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Committee backs purchase of 1660–1670 Mission to house City Clinic and behavioral health services
Summary
The Budget and Finance Committee voted 3-0 to forward resolutions authorizing acquisition of 1660/1670 Mission Street for $18.5 million and to accept a $10 million state grant tied to behavioral-health uses; DPH plans to convert the building into a Health Recovery and Connection Center opening after renovations in 2028.
The Budget and Finance Committee voted unanimously on Sept. 17 to forward to the full Board of Supervisors a proposal to acquire two parcels at 1660 and 1670 Mission Street and a related Department of Public Health grant agreement with the California Department of Health Care Services (DHCS) for $10 million in capital funding.
The city negotiated a purchase price of $18,500,000 for the combined property and estimated closing costs of about $30,000. The Department of Public Health (DPH) told the committee it will convert the vacant building into a Health Recovery and Connection Center to co-locate City Clinic, behavioral health access and pharmacy services, an office for buprenorphine induction (operated by UCSF), and other behavioral-health programs now operating from leased or inadequate space. DPH estimates roughly $56.7 million in renovation work to convert the office building to clinical space, currently funded through a mix of voter-approved bonds, state grants and local funds; that renovation budget was estimated at up to $75 million in total project delivery costs under current planning.
Grant condition and use restriction: DPH said it was awarded a $10 million capital grant from DHCS contingent on executing the grant agreement by mid-October; the grant requires a 30-year use restriction on the portion of the building dedicated to behavioral-health programs. DPH representatives said the grant funds are time-sensitive and could be rescinded if the city does not execute the agreement promptly.
Program goals and timelines: DPH described the building as a permanent home for City Clinic (which currently operates from a 100-year-old firehouse) and additional behavioral-health services that will include expanded on-demand medication treatment, medical services, behavioral-health assessments, caseworker meetings and pharmacy pickups. DPH said the building will also enable an improved 24/7 law-enforcement drop-off program budgeted in the current fiscal year and will bring more than 300 city and UCSF staff to a currently vacant building. DPH estimates the renovated building will open in 2028 following design, procurement and construction.
Fiscal notes: The Real Estate Division and the Budget and Legislative Analyst reported the purchase price was supported by an appraisal; the acquisition will be funded by the homelessness gross receipts tax. DPH estimates annual savings of roughly $1.7 million by moving from leased clinic space to a city-owned facility. BLA noted there are also furniture and equipment costs (estimated at $7.5 million) for which DPH is still identifying specific funding sources.
Vote: Vice Chair Matt Dorsey moved to forward both the acquisition and grant items to the full Board with a positive recommendation; the committee voted 3-0 (Dorsey, Chen, Chan — all "aye").
Ending: The items will go to the Board of Supervisors for final action; DPH and the Real Estate Division will return with details on renovation schedules, funding plans for furniture and equipment and community engagement steps as planning proceeds.
