she researches, and, weather permitting, gardens.
Annette Huenke: Annette studied International Relations at the University of Pennsylvania. Prior to heading west, she was a manager for an Auckland-based international publisher of peer-reviewed drug information journals. In 1992 she moved to Port Townsend, opening Ancestral Spirits Gallery in 1993. She is past vice president of the Jeff Co EDC and board member of The Boiler Room. She researches, writes and wanders the forests around PT.
Stephen Schumacher: Stephen graduated with honors in Mathematics from Harvard College and programmed funds transfer systems between Wall Street banks and the Federal Reserve before moving to Port Townsend in 1983. He has served as an officer for various community organizations such as the Food Co-op, Jefferson Land Trust, and the Northwest Nutritional Foods Association. He co-created The Port Townsend Leader’s original online newspaper and programs shipboard stability software used by naval architects.
Ana, Annette and Stephen have written excellent articles for the PT Free Press. They are tenacious researchers. Their work here, so far, has been focused on COVID, but PT Free Press will continue to be a publication of general interest. They have discussed with me some exciting ideas for broadening the community’s participation in this forum. I am persuaded of their integrity and commitment to honoring the original spirit of this project: “Resist the dominant paradigm, speak truth to power, celebrate diversity.” They will continue to tell the stories not being told and present news and views you are not going to get anywhere else.
I will contribute articles occasionally, but my interests and time are being claimed by other endeavors.
Thank you for supporting us the past 3.5 years. Please give the new team the same support and encouragement. They will continue to use our existing email alert network but will establish a new Facebook page as I will be leaving Facebook entirely. Look for “The New Port Townsend Free Press” FB page and be sure to “like” or “follow” their work.
Happy trails,
Jim Scarantino, Founder and former editor, Port Townsend Free Press
by Jim Scarantino | Sep 10, 2021 | General
It is time to close out this endeavor. I want to thank all our contributors and readers over the past almost four years. Together we brought new voices into the public dialogue, and reported facts the public has a right to know. We made some mistakes. We learned a lot about ourselves and our community. I keep hearing we made a difference, our work was valued and we will be missed.
The greatest compliment we received was a criticism of sorts: “”Accurate, despite the source.” I really like that.
I am now completely engaged in other projects and activities and just don’t have the time to keep this going. The page will remain here as a resource and archive, but I won’t be adding to this body of work.
Best wishes to all of you. Jim Scarantino, Editor
by Jim Scarantino | Aug 2, 2021 | General
This letter from neighbors around the Fairgrounds to the Board of County Commissioners speaks for itself. Recall that OlyCap’s effort to regulate and control the camp was frustrated by the City of Port Townsend, which insisted on imposing prohibitively costly and burdensome regulations rather than recognizing this as the emergency and crisis it is. The letter was sent in recent days to the following public officials and others involved in the Fairgrounds transient/homeless/drug dealer encampment.
VIA EMAIL AND REGULAR MAIL
The Jefferson County Board of Commissioners (jeffbocc@co.jefferson.wa.us) Commissioner Kate Dean (kdean@co.jefferson.wa.us)
Commissioner Heidi Eisenhour (heisenhour@co.jefferson.wa.us)
Commissioner Greg Brotherton (gbrotherton@co.jefferson.wa.us)
cc: Mayor Michelle Sandoval ( msandoval@cityofpt.us )
Cherish Cronmiller (donate@olycap.org)
Kathy Morgan (donate@olycap.org)
Gary Keister (info@baysidehousing.org )
Sue McIntire (jeffcofairgrounds@olypen.com)
Joe Nole, Jefferson County Sheriff (jnole@co.jefferson.wa.us)
Thomas Olson, City Of Port Townsend Chief of Police (tolson@cityofpt.us)
As a collective of neighborhoods to the Fairgrounds who are the most negatively impacted by the close proximity of the homeless encampment at the Fairgrounds, we are writing to again strongly voice our very real concerns. We respectfully request this letter be placed into the formal public record of the BOCC. We also respectfully request a full response in writing, addressing all of our concerns as contained herein.
Since being formally located in our neighborhoods almost a year ago, the encampment has been, and continues to be, an unmitigated public hazard, directly affecting our physical and emotional safety and the peaceful enjoyment of our homes.
We remind you that there was never a public hearing or request for public comments prior to the placement of the encampment. There was no management plan, no proposal to lessen the impact on the community, and no effective oversight. Dangerous individuals have been allowed to come and go and return with impunity. There are neighbors who have been terrorized by the anti-social behavior of some of the campers. Despite our continual pleas for help, it nonetheless remains the “Wild West.” We have borne the fear and distress it has brought to our lives, the complete disregard for our basic rights, and the lack of effective enforcement against those who violate even the minimum standards of behavior and actual laws such as excessive noise, fire setting, threats of violence and trespass of private property. The overt drug trafficking and use, resulting in multiple overdoses and at least one death, contribute to an already volatile environment. It is a myth that the campers are positively “self-governing” in any meaningful way. To claim that they are “self-governing” at the Fairgrounds does not release you from culpability for the actions, and the results of those actions, of the campers over whom you have assumed full agency.
With the passage of HB 1054 and HB 1310, we are more in peril than before, as police are hamstrung in their efforts to keep our community safe.
We have lost valued neighbors, who have left their homes and moved out of the County and the State because of the trauma of dealing with the encampment. Who answers to them? Who answers to us? Because of fear of reprisal, several signing this letter are afraid to reveal their house number, their street name or even sign this letter at all.
We are not without empathy; we have made every attempt to work with the situation. We understand how difficult it has been to find alternative properties. However, going back to the BOCC meeting of August 3, 2020, then-Commissioner David Sullivan deemed the idea of using the Fairgrounds as a homeless encampment as “another example of people without legal access to a piece of land wanting it for their purposes and asking someone else to do the work to make it happen.” In the same meeting, Sullivan enlisted Mark McCauley to develop a list of county-owned properties that compared “challenges such as infrastructure, access, park plans, etc.” Yet, only in mid June of 2021 was this list actually presented to the Board. During the whole of the Moratorium, time that might have been spent putting plans into place in anticipation of the expiration has instead run out. It is now eight weeks to October 1st.
In one form or another, unofficial or official, we have lived with this situation for almost two years, and we are tired of being placated with empty promises and lack of results as you would be if you lived where we make our homes. We are exhausted by living with the result of short-sighted mismanagement. Good intentions do not guarantee good outcomes.
It is important to remind you that the Fairgrounds has historically served the whole of the population in this County. More than just the Fair, the Fairgrounds is 4-H, Little League, clubs and events that bring the County together. It is also designated as a tsunami evacuation zone. It deserves to be restored and supported for the benefit of all. Any notion that the land and facilities might be used for any other purpose is unsupportable.
To this end, this letter will serve to put you on formal notice that we will not accept any further extension(s) to the September 30, 2021 eviction date. We will not accept any further payments made to the Jefferson County Fair Association to keep the encampment on the campgrounds after September 30, 2021. We will not accept any
further deviation from the plan to close the Campgrounds on September 30, 2021 and move the campers to another site, whether that site is ready or not to accept them.
In the meantime, we will feel free to further explore our rights and remedies at law without further notice to you.
Sincerely,
Ricardo Peregrino 4284 and 4147 Hill Street
Gary & Gloria Wessen 905 56th Street (4268 Hill Street – Owner)
Ed Farren 4660 Holcomb and 4617 Jackman
Linda Noble 336 47th Street
Chris Witkowski 4268 Hill Street
Helen Wilson
Lisa Greenfield and Mike Hilt 717 41st Street
Jerry Johnson 4002 Holcomb Street
George & Katherine Thomas 4001 Holcomb Street
Russ Howell 4682 McNeill Street
Lisa Thomas 3946 Hill Street
Virginia King 4166 Jackman Street
Allen Peugh 4272 Hill Street
Lisa Frankel Sarah Frankel (Clark) 4284 Hill Street
Steve & Lori Kraght Holcomb Street
Victoria O’Donnell 3910 Hill Street
Hendrik Taatgen & Marga Kapka Jackman Street
Marianne Sears 4567 McNeill Street
Marilyn K. Kurka, CPO Property Manager for 4284 Hills Street and 4174 Hill Street Resident of 4284 Hill Street
Keith Fleming Hill Street
Janeann and Eric Twelker 303 47th Street
James Schultz and Heidi Minnich 4510 Holcomb Street
Janice Rivera 435 47th Street
Russ Kunz 16 lots at Jackman and 49th
Beki McClemans 4617 Jackman Street
Sam & Lucy Obetz 49th Street
Kris Strand
Ann King Jackman Street
Jack and Johanna Perkins 247 43rd Street
Charley & Kathy Hough 4105 Jackman
Patricia & Robert Drolet 3963 Jackman St
Kristin Harlan 4079 Hill St.
