Hercules Approves $2.5M Eden Housing Loan After Union Labor Standoff

A $2.5 million affordable housing commitment became the Hercules City Council's longest fight on Nov. 10, 2026, as Vice Mayor Alex Walker-Griffin pressed Eden Housing for labor guarantees. A bid to delay the vote failed 3-2, and the council approved the deal 5-0 once Eden agreed to match another developer's apprenticeship terms. The council also received a $199 million roadmap for the long-stalled Hercules Hub rail station and let a tobacco retail license die without a second.

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• Eden Housing's $2.5M loan approved 5-0 after a failed 3-2 continuance and a fight over union labor
• $199M Hercules Hub roadmap targets rail service by the end of 2033, backed by a new lobbying and grant team
• Tobacco retail license and $500 fee die for lack of a second despite pleas from county health officials and a parent
• Woodfield Park grant bid of up to $8.5M authorized 5-0, with no city match required

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Labor Terms Nearly Derail Eden Housing Deal

Why it matters: The $2.5 million from the city's Housing Asset Fund supports Eden Housing's Victoria Green project, with 132 rehabilitated and 66 new affordable units. Eden said it needed the commitment letter to compete for Contra Costa County funding due Dec. 7.

Where things stand: The item was on the consent calendar until Walker-Griffin pulled it. Community Development Director Tim Rood laid out the terms: "$2.5 million, 3% simple interest, a 55-year minimum affordability term as required by state law." The letter also carried prevailing wage and health-care terms modeled on AB 2011.

Walker-Griffin asked Eden's representatives to commit to working with labor unions. When they could not do so that night, he drew a firm line. "I would not feel comfortable voting on this item tonight without that commitment," said Vice Mayor Alex Walker-Griffin.

Labor language, side by side: Staff compared Eden's letter to an earlier commitment letter for SAHA. That letter included apprenticeship terms but no union-labor requirement. "The only substantive difference is that Eden committed to healthcare while SAHA committed to apprenticeship," said Rood.

Susie Kim, the city's housing consultant from RSG, flagged the county timeline and floated a middle path. "I'm curious if council would be open to considering language committing to working with labor unions, but not specifically tied to AB 2011 as a framework," said Kim.

The other side: Councilmember Dilli Bhattarai cautioned against holding Eden's funding application hostage. "Council needs to work in good faith to help them to go through that process," said Councilmember Dilli Bhattarai. He also said the council should still hold the developer accountable.

A tangled procedural path:
- Walker-Griffin moved to continue the item. Councilmember Dion Bailey seconded it and added a friendly amendment to bring it back in about 30 days, in January, with information on Eden's union-labor record. The motion failed (For: 2, Against: 3).
- Bailey then moved to approve with labor provisions raised by Bhattarai. Walker-Griffin seconded, but the roll call was stopped partway through and the motion was withdrawn.
- Eden ultimately agreed to commit to SAHA's apprenticeship requirement in place of the health-care and benefits language.

Bailey also objected to how late the item reached the dais. "It makes it difficult for council to make a change if we so desire," said Councilmember Dion Bailey, who asked that such items reach the council earlier.

Decisions and stakeholder impacts: Walker-Griffin moved to approve the letter and hold Eden to SAHA's labor standards. Councilmember Tiffany Grimsley seconded. The motion passed 5-0 (For: Kelley, Walker-Griffin, Bhattarai, Bailey, Grimsley; Against: 0; Absent: 0).

Eden keeps its county funding bid on track. Apprentice-focused trades gain a commitment. Union advocates did not get an explicit union-labor requirement. Renters stand to gain nearly 200 affordable units, new and rehabilitated.

What's next: Eden's county application is due Dec. 7.

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A $199M Reset for the Hercules Hub

Why it matters: The Hub, a regional housing and transportation center built around a rail station, has a long history without visible progress. City Manager Mike Futrell's reset adds an in-house program manager and lobbying at the federal, state and regional levels to chase large grants.

"The central question is not whether the hub is a worthy idea. It is," said City Manager Mike Futrell, who framed the reset around delivery.

Where things stand:
- Rail design is about 10% complete, and Union Pacific's comments are still pending.
- Utility relocation is scheduled for 2028-29, followed by construction from 2030 to 2033.
- "Total cost estimate, $199 million. That includes a 20% contingency," said Futrell. Railroad-driven design adds another $25 million.
- The city has $7.5 million on hand.

The team: Futrell proposed a program manager supported by SNG & Associates, HDR and Gray Bowen Scott. Lobbyists would include Ty Ginsburg and Associates at the federal level, Townsend Public Affairs at the state level and Eric Zell and Associates regionally. The new HART (Hercules Advocacy for Rail and Transit) Community Task Force rounds out the effort.

