The United Way of the Lewis and Clark Area has withdrawn from negotiations to purchase the Helena Inn and repurpose it into affordable housing after the nonprofit was unable to meet its fundraising goal and the seller declined to lower the price.
The local organization earlier this week announced that it had terminated the agreement with the hotel seller after a recent appraisal determined that the property was worth $1 million less than the initial agreed-upon price of $5 million.
According to a press release from United Way, the organization submitted a revised offer that was “slightly above” the adjusted value, which the seller declined. The nonprofit’s board of directors then unanimously decided to end negotiations.
“I think we were all kind of surprised at the appraisal,” United Way executive director Emily McVey told Montana Free Press.
Over the past year, the nonprofit has led multiple fundraising events to secure the property and convert it into a 48-unit permanent supportive housing complex. Although United Way raised only about $720,000 by the December deadline, the organization secured a bank loan to cover the remaining balance of the purchase price.
“Given how long bank loans would work and all of that kind of stuff, we had to reassess what that looked like for them as a business and then for us as a nonprofit,” McVey said. “We just couldn’t make it work. We couldn’t come together on an agreement and so we just had to end the contract.”
However, McVey said that United Way will continue to search for a suitable property.
While United Way did spend about $30,000 on inspection fees at the Helena Inn to prepare for renovations before the appraisal, McVey said funds raised and donated will be saved in an account and dedicated to the nonprofit’s affordable housing program.
According to the most recent survey of Helena, the city has about 180 homeless people, an increase from prior years.
“Helena has been incredibly supportive of this project. People obviously know that we have a huge need for housing and people have been really behind what we’re doing,” McVey said.
Despite the failed purchase, McVey said she is encouraged by the continued support United Way has received from its partners and the community.
“It’s just been really great that we have that kind of support from the community, and people are like, ‘Okay, we’ll go out and find a new property,’ and ‘Okay, we’ll go out and see what else there is,’” McVey said. “We haven’t heard one negative thing from this process of letting people know we’re moving in a different direction.
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