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Consider adoption of a resolution authorizing the purchase and acquisition of the former Parkrose Gardens assisted living site, located at 1095 E. Tabor Ave., Fairfield, CA Solano County APN: 0037-040-150, for a total purchase price of $6,250,000, plus administrative fees and estimated closing costs (4/5 vote required); Consider approval of an Appropriation Transfer Request (ATR) reallocating $7,324,440 in existing appropriations and up to $3,600,000 in interest revenue of federal American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Fund (SLFRF) to fund the purchase and necessary renovations of the facility (4/5 vote required); Consider delegating authority to the County Administrator to execute any and all agreements, amendments, and documents, subject to County Counsel concurrence, to carry out the purchase and projects; and Consider delegating authority to the County Administrator to negotiate and execute a facility use agreement with Archway Recovery Services, Inc. for interim use of the property
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Published Notice Required? Yes _X_ No _ _
Public Hearing Required? Yes ___ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of Health and Social Services, Behavioral Health Division recommends the Board of Supervisors:
1. Consider adoption of a resolution authorizing the purchase and acquisition of the former Parkrose Gardens assisted living site, located at 1095 E. Tabor Ave., Fairfield, CA Solano County APN: 0037-040-150, for a total purchase price of $6,250,000, plus administrative fees and estimated closing costs (4/5 vote required);
2. Consider approval of an Appropriation Transfer Request (ATR) reallocating $7,324,440 in existing appropriations and up to $3,600,000 in interest revenue of federal American Rescue Plan Act (ARPA) Coronavirus State and Local Fiscal Recovery Fund (SLFRF) to fund the purchase and necessary renovations of the facility (4/5 vote required);
3. Consider delegating authority to the County Administrator to execute any and all agreements, amendments, and documents, subject to County Counsel concurrence, to carry out the purchase and projects; and
4. Consider delegating authority to the County Administrator to negotiate and execute a facility use agreement with Archway Recovery Services, Inc. for interim use of the property.
SUMMARY/DISCUSSION:
The purpose of the recommended resolution (Attachment A) is to authorize the execution of the purchase and acquisition of the former Parkrose Gardens assisted living site, located at 1095 E. Tabor Ave., Fairfield, CA Solano County APN: 0037-040-150, for a total purchase price of $6,250,000, plus administrative fees and estimated closing costs
On February 19, 2024, Archway Recovery Services (ARS), Executive Director Kevin Phillips was alerted to the availability of the Parkrose Gardens facility. This is a 52-unit, 28,000 square foot facility on 1.755 acres with a commercial kitchen, dining facility, and community spaces, both indoor and outdoor. The property is located across the street from a large municipal park, near the Route 6, Solano Town Center/East Tabor and Sunset city bus line.
Health and Social Services, Behavioral Health Division routinely experiences a shortage of residential placements for County clients and the shortfall of available units is anticipated to increase with implementation of the CARE Act in December 2025, changes in conservatorship laws, Proposition 1 housing requirements, and other State mandates. The Parkrose Gardens facility provides a unique opportunity for H&SS to access residential units that otherwise must be secured through individual lease arrangements with property owners at market rates, if available.
The existing Parkrose property owner required a letter of commitment to purchase on a tight timeline not achievable for the Department of Health and Human Services (H&SS), Behavioral Health Division. Therefore, ARS entered into to a lease with an option to purchase agreement with the property owner on March 22, 2024 with the intent of continuing to explore options that would allow for ARS’ or the County’s purchase of the facility. In order to make this arrangement financially sustainable, ARS moved two of its substance use disorder treatment and recovery programs from two of its existing housing units into the Parkrose Gardens facility. ARS serves County Behavioral Health clients through the Drug Medi-Cal Organized Delivery System (DMC-ODS) regional program. ARS is willing to assign its lease/option to the County and has worked with the property owner to secure permission for the assignment (Attachment B).
Concurrently, ARS is developing a residential 62-bed substance use disorder treatment program for men and women in Fairfield, CA. On September 27, 2022, the Board approved a $550,000 ARPA SLRSF contribution towards the construction of this facility. The City of Fairfield and Partnership HealthPlan of California also contributed matching funds. The project is currently in the permitting phase with an estimated construction completion date in late summer/early fall of 2026 with facility licensing and program credentialing estimated to take 4-8 months. Therefore, H&SS is recommending the Board authorize an interim occupancy agreement (Attachment C) with ARS until such time as it can move its operations from Parkrose Gardens.
The General Services Department (GSD) and Department of Resource Management Building Official and Environment Health unit have inspected and evaluated Parkrose Garden. Once the property purchase is authorized and ownership is transferred to the County, GSD, Capital Projects will commence design work for future renovations.
FINANCIAL IMPACT:
The property purchase cost is $6,250,000 plus administrative and closing costs. The purchase would be funded from the $7,324,440 in ARPA SLRSF funds with the balance after purchase and closing costs allocated to future renovation related costs. In addition, the total funding requested includes up to $3,600,000 in ARPA SLRSF interest funds which would be allocated to future renovation costs.
The cost of preparing the agenda item is nominal and absorbed by the Department’s FY2024/25 Working Budget.
ALTERNATIVES:
The Board could choose not to purchase the subject property or allocate funds towards future renovations. This is not recommended as the property will provide residential placements for County clients.
OTHER AGENCY INVOLVEMENT:
H&SS, Behavioral Health and the County Administrator’s Office have worked with Archway Recovery Services on the proposed purchase and occupancy agreement. General Services and Resource Management have inspected the property and General Services, Capital Projects will continue, if approved, to work on future renovation plans. County Counsel has prepared and reviewed agreements and approved as to form.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION