Rising construction costs have increased challenges for at least two organizations in Page. The two separate building projects were awarded more than $8 million in federal and state grants. Both projects were forced to seek additional funding to cover the gap between pre- and post-pandemic construction costs.

Catholic Charities affiliate Housing for Hope is converting the former Antelope Canyon Inn into Pinion Point Apartments. They received more than $6 million from Arizona Department of Housing (ADOH). 

The American Rescue Plan Act of 2021 provided approximately $40 million to ADOH to distribute.

Phoenix-based Low Mountain Construction was the low bidder and won the contract to convert the 39-unit hotel into 20 apartments. The bid was $150,000 over the grant amount.

“There’s a huge need for more housing options in Page in general, and particularly affordable housing for individuals and families who are experiencing homelessness and are experiencing substance use, mental illness or co-occurring disorders, as well as persons who are justice-involved,” said Catholic Charities Vice President of Business Development, Steve Capobres. 

“When our lowest construction bid came in at a higher amount than the grant received from ADOH, the Arizona Housing Fund helped close that gap so we could move forward with construction.”

Homelessness increased in Page during the pandemic. Pinion Point Apartments will provide a mix of one-bedroom, two-bedroom and studio apartments. Residents will have access to a wide array of services to help them work toward permanent housing stability. 

“Catholic Charities has provided permanent housing assistance to residents in the Page area for over 15 years,” said Arizona Housing Fund Founder Howard Epstein.

“They have the experience and the staff in Page to make a huge difference in the lives of those who need supportive housing to get back on their feet. It’s thanks to the support of Arizona’s private sector – and in particular the real estate community in our state – for rallying behind our mission to end homelessness and generously donating $25 for each home sale closed through our Escrow Donation Program.”

Completion of Pinion Point Apartments construction is scheduled for December 2023.

Encompass Treatment Center project

On Oct. 27, 2021, Page City Council approved the initial contract with Campbell Architecture for $89,369. The St. George, Utah, firm would provide architectural services during the design, bidding and construction of a substance abuse treatment facility on Coppermine Road. City staff anticipated CDBG funds would cover 100% of the design and construction costs estimated at $1.6 million. Encompass would lease and operate the facility with an option to purchase the property at market value in the future.

On June 11, 2022, Community Bridges announced a merger with Encompass. CEO Joe Wright, who was spearheading the treatment center project, retired from Encompass shortly after. The project appeared doomed. A source told the Chronicle, “There was no one to pick up the ball after Joe retired.”

The city was left holding the bag with an obligation to return grant money.

On Aug. 9, 2023, Joe Wright appeared before Page City Council. He said he was now working for Encompass’s parent company, Community Bridges, once again spearheading the treatment center project.

“Some time ago, the city of Page was approached by NACOG [Northern Arizona Council of Government], I believe in the Department of Housing, about us possibly applying for some dollars to build a facility in Page that would help with public intoxication problems,” Wright said.

“We accepted that task of going out and through the most of the city’s help, applying for and being awarded roughly a $2 million grant to build a 16-bed residential treatment program and an eight-bed detox program somewhat similar to the operations that we have right now under that detox program. It’s been a battle, that’s for sure, because of COVID and, as I’m sure all of you know, prices skyrocketed. The first time we put the bid out we had roughly 2 million, and I think our low bid came in at 2.6 or 2.7 million. We went ahead and put it out for rebid.” 

Only one organization submitted a bid in the second round. The cost had risen to $3.4 million. Wright said they didn’t accept the bid.

“We’ve been going out and working quite vigorously at trying to find more money,” he said. “We have been pretty successful at that. Through joint efforts we were able to secure a half a million dollars.”

Rather than working with the original plans, to cut costs, Campbell Architecture is reducing the building size by reducing the number of overnight detox beds from eight to three. Wright said the current detox center averages about 1.5 stays per night. He said if things change, “We’ll have to go back to the drawing board.” 

Wright told council that Encompass has to vacate the current detox center next June because the building owner has other plans.