Antioch Kills $35M Homeless Housing Grant After Long Debate

Antioch's City Council walked away from the largest state grant ever offered to the city Tuesday night, voting 3-1 to withdraw from the Home Key Plus project after nearly three hours of public testimony and council deliberation that laid bare the deepening tension between the city's fiscal crisis and its homelessness emergency. The same meeting produced a unanimous denial of a natural gas pipeline company's attempt to keep operating without a franchise agreement, and a police union raise that drew sharp criticism from residents still paying for the department's misconduct.

• Council forfeits $34.9M state grant, withdrawing from 84-unit permanent supportive housing conversion of the former Antioch Inn & Suites

• Pipeline company's permit end-run denied 4-0; council tells California Resources Pipeline Company to seek a franchise agreement or nothing

• Police officers get 3% raise despite $400K+ annual DOJ and Allen settlement monitoring costs and a growing general fund deficit

• Council Member Torres-Walker blocked from remote participation on the night of the Home Key vote, sparking accusations of deliberate sabotage

• $220K marina inspection tabled after questions about property ownership and a 400% budget overrun

• Landscape districts face structural collapse within 3-5 years as general fund subsidizes $1.2M annually

Antioch Walks Away From $35M in State Housing Dollars

The council's decision to rescind its prior authorization and withdraw from the Home Key Plus CSH Mahogany project was the most consequential and contentious action of the night, consuming the final three hours of a meeting that stretched past midnight.

The basics: The California Department of Housing and Community Development had awarded $34.9M to convert the former Antioch Inn & Suites into 84 units of permanent supportive housing for unhoused individuals, including veterans and transition-age youth. The city's commitment: $750,000 upfront and up to $1.2M annually for 15 years, for a total long-term exposure of roughly $18M. Director Cabral presented the follow-up staff report from a June 29 study session.

Why it matters: Antioch has now forfeited what supporters called an unprecedented level of state investment, and the state may impose penalty points on all future housing and homelessness grant applications — potentially poisoning the well for years to come.

Where things stand: More than 20 public commenters packed both sides of the debate. Supporters included housing organizations, mental health advocates, and residents who framed the crisis in personal terms. Cielo Martinez, a public commenter who identified as homeless for seven years while working every day, told the council: "I asked the council to approve Home Key." Gigi Crowder, CEO of NAMI Contra Costa, called rejecting $34.9M "cruel" and cited her organization's success housing 13 individuals in Concord. Joey Fleagle Mishlove of East Bay Housing Organizations urged the council to adopt an inclusionary housing ordinance with a trust fund and argued the city could afford the commitment.

Andrew Becker, a public commenter, challenged the council's cost narrative directly: "Your one-time commitment to acquire and convert that property is $8,900 per unit. Mr. Mayor, at that community event, you said maybe we need to look towards short-term transitional solutions instead of permanent solutions. And you even mentioned pallet shelters. Do you know that those temporary pallet shelters cost $22,000 apiece?"

Warren Lutz, another public commenter, attacked the deficit framing itself: "Right now we're at 44% of the general fund, more than double the required amount of reserves. That's over $44 million unused."

The other side: Opponents centered their case on the city's $5M current deficit, projected to reach $15-20M by the next fiscal year, and the absence of any guarantee that Antioch residents would fill the units through Contra Costa County's coordinated entry system. Patrick Scott, a public commenter, opposed the project, citing $25M already spent on homeless programs with limited results and projected deficits approaching $20M by FY 29-30. Mark Jordan, a public commenter, called the $15.1M purchase price "insane" for a property with 17% occupancy already in foreclosure and recommended withdrawal.

Mayor Pro Tem Donald Freitas delivered extended remarks grounding his opposition in both fiscal and programmatic concerns: "Not one Antioch homeless person would be helped. Not one. That's not acceptable to me. We jeopardize our fiscal physicality in the city of Antioch. That is not acceptable to me."

Mayor Ron Bernal echoed the fiscal argument: "We as a city do not have the resources at this time to be able to make that sort of a long-term financial commitment in good conscience, in my opinion."

Councilmember Monica Wilson cast the lone dissenting vote, pressing her colleagues on what comes next: "If we don't do this, what are we going to do? We just can't turn away and go, okay, we're not going to do Home Key and we're going to do nothing."

Decisions: The council voted 3-1 to rescind the prior resolution and withdraw from the project (For: Bernal, Freitas, Rocha; Against: Wilson; Absent: Torres-Walker). Councilmember Louie Rocha made the second on the motion.

What's next: The state may assess penalty points on future Antioch grant applications. The former Antioch Inn & Suites remains in foreclosure. The city has no announced alternative plan for permanent supportive housing.

Torres-Walker Shut Out of Vote on Her Signature Issue

A shadow story ran alongside the Home Key debate all night: the absence of Councilmember Tamisha Torres-Walker, who represents District 1 — the district where most of Antioch's unhoused residents live and the council member most closely identified with the Home Key project.

Why it matters: Torres-Walker submitted paperwork to participate remotely under SB 707, which requires cities to allow virtual participation, but her remote location was never posted on the agenda. The result: she could not vote, and the Home Key project fell 3-1 instead of facing a potential 2-2 deadlock that could have forced further negotiation.

Multiple public commenters — including Leslie May, Crystal Law, Nicole Gardner, and Devin Williams of Lift Up Contra Costa — accused city staff of deliberate sabotage, noting the timing coincided with the scheduled Home Key vote. Torres-Walker herself called in during end-of-meeting public comment, urging support for Home Key: "I would ask you to think about me and my neighbors who have to live with unhoused folks every day. And we care about them. Support Home Key."

