To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: 1400 Willow Pass Road, 1410 and 1420 Danzig Plaza Concord - Health Services Department
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute the purchase and sale agreement between the County and 1400 Canzani Commercial LLC, 1410 Canzani Commercial LLC and 1420 Canzani Commercial LLC (together, Sellers) for the County’s purchase of three properties located at 1400 Willow Pass Road, 1410 and 1420 Danzig Plaza Concord (collectively, Property) for use by the Health Services Department. The contracted sales price for the Property is $5,950,000. The agreement includes a provision that limits the Sellers’ aggregate liability to two percent (2%) of the Purchase Price and provides that the Sellers will not be liable for consequential, punitive, speculative, or lost-profit damages. The agreement also requires the County to indemnify, defend and hold Sellers harmless from and against any and all injuries, damages, claims, costs, expenses or liabilities arising from County or County’s designated persons’ or agent’s entry onto the Property, including but not limited to attorneys’ fees and costs.
DETERMINE that the purchase of the Property is not subject to the California Environmental Quality Act (CEQA), pursuant to Article 5, Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the acquisition of the property itself may have a significant effect on the environment.
DIRECT the Director of the Department of Conservation and Development (DCD), or designee, to cause a Notice of Exemption (NOE) to be filled with the County Clerk and the State Clearinghouse.
AUTHORIZE the Public Works Director, or designee, to arrange for payment of a $50 fee to the County Clerk for filing the NOE.
ACCEPT the Grant Deed from Sellers for the purchase of the Property.
AUTHORIZE the Auditor-Controller’s Office to wire approximately $5,970,000, payable to Old Republic Title Company, 555 12th Street, Suite 200 Oakland, CA 94607, for credit to Escrow Numbers 1117031182-JM, 1117030776-JM, and 1117030777-JM, Attn: Julie Massey, Escrow Officer, which amount is equal to the Purchase Price and estimated closing costs.
DIRECT the Real Estate Division to have this staff report and a certificate of acceptance delivered to Old Republic Title Company for recording in the Office of the County Recorder.
FISCAL IMPACT:
The total purchase price for the acquisition of the properties located at 1400 Willow Pass Road, 1410 Danzig Plaza, and 1420 Danzig Plaza, Concord, is approximately $5,970,000. Funding for the acquisition will be provided entirely through Mental Health Realignment funds.
The acquisition will eliminate approximately $154,000 in annual lease costs currently incurred by the Health Services Department for 1420 Danzig Plaza. Any future capital improvement and renovations associated with these properties will be evaluated separately and brought forward through the appropriate budget and approval processes, as necessary.
BACKGROUND:
The County has operated the Health Services Department’s Behavioral Health Central County Adult Clinic at 1420 Danzig Plaza, Concord, under a lease agreement since September 1, 1998. The clinic provides critical behavioral health services to Central County residents and serves as an established access point for ongoing mental health treatment and support services.
The building, along with the adjacent properties located at 1400 Willow Pass Road and 1410 Danzig Plaza, has been listed for sale on the open market. Acquisition of these properties will allow the County to maintain continuity of behavioral health operations at this long-standing service location and avoid the potential risk of displacement and service disruption that could occur if the properties were purchased by a third party. Relocation of the clinic on short notice could negatively impact vulnerable clients who rely on consistent access to care and established service relationships.
In addition to preserving existing services, acquisition of the adjacent properties will provide the Health Services Department with the opportunity to expand and co-locate additional Behavioral Health and other Health Services Department programs in a centralized campus setting. This may improve operational coordination, client access to services, and reduce future leased space needs and associated rental costs. The current action, acquisition of the properties, effectuates a change in the owner of title to the properties only. The use of the property will not be substantially different after the close of escrow. Therefore, staff recommends that the Board determine that the acquisition is not subject to CEQA as it can be seen with certainty that there is no possibility that the acquisition of the property itself may have a significant effect on the environment. The County will evaluate any future improvements in accordance with CEQA Guidelines
A notice of this Board’s intention to consider this property acquisition at today’s meeting was duly published in the Contra Costa Times in compliance with Government Code Sections 25350 and 6063.
CONSEQUENCE OF NEGATIVE ACTION:
If this acquisition is not approved, the County may lose the ability to continue operating the Behavioral Health Central County Adult Clinic at its current location if the properties are purchased by a third party. This could result in the need to vacate the site on short notice, causing significant disruption to behavioral health services provided to the community, interruption of care for vulnerable clients, and additional costs associated with relocating services. Failure to acquire the adjacent properties would also limit future opportunities to expand and co-locate additional Health Services Department programs in Central County.