Council accepts 2023 economic subsidy report over dissent, criticism over affordable housing

The Stockton City Council on June 4 accepted its 2023 economic development subsidy report required under AB 562, after public commenters and one council member criticized the city’s subsidy choices and urged stronger affordable‑housing outcomes.

Stephanie Ocasio, Director of Community Development, told council the city provided approximately $13.2 million in economic subsidies during 2023 across several programs (including fee waivers and sales tax rebates). The Stockton Economic Stimulus Plan (CESP) accounted for the largest share — roughly $8.0 million in fee waivers to eight recipients — and staff reported 2,896 jobs at participating projects, 1,667 of which were held by Stockton residents.

During public comment, resident Julie Dunning said the subsidies had not produced affordable housing or identifiable net tax revenue and urged council to redirect resources to housing programs. “The developments that benefited from these city subsidies did not improve affordable housing in Stockton,” Dunning said, noting the report shows little direct downtown or infill housing benefit.

Ocasio noted that some subsidy programs require different reporting and that certain program subsets continue under previously approved long‑term contracts. Council discussed the report in relation to previously adopted council priorities on homelessness and housing supply.

Council then voted to accept the annual report; the motion passed 5–1 with Council Member Padilla recorded in dissent and Council Member Wright absent. The acceptance is a procedural action under AB 562 and does not by itself change subsidy policy.

Next steps: The report will remain part of public record as required by state law (AB 562). Council members and commenters said they expect follow‑up discussion on aligning subsidy programs with housing and workforce goals.