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Denver's mayor wants to spend millions on 200 pallet shelters for people living on the streets

The contract proposal will go before a city council committee Tuesday.

DENVER — Denver's mayor wants to pay $7 million for 200 pallet shelters and equipment for people currently living on the streets. 

The contract proposal with Pallet PBC Inc. will be introduced to the Finance & Governance committee on Tuesday morning. 

The contract would purchase pallet shelters and equipment such as beds, desks and mattresses. It also allows for the purchase of more shelters and equipment as the need arises. The goal is to have these units delivered by November. 

Pallet PBC Inc. has provided dozens of these shelters to Aurora. The company said they have deployed 2,800 shelters in 85 cities across the country and Canada. Pallet said these communities have reduced calls to police, and in one city outside Portland more than 60 people transitioned to permanent housing in the first few months. 

In a prepared presentation for Tuesday's meeting, Mayor Mike Johnston's office said the pallet shelter villages would offer the dignity of private space, and will help more people transition to permanent housing. The units would also offer food, showers and laundry. 

The units would be 70-120 square feet with a bed, mattress, desk, storage shelf, AC unit, heater and power outlet. 

Everyone isn't sold on the idea, though. 

"It's not just skeptical. We have seen this. This is nothing new," said Terese Howard, an advocate with Housekeys Action Network Denver. 

Howard has heard lots of ideas over the years. The latest one is something she isn't completely on board with. 

"These pallet shelter communities are not in line with what houseless people want," Howard said. "People want actual housing with rights and amenities. They don't want to be stuck in controlled environments."

Johnston's office said the pallet shelters would be used as transitional housing in micro communities. Bathrooms would also be on the property. 

"None of those have bathrooms in your actual space," Howard said. "That $7 million could instead be used to put people into actual housing people want to live in."

The city is currently working to figure out where the pallet shelters would go in the city. 

Pallet shelters are not new to Denver. Units were previously added to neighborhoods that house safe outdoor spaces.

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