Special Notice / Hearing: Publication (3 weeks)__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Purchase and Sale Agreement for the Acquisition of 601 Allerton Street, in Redwood City.
RECOMMENDATION:
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Adopt a resolution:
A) Declaring the Board of Supervisors’ intent to purchase the real property described as 601 Allerton Street, Redwood City, identified as San Mateo County Assessor’s Parcel Number 052-331-120 (“Property”), for a total purchase price of $6,300,000; and
B) Authorizing the President of the Board of Supervisors to execute a Real Estate Purchase and Sale Agreement and Escrow Instructions (“Agreement”), with the owner of the Property, PREMIA 601, LLC (“Seller”), for the County’s acquisition of the Property; and
C) Authorizing the County Executive or their designee to execute the Certificate of Acceptance upon satisfaction of certain conditions in escrow, to be recorded with the grant deed transferring title to the property to the County, as well as any and all notices, escrow instructions, and documents required to facilitate the purposes of the Agreement.
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BACKGROUND:
Since 1995, the County’s Behavioral Health and Recovery Services Division (“BHRS”) has been operating its South County Mental Health Program (“Program”) in a leased facility, consisting of approximately 11,908 square feet, located at 802 Brewster Avenue, in Redwood City (“Brewster Location”), offering outpatient mental health services for adults, including therapy, counseling, and other specialized programs.
The Property, located a block from the Program’s current Brewster Location, is a 20,000 square-foot parcel, improved in 1982 with a two-story building, consisting of approximately 17,860 square feet.
DISCUSSION:
The County has determined that the Property would be an appropriate facility and location for the continued operation of BHRS’ Program.
The Seller has executed a Real Estate Purchase and Sale Agreement and Escrow Instructions (“PSA”), proposed by the County Executive for the purchase price of $6,300,000. The PSA provides that, upon completion of the County’s investigation of the Property (“Due Diligence Period”) and satisfaction of all conditions, the transaction close would occur within seventy days of Board approval, or upon a mutually agreed upon extended close of escrow date.
Acquisition of this Property was evaluated for sea level rise impacts in accordance with the 2019 San Mateo County Sea Level Rise Policy for County Assets which requires evaluation of sea level rise risk at least 50 years beyond the date of acquisition. Based on a review of inundation maps during this time horizon, this property may be at risk of flooding with 3.3 feet of sea level rise (projected to occur by 2070) and a 100-year storm event. Future development of this Property will be subject to conformance with the 2019 Policy including tracking of the risk assessment and any adaptation plan and monitoring developed.
Notices pursuant to California Government Code section 25350 of the intention of the Board of Supervisors to make this purchase were published in compliance with Government Code section 6063, including a description of the property to be purchased, the price, the vendor, a statement of the time the Board would meet to adopt this Resolution and consummate the purchase, and an invitation to interested persons to attend and be heard on the subject.
Pursuant to Government Code Section 65402, the City of Redwood City has been notified of the proposed purchase of the Property and has been requested to issue a finding of conformity with the City’s General Plan.
The County Attorney’s Office has reviewed and approved the Agreement and resolution as to form. The Director of Behavioral Health and Recovery Services concurs in this recommendation.
COMMUNITY IMPACT:
The County is dedicated to providing access to critical services for vulnerable individuals, acquiring and leasing real property to ensure all residents can access services in the locations and facilities best suited to their specific purposes. This acquisition will further the County’s ability to ensure that critical services for residents can continue to be met.
FISCAL IMPACT:
There is No Net County Cost associated with the proposed acquisition. This acquisition is funded entirely through the Mental Health Services Act and one-time departmental revenues.