The future of a controversial proposal to turn a Freeland motel into low-income housing may be decided next week.

Following a discussion during a workshop meeting Wednesday, Island County commissioners elected to move forward with making a decision about a proposal to provide $1.5 million in matching funds to the Low Income Housing Institute for the purchase of Harbor Inn, which will be used for supportive and bridge housing. The proposed agreement will be on the regular agenda Tuesday, July 12.

Low Income Housing Institute, commonly known as LIHI, plans to purchase the property with matching state and county grants of $1.5 million each, plus $400,000 of its own money. The Island County funds would come from document recording fees.

Many in the South Whidbey community have expressed opposition to the proposal for a variety of reasons, from concerns about increased crime in Freeland to the loss of one of the few lodging establishments on South Whidbey to septic tank capacity.

The Freeland Chamber of Commerce is holding a public information meeting about the project at 10 a.m. on Saturday, July 9 at Trinity Lutheran Church. The chamber reported that the speakers will include Sheriff Rick Felici, who previously said he doesn’t believe the project would decrease safety in the community.

The chamber said in a statement that it does not support the project “because of the deep economic impacts to our wide range of small businesses that currently flourish due to this commercial motel in the heart of this small business district.”

Wednesday, Commissioner Melanie Bacon presented the results of her covert mission to investigate other housing projects owned and run by Low Income Housing Institute. The Seattle-based nonprofit organization develops, owns and operates housing for the benefit of low-income, homeless and formerly homeless people in the state.

Bacon made unannounced visits to three LIHI projects in Seattle and Tacoma over the weekend. She said she was impressed by the cleanliness of the facilities and the lack of any litter on the grounds — not even cigarette butts. She spoke with a pajama-clad resident who lives at one of the facilities with his little dog. She said it was clear that he was someone who had a difficult time but was doing better and making a real effort; he was supportive of the LIHI housing, though he felt there were too many rules.

Bacon said staff members at a 28-unit facility providing supportive and transitional housing explained that residents get two meals a day and share restrooms on each floor. LIHI provides a case manager as well medical and mental health support. Residents have a lot of rules to follow and have to do chores while rooms are inspected once a week, she said.

The commissioner said all the staff members she spoke to were extremely complimentary of LIHI.

“If you reach out for help, LIHI will help you get that,” she said, adding that the trip reinforced her belief that LIHI will be a good partner.

Commissioner Jill Johnson said while turning a Freeland motel into housing may be a financially responsible way to help fill a need in the community, she asked whether it was the highest and best use of the property from a more general standpoint. She pointed out that while there are many areas zoned for residential use in the county, the sites for hotels and motels are limited.

“I think that’s a question we need to answer and we haven’t talked about,” she said.

Bacon conceded that she would prefer to have the motel remain, but she said it’s just not an option. She said a group of Freeland business people met with the owner of the Harbor Inn and talked about the possibility of purchasing it and continuing to run it as a motel, but it didn’t pencil out. They learned that the motel is busy two or three months a year, but there’s just not enough visitors to support it the rest of the year.

“My preference would truly be to continue as a hotel, but that’s not on the table,” she said, adding that the owner can’t be forced to keep it.

The commissioners and staff members also spoke about concerns and misconceptions in the community.

Jonathan Lange, planning manager, explained that under zoning rules for mixed-use development, the facility has to be at least 51% commercial or non-residential. Under the county code, transitional or bridge housing qualifies, while long-term permanent housing does not.

The facility will not provide emergency or overnight housing. Bridge housing is short-term housing — which could be months — for people who are seeking permanent housing. Supportive housing is permanent housing that provides coordinated and supportive services.

Under the proposed contract with LIHI, county Human Services would screen people who want to be residents. A person who is chronically homeless and has behavior problems, for example, would likely not be accepted. Residents will be required to sign a code of conduct.

LIHI is required to hire a live-in staff person and a case manager.

“A case manager/social worker will be on-site to provide supportive services to the residents,” the contract states. “This may include housing and employment navigation, help with income support, access to education, referrals to health care and behavioral health, and other services.”

In addition, LIHI would have to create a community advisory committee “to bring Freeland neighbors, businesses and community members together to maintain good relations with neighbors,” the contract states.

Johnson addressed the funding of the county’s matching grant, which would come from document recording fees. Under state law, she pointed out, the funds can only be used for projects to address low-income housing and homelessness.

“People write on Facebook with their own facts, despite having this explained to them,” she said.

The county funds would match LIHI’s state grant, which is specifically for converting hotels into low-income housing.

She said people who don’t like the restrictions on the use of the funds shouldn’t direct their ire at the commissioners but should instead contact their state lawmakers.

In response to concerns about the inn’s septic system, Public Health Director Keith Higman said he doesn’t know enough about the current system to answer questions. He and other staff members pointed out that LIHI would have to apply for permits after buying the property and comply with all development rules.