Later that night, the council approved the related contracts and the task force on the consent calendar. That included Gray Bowen Scott's grant-support amendment, not to exceed $215,600, and a seven-member HART resident body meant to show public support at public meetings. Futrell said the CIP reserve impact of the related items is $314,000, leaving about $700,000.

The other side: Council members focused on the project's past delays. "Residents have lost a little bit of confidence that this is still moving forward," said Bailey.

Bhattarai pressed on execution. "If we don't have the effective execution, there is no guarantee that we succeed here," said Bhattarai.

Public Works Director Mike Roberts countered that progress is not zero. He said "approximately $50 million in capital improvements have been completed." Grimsley welcomed the HART approach. "It's exciting to have actually bring members of the community in," said Councilmember Tiffany Grimsley.

Decisions and stakeholder impacts: The presentation itself was informational, and no one spoke during public comment. The consent approvals put the advocacy, grant-writing and resident structure in place. Consultants and lobbyists gain contracts. Residents gain a formal advocacy role. Success still depends on landing large outside grants.

What's next: Futrell offered to update the council "perhaps once a quarter."

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Tobacco License Dies Without a Second

Why it matters: Health advocates wanted a local license that the city could revoke quickly. Without it, only existing permit rules and state and local enforcement apply to Hercules tobacco retailers.

Where things stand: City Attorney Christy Kroll said "staff initially did not recommend adoption of a license requirement given the lack of evidence suggesting that Hercules retailers were violating any local, state, or federal requirements."

The key difference is enforcement. Today, revoking a conditional use permit requires a hearing. Under a license, "the city could also revoke a tobacco license administratively and without a notice hearing," said Kroll. The proposed $500 fee would recoup staff costs.

Public comment: Myra Lopez, who oversees the Tobacco Prevention Program at the Contra Costa County Department of Public Health, cited a compliance check in which a retailer sold to a 14-year-old decoy, along with student survey data. She urged stronger measures, including 1,000-foot buffers and a cap on retailers.

Hisham Ali Baba, a Hercules resident and father, described youth smoking on Halloween. He argued that a lack of police calls does not mean there is no problem.

The other side: Two council members doubted the ordinance would change behavior. "What I fail to understand is how this particular item would prevent those things from occurring," said Grimsley, who suggested a community education effort instead. "Nothing in this, as I've read the report, stops that," said Bailey.

Walker-Griffin argued the license would reduce harm even if it could not stop it outright. "It is a way to mitigate it, right?" said Walker-Griffin.

Decisions and stakeholder impacts: Walker-Griffin moved to introduce the ordinance and adopt the fee. "Seeing no second, then the motion dies," said Mayor Christine Kelley. No vote was taken. Retailers avoid a new fee and administrative revocation. County health advocates leave without the tool they sought.

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Woodfield Park Grant Bid Moves Ahead

Why it matters: The state's Statewide Park Program, funded by Proposition 4 climate bond money, "would provide up to $8.5 million in funding with zero matching funds required from the city," said Parks and Recreation Director Christopher Roque.

Where things stand: The project would carry out the city's 2024 Parks and Recreation Facilities Master Plan. Concepts include pickleball courts, synthetic turf, walking paths and a fence to block vehicles. Bhattarai asked that the park's restroom be serviced, and Public Works agreed to follow up.

Decisions and stakeholder impacts: Bailey moved, and Walker-Griffin seconded. The motion passed 5-0 (For: Kelley, Walker-Griffin, Bhattarai, Bailey, Grimsley).

What's next: The application is due Dec. 17. The grant requires five community meetings beginning Nov. 13. Any award would return to the council before the city accepts funds.

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• Retirements: The council honored Recreation Manager Ambra Garfield, retiring after 30 years, and Roque, retiring after a decade. Both leave Dec. 3. "It's not me. It's us. It's the team," said Roque.
• Road restriping: A $50,000 change order with Chrisp Company passed 5-0, raising the contract to $424,976. It covers busy roads including John Muir Parkway and Bayfront Boulevard.
• Consent contracts: The council approved $85,602.70 to AMS.NET for City Hall access safety upgrades. A $58,422 Terraphase amendment for Refugio Park brings that contract to $297,042.
• First-quarter budget: General fund revenue stands at 21% and spending at 27%, a quarter of the way through the fiscal year. Finance Director Edwin Gatto said seasonal timing limits conclusions until the midyear review in late February.
• Veterans Day: Kelley proclaimed Nov. 11, 2026, Veterans Day ahead of the city's first Veterans Day celebration.

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Looking ahead: The council agreed to add future agenda items on 2027 Fourth of July plans, slated for January, and a South Asian New Year celebration. The tree lighting is Dec. 6, and Breakfast with Santa is Dec. 12. The next council meeting is Dec. 8, 2026.