Stockton City Council Approves Downtown Hotel Subsidy Over Affordable Housing Objections

<p><strong>FOR IMMEDIATE RELEASE</strong><br>July 1, 2026<br>Contact: newsroom@dismalfreedompress.org</p><p>The Stockton City Council voted 4-3 on June 30 to authorize a $6.4 million gap financing agreement for a proposed 120-room boutique hotel at the former Pacific Gas & Electric distribution yard on Hunter Street, over objections from housing advocates who noted the city's affordable housing waitlist currently stands at 2,800 households.</p><p>The deal structures city funds as a 20-year deferred loan repaid from hotel tax revenue, contingent on the developer — Pacific Gateway Ventures LLC — securing private financing by December 31, 2026. Council members Trina Zamora, Michael Blanco, and DeShawn Jackson voted against the agreement.</p><p>The Stockton Housing Authority submitted written comments to the council arguing that gap financing of comparable size directed to affordable housing development could produce between 18 and 24 deed-restricted units. The council did not formally respond to the Housing Authority's letter.</p><p>DFP has submitted CPRA requests for the city's full financial modeling and the developer's financing commitment letters.</p><p>###</p>