Sally Murray 4246 Hill Street
Beki McClemans 4617 Jackman
Glenda Tavemakis 4024 Hill Street
Heidi Barber 45th & Holcomb
Sarah Grossman & Jennifer Carl 43rd Street
Jane Patrick 251 47th Street
Caroline Seibert 43rd Street
Betty Renkor & Stephen Nelson Hill Street
Neil & Karen Erickson 4444 Holcomb Street
Kenny & April Speer
Patrick & Pamela Moore 275 47th Street
Diane Baxter Holcomb Street
Dan Meyerson & Pippa Mills 4053 Jackman Street
Linda Egan 4043 Hill Street
Colby Fox 4419 Jackman Street 6
by Jim Scarantino | Jun 23, 2021 | General
Bayside Housing wants $1.8 million from Jefferson County to complete and expand the Cherry Street Project. $1.6 million more than has already been spent would go into finishing the 70-year old Carmel Building, which has been sitting vacant and open to the elements for over four years. The total final cost of that building alone would exceed $3 million. In addition, Bayside wants $300,000 from the City of Port Townsend, and $500,000 from an unspecified block grant.
Bayside proposes to contribute $200,000 of its own money, for a total cost of $2.8 million for its new vision for the 1.5 acre property. Bayside’s proposal was submitted with supporting documents to the BOCC for its 6/21/21 meeting, and may be read at pages 457-462 of the correspondence file. Here is the cover letter: 
The Carmel House would provide 12 bedrooms through 4 two bedroom units and four small one bedroom units. The total square footage of the building, as reported by the Port Townsend and Jefferson County Leader, is about 5,000 square feet. The Port Townsend Free Press previously reported that this “affordable” housing project was already one of the most expensive developments on the Quimper Peninsula. Under Bayside’s proposal, the cost would exceed $600 per square foot.
Bayside’s estimate of what it would take to rehab the Carmel House is $600,000 higher than the estimate provided by Homeward Bound Community Land Trust to the Port Townsend City Council in November 2019, when it said at least another $1 million was needed. Homeward Bound had been given the land and building in 2017 and a generous loan from the city. It defaulted in July 2020 and the city reclaimed the project. City taxpayers remain on the hook for the more than $1.4 million in principal and interest on the bond the city floated to raise the funds. Public records show that the loan to Homeward Bound contained a hidden interest subsidy of more than $400,000. Because Homeward Bound never paid a cent of its debt, taxpayers have been paying down the full indebtedness since 2018.
The project would be transferred free of any debt to Bayside. With the additional $1.6 million of county money going into the building plus the $1.4 million city-absorbed indebtedness factored in, the total cost of rehabbing the old building would come to more than $3 million. The city has already sunk over $500,000 in the building to bring it here from Victoria, B.C. and to put it on a foundation. That amount would be included in the $3 million final cost for the Carmel Building.
These figures do not include the cost of the land, valued in 2017 at $600,000, or other miscellaneous expenditures by the city for utility and project management work. In an October 2, 2020, report we calculated the cost of the project as of that date at $2,329,961. That was still $1 million short of the Homeward Bound’s estimated cost to complete, and is $1.6 million short of Bayside’s latest estimate of cost to completion. Our figure included the $600,000 value of land given by the city to Homeward Bound, which would again be donated, this time to Bayside Housing.
In addition to rehabbing the Carmel House, Bayside proposes to build two six room “boarding houses” on the property, at a combined cost of $850,000. That is the same number of rooms, newly constructed, as would be available in the old Carmel House, but for $2.15 million less. 
Bayside is not proposing a contract, under which it would be responsible for completion of the building by a date certain and built to plans and standards approved by the county. It is simply asking for millions of dollars with the promise that it will provide “affordable” housing. Its contractor estimates that if the money is provided promptly the proposed project would be completed within the first half of 2022. Bayside’s letter does not identify the contractor or reveal whether it has gone through any sort of competitive bidding process.
Bayside submitted letters of support from Dove House, Jefferson Community Foundation and Oxford House, an international program of sober living communities. The organizations did not commit to any financial support.
