The Marshalling Yard, a Southeast Austin emergency shelter for people experiencing homelessness, will be allowed to stay open indefinitely. A multimillion-dollar contract with the city expired earlier this summer.
On Thursday, the Austin City Council approved extending the contract, although it's not yet clear where the money will come from. It is the second extension in five months.
Austin opened the shelter last summer, approving a one-year, $9.1 million contract through August. The facility can house up to 300 people a night.
In April, the City Council extended its operations through early next year. But without other options for people living on the streets to access, Mayor Kirk Watson said last week it was imperative to keep the Marshalling Yard open.
The new extension gives the city more time to look into opening a more permanent shelter in another part of town and gives people a safe place to sleep, city officials said. One local nonprofit estimates that more than 6,300 people have slept on the streets of Austin on any given night this year. That number has doubled since 2021.
Council Member Alison Alter, who represents neighborhoods in West Austin, said she was concerned by that indefinite timeline and not having an idea yet of where the funding will come from.
She was the only member who abstained from voting Thursday.
“I understand that the Marshalling Yard is a critical piece of our homelessness response system and that closing the Marshalling Yard would have an impact on other parts of our system,” Alter said.
“But I'm also concerned that so soon after our budget process we have an item that asks staff to identify a large amount of funding – we don't actually know how much – and at this time we don’t have information about where this funding will come from or what other city services might be impacted by these choices.”
The city adopted a nearly $6 billion budget in August, with more than $30 million dedicated to homelessness response. But it was a tight ledger, leaving little wiggle room for other projects.
City officials said operations at the Marshalling Yard cost about $530,000 a month or about $6.4 million annually.
Several City Council members agreed that the funding and the extended timeline were concerning, but ultimately agreed the shelter is providing a critical service for people living outside.
At least a dozen people spoke at the council meeting Thursday in support of the extension, including Chris Baker, who runs the homeless nonprofit The Other Ones Foundation.
"I don’t know that the Marshalling Yard is a perfect shelter. But what I do know for sure is it keeps people on the right side of the grass," Baker said. "I don't know where the money comes from – that is up to y'all to figure out – but I can speak in support of the critical work that is happening at the Marshalling Yard."
Drew McAngus, a deputy constable for Travis County, leads a program that works with people living in homeless camps. He said having the option to house people experiencing homelessness at the Marshalling Yard has been important.
“I've got to have options to be able to help get people off the street and into a place where they get all the wrap up services, and the Marshalling Yard is really helpful to us," he said.
City Manager T.C. Broadnax said he would update the City Council on potential funding and estimated costs for this latest extension at a future public meeting. Broadnax said he would also provide updates on the search for an alternative site.
