Salvation Army to exit three Denver shelters by year's end amid controversy

The big picture: The change terminates contracts for the Aspen, Stone Creek and Tamarac shelters, per a statement from the nonprofit, which operates multiple local shelters for people experiencing homelessness and receives millions in city funding.

Between the lines: The Salvation Army reapplied but was not selected for two of its three sites in the city's competitive bidding process, Mayor Mike Johnston's spokesperson Jon Ewing tells Axios.

• The nonprofit was rejected for one and "mutually parted ways" on another, Ewing says.

State of play: The decision, the nonprofit contends, will allow the Salvation Army's Intermountain Division — which covers Colorado, Utah, Wyoming and Montana — to better deliver services and save money.

Friction point: The nonprofit said it shouldered $5.2 million in shelter operating costs last year, which it says exceeded funding.

• City officials say they can't verify that figure. "I haven't heard it before," Ewing tells us, noting contracts outline funding and eligible expenses.

Zoom out: The severed contracts won't affect the Crossroads Shelter, the 24/7 facility exclusively for men that's among the busiest in the city.

• The massive shelter in June received a $4.6 million infusion from the city, which helps serve about 250 men a day.

What they're saying: The Salvation Army said it helped 1,994 people get into permanent and stable housing in connection with Johnston's All In Mile High (AIMH) program.

• The city on Thursday confirmed the nonprofit will not operate AIMH non-congregate shelters next year.

What's next: The three contracts end Dec. 31. Ewing says the city plans to announce the new vendors selected to run those shelters in early October.