Sunset Shelter renovations stall after two rounds of construction bids

Updates to the former motel are on pause as a result of “higher-than-expected” construction bids, according to the project’s planners.
Outside of former Sunset Motel, sign painted
The former Sunset Motel is under construction in September 2025, a result of the Sunset Shelter Project, which plans to open its family shelter in 2026. Photo by Al Maloney.

ATHENS, Ohio –– Renovation efforts at 135 Columbus Road are in hibernation entering the new year as Hocking Athens Perry County Community Action and Project Co-Create reevaluate the funding and scope of the Sunset Shelter project.

The last change made to the former motel’s preexisting infrastructure was successful lead remediation in the fall, HAPCAP’s Public Relations Coordinator Valerie Stillson told the Independent. The step was an important safety measure in the process to reinvent the space as a family housing shelter, which will house up to 48 people in 27 private units with individual bathrooms, beds, and kitchenettes. 

However, “higher-than-expected” construction bids have stalled subsequent renovation plans, Stillson said, and no contracts are currently in place. 

Sunset Shelter’s project timeline therefore remains undetermined looking into 2026. 

The bidding process 

The Sunset Shelter project has received $4 million in funding: $2 million from the HOME American Rescue Plan Program, which allowed the organization to buy the former Sunset Motel, and an additional $2 million grant from the Ohio Department of Development to renovate the site. 

Since September, the Sunset Shelter twice has been put out to public bid for a construction contract. 

“In the first round, two bids were received, both of which exceeded the grant funding available,” Stillson said. 

Before the second round, the Sunset Shelter project coordinators stepped back. With its architect, the team clarified design and identified features that could be alternates, including a solar array, paved parking lot, and playground.

Contractors were given a close look at the premise during a pre-bid walkthrough of the site, Stillson said, “to ensure prospective bidders had a thorough understanding of the project.” 

A second round produced three bids. 

“All were again significantly above the architect’s estimates and available funding,” Stillson said. 

In an email between HAPCAP Executive Director Kelly Hatas and realtor Jim Reitano shared at the Dec. 15 Athens City Council meeting, Hatas expressed that the group is “really disappointed” that it has been unable to find a contractor.

Hatas wrote that possible contributing factors to the higher than expected costs include “rising costs across the board, tariffs impacting material costs, the prevailing wage requirement, and the cost of the bid bond.”

Next steps

HAPCAP has not secured additional funding since the bidding rounds, but is “actively exploring” such opportunities, Stillson said.

Greater clarity around a revised timeline –– and whether or not the scope of the project will change –– is expected in the coming weeks as options are evaluated, Stillson said. HAPCAP will share updates with the public as they become available.

Despite setbacks, HAPCAP continues to gather data to better prepare for future shelter residents. It recently released a survey for individuals with lived housing insecurity experience, whose feedback will inform future shelter operations and services, Stillson said. 

The need for the shelter remains while plans for the future Sunset Shelter develop, especially as extreme cold has already hit Southeast Ohio this month. 

Stillson said that when temperatures are below 15 degrees, those without shelter are advised to gather at an emergency warming shelter in place at United Campus Ministry.

Editor’s note: This story was updated at 3:35 p.m. Thursday, Dec. 18 to include Valerie Stillson’s title.

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