Amid serious allegations of misconduct at Urban Alchemy-run temporary homeless sites, new public records show the city spent months coordinating with the nonprofit’s public relations firm to help polish its public image.
Urban Alchemy has faced scrutiny after KATU reporting earlier this year outlined more than 80 complaints that guests filed with the city from 2023 to 2025, alleging staff drug use and dealing at the sites, sexual harassment, sexual assault, and other grievances. Additional grievances filed in 2026 have now brought the total to at least 156 complaints filed since the nonprofit came to Portland.
That reporting prompted city councilors to seek more oversight of the San Francisco-based nonprofit, which holds the city’s largest homeless service provider contract. In early July, Urban Alchemy presented to a City Council committee alongside city shelter leadership to address questions over how it handles grievances filed by clients or staff at the sites.
But records obtained by the Mercury through a public records request appear to show the city and the nonprofit prioritizing a public messaging strategy over full transparency about the complaints and the investigative process. While local reporting drew the attention of city councilors, staff at Portland Solutions—the informal program hub that oversees the city’s shelter system—spent significant effort working with Urban Alchemy’s public relations firm to coordinate public messaging. That includes sharing draft documents for responses to reporters’ questions, alerting the firm to publication dates, and recommending local journalists who the city thought might publish stories more friendly to the organization. City staff also connected Urban Alchemy’s PR representative to top staff in Mayor Keith Wilson’s office.
The new records fuel ongoing concerns that shelter guests continue to face substandard conditions and reprisal by some shelter staff, despite the city and Urban Alchemy’s claims about their accountability processes. The Ombudsman’s office—which investigates complaints about city bureaus and services—does track complaints and outcomes of investigations. But details remain absent in many cases, and Urban Alchemy’s internal process is shrouded in secrecy.
A document obtained by the Mercury that summarizes anonymized complaints shows a variety of recurring issues guests raise about Urban Alchemy-run sites. Among them, complaints of unsanitary conditions, allegations that staff stole guests’ personal items, multiple claims that staff sexually harassed or sexually assaulted guests, and alleged retaliation against multiple guests who filed complaints. Other allegations include a lack of disability accommodations, staff failing to address violence by other guests, and staff trading goods and cash in exchange for sex.
Meanwhile, the city appeared concerned with avoiding a potential PR debacle, at times running interference for the contractor by dismissing the grievances as “unsubstantiated,” or blaming Urban Alchemy shelter residents’ mental health challenges for the complaints.
“The City recognizes that individuals experiencing homelessness often face complex mental and behavioral health challenges, which may contribute to a higher number of unsubstantiated complaints,” reads an April 24 statement to KATU. “Given the vulnerability of this population, every complaint is taken seriously and reviewed with due diligence.”
Laura Rude, Portland Solutions spokesperson, and Jess Montejano, Riff City Strategies president and Urban Alchemy spokesperson, workshopped the statement in a shared Google document according to the records.
Polished gold
Urban Alchemy holds a five-year city contract through 2028, valued at $90.4 million. The nonprofit prides itself on hiring formerly incarcerated people to run its shelter sites. Even before the organization came to Portland in 2023, it faced legal complaints, alongside concerns that its model doesn’t provide adequate staff training and may perpetuate prison dynamics. The growing nonprofit has contracts in nine cities in six states, generating $101 million in revenues in the 2024-25 fiscal year, according to tax documents. Of that total, $98.7 million, or 99 percent, comes from government grants.
Urban Alchemy’s public relations firm, Riff City Strategies, provides media strategy, marketing, funding, and advocacy services. The company’s client list includes a broad range of businesses and nonprofits, including Bird electric scooters, National Geographic, Dutchie cannabis software, and Flock surveillance.
In a statement to the Mercury, Rude said the city regularly works with contracted shelter operators, and meets with Urban Alchemy and Riff City Strategies every other week to talk about communications needs and concerns.
“As is often the case when questions arise about City shelters operated by contracted shelter provider organizations, we need to collaborate with our contracted partners to make sure we are providing full, accurate responses,” Rude said.
The city’s responses came as Urban Alchemy faced scrutiny over a high number of complaints at its Portland sites. Of the 156 complaints filed with the Ombudsman’s office between July 2023 and May 2026, records show that many were related to the city’s 120-day stay limits at its temporary sites, which Wilson began enforcing in February.
