Agate Housing and Services is in line to receive a $1.5 million donation for a much-needed renovation of its 137-bed homeless shelter and transitional housing facility in Elliot Park.

An anonymous donor is matching a $1.5 million rehabilitation grant from the City to prevent the permanent closure of the aging building at 510 S. Eighth St., Agate announced late Wednesday, several days after the grant was approved by the Minneapolis City Council.

Agate announced in mid-August that the facility will close Oct. 9 since the organization was unable to scrape together at least $3 million to repair the 100-year-old building. An inspection found “significant deficiencies” in the building and determined it needs $3 million to $5 million in repairs.

Agate is already working with a contractor so work can begin as soon as possible. The goal is to reopen the 42-bed shelter and 95-bed transitional housing facility within six to 12 months after construction begins.

More than 80 residents and 23 employees will be impacted by Agate’s upcoming closure, which is still happening as planned due to the condition of the building, despite funding being secured. Agate says it is working with other Minneapolis organizations to find stable housing for residents before Oct. 9 and providing job search support to employees.

Earlier in September, Councilmembers Jason Chavez (Ward 9) and Jamal Osman (Ward 6) and Council President Elliott Payne (Ward 1) proposed the $1.5 million grant for Agate. Councilmember Emily Koski (Ward 11) worked with Chavez to find an alternative source after a request for emergency funding to cover the grant didn’t get enough support.

A resolution to fund the $1.5 million grant with reallocated department surpluses was ultimately passed by the council Sept. 19 on a 10-3 vote. Councilmembers Michael Rainville, LaTrisha Vetaw, and Linea Palmisano voted against the resolution due to concerns over process and where the money would come from, according to MinnPost. The resolution can still be vetoed by Mayor Jacob Frey, but he only has until 4 p.m. Thursday to do so.

Frey’s administration sent the following statement in the interim to MinnPost as the mayor debates his decision: “Mayor Frey is supportive of the important work of shelters. The City Council did no vetting of the source of funding before passage and it’s resulting in significant problems. The mayor will spend the next day reviewing the appropriation with City staff and subject matter experts before making a decision.”

The grant is contingent upon Agate’s ability to secure an additional $1.5 million for the renovation by the end of 2025. When the anonymous donor heard about the required match, he or she stepped forward with the donation.

 “I want to demonstrate to the City of Minneapolis that private support exists for rehabilitation of the 510 S. Eighth St. shelter,” the donor said in a statement.

Agate is one of Minneapolis’ largest providers of housing, shelter, and food assistance. The organization also operates a food shelf at 714 Park Ave., which is also closing at least temporarily, and a nearby shelter for couples out of First Covenant Church at 810 S. Seventh St., which will remain open.

Agate hopes the renovation will allow the facility to continue operating for another 20 to 30 years.