Lodi Access Center: October 2025 Update

Lodi

Oct 1

Current Status and Latest Updates

Construction Progress and Funding Challenges

The Lodi Access Center permanent facility is currently under construction at 710 North Sacramento Street, with completion targeted for early 2026. However, the project faces significant cost overruns. Originally budgeted at $9.8 million, construction costs have increased to $11.8 million as of August 2025 due to unforeseen environmental issues, including contaminated soil containing arsenic, copper, lead, and PCBs discovered during utility trenching.

Original estimate: $14.2 million for full 208-bed facility
Revised budget: $10.9 million with reduced capacity
Current construction contract: $11.8 million (including change orders)

Operational Funding Crisis

The facility faces a critical operational funding shortage. Current operational funding is projected to last only through 2026, with annual operating costs estimated between $350,000 to $1.65 million depending on bed count. The city has secured:

$3 million from Health Plan of San Joaquin
$500,000 federal grant
Various ARPA funds with December 2026 deadline

Without new funding sources, the city's General Fund may need to cover ongoing operations, which is challenging given declining tax revenues.

Partnership with San Joaquin County

Major Healthcare Integration (2025)

A groundbreaking partnership between the City of Lodi and San Joaquin County Health Care Services Agency was formalized in 2025. This collaboration brings:

Healthcare Services: Public health clinic open to the general public, expanded nursing team, and social services professionals for case management
Behavioral Health Facilities: 16-bed Mental Health Quiet Ward, 4-bed Sobering Center, 4-bed Mental Health Respite, 1 Isolation Bed

San Joaquin County has committed $575,910 specifically for the mental health quiet ward construction. The county will operate 6,335 square feet of the 23,000-square-foot facility, with all county services funded by their agency through Medi-Cal/CalAIM reimbursements.

Main Street Transitional Housing

The county will also operate the Main Street Transitional Housing project, featuring 40 units for individuals transitioning to permanent stability, under a lease agreement with the city.

Current Operator and Search for New Management

Temporary Shelter Operations

The temporary Access Center has been operational since July 2022, currently providing:

49-bed nightly shelter capacity
Meals, mobile showers, laundry services
Case management and housing navigation
Mental health and substance use treatment resources

Evolution of Operators

Period	Operator	Notes
2022-2024	Inner City Action	Launched temporary shelter, provided stabilization
Sept 2023	Salvation Army	Selected for permanent center, later replaced
Oct 2024—Present	Outreach Ministries Intl.	Operator of current temp shelter, 1.1M/yr contract

Why the City Is Seeking a New Permanent Operator

Changed Scope and Requirements: The City Council approved a new RFP process in June 2025 for several reasons:

Material Scope Changes: City and county partnership reduced initial bed count from 208 to 50-70 beds and reconfigured service needs
Service Complexity: Needs now include coordination with county health, mental health, and social services professionals
Budget Sustainability: Previous bids indicated the original $350,000 annual operating budget was inadequate
Integration Expertise: Operator must integrate and collaborate with county health service teams in the facility

RFP efforts have struggled from limited responses and complexities in meeting the new operational goals and budget constraints.

Historical Context and Timeline

Year/Date	Event
1982	Outreach Ministries Intl. founded in San Joaquin County
Oct 2021	Sacramento Street property purchased for center
July 2022	Temporary center opens—Inner City Action as operator
Sept 2023	Salvation Army awarded contract for permanent facility
Oct 2024	Outreach Ministries takes over temporary site
June 2025	New RFP process approved due to major partnership changes
Early 2026	Anticipated opening of permanent center

Future Outlook

Opportunities: Enhanced healthcare services, potential for increased shelter beds if funding secured, and integration with regional strategies
Challenges: Funding shortfall beyond 2026, $2 million construction cost overrun, finding an experienced provider within new budget realities, and addressing community impacts

References

HomelessAccess Center

Don Bradford