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City approves lease agreement allowing Avalon Ranch to open to clients

City of Carlsbad Attorney Densie Madrid Boyea presented an amended agreement between Avalon Ranch and the City of Carlsbad to the City Council on March 23, 2021.

The Carlsbad City Council signed off on a lease agreement between the City and Avalon Ranch a facility that provides substance abuse treatment for women with children, according to City Council documents.

The Council approved the amended agreement Tuesday night for the residential treatment facility at 106 North Mesquite Street, documents read.

City of Carlsbad Attorney Denise Madrid Boyea, in a memo to councilors, said the City received two capital outlay grants from the New Mexico Legislature totaling $678,000 to design and construct the facility.

More:City of Carlsbad update: An update on Avalon Ranch

She said the New Mexico Department of Finance and Administration (DFA) would not proceed with the grant money until the City had an agreement for the construction and operation of the facility.

“The City has an agreement for the development and use of property for the facility,” Boyea wrote in the memo.

She said the agreement was contingent upon the City’s receipt of the grants.

The latest proposed site for the Avalon Ranch drug rehab center is toured by the Carlsbad Mayor's Mental Health Task Force, June 5, 2018 in the 100 block of North Mesquite Street.

“The City and Avalon Ranch worked together to select a property and then renovated an existing structure which is now complete,” the memo indicated.

Boyea said since construction or renovation was complete, an amended agreement was needed to lease the facility to Avalon Ranch.

The agreement states Avalon would have to pay the fair market rental value of the facility which would be determined by a qualified appraiser.