The Watsonville City Council voted in December to allow workers to clear a homeless encampment on Airport Boulevard and to bill the property owner approximately $300,000 in cleanup costs — $150,000 already spent and another $150,000 estimated for further work.
But the encampment remains, home to several dozen people who have erected makeshift shelters, pitched tents and driven vehicles onto the property.
Now, after reportedly ignoring the city’s requests to address the encampment, the property owner — Fremont-based KDS Dhaliwal Investments — has agreed to conduct the cleanup, Watsonville city spokeswoman Michelle Pulido said.
“He has agreed to do the cleanup, so he is going to do the outreach and seek out the resources,” she said.
The timeline remains unclear, though Pulido estimated the process could take a few weeks.
The City Council declared the parcel a public nuisance on Nov. 18, 2025.
The 2.75-acre wooded property along Corralitos Creek, across from the Freedom Centre shopping plaza, has been the focus of ongoing complaints and enforcement efforts. The site — identified as parcel 014-021-01 and lacking a formal street address — is home to as many as 40 people, according to city officials.
Over the past several years, neighbors and officials have raised concerns about accumulating garbage, makeshift shelters and vehicles leaking fluids onto the ground. City staff say activity at the encampment — including bathing, washing clothes and the discharge of bodily waste — has contributed to contamination of the creek.
Watsonville Senior Code Enforcement Officer Ruben Vargas previously described the situation as “untenable” and in need of abatement. Officials also report widespread alcohol and drug use at the site, with used needles found among the debris.
KDS Vice President of Operations Karam Singh has said the company delayed enforcing trespassing rules amid a dispute with the city over development plans for the site, which have included a car wash or retail use. Singh said the company intends to install fencing after the cleanup is completed.
City Attorney Samantha Zutler said the city will place a lien on the property if cleanup costs are not reimbursed.
Several people living at the encampment attended a recent City Council meeting, urging officials to pair any enforcement action with housing assistance. Residents said promises of services made during a previous sweep were never fulfilled. Many of those living at the site face mental health and substance use challenges, according to officials and advocates.