Councilmember Wilson demanded an explanation from staff by the next day. Torres-Walker said she followed all proper procedures and blamed dysfunction in city administration.

What's next: Whether the exclusion was administrative error or something more will likely be addressed at the next meeting. The incident raises questions about the city's compliance with SB 707.

Council Unanimously Denies Pipeline Permit Appeal

The basics: California Resources Pipeline Company operates an 8.5-mile natural gas pipeline — the Union Island pipeline — running through Antioch to the Richmond refinery. The company's franchise agreement expired in 2021 and the prior council declined to renew it. CRPC then applied for an encroachment permit in 2022, which the city engineer denied in May 2023, finding that encroachment permits are not designed for long-term pipeline operations.

Why it matters: The case tests whether a company can use a lesser permit to avoid the council's prior policy decision rejecting a franchise. The pipeline has been idle since 2023.

Where things stand: Dean Persinger of California Resources Pipeline Company and Esther Brawley, VP of Technical Operations at CRC, presented safety records, economic arguments about union jobs and energy affordability, and support from the Western States Petroleum Association and the Boilermakers union. Michael Mills, outside counsel for CRPC, argued the legal case for the permit.

Bob Brown of the Western States Petroleum Association argued the pipeline supports union jobs, lower emissions than trucking, and energy affordability. On the other side, Harry Thurston, a longtime resident, described the pipeline's route past thousands of homes and Kaiser Hospital, citing public safety concerns.

Assistant City Attorney Kevin Kininger argued the encroachment permit was an end-run around the council's franchise denial and that CRPC was already illegally encroaching on city right-of-way.

Mayor Pro Tem Freitas framed the question narrowly: "The encroachment permit a proper use? And the answer was no. And so the issue before us is to confirm that." He noted the company is free to request a new franchise agreement through proper channels.

Mark Jordan, a public commenter, suggested the city negotiate a new franchise agreement with financial terms favorable to Antioch: "You want a solution or you want a problem? Because where you are is the juice isn't worth the squeeze."

Decisions: The council voted 4-0 to affirm the city engineer's denial (For: Bernal, Freitas, Rocha, Wilson; Absent: Torres-Walker). A yes vote affirmed the denial of the encroachment permit.

What's next: CRPC may pursue a new franchise agreement or continue litigation. The pipeline remains idle.

Police Get 3% Raise as Misconduct Costs Mount

Why it matters: The Antioch Police Officers Association's one-year tentative agreement — 3% cost-of-living adjustment, an additional floating holiday, and a meal reimbursement increase — was approved the same night the council cited fiscal austerity as the reason to kill a $35M state grant. The city spends more than $400,000 annually on DOJ compliance and Allen settlement monitoring stemming from the department's text-message scandal.

Acting City Manager Anna Cortez presented the agreement. Public commenter Melissa Case argued sworn officers should not receive full raises while their misconduct is still costing the city money through monitoring. Another public commenter, Frank, cited the APOA's leadership history and called the organization complicit in misconduct.

Decisions: Approved 4-0 (For: Bernal, Freitas, Rocha, Wilson; Absent: Torres-Walker).

Separately, the Allen settlement monitoring services contract with MSI Investigative Services ($150,000 annually) was continued to the next meeting because document pages were missing from the agenda packet. Melissa Case asked that future amendments to the contract return to council publicly rather than be approved by the city manager alone. Chief Vigil addressed questions about the monitoring scope.

Budget Anxiety Shadows Every Dollar

A fiscal thread ran through nearly every agenda item. The council has cut $50M over two years and still faces a $5M current shortfall with a projected $15-20M deficit for FY 2027-28. That reality shaped three separate actions:

Marina inspection tabled. A $220,850 contract amendment for marine facility inspections was tabled 4-0 after Andrew Becker questioned why the city should pay to inspect piers under a privately owned restaurant, calling it a 400% budget overrun. Director Bunting of Public Works provided context, but Mayor Bernal moved to send it back to staff for investigation on ownership and necessity.

Landscape districts running dry. Consultant Brian Brown of Clear Source Financial Consulting walked the council through the annual assessments for street light and landscape maintenance districts, which generate approximately $2.3M with a $1.2M general fund subsidy. Most districts operate in structural deficit, with fund balances projected to deplete within 3-5 years without revenue increases. The assessments were levied 4-0.

Spending scrutiny on warrants. Public commenter Johnny questioned $52,000 paid to a facilitator consultant, $7,000 for a Juneteenth DJ, and police weapon purchases from out-of-city vendors during discussion of the council warrants. The warrants were approved 4-0.

Minor Items

• Sound wall repair contract for $200,000 approved 4-0; no local bids were received, and the selected contractor is 380 miles away.

• Closed session: Council authorized initiation of litigation by a 4-0 vote; details will be disclosed when action is formally commenced.

• Proclamations honored the 60th anniversary of the Antioch-Chichibu, Japan sister city relationship — seven exchange students and seven adults from Chichibu attended, and a handmade screen was presented as a gift — and memorialized the late Florence "Chickie" Virginia Rundell, former deputy city clerk and city clerk who served nearly 25 years and passed on June 11, 2026.

• National Night Out participation has doubled in five years; Chief Vigil announced a first downtown block party. The PAL Golf Tournament was also announced.

• Board and commission vacancies were announced for the Administrative Appeals Board and Sales Tax Oversight Committee. Councilmember Wilson called for a broader council discussion about the city's golf course.

• Antioch Library will close Sept. 1 for four months for electrical and ADA upgrades; Pruitt Library will remain open, per David Marsh of the Antioch and Pruitt Libraries.

• Mark Jordan requested an amendment to the just-cause eviction ordinance to exempt housing providers owning five or fewer properties in California and submitted draft language for council and city attorney review.