ADMINISTRATIVE REPORT
MEETING DATE: February 26, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Anthony Valdez, Assistant City Manager
DATE: February 10, 2025
SUBJECT: Consideration to Execute the Purchase and Sale Agreement with Dilip O. Desai, Trustee of the Asha Desai Irrevocable Trust, (not to exceed $10,500,000, contingent on award of grant) for Real Property Located at 3210 Wible Road (Ward 1)
RECOMMENDATION:
Staff recommends Council approve the agreement
BACKGROUND:
After California voters passed Proposition 1 in March of 2024, the Department of Health Care Services (DHCS) was authorized to establish the Behavioral Health Continuum Infrastructure Program (BHCIP) to construct, acquire, and expand properties and invest in mobile crises infrastructure related to Behavioral Health.
On November 20, 2024, City Council approved Resolution 167-2024 authorizing staff to submit a grant application for the BHCIP Round 1 Launch Ready Program (Grant) to acquire and establish a ne w residential treatment facility for behavioral health and substance abuse. In the application, t he City proposed to acquire and rehabilitate an existing property that meets the needs for an Adult Substance Abuse Treatment facility and in partnership with Kern County Behavioral Health (KCBH), who proposed to support the facility operator.
Staff from the City and KCBH, evaluated several locations and determined the property at 3210 Wible Road (a 68-room hotel) would best serve the requirements of the Grant . At this time, staff proposes council enter into the Purchase and Sale Agreement, contingent on award from the Grant.
FISCAL IMPACT: If awarded the grant requires a 10% match that staff proposes to utilize the Opioid Settlement Fund. If the City is not awarded the grant, the Purchase and Sale Agreement would be null and void. There is no impact to the General Fund.
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENTS: