DATE: December 6, 2022
TO: Mayor and City Council
FROM: City Manager
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to (1) Negotiate and Execute an Agreement with Eden Health District (EHD) for the Award of $250,000 to the City for the Acquisition of the St. Regis Retirement Center; (2) Accept and Appropriate the Funds Awarded by EHD; and (3) Negotiate and Execute an Agreement for Transfer of the $250,000 in Funds from the City to Bay Area Community Services for Down Payment Assistance to Acquire the St. Regis Retirement Center
End
RECOMMENDATION
That the Council adopts a resolution (Attachment II) authorizing the City Manager to: (1) negotiate and execute an agreement with EHD for the award of $250,000 to the City for assistance to acquire the St. Regis Retirement Center; (2) accept and appropriate the funds awarded by EHD; and (3) negotiate and execute an agreement for transfer of the $250,000 in funds from the City to Bay Area Community Services (BACS) for down payment assistance to acquire St. Regis Retirement Center.
SUMMARY
In January 2022, the California Department of Health Care Services (DHCS) and the California Department of Social Services (CDSS) announced a joint Request for Applications (RFA) to expand the State’s behavioral health infrastructure and address historic gaps in the long-term care continuum serving seniors, people with disabilities, and people with behavioral health needs.
Through the joint RFA, BACS applied for Behavioral Health Continuum Infrastructure Program (BHCIP) and Community Care Expansion Program (CCE) funding to acquire the St. Regis Retirement Center and develop a holistic campus of behavioral health treatment, crisis services, and supportive housing. While BACS was awarded a $19.41 million grant through CCE, they were not awarded BHCIP funding for this program. However, BACS intends to apply for BHCIP Round 5 funding.
As BACS did not receive BHCIP funding for this project, there was a gap of $8.45 million needed to cover the full acquisition and rehabilitation costs for the St. Regis property. In August 2022, the Council authorized $627,544 in Community Development Block Grant (CDBG) funds to BACS to support closing costs, and additionally approved a $2 million loan to support BACS while they wait for the State to allocate the awarded CCE funds. BACS will repay this loan by March 1st, 2023. Additionally, the County of Alameda committed $7.5 million to support the project’s closing gap.
In addition to City and County support of the St. Regis project, staff worked with EHD to allocate a $250,000 grant towards BACS’ closing gap. Staff and BACS presented to the EHD Board of Directors on November 16th, 2022 and the EHD Board approved awarding the City a $250,000 grant for the St. Regis project to be passed through to BACS via the City.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution