A nonprofit that has raised red flags for other cities will begin operating one of Denver’s homeless shelters after the City Council approved a $30 million contract with the group Monday.

Urban Alchemy, a San Francisco-based nonprofit, has been accused of fiscal and data mismanagement, leading one city to drop the organization as a partner this year.

Nine of the 13 City Council members ultimately voted to approve the contract after over an hour of discussion on those concerns in which council members also expressed their exasperation with Mayor Mike Johnston’s office.

“The other option appears to be putting people back out on the street in the middle of winter,” said Councilwoman Amanda Sawyer in explaining her “yes” vote.

Jeff Kositsky, the deputy director of shelter and stability in the city’s Department of Housing Stability, said during the meeting that if the council rejected the contract, there would be no way to find a new provider by the time the contract with the Aspen shelter’s current operator — The Salvation Army — expired.

“I think ultimately we would have to shut the shelter down,” he said.

Only three groups submitted bids to run the city’s homeless shelters when officials put out a request earlier this year, Kositsky said. The other two are Bayaud Works and St. Francis Center, both of which were already selected for other contracts.

Urban Alchemy will begin operating the 289-unit Aspen shelter in Central Park in 2026 and the contract will last through 2028.

Denver officials announced in August that The Salvation Army would no longer operate three facilities in former hotels after the City Council raised concerns that the group was unable to keep its occupants safe. There was a string of violent incidents at the shelters and in March, a Salvation Army employee was charged with sexually assaulting a woman staying at the Aspen shelter.

The Salvation Army will continue to run the Crossroads Center, the Labuth Family Center, the Connection Center and the Harbour Light Center.

In San Francisco, the city controller’s office accused Urban Alchemy of not properly tracking the time its employees worked for the city causing an “increased risk to public funds and client services,” according to the San Francisco Chronicle. The controller’s office later ruled that the group was back in compliance with the city’s standards.

The nonprofit, which gives jobs to formerly incarcerated people, also ran into a conflict with Austin earlier this year. Austin officials wrote in a memo to their City Council that they wouldn’t renew their contract with the group after the nonprofit self-identified staff members who had misrepresented data about people using the shelters, according to the Austin-American Statesman.

Cole Chandler, who leads Johnston’s All In Mile High homeless initiative, said the contract with Urban Alchemy was an unusual, performance-based deal to ensure the work is completed.

“These are new accountability measures that have never existed before and those are specifically in place because council advocated for those,” he said.

The meeting reflected another instance of council members’ frustration with Johnston’s administration. Councilwoman Shontel Lewis, who represents the district where the Aspen shelter is located, said she didn’t feel his team answered her concerns about the group.

Troy Renck: No disrespect to the wise guys, but what the (bleep)? The Broncos won their 10th straight game Sunday, leaving footprints on the Raiders, and they are an underdog to the Packers? Huh? The Broncos boast an 11-game home winning streak, and they are not favored against a Green Bay team that lost to the Cleveland Browns? Come again? For the second time this season, the Broncos have been told they are not yet among the Who’s Who of the NFL. They are not a Who, but a What? As in what the (bleep)? It is one thing to be doubted against the Chiefs, but is Denver as a home underdog — 1.5 to 2.5 points depending on the book — against the Packers the season’s ultimate sign of disrespect?

Sean Keeler: As I’m typing this within sneezing distance of a casino, my nose tells me that the books must want more money on the Broncos. And with lines like that? They’re going to get it, my friend. Like, a lot of it. Although I also get where they’re coming from — since 2019, the Packers are 8-3-1 during the regular season in games played west of Omaha. And Green Bay QB Jordan Love is toting a ridiculous 14-to-1 touchdown-to-interception ratio away from home this year.

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Renck: Gambling lines are not set to lose money. They spur action, and this game may be a pick ’em by Sunday. But the line is a punch in the face to the Broncos, any way you look at it. This marks only the seventh time a team with at least a 10-game home winning streak has been a home underdog. Denver won in this spot in October when the Chiefs were 3.5-point favorites. But that was the Chiefs, who had won 18 of their previous 20 games against the Broncos. The Packers are 4-1-1 on the road this season, with a loss to the Browns and a tie with Dallas. Sure, they have won four straight games. Big deal. The Broncos haven’t lost since Sept. 21. The last time teams with a 10-game winning streak were underdogs occurred in 2019 (Ravens) and 2020 (Chiefs) when both were sitting starters in the final week of the season. Denver deserves better.

Keeler: The Broncos do, but I wouldn’t take it personally. And I’d expect this line to wiggle a bit over the coming days as the cash comes in. Smart cookies already know better. The Packers hate — HATE, HATE, HATE, HAAAAATE — playing a Mile High. Broncos Country has hosted the Cheeseheads eight different times since the AFC-NFC merger. The Broncos have won seven, right? And five of those meetings were decided by nine points or more. Average score of those games: Broncos 21, Pack 12. This one ought to be closer.