At present, the land and the building are owned by the City of Port Townsend. City Council directed the City Manager in September 2020 to negotiate a handover to Bayside Housing of the Cherry Street Project. The City Manager ignored a $1 million cash offer from Keith and Jean Marzan of Port Townsend to bail the city out of the failed project, with the pledge that they would construct affordable housing at their own expense on the site. The City Manager told them he had been directed to deal exclusively with Bayside.
The original estimated cost of rehabbing the Carmel House with the addition of the four basement apartments was under $400,000, with a projected completion date in September or October 2017. That estimate and schedule were known to have been “bogus” by Homeward Bound’s leadership and city officials. See also, “Multimillion Dollar Fraud on Taxpayers: The Cherry Street Project Unmasked,” PTFP, 7/27/20.
In a May 28, 2018 article we identified a 36 bedroom Port Townsend apartment building, built in the 1990s, on the market for $1.5 million. That now looks like an even better bargain. But instead of securing that property, or pursuing less costly approaches, such as manufactured housing, the city kept sinking more money into the old Carmel Building structure.
The COVID Funds: The County’s, Not the City’s
Bayside is seeking $1.8 million of the county’s “COVID funds.” The county received $6.3 million under the American Rescue Plan Act. These funds are restricted to being spent on five categories of projects: (1) public health, including COVID-19 mitigation efforts, behavioral health care, and public health and safety staff; (2) negative economic impacts caused by the pandemic to groups including workers, households, industries and the public sector; (3) to replace public sector revenue lost to the pandemic; (4) premium pay to support essential workers whose health is at risk from exposure in critical infrastructure areas; and (5) investment in infrastructure such as water, sewer, wastewater, storm water facilities, and broadband access and infrastructure.
The City of Port Townsend has not offered to spend any of its $2.744 million in ARPA funds on its Cherry Street Project. The City Manager has indicated that at least half the funds will be used to make up for lost municipal revenue. Bayside’s proposal does not seek any of the City’s “COVID Funds.”
The $1.8 million requested by Bayside would be close to a third of the county’s ARPA funds. Jefferson County would be bailing the city out of its troubled Cherry Street Project, after the city had already rejected a $1 million cash offer to do the same.
Red Flags
There are certainly legal questions about whether the county can simply give $1.8 million to a private entity for a construction project on land it does not own. Where are the legally binding guarantees, the enforcement mechanisms, the claw-back provisions, the security for county taxpayers? If Bayside fails to perform, what recourse is there? How is the county assured it is getting the lowest price from a qualified contractor without a request for proposal and a competitive bidding process?
Bayside’s executive director, Gary Keister, is a convicted felon, who served time in federal prison for a complex scheme involving bank fraud, conspiracy and money laundering. After release from prison he was involved with an illegal slot machine business that drew raids and enforcement action from Texas authorities and the Security and Exchange Commission. Port Townsend Free Press was contacted by two former Bayside employees who raised ethical concerns about Bayside’s operations. One former employee has filed a complaint with the State Attorney General about Bayside’s business practices and its conflict of interest with another business owned and managed by Kiester. We wrote about those issues here, here and here.
After those articles were published, we received from a man identifying himself as a former business associate of Keister a list of more than 60 lawsuits brought by or against Keister personally, or by or against corporations he owned or managed or in which he was an officer or director. The list was the product of a search of records of nineteen Washington county court systems conducted in 2013. Mr. Keister and/or those corporations were a defendant or third-party defendant in 36 of the listed cases, plaintiff in four. In the remainder of the listed cases he or his controlled or affiliated corporations were identified as a subject of judgment, garnishment, abstract of judgment or tax foreclosure.
Preliminary Talks, Conflict of Interest
Bayside’s letter refers to previous discussions with Kate Dean, Chair of the Board of County Commissioners. Dean has been a member of the Board of Directors of Homeward Bound since 2017, during the time that organization was the owner and developer of the Cherry Street Project. She was a Homeward Bound director when it defaulted on the city’s loan and remains a director to this day. Details of the discussions between Bayside and Dean were not disclosed. In a previous Port Townsend Free Press article, Keister was quoted as saying that Bayside was being pressured by Homeward Bound to get involved in the failed Cherry Street Project.
At the same time that Bayside is seeking nearly a third of the county’s ARPA money, other nonprofits and critical needs are competing for the same funds. Dean will be one of three commissioners deciding how to allocate those significant, but nonetheless limited resources.