On October 8, 2023, Heading Home, Inc. notified the City that funding for the operation of the Lexington Hotel would expire as of September 30, 2023, and that, accordingly, Heading Home would discontinue its provision of services at the Lexington pursuant to its January 14, 2021 Professional Services Agreement (PSA) and related lease on October 1, 2023.
Through negotiation and work with Heading Home, McKinley County and others, the City has obtained an amendment to the PSA under which Heading Home will continue to provide services at the Lexington from October 1, 2023 to December 31, 2023, provided the City supplies $50,000 in funding for those services and succeeds in raising an additional $100,000 in funding from others. The City has committed to supply its $50,000, has received what it considers to be reliable funding commitments from others in the approximate amount of $80,000, and believes the remaining funding can and will be raised. However, if the funding effort falls short, Heading Home will be entitled to discontinue services before the December 31 termination date.
To assure coordination and consistency, the City has proposed an amendment to Heading Home’s lease of the Lexington to provide that the lease will terminate on December 31, 2023, or earlier if the amended PSA is terminated or Heading Home discontinues services. Heading Home has agreed to the lease amendment.
Copies of the amended PSA and lease amendment are attached below.