Catch up on Bay Area news today, including San Joseโ€™s approval of nearly 200 new affordable apartments, a legal battle over Campbellโ€™s sales tax hike, and rising concerns over Californiaโ€™s increased cannabis tax.


Hello, and welcome to Bay City News for Sunday, July 6th, 2025. Here is a look at some of the top stories from across the region.

Starting in San Jose, nearly 200 new affordable apartments are set to break ground next month in South San Jose. The San Jose City Council unanimously approved a $73.7 million multifamily housing revenue bond on June 10th, helping to finance the one hundred and sixty-million-dollar development by Affirmed Housing. The 191-apartment complex will be 100% affordable, with 128 onsite parking spaces. According to Rob Wilkins, Northern California vice president of Affirmed Housing, without the city’s funds, the project would have been significantly delayed. The development, known as The Arcade atย 1371 Kooser Road, will offer units for various income levels, including 50 apartments specifically for unhoused residents and those making less than 30% of the area median income. Construction is anticipated to be completed by December 2027.

Shifting our focus to statewide news, a substantial tax hike for California’s legal cannabis market took effect this month despite strong opposition. The excise tax for cannabis rose from 15% to 19% on July 1st. Industry operators are warning that this increase could drive customers back to the illicit market and threaten the survival of legal businesses, which are already operating on slim margins. Governor Gavin Newsom and other political leaders have expressed support for suspending the increase, with a bill currently moving through the Legislature that would lower the rate back to 15% for the next six years. Taxable cannabis sales in California dropped significantly in the first quarter of 2025, reaching their lowest quarterly sales in five years.

Meanwhile, in Campbell, a lawsuit filed by an anti-tax group is holding up millions of dollars in city revenue. The Silicon Valley Taxpayers Association, along with a Campbell resident, is suing the city over Measure K, a half-cent sales tax hike that over 70% of voters approved last November. The lawsuit claims Measure K is invalid, alleging it violates California’s constitutional code by raising the sales tax above the county’s previous cap. It also alleges that materials sent to voters were misleading. Due to the ongoing legal battle, Campbell cannot access the approximately seven million dollars the tax is expected to bring in annually, leaving about $8.7 million already collected in escrow. City officials report the lawsuit is already causing budget problems, with projected deficits ranging from $2.3 million to $3.8 million for the upcoming fiscal year.

In positive news from Marin County, a new transitional housing program called the TAY Bridge Project has been launched to prevent long-term homelessness among young adults. Marin County Health and Human Services, in partnership with Catholic Charities and other local organizations, announced the initiative. Beginning in July, the program will provide trauma-informed housing and intensive case management for 20 transition-age youth. County officials emphasize that this preventative approach not only saves lives but can also save the county millions of dollars, as the average chronically homeless person can cost taxpayers over $40,000 annually in emergency services. The TAY Bridge Project is part of Marin’s broader effort to deliver equitable, community-based support services.

Turning to public safety, an individual was arrested in San Mateo following a Fourth of July fireworks incident that led to a high-speed chase and the discovery of a loaded gun. A San Mateo police officer on patrol for illegal fireworks observed a man ignite a mortar-style firework near him on Second Avenue. The man then fled at high speed, prompting a pursuit that the officer eventually discontinued due to reckless driving. The suspect and a female companion, Samatalifolau Langi, were later located at a residence. A search of the suspect’s vehicle uncovered a stolen firearm and additional illegal fireworks. The man was arrested on suspicion of multiple charges, including parole violation for possessing a gun, felony evasion, and hit-and-run. Langi was also arrested for drug-related offenses.

Finally, some updates on recent fire activity across the region. Firefighters from Cal Fire’s Sonoma-Lake-Napa Unit successfully contained a two-acre vegetation fire in Solano County on Saturday afternoon. This blaze occurred in the 4000 block of Sleepy Hollow Lane, near the Napa County line. Meanwhile, Cal Fire also responded to the Pomo Fire in Lake County, north of Clear Lake, which grew to about 16 acres by Saturday afternoon. At one point, this fire threatened structures near 1500 East Highway 20. Additionally, firefighters in Richmond contained the so-called Dornan Fire, a vegetation fire on Nicholl Knob near the Richmond-San Rafael Bridge, to approximately four acres late Saturday. All trails on the hill portion of Miller-Knox Park and Nicholl Knob will remain closed Sunday as crews continue mop-up operations.

And those are some of the top stories we’re following. Thank you for joining us for Bay City News.