Board approves lease‑revenue bond authorization and moves to buy Bascom clinic, citing long‑term savings

The Santa Clara County Board of Supervisors on Jan. 13 authorized the issuance of lease‑revenue bonds to finance a county purchase of a clinical facility near Valley Medical Center and opened/closed the required public hearings for the related actions.

Administration described two linked items: item 8 to authorize lease revenue bonds "to not exceed $450,000,000 aggregate principal," and item 9 to exercise a purchase option on the Bascom Station clinic. James, the presenting finance staff, told the board that converting the county's 2022 long‑term lease into ownership via bond financing would lower the county's average annual debt service compared with current lease payments and that staff expect to "save over 2 and a half million dollars a year over the term of the lease" and about "$112,000,000" over 30 years.

Staff also said they negotiated an approximately $13,000,000 reduction in purchase price and proposed bundling a refunding of a 2015 lease revenue bond issuance that would yield an estimated $945,000 in additional annual savings.

A public commenter asked where hearing notices were posted; staff responded that notices are posted in the post record and, where required, newspapers of general circulation. Vice President Arenas, who moved approval of item 8, said the purchase "makes sense" as a long‑term investment, and other supervisors endorsed the financing as a modest but tangible budgetary saving in the face of larger deficits.

On the board's roll call, Supervisors voted 4–0 to carry the bond authorization and the related purchase item. The board heard no recorded dissent and directed staff to provide clearer public‑facing explanations of the lease‑revenue bond mechanics and savings calculations.

The items were presented as a fiscally driven effort to lower net costs while acquiring the underlying land and building instead of continuing to pay lease obligations.