To: Board of Supervisors
From: Brian M. Balbas, Public Works Director
Report Title: Purchase of Real Property located at 2523 El Portal Drive, San Pablo
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to exercise the exclusive option to purchase the property located at 2523 El Portal Drive, San Pablo, California, (the Property) in the manner set forth in the Option Agreement and Escrow Instructions dated December 13, 2022 (Option Agreement).
AUTHORIZE the Public Works Director, or designee, to execute documents related to the purchase of the Property that (i) are approved as to form by County Counsel, and (ii) implement the terms of this board order.
ACCEPT the Grant Deed from Jupiter investments LLC, for the purchase of the Property, identified as Assessor’s Parcel Number 416-140-048.
DETERMINE that this activity will not have a significant effect on the environment, and that it has been determined to be exempt from the California Environmental Quality Act (CEQA) under State CEQA guidelines Article 5, Section 15061 (b)(3); DIRECT the Director of the Department of Conservation and Development (DCD) to file a Notice of Exemption with the County Clerk; and DIRECT the Public Works Director, or designee, to arrange for payment of the $50 fee to the County Clerk for filing and a $25 fee to the DCD for processing of the Notice of Exemption.
APPROVE Payment of $3,345,000.00 for the Property and AUTHORIZE the Auditor-Controller to wire funds in the amount of $3,345,000.00 payable to Doma Title of California, Inc., 4160 Dublin Blvd., Suite 100, Dublin, California (Title Company), for deposit into escrow 54606-22-01585A, Attn: Evelyn Bowens. Direct the Real Property Division to have the above referenced Grant Deed delivered to the Title Company for recording in the Office of the County Recorder.
FISCAL IMPACT:
The purchase of the property will be funded by Mental Health Services Act (MHSA) funds.
BACKGROUND:
On July 12, 2022, the Board of Supervisors (Board) authorized the Health Services Director to apply for grant funding from the Behavioral Health Continuum Infrastructure Program (BHCIP) Round 5, available through the California Department of Health Care Services to purchase the Property. The County’s application to the Behavioral Health Continuum Infrastructure Program (BHCIP) proposed the acquisition of the Property, and the renovation of the existing two-story building on the Property for the operation of a mental health urgent care facility and a therapeutic residential facility.
In support of the County’s application to the State for BHCIP funding for the project, on December 13, 2022, the Board approved the purchase of an option to purchase the Property. The purchase price of the option was $100,000 (Option Price). The purchase price of the Property is $3,445,000. Under the terms of the Option Agreement, the Option Price will be applied to the Purchase Price at the close of escrow.
On August 1, 2023, the Board approved a budget strategy for Health Services that includes using Mental Health Service Act (MHSA) funds for the purchase of the Property. The modification to the budget strategy was the result of the County not being awarded BHCIP funds in Round 5.
On August 8, 2023, the Board approved a Notice of Intention fixing September 12, 2023, at
9:30 a.m. or thereafter, in the Board’s Chambers, County Administration Building, Martinez, California, as the time and place where it would meet to consummate the purchase of the Property from Jupiter Investments LLC. The notice was duly published in the Contra Costa Times in compliance with Government Code Section 6063.
The exercise of the Option Agreement consummates the purchase of the Property.
CONSEQUENCE OF NEGATIVE ACTION:
The County will not exercise the option to purchase the Property, which could impact the County’s ability to address significant gaps in crisis care in the County’s behavioral health infrastructure.
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I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. |
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ATTESTED: |
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Monica Nino, County Administrator and Clerk of the Board of Supervisors |
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By: |