Lincoln city officials still won't say how much taxpayer money has gone toward suing The Gathering Inn over its planned homeless medical respite center, and that silence has become a flashpoint in the race for the city council's District 1 seat. Incumbent Holly Andreatta and challenger Christine Treshchuk are now sparring publicly over who knew what, and when, about the nonprofit's plans for a 60-bed facility at 1660 Third Street meant to serve homeless adults discharged from hospitals.
According to the Sacramento Bee, the Lincoln City Council voted unanimously in September 2024 to authorize legal action and a subpoena against The Gathering Inn over its purchase of the property. The lawsuit alleges the nonprofit obtained its state grant through a fraudulent application and failed to properly notify officials or meet community-engagement requirements, according to the same report. The city also alleges The Gathering Inn used letters of support from Sutter Health and other organizations that had originally been written for an earlier, separate proposal in Roseville, per the Bee's reporting.
The Gathering Inn's project was funded through California's Community Care Expansion program, the state initiative created by Assembly Bill 172, which the City of Lincoln says exempts the project from local control. That preemption is central to why city leaders turned to the courts rather than conventional zoning denials. The Gathering Inn received a $6,440,670 state grant in May 2023 to acquire and set up the site, formerly known as Gladding Ridge, according to the California Department of Social Services.
Andreatta Defends Her Role in Early Conversations
Andreatta acknowledged to the Bee that The Gathering Inn's CEO asked her during a 2023 breakfast meeting whether she supported opening a facility in Lincoln, but she said she had no details, plans, address, or information about negotiations at that time. She told the outlet she was happy to have a conversation about a facility in Lincoln and that residents should have a say in projects like this one. Andreatta declined to comment in May on whether she supports the project itself, saying she did not want to conflict herself out of a future council vote, per the Bee's reporting.
She also declined to say whether she supports continuing to spend taxpayer money on the litigation, and told the newspaper that the city attorney directed media inquiries about the lawsuit to him. Her opponent sees that reticence as part of a larger transparency problem. Treshchuk said she is concerned about Lincoln's taxpayer spending on the litigation and has questioned the transparency surrounding the entire Gathering Inn project, according to the same Bee report.
Challenger Presses on Legal Fees and Disclosure
Treshchuk told the Bee that greater disclosure by the city council about its meeting with The Gathering Inn's CEO could have changed the situation, and potentially the outcome. She also said state law limits local control over decisions with significant local impacts, echoing the statutory preemption issue the city has cited in its own court filings. Her core complaint, though, centers on money: she said she is concerned about how the litigation is being paid for and about the lack of a clear public picture of its total cost.
Lincoln is paying an outside law firm to handle the case, and attorney Douglas White, one of the lawyers representing the city, declined to disclose how much Lincoln has paid in legal fees so far. White attributed the nondisclosure to attorney-client privilege, telling the Bee in April that his office does not disclose privileged or litigation-sensitive information in active matters.
Court Has Already Narrowed the City's Case
The lawsuit remains ongoing, with The Gathering Inn still a party. A Placer County Superior Court tentative ruling was expected on October 21, 2025. Western Placer Unified School District, which had joined the legal fight because the facility sits within 400 yards of Glen Edwards Middle School, 600 yards from First Street Elementary School, and less than a mile from Creekside Oaks Elementary and Lincoln High School, saw its own lawsuit officially dismissed by the court in January, per the Western Placer Unified School District. That leaves the City of Lincoln's legal challenge to proceed on its own.
The fight has also spilled into county politics. The dispute over advance notice of the acquisition expanded into a major issue in the 2026 Placer County District 2 Board of Supervisors race, where Andreatta has challenged incumbent Supervisor Shanti Landon over who knew about the project before escrow closed, as CBS News has reported. Hoodline previously covered that political firestorm and the ongoing supervisor race clash.
A Sales Tax Vote Looms Alongside the Lawsuit
The legal spending fight arrives as Lincoln voters weigh a proposed one-cent local sales tax increase in November. Per the Bee, the increase would generate about $6 million a year for general city services, raise Lincoln's sales tax rate to 8.25%, and make it the highest sales tax rate in Placer County. The measure is a general tax, requires only a simple majority to pass and would allow revenue to be used for any government purpose, according to the newspaper's reporting.
Beyond the courtroom, questions about the region's homeless services capacity persist. The Gathering Inn's facility is designed for 60 beds and was intended to house up to 100 individuals to handle hospital discharge referrals across Placer County.
