Former Kmart, Future County Hub: Supervisors Greenlight $5.75 Million Eureka Property Purchase
Aerial view of the county complex project site. [Screenshot from video]
Humboldt County is going ahead with the purchase of a property it will develop into a “one-stop permitting center” for multiple departments. At its June 9 meeting, the Board of Supervisors voted to authorize the $5.75 million property buy but the vote wasn’t unanimous.
The cost of maintaining what’s blueprinted as a 55,000 square-foot complex led to one downvote.
But in a presentation, Director of Public Works Tom Mattson said the property buy will fulfill the long-envisioned goal of bringing the many facets of county permitting under one roof.
He described it as “the one-stop permitting center that we’ve been looking for a site for years,” including the county’s planning and building, public works, and environmental services departments.
Image from 2021 when Papa & Barkley opened a dispensary in the KMART building. [Photo by Emily Hobelmann]
It will be a place where “customers can come in to one place and get all the permits they need to move a project forward,” he continued, with enough space to allow other departments and staff to move in if needed.
The property is located at 4325 Broadway in Eureka, once the site of a Kmart store.
Walmart was interested in buying it at one point but then backed out.
During a public comment period, a caller identifying himself as a county employee noted that the property’s in the tsunami zone and said it’s a “bad location.”
But JB Mathers, a local real estate agent representing the seller, John McNellis, described the property as desirable.
“There’s been a fair amount of interest in the property from other tenants,” he said. “But Mr. McNellis definitely felt it would be in good faith to get back to the county and allow an opportunity for a location on Highway 101 that can serve the entire county.”
The tsunami zone issue didn’t gain traction in supervisors’ discussions but Supervisor Rex Bohn questioned the county’s ability to maintain the new complex.
“I mean, I got waste high grass at the Planning and Building Department,” he said. “I have to beg to get the front of the courthouse mowed and we let a veterans hall in Garberville melt around us, and so we took a minor problem and made it into a major problem until we had to tear it down and build something new.”
Bohn wants to see “a commitment that we’re going to take care of the buildings we have” and said “we don’t have staff, we don’t have money, we don’t have anything.”
Supervisor Natalie Arroyo supported the buy, saying developing the complex “has the potential to save us money” and allow more space for departments that need it.
She noted the project’s long planning phase.
“I just want to say for the benefit of the public, this has certainly been something we’ve had extensive conversation about,” she said. “The conversation you’re seeing here today is sort of the ending point of a long journey.”
She added that moving departments into the complex will open new opportunities for use of existing county spaces. “And, you know, there’s really no perfect property for us but this is about as close as we can get,” Arroyo continued.
Supervisor Steve Madrone said “continuing to lease properties as a solution is what’s part of part of what’s driving our budget into the negative.”
The board voted 4-1 to authorize the purchase, with Bohn voting no. He said he did so because staff hadn’t responded to his concerns about maintenance.
Development of the new complex has a five- to seven-year timeline.
The funding for the buy comes from the county’s 2020 Finance Plan, an internal borrowing mechanism.
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Hopefully they will have someone there who goes out and checks that contractors actually have the needed permits for the work they are doing.
https://kymkemp.com/2026/06/10/drilling-halted-in-southern-humboldt-over-slurry-disposal-county-demands-plan-before-work-resumes/
Would be a better use as animal shelter? Its in a tsunami zone.
Would be a fantastic place to add to their one stop shopping. Should be plenty of room for them. I say great idea!!!
It’s a great idea to have a bunch of animals needing evacuation with every tsunami warning?
News lately seems to indicate they have a better chance of being saved under that threat than what has been happening to them currently. The building they are housed in by the airport is in some bad disrepair and Miranda’s hasn’t had the best advertising lately. They would be closer to a larger population to hopefully adopt them.
Getting the permitting process away from downtown congestion Great move forward!
You still have to go through Broadway congestion which is arguably worst.
Only everybody north of it! Which is only about…hmmm…2/3 of the county?
County office coordination problems are more attitude. As if they can’t already call…I’ve had the run-around where I’ve had to personally call the planning department to send over affirmation of a conditional use permit to the Tax Assessor because they just refused to believe the obvious, or do anything on their own despite pulling in the $120 an hour in staff time im forced to pay Planning, and the tens of thousands I’ve paid the Assessor.
5.75 million for a building, when there’s a hiring freeze and they can’t afford to pay staff enough to stay with a county, despite the exorbitant rates the county charges for permitting.Reduced hours for county buildings, reduced hours for answering the phones. Makes for an expensive, empty building.
Not to mention closing the libraries on tuesday and reducing the staff, at least in Gville.
