A roughly $400,000 contract to provide shelter for newly-arrived immigrants in Denver has now ballooned to up to $25 million, another sign of the crisis that has placed the city under tremendous fiscal strain within the past year.
Under the contract that the Denver City Council approved on Monday, Denver guarantees to spend at least $23.4 million between the beginning of 2023 and June 30, 2024, and perhaps up to $25 million.
The contract with Colorado Hospitality Services will pay for hotel units for immigrants arriving in Denver after illegally crossing the country’s southern border.
The council originally approved $378,486 back in May to pay for rooms, laundry and front desk employees. Back then, the city was housing around 400 immigrants, according to the city’s immigration dashboard.
As of Monday, the city is housing 3,782 immigrants.
The money will come from the city’s Border Crisis Special Revenue Fund and the council will consider a $25 million cash infusion from the general and capital improvement funds.