Board approves Horizon Recovery'site control and 10% grant match despite public safety concerns

The Board of Supervisors on Aug. 25 approved, by unanimous roll-call vote, two actions to transfer immediate site control to Horizon Recovery Services for a proposed recovery center at 826 Mahler Road in Burlingame and to increase the county's matching contribution to comport with a 10% match of a $25 million state award. County executive staff described a ground-lease structure that would let Horizon begin construction while the county retains some buildings and a parking area on the site. "The county would enter into a ground lease with Horizon to grant immediate site control," the county executive said during the presentation, adding that the property would be restricted for use as a rehabilitation facility for up to 30 years.

The authorization drew sharp public comment from Zoom callers and community members who alleged that Horizon's facility in San Mateo had been suspended twice for major licensing violations including falsified records. A caller, Natalia, said: "Since opening in 2019, this facility has been suspended 2 times for severe violations of the health care code and the explicit falsification of records." County staff and Horizon executives responded that the Department of Health Care Services had awarded Horizon $25 million after reviewing corrective actions and that a state visit earlier in the year found no deficiencies. Dr. Jay Africa of Horizon said the final award amount exceeded the original ask and that Horizon would comply with additional monitoring and audit requirements.

Supervisors asked for contractual safeguards should Horizon fail during its probationary period: possible deed restrictions, sale provisions, and enforcement clauses were discussed. County counsel said the proposed ground lease would require Horizon to operate the property as a rehabilitation facility consistent with the state grant and that, if Horizon later became a landlord, the county would not be forced to place services at that site but could seek replacement providers. The board approved the transaction and the additional $500,000 match from the opioid settlement fund to reach the full 10% contribution, while staff said they would continue to work out insurance, indemnity and escrow/transfer-tax issues and include monitoring/remedies in the final documents.