The Turlock Gospel Mission is taking its issues with the City of Turlock to court, following a civil action filed by the nonprofit in Stanislaus County Superior Court.
TGM is seeking judicial resolution regarding the unfinished renovation of its South Broadway Day Center and what it says is significant utility overcharges related to the mission’s water and sewer service. The suit names City of Turlock and ANV Contractors, Inc., including its owner, Nichola Vargas.
In 2016, the City of Turlock approached Turlock Gospel Mission with the opportunity to relocate its Day Center to property located at 432 South Broadway, directly across from the mission’s main campus. The plan was to renovate the older building into a safer, modern facility that would better serve individuals experiencing homelessness by providing updated public restrooms, improved day services and emergency overnight shelter during severe weather and other community emergencies.
The mission purchased the property and secured financing in reliance on the city’s commitment to administer grant-funded improvements through the State’s Homeless Emergency Aid Program (HEAP). Renovation work began in 2021 with the expectation that the building would soon reopen to serve the community.
Five years later, the building remains unfinished and unusable for its intended purpose.
In response to the civil action, the City of Turlock released the following statement:
“The City values the work that Turlock Gospel Mission does in our community and the longstanding relationship we've shared in serving our residents. From the beginning, the goal of this project has been to create a facility that expands services for people who need them. That goal has not changed. The City has remained committed to working with the Mission to help bring this project to completion.
“The City takes its responsibility as a steward of grant-funded projects seriously. While many of the claims raised in the lawsuit remain in dispute, the City has remained engaged with the Mission and their other project participants throughout the project, with a continued focus on supporting the project's successful completion and ensuring compliance with applicable grant requirements.”
In 2024, the city council voted 4-1 against (with Councilmember Cassandra Abram opposing) an amended loan agreement with TGM.
The loan for $491,053 consists of more than $90,000 from the state's HOME fund, and $400,000 in Community Development Block Grants — part of the federal Department of Housing and Urban Development. Coupled with money that was allocated to the project since it began in 2016, the total cost of the project was closing in on $1 million at that time.
The main sticking points at the November 2024 city council meeting appeared to be the lack of an operating agreement between the city and TGM, and the length of the forgivable loan, with TGM favoring a 10-year term, while then councilmembers Pam Franco and Rebecka Monez lobbied for a longer term, something TGM board president Derik Bakker opposed.
The lawsuit seeks to recover damages from the City of Turlock and ANV Contractors, Inc., and Vargas, sufficient to complete the project and finally place the Day Center into service. The amount of damages will be determined through the legal process but currently exceeds $500,000.
The lawsuit also addresses what the nonprofit says is utility overcharges for approximately eight years.
During that time, TGM stated that staff repeatedly raised concerns regarding unusually high water consumption reflected on utility bills and worked with the city in an effort to understand the discrepancies. After replacement of the the mission’s water meter, recorded water usage decreased dramatically under substantially similar operating conditions.
The city has since acknowledged broader issues involving water meters and has issued a partial reimbursement to the TGM, according to the nonprofit. However, TGM stated in a press release that it believes substantial overcharges remain unresolved despite years of continued discussions. The lawsuit asks the court to determine the appropriate reimbursement based on the evidence.
“Turlock Gospel Mission has worked alongside the City of Turlock and many community partners for years in pursuit of a shared goal of serving neighbors experiencing homelessness. Filing this lawsuit was not a decision reached lightly. Turlock Gospel Mission exists to stand alongside people facing some of life’s most difficult circumstances and to advocate for opportunities that restore dignity, safety, and hope. TGM’s Board believes the unfinished Day Center represents more than an incomplete construction project—it represents services that vulnerable members of the community have been waiting years to receive. After exhausting efforts to resolve these matters outside of court, the Board concluded that seeking judicial resolution is necessary to help ensure those services are finally made available,” stated TGM in its release.
