MEETING DATE:
April 8, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9424 - AGREEMENT REGARDING REAL PROPERTY AMONG THE CITY OF SAN MARCOS, INTERFAITH COMMUNITY SERVICES, INC., AND THE MISSION SAN MARCOS UNIFIED METHODIST CHURCH
Body
Recommendation
Recommendation
ADOPT resolution authorizing an Agreement regarding Real Property among Interfaith Community Services, Inc., a California nonprofit, public benefit corporation (“Interfaith”), the Mission San Marcos Unified Methodist Church, a 501(c)(3) religious organization (“Methodist Church”), and the City of San Marcos, a chartered municipal corporation (“City”) and authorizing the City Manager to execute said agreement and related documents.
Body
Board Action
Not Applicable
Relevant Council Strategic Theme
Quality of Life
Executive Summary
In March 2024, voters passed Proposition 1, which included the Behavioral Health Services Act and a $6.4 billion Behavioral Health Bond to fund behavioral health treatment facilities and supportive housing for individuals with mental health and substance use disorders, including veterans and those at risk of homelessness.
In December 2024, Interfaith submitted an application to the State of California DHCS Bond Behavioral Health Continuum Infrastructure Program (Bond BHCIP), Round 1 application cycle. Funding for the project has not yet been secured; the competitive grant awards will be announced in May 2025. The City has taken a proactive approach to partner with Interfaith and the Methodist Church to develop an Agreement Regarding Real Property (“ARRP”) to outline operating standards for the programs and services offered at the facility to further the health, safety, and welfare of the City and its residents, and serve as a vehicle to enable City’s full support of the program. The ARRP requires approval from the City Council, including authorization for the City Manager to execute the agreement and related documents.
Discussion
Interfaith is proposing to utilize approximately five (5) acres of property located at 800 Mission Road to operate a San Marcos Recovery and Wellness Center, a substance use disorder facility that will accommodate up to, and not exceed, 150 substance use disorder (SUD) recovery treatment beds. A summary of the project is included as Attachment 2.
The Recovery and Wellness Center’s treatment model aims to reduce drug- and alcohol-related deaths and accidental overdoses, provide effective care for substance use disorders and mental health conditions, and introduce housing solutions to help combat homelessness.
Additionally, the Wellness and Recovery Center aligns with the City of San Marcos Housing Element Program 8 - Transitional Housing/Homeless Shelters.
Project Site & Facility
The project site is located at 800 W Mission Road, San Marcos, CA 92069 and is owned by the San Marcos United Methodist Church. The total building size is approximately 49,000 square feet. The campus will be composed of two primary buildings. If received, the Bond BHCIP grant will fund the new construction of a 150-bed campus for expanded substance use disorder treatment.
The campus features will include:
24/7 site security and staffing;
Secure lobby/welcome area;
On-site professional catering kitchen;
Dining hall;
Staff offices;
Meeting spaces for 1:1 treatment, groups, and family visitation;
Gym/physical therapy space;
Outdoor pathways, seating, and recreational areas;
and 62 parking spaces.
Project Funding and Costs
Interfaith is seeking funding under the State of California DHCS Bond Behavioral Health Continuum Infrastructure Program (Bond BHCIP), Round 1 application. Bond BHCIP funding provides unique opportunity to fund 90% of total project cost, including automatic local ministerial zoning approvals. The total project cost currently estimated at $40 - $60M, approximately 90% of funding is proposed to be secured by State CA Bond BHCIP grant. Interfaith is responsible for securing 10% matching funds of $4,000,000 - $6,000,000.
The purpose of the ARRP is to address concerns among residents and businesses in the vicinity of the Property and Facilities, as well as the City and its residents in general, about the proposed program and facilities on a proactive basis as set forth in the ARRP, to address and ameliorate concerns concerning potential adverse issues to the extent feasible, and to enable the proposed program and facilities to be built upon and operated on the Property to receive the support of the City’s leaders, citizens, and businesses.
Staff recommends Council authorize adoption of a resolution approving the Agreement Regarding Real Property and authorize the City Manager to sign the agreement and related documents.
Environmental Review
The City of San Marcos evaluated and determined these actions (entry into the ARRP) considered herein are Categorically Exempt pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) under the general rule in that the action being taken herein can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and future project development shall comply with all CEQA requirements.
Fiscal Impact
No direct fiscal impact is anticipated as part of this approval.
Attachment(s)
1. Resolution
2. Project Summary
3. Draft Agreement Regarding Real Property
Prepared and Submitted by: Yvette Arenas, Housing and Neighborhood Services Administrator
Reviewed by: Beth Herzog, Administrative Services Manager
Approved by: Michelle Bender, City Manager