Deschutes County commissioners have agreed to sell the Bethlehem Inn property to the organization for $1 million, ending a long-awaited purchase spanning several years.

The board signed a sale agreement Monday transferring ownership of the property to Beth Shelter LLC, an entity formed by Housing Works that will temporarily own the property until a $500,000 grant can be obtained from the state.

The homeless shelter has operated out of the former Econo Lodge hotel at 3705 N. U.S. Highway 97 since July 2007. Fundraising efforts to purchase the property from the county were hampered by the Great Recession.

“This is an accomplishment from a lot of great work and the continued investment in making sure our community retains this resource,” said Commissioner Tammy Baney on Monday.

“I’m glad we were supportive of this homeless shelter,” Commissioner Alan Unger said. “That’s something important for counties to step up and address.”

The year-round shelter was formerly based out of the Deschutes County Sheriff’s Office work release center in Bend. A remodel of the facility led the county to purchase the former hotel for $2.5 million with the city of Bend contributing $220,000 toward the down payment.

Since 2007, many financial plans were developed with the intent of selling the property to the Bethlehem Inn. But the economic downturn, beginning in late 2007, hurt fundraising and an $800,000 grant didn’t materialize. The organization has leased the property from the county for $2,034 a month since 2010.

Executive Director Gwenn Wysling said the organization is “extremely grateful” for Deschutes County’s “foresight and vision.” She added that there is still a lot of demand for their services and a lot to be done.

“We still see folks coming to our doors in that state of real crisis, and we want to be there for them and help them get back out into society in a real productive and sustainable way,” Wysling said.

The shelter can accommodate 78 single adults and up to five families. The Bethlehem Inn also provides three meals a day to residents, offers job-skill training and access to public transportation.

Wysling said the shelter is outgrowing the 36-room former hotel and hopes to expand as well as construct a commercial kitchen.

The Oregon State Housing Council approved a $200,000 grant to the Bethlehem Inn in mid-February, which helped the nonprofit reach the $1 million figure. The organization also received $300,000 from the city of Bend and a $500,000 loan from the Bank of the Cascades. The organization is anticipating a $500,000 grant from Business Oregon, the state economic development agency, to finalize and retain sole ownership of the property.

— Reporter: 541-617-7820, tshorack@bendbulletin.com