Still, the city referred many of the grievances back to Urban Alchemy for an internal investigation. Details on the response to those complaints are scarce. The city has long defended the internal investigation as part of a fair process, despite ongoing concerns that the nonprofit’s investigations of itself may not improve conditions. And there is little public accountability. Rude said the city reviews grievances on a case-by-case basis with Urban Alchemy, Shelter Services, and the Ombudsman’s office, but declined to provide evidence.
“Due to privacy concerns for participants who file grievances, we are unable to provide documentation related to specific cases,” Rude said. “We regularly review grievances, and we investigate report findings and accountability actions during standing meetings and through the appeals committee process.”
Montejano told the Mercury that Urban Alchemy is clear about expectations outlined in its grievance policy, and if any employee does not follow the rules, they take action—up to and including termination. Asked for specifics about how many employees were terminated or placed on leave due to local complaints, Montejano declined.
“We’re not going to disclose that number,” Montejano said. “Those are HR issues. There’s confidentiality.”
The lack of specific evidence that Urban Alchemy took any action in the face of complaints leaves the public with few answers amid claims made by highly vulnerable Portlanders—some of whom are faced with the threat of jail if they don’t accept shelter through a contracted provider like Urban Alchemy. But public records give some insight into the public relations strategy.
Blurring the line
Montejano acknowledged critics’ concerns, but highlighted public data dashboards showing Urban Alchemy’s outcomes. Speaking from prior experience in public service, he said it is “normal and encouraged to work very closely with a city-contracted partner on questions and issues that arise,” saying the work speaks for itself, and public relations efforts aren’t the first priority.
“I would deny that we, or the city, lead with PR issues,” Montejano added.
While Portland Solutions staff have been eager to defend Urban Alchemy, records show a spokesperson for another city bureau was unwilling to participate in building the company’s brand.
On April 2, Bayron Wilson, Urban Alchemy’s chief operating officer, reached out to Portland Police Bureau (PPB) Commander Jacob Jensen, requesting collaboration on a story about law enforcement’s relationship with the organization.
“We’d love to pitch a story about how law enforcement leaders across the country are increasingly backing Urban Alchemy’s model as a real, on-the-ground solution to improving public safety—and we’re hoping you’d be open to discussing your participation when we connect,” Wilson wrote.
The email included Montejano and other Urban Alchemy staff, and was forwarded to Portland Solutions Director Skyler Brocker-Knapp and PPB spokesperson Mike Benner.
Brocker-Knapp replied, “Let’s please talk about this.”
Benner had a different view.
“I’m not sure it’s the place of PPB to wade into what amounts to promoting a business, especially a business that’s mentioned in at least one criminal investigation, if not more,” Benner wrote April 3. (Benner confirmed to the Mercury he was referring to one specific case in which an Urban Alchemy employee was arrested in March for a January incident.)
Benner told the Mercury he wasn’t aware of other homeless service providers reaching out to PPB with similar requests, but said a collaboration could blur the line between public service and advocacy.
“I believe PPB should generally avoid having our members publicly endorse or promote specific private organizations—including nonprofits—because doing so can create the appearance of favoritism, compromise the perception of impartiality, and blur the line between public service and advocacy,” Benner said. “Maintaining public trust requires that PPB remains neutral and avoids actions that could be seen as endorsing one organization over others.”
On April 22, records show Montejano forwarded media questions about Urban Alchemy’s internal response to the allegations to Rude, the Portland Solutions spokesperson. Rude replied that she was “happy to hop on a call to talk more,” and for Montejano to let her know how she could support the PR firm.
Montejano responded to Rude and the city by dismissing the allegations altogether.
“We’re not going to go question by question for unsubstantiated allegations without evidence,” Montejano wrote in an April 23 email to Rude and Brandy Westerman, the city’s emergency humanitarian director.
However, the city and the firm have made it difficult for reporters to verify their claims, repeatedly dismissing requests to review evidence. Perhaps some guests or staff did submit evidence through Urban Alchemy’s internal grievance process, but the city also acknowledges that those grievances do not always go through the proper channels.
“Prior to recent improvements, we are aware that some grievances submitted through some channels did not reach the appropriate persons for consideration,” Rude told the Mercury.
As City Council became aware of the complaints, Portland Solutions staff also sent talking points to some councilors, recommending they include those points in any media statements about the nonprofit.
On May 8, Councilors Candace Avalos, who chairs a committee on housing, and Sameer Kanal, who chairs a committee made up of all 12 councilors, issued a memo requesting more city oversight of Urban Alchemy’s contract.
The same day, Westerman introduced Montejano to the city’s top spokesperson via email. After the weekend, the spokesperson sent a direct line to Taylor Zajonc, Mayor Wilson’s deputy chief of staff, and the two connected by phone, according to the records. Brocker-Knapp, the Portland Solutions director, responded to the memo the next day outlining policies and procedures.
On June 3, Portland Solutions and Wilson’s top staff drafted letters for an “Urban Alchemy comms project” that the group had previously discussed, according to the records. Riff City Strategies was not included in the drafting of the letters, but was brought into the project days later.
Zajonc connected with a group of local pastors for the project, asking them to meet to discuss the situation, saying the city hoped the coalition of Black clergy could help build trust between the community and public servants, and that the public trust had come under threat in recent days.
“We believe Urban Alchemy has been subjected to a coordinated campaign to disrupt and potentially remove its operations from Portland,” Zajonc wrote. “The campaign has included online harassment, hostile media coverage, persistent rumors, and unfounded allegations.”
On June 8, Zajonc connected Montejano to two of the pastors and outlined how they might perceive councilors’ support of the organization.
“In terms of our City Council, Councilors Green, Kanal, and Avalos have been the most outspoken skeptics,” Zajonc wrote. “Councilor Ryan has been a longstanding supporter. Councilors Smith, Dunphy, and Pirtle-Guiney have yet to weigh in, but are influential voices on the larger issue.”
Montejano then asked Urban Alchemy’s cofounders for a time to meet with the pastors.
“We look forward to connecting and working more closely together,” Montejano replied.
A week later, Rude introduced Montejano to two staffers from the city’s central communications team. She was looking to assemble a video production team to create content about Urban Alchemy, including interviews with “staff or participants interested in sharing their stories.” The group then brought in top local Urban Alchemy staff to coordinate with city staff on the promotional video.
Rude told the Mercury on August 7 that city staff interviewed two Urban Alchemy employees who have previously been homeless, have stayed at city shelters in the past, and who now work at Urban Alchemy facilities, “using their lived experience to help others access services and find stability.” It’s part of an ongoing effort to share shelter success stories on a regular basis, via the city’s website, she said.
Although light on specifics about complaints or other potentially unreported incidents at the sites, some answers regarding policy came to light in a July 7 committee meeting. Westerman outlined the grievance process, telling councilors the city encourages a person with an issue to file a grievance internally with the shelter operator. If they are not satisfied with the outcome, they can reach out to the city’s shelter services team, and if they don’t feel the issue is resolved, they can reach out to the Ombudsman for further review.
Urban Alchemy representative Ian Clark-Johnson told the committee that the nonprofit takes responsibility for years of failing to follow those policies—something critics have questioned since the nonprofit came to Portland. Clark-Johnson said the organization failed to track grievances properly.
“We’ve had a grievance policy,” Clark-Johnson said. “I’ll say, there was a lapse on our end as it relates to the policy. We had a policy, we were utilizing it, but we stopped. We were starting to lose some of those grievances as they came through and we weren’t tracking them properly.”
Clark-Johnson said Urban Alchemy has now provided further options for people to submit grievances, triages them to make sure the most serious allegations are addressed quickly, and tries to resolve all grievances within 10 days. Rude told the Mercury the issue has been addressed “through increased daily engagement and oversight and the standing up of a structured appeals process to provide participants with enhanced opportunity to directly appeal decisions or other concerns to City staff.”
“We expect regular scrutiny—we are a public entity using public dollars to provide services to a very vulnerable population,” Rude said. “However, even as we hold ourselves and our contracted partners accountable, and continue to address concerns from members of the public, from City Council, and from the media, there is still a lot of good work being done every day, carried out by hundreds of dedicated professionals who we want to support and celebrate.”
