It is the $1.4 million question — and counting.

Once the 56,000 square-foot former Qualex building at 555 Industrial Park Drive is remodeled into a 190-bed homeless navigation center, how will the cost of operating it be covered?

It’s a question several readers posed after reading the construction work for the $18.5 million project starts next year.

Construction and furnishing costs are being covered 100 percent with $21 million in state and federal funds the city has already obtained for homeless services.

That leaves $2.5 million that can go toward operations.
The city current spends $1.47 million annually to operate the current 75-bed emergency room shelter using portable buildings in the parking lot of the former Qualex building.

That includes an $841,566 contract extension with His Way Refuge Center to operate the 24-hour shelter.

A second contract for $635,992 with Shield Protection Service provides 24/7 security.

Both 12-month contracts run through June 30, 2026.

The wrap around services that includes accessing programs to get people off the street and into housing and even supporting themselves plus the homeless housing will move to the building once it is completed.

The two contracts are covered currently almost 100 percent by federal and state operational grants available to help local jurisdictions provide day-to-day services for the homeless.

Ongoing funding has been a concern of the current and previous councils.

City Manager Toni Lundgren staff noted aggressively seeks available federal and state funds.

That said, there is no guarantee that funding will continue at the current levels as the years unfold.

It is why addressing homeless issues was one of the top concerns listed in the effort that led to the passage of the 20-year, three-quarter center Measure Q sales tax in November of 2024.

The rationale was simple.

Managing homeless issues is a public safety and community quality of life issue.

The concern was how to keep the city’s homeless effort funded in the long run if state and federal grants Manteca is able to secure don’t cover the entire tab.

That is where Measure Q – on pace to generate in excess of $15 million a year — would serve as a “backstop” to cover any funding shortage without cutting into general fund services such as police, fire, and street maintenance.

Meanwhile, the city is working on developing additional general fund revenue with endeavors such as the development of the family entertainment zone bookended by the Great Wolf resort and Big League Dreams sports complex.

They also are working at bringing more retail and restaurants to the city using Manteca’s continued strong growth and rising median household income to grab the attention of private sector decision makers regarding new locations.

While there are clear public safety issues involving the homeless on the streets, the decision to provide 24/7 security at the emergency shelter has drastically reduced police responses that develop there especially during night shifts.

At one point, homeless-related calls for police service accounted for roughly 20 percent of the calls handled by patrol.

Most of those were incidents on the streets, but a good share involved the emergency shelter.

The emergency center calls have dropped drastically since the 24/7 security has been in place.

The onsite security has had the added benefit of making the homeless that feared for their personal safety to feel safe using the shelter instead of sleeping on the streets.

That has freed up police manpower for other calls and to do general patrolling.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com