ADMINISTRATIVE REPORT
MEETING DATE: April 8, 2026 AGENDA CATEGORY: Consent - Agreement TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: March 25, 2026
SUBJECT: Calm Horizon’s Project .
1. Amendment No. 1 to Agreement No. 2025-027 with The Asha Desai Irrevocable Trust (allocating the sales price between the real property and the Furniture Fixtures and Equipment (FFE) for the purchase of the hotel at 2310 Wible Road)
2. Sub-agreement no. 2025-027(FFE) with RP Golden State Mgt., LLC the owner/operator of the hotel for the Calm Horizon’s Project for the purchase of the FFE
(Ward 1)
RECOMMENDATION:
Staff recommends approval of the Amendment and 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, the City Council adopted Resolution No. 167-2024, authorizing the application to and participation in BHCIP. The city, in partnership with Kern County Behavioral Heath, applied for funding not to exceed $25,000,000. The proposed project, Calm Horizons, would establish a new residential treatment facility for behavioral health and substance abuse at 2310 Wible Road.
On February 25, 2025, the City Council approved agreement 2025-027 with The Asha Desai Irrevocable Trust, for the purchase of an existing hotel located at 2310 Wible Road, Bakersfield, CA for the site of the treatment facility. The agreement was for the purchase of real property along with all furniture, fixtures, and equipment (FFE) necessary to operate the hotel which the City intends to use for operations of the facility.
On May 27, 2025, DHCS notified Economic and Community Development staff of the conditional award in the amount of $22,867,345 for the proposed Calm Horizons project.
On January 8, 2026, the City entered into the Program Funding Agreement 7690-CA BHCIP- BOND_1054_CalmHorizons-01 to acquire and rehabilitate project property. This agreement requires the City to provide cash match funding in the amount of $22,867,345 and sunk costs in the amount of $265,000. The match funds are proposed to be accounted for in the Opioid Settlement Funds received by the City through the National Opioid Settlement Agreement.
On March 25, 2026, the City Council approved the appropriation of the Grant funds in the amount of $22,867,345.
During the escrow for the purchase of the property, it was determined the seller owns the FFE and operates the hotel under a different entity than the real property. Therefore, staff prepared Amendment No. 1 to Agreement 2025-027 to allocate the sales price between the real property and FFE and to properly disclose the interest of the additional owner. Additionally, to protect the City, staff prepared agreement 2025-027FFE to ensure the owner of the FFE agrees to all necessary terms and conditions for the sale of the FFE which were previously agreed to in agreement 2025-027.
FISCAL IMPACT: The City was awarded a BHCIP grant for this project, in the amount of $22,867,345. The grant requires a 10% match which staff proposes to utilize the Opioid Settlement Fund. There is no impact to the General Fund
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENTS:
1. Amendment No. 1 to Agreement No. 2025-027
2. Sub Agreement 2025-027FFE