Fairfield council narrowly approves Vista Ridge motel conversion, 4–3, after heated public hearing

The Fairfield City Council voted 4–3 to approve loan and regulatory agreements to convert the Vista Ridge motel at 3331 North Texas Street into 51 permanent supportive housing units intended for residents who have experienced or are at risk of homelessness.

Housing project manager Latonya Terrones told the council the Danco Group will rehabilitate the existing 100-room motel into 48 one‑bedroom units, two studios and a manager unit, with supportive services on site. The financing package totals $23,071,081, of which roughly $21,500,000 comes from California’s Homekey Plus capital award; the city committed $1,500,000 (including $1,000,000 from the local housing trust fund), pro‑housing incentive funds of $535,541, and 50 project‑based HUD vouchers to support rental subsidies.

The project is targeted to Fairfield residents on the county coordinated entry list; the city and developer said priority would be given to local residents and to veterans, with at least 10 units intended as a veterans preference. The city described the loan as a residual‑receipts loan with a 55‑year affordability covenant and said all disbursements will be phased to verified construction milestones.

Opponents and supporters packed council chambers and spoke for hours. Critics — including business owners, parents and neighborhood groups — said they were concerned about locating a concentrated supportive housing facility on a busy commercial corridor near restaurants, retail and schools. Speakers raised public‑safety fears, questioned long‑term operating costs and oversight, and argued the city had not fully disclosed the condition of the motel or all operational funding streams.

Supporters — including homeless service providers, veterans’ advocates and people with lived experience — said the city should take advantage of the one‑time capital funds and that providing stable housing with onsite case management improves outcomes and reduces emergency costs. Several speakers described successful conversions in other Northern California cities and urged the council to accept the Homekey award before funds were reallocated.

Council members pressed staff and the developer on operating‑cost contingencies, voucher commitments and property management. Staff said the city holds a HAP/AHAP arrangement to allocate project‑based vouchers for an initial 20‑year term and that the capital award is structured to protect long‑term affordability; they also said the city is not the project owner and would not be contractually responsible for ongoing operating deficits. Danco’s representative described a management plan that includes onsite case managers (2.5 FTE) and 24‑hour security budgeted into the operating pro forma.

Several council members and members of the public raised questions about the motel’s physical condition and an appraisal that valued the property for acquisition and rehabilitation. The developer said the appraisal addressed structural soundness and that the renovation scope will include stripping to studs, mold remediation, new systems and roof repairs as needed.

Mayor Moy moved to table the item pending completion of city and county inspections, an appraisal review and an independent investigation of process and disclosures; that motion failed 2–5. A follow‑up motion to approve the loan and regulatory agreements then passed 4–3. The final roll call on the adopted resolution recorded: Carr yes; Pandora yes; Sandhu no; Tonneson yes; Williams yes; Vice Mayor Bertani no; Mayor Moy no.

What happens next: the city will execute the loan and regulatory agreements with the developer and the HCD standard agreement to accept Homekey funding and will implement the 55‑year regulatory covenant. The developer will begin phased rehabilitation and draw funds tied to verified construction milestones; onsite services are scheduled to begin once units are habitable.