Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director of Housing
Subject: Approval of Agreement with Our Common Ground, Inc. to Lease County Property at 750 El Camino Real in Belmont
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing and directing the Director of the Department of Housing, or designee, to execute an agreement with Our Common Ground, Inc. (“OCG”) to lease County owned property located at 750 El Camino Real in Belmont (“Property”) for a monthly payment of $100, for a term of five years, with an option to extend for an additional five years if OCG remains in compliance with all terms and conditions of the lease; and
B) Authorizing the Director of the Department of Housing, or designee, acting in consultation with the County Attorney, to execute amendments, extensions, certificates, notices, approvals, or documents relating to the lease agreement within the fiscal provisions authorized under this resolution.
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BACKGROUND:
On December 15, 2020, the County acquired fee interest in the property located at 750 El Camino Real, in Belmont (Assessor Parcel Number 044-222-160) (“Property”), improved with a twelve-bedroom, five-bathroom house on the Property fronting on El Camino Real, together with a separate one-bedroom cottage in the back of the Property, fronting on Middle Road, subject to an existing lease with Our Common Ground, Inc (“OCG”). See Resolution No. 077903.
OCG is a nonprofit corporation and provider of transitional housing and related services at several sites in San Mateo County. OCG has provided residential and outpatient treatment services to over 3,000 individuals with substance abuse and mental health problems in San Mateo County and the greater San Francisco Bay Area since 1988. OCG’s mission is to treat the whole person by using individualized treatment to address the substance abuse problems and co-occurring disorders of adults.
At the time the County acquired the Property, OCG had been operating a transitional housing project at the Property for more than 32 years pursuant to a lease from County’s predecessor in interest. The transitional housing project on the Property houses tenants who have very low incomes, many of whom formerly experienced homelessness.
The County acquired the Property to help ensure the continued provision of transitional housing for low-income San Mateo County residents in OCG’s programs, many of whom would likely experience homelessness again had the Property been sold to another party.
In April 2021, under Resolution No. 078108, this Board authorized the Director of the Department of Housing to execute an agreement to lease the Property to OCG for a monthly payment of $100 on the condition that OCG use the Property only for therapeutic community residential care for persons with substance abuse history and for no other purpose. The lease was for an initial two-year term, extended for an additional two years, after which the tenancy is month-to-month.
DISCUSSION:
The County and OCG desire to replace the existing lease which is near or beyond the end of its initial extended term, with a new lease agreement, to provide for the continued operations of OCG at the Property. As with the prior lease, the proposed new lease is subject to the condition that OCG use the Property only for therapeutic community residential care for persons with substance abuse history and for no other purpose. OCG will be required to pay monthly rental payments at a level ($100) that will allow OCG to build a reserve to help finance building retrofits, repairs, and improvements to the Property.
The proposed lease term is five (5) years from the date of the County’s execution of the new lease agreement, with an option to extend the term for an additional five years, subject to OCG’s compliance with the terms and conditions of the lease, including that the Premises shall be used and occupied only for therapeutic community residential care for persons with substance abuse history and for no other purpose without the County’s prior written consent.
Staff recommends that the Board authorize the Director of the Department of Housing, or designee, to execute the proposed lease agreement and amendments thereto, as set forth in the proposed resolution.
The County Attorney has reviewed and approved the Resolution and the lease agreement as to form.
COMMUNITY IMPACT:
Adoption of this resolution will benefit community members with substance abuse history that need therapeutic community residential care. Facilitating the use of the Property for therapeutic purposes serves a public purpose for the benefit of the community as a whole.
FISCAL IMPACT:
There is no Net County Cost associated with the County executing this lease agreement with OCG.