Over the summer, business leaders at the Downtown Austin Alliance made a call to local developer and philanthropist Dick Rathgeber to ask how they might work together on closing a financial gap for the Salvation Army's new Rathgeber Center for homeless families in East Austin.

Rathgeber came up with a plan. He'd give $100,000 if they could raise another $400,000.

Members of the Downtown Austin Alliance Foundation announced Monday morning that they were pledging $100,000 for the Rathgeber Center's operational costs, including staffing, and were calling upon the community for the remaining $300,000.

The new 212-bed shelter, located at 4613 Tannehill Lane in East Austin, was unveiled in June and is meant for families with children. It includes 120 beds for emergency stays of 90 days or so and 92 beds for families requiring longer stays. It is the third Salvation Army shelter in Austin and will bring the organization's total number of shelter beds in town to 535.

The shelter will provide meals, clothing, basic needs, case management, connection to housing resources, employment services, child care, child and family therapy, and assistance with life skills, the city said in a statement Monday.

"I hate to owe money and I think that anytime that you are called upon to match money, you always wonder, 'Well is the match going to show up?' Well, I'm here to tell you today that I am giving my check right now to the Downtown Austin Alliance and all you gotta do is go get the rest of it," Rathgeber said, handing a check to Alliance Executive Director Molly Alexander on Monday.

READ MORE: Salvation Army debuts $12 million Austin homeless shelter

The shelter requires $4.9 million to operate annually, Salvation Army spokesman Corey Leith said. The city of Austin, which begins the process of adopting its next budget this week, has included $1 million in one-time funding toward providing services at the Rathgeber Center and $500,000 for the expansion of homeless services at the Salvation Army’s downtown shelter.

The shelter is set to receive the $1 million from the city on Oct. 1 once the budget is adopted, Leith said. That money will be enough to provide services to 55 families currently staying at the Salvation Army's downtown shelter, Leith said. The Salvation Army's wait list for people who need to get into a shelter includes 81 parents with 169 children as of August, Leith said.

"It's really heartbreaking to know that you have kids, particularly, who are in that part of downtown, which right now is just not a good place for children at all, and how important it is to move them out of there," said Bill Brice, vice president of investor relations at the Downtown Austin Alliance.

Dick Rathgeber and his wife, Sara, were the primary donors behind the $12 million shelter. The Rathgebers also bought the 8 acres of land where the shelter sits from Travis County and donated it to the Salvation Army. Dick Rathgeber co-chaired a fundraising drive that raised $19.2 million for the shelter and the Salvation Army's new command building in East Austin that opened last year.

"The Rathgeber Center will provide families who are experiencing homelessness with a safe place to stay and a path to permanent housing and will make available more shelter beds downtown for individuals," Austin City Council Member Kathie Tovo said. "I’m thrilled that the city of Austin, the Downtown Austin Alliance and the Rathgebers have come forward to help the Salvation Army get closer to its goal of operating its Family Center at 100% capacity, and I challenge the community to join us."

Donations can be made online at downtownaustin.com/foundation.

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