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Board approves 30‑year lease with WellSpace Health for county‑funded mental health rehabilitation beds
Summary
The Board of Supervisors unanimously authorized a 30‑year lease and sublease allowing WellSpace Health to develop and operate a mental health rehabilitation center at 6790 Stockton Boulevard, funded in part with Behavioral Health Continuum Infrastructure Program Round 3 grant dollars and county match funds.
The Sacramento County Board of Supervisors voted unanimously on April 22 to authorize a 30‑year lease and sublease that will allow WellSpace Health to build and operate a mental health rehabilitation center at 6790 Stockton Boulevard in Sacramento.
Nick Lavoie, chief of the County’s Real Estate Division, told the board the lease will follow completion of construction, which parties expect by Dec. 31, 2026. The project is financed principally with Behavioral Health Continuum Infrastructure Program Round 3 grant funding from the State Department of Health Care Services — approximately $23 million — plus about $2 million in county match funds. The county also agreed to fund potential construction cost overruns up to $1.5 million using patient care revenue, if needed.
Under the approved agreements, WellSpace will plan, permit and construct the facility and operate it or sublease operations to a service provider. The county’s ongoing obligation is limited: the Department of Health Services will pay a per‑night rate for county‑placed clients and provide the required county match from patient care revenue. WellSpace must offer the county a first‑right‑of‑refusal on available beds before offering placements to third parties.
Supervisor Kennedy praised the project as an important investment in the county’s behavioral‑health system and moved to approve the lease; Supervisor Hume seconded the motion. County Executive David Villanueva and WellSpace representatives told the board the parties had negotiated through complex state and local requirements and that the arrangement allows the county to access additional behavioral health bed capacity without an ongoing fixed cost beyond client placements.
The motion passed unanimously.