Yeah, I’m curious what department funding is getting the shaft for this purchase. Perhaps this is question that should be brought up at the next Supes meeting.
List of things they agreed to at the June 9th meeting.
Next meeting dates
>”… 2020 Finance Plan, an internal borrowing mechanism.”
Humboldt County has a $12 million budget deficit.
Debt out of one pocket… and into the next pocket.
Measure ‘Double-Ought’… the double ‘Oh-No’ is coming.
Yee hah !
If the is a story that epitomizes the problems in Humboldt Co government, this is it. Every opinion expressed in this article is true- it could save money for the county, “customers” would like a one stop permitting location, is in a tsunami zone and will be unavailable after a tsunami, the country is not maintaining its own property now, and surely it is the current owner feels it is a “desirable property” that no one has been able to develop in years and years but he thinks it “fair” to let the country borrrow money from itself to buy.
But none of that is likely to be other than one big headache because it will be screwed up from planning to execution. So many ways the county could do something good but so many opportunities to go wrong because there is a-gasp- budget shortfall not likely to end soon.
Reading the article is like having heard the Titanic’s fog horns echoing off the iceberg but knowing the ship will still not slow down.
BTW did Bohn really complaint about “waste” high weeds instead of “waist” high weeds or did the article’s author make a Fruedian slip?
These supervisors are unbelievable then again believable, considering time and time again, dumb decision after dumb decision! When are we voting them out? Come people, take off your blinders, we are being lied to! They will line their pockets with more undeserved raises, while their friends land bids off our 💸
Bohn wants to see “a commitment that we’re going to take care of the buildings we have”
I’ve always liked Rex, sick sense of humor and all. What you see is what you get.
As a contractor that serviced the heating and air-conditioning systems on the Sheriff’s office and courthouse in Garberville it was painful to see the lack of simple roof repair allow the buildings to rot.
I can only wonder how well the county will be able to maintain an already crumbling old K-Mart building. I am not at all confident having seen their pathetic track record.
I guess that scenario you described would be what brought me to having the Animal Shelter added to this project. The building they are in out by the airport seems to be having that same problem and I hate thinking of the damage that will happen as a result. My hope would be that if they were to consolidate the shelter into this building, possibly sell the land by the airport (assuming they own it), the money could be spent on this site.
YA, we can spend our way outta this mess…
Your Supervisors are not too smart…
Crazy! The County just days ago reported a projected $12 million ongoing budget deficit heading into FY 2026-27. Paying $5.75 million to acquire the former Kmart building, with additional millions to be spent on design, renovations and furnishing. Add on, likely $100,000+ a year in maintenance, and operational costs. This is another prime example why the County continues to struggle financially. I bet the BOS will propose another sales tax increase in the next few years because they are financially inept. On top of being financially irresponsible, staff indicated the complete build-out could take five to seven years.
A One-Stop Permit Shop does not eliminate regulatory review. Even if Planning, Building, Public Works, and Environmental Health are housed in one location, applicants will still need reviews by multiple departments and agencies.
Do not expect “walk-in, same-day permits,” only a limited number of simple permits are likely to be issued over the counter, just like they are today. The physical location of staff is not the primary cause of permit delays. All projects are referred electronically these days.
Supervisor Bohn was spot on when he questioned whether the County should acquire another large facility when existing properties already face deferred maintenance issues.
Every dollar spent on acquisition and renovation is a dollar unavailable for:
· Road maintenance
· Public safety
· Parks
· Homelessness programs
· Deferred building maintenance
· Technology upgrades
· Additional permit-review staff
Purchasing the former Kmart building means the County is committing at least $5.75 million—and likely substantially more after renovations—to a project that may not materially accelerate permit processing while facing a projected $12 million deficit. I truly believe Permits will not be processed any faster. Given the County’s current financial situation, purchasing the Kmart building at a time when core services remain under financial pressure is pure CRAZINESS and financial irresponsibility.
Not to mention removing a prime commercial property from the market and the loss of about $60,000 a year in property taxes..
Humboldt County: $17,000+/-
Schools/College Districts: $34,000+/-
City of Eureka: $5,000+/-
Special Districts: $4,000+/-
Not quite the financial impact, actually not even close, on the community that the Calfire $60 million project in Rio Dell has. Remember what Regan said “The nine most terrifying words in the English language are: ‘I’m from the Government, and I’m here to help.'”
Very well said.
This project seems to offer very marginal benefit, at best, in exchange for a steep financial cost up front in addition to an increased burden on a county maintenance program that is demonstrably failing.
All during a time of economic hardship in our county that doesn’t have any clear reasons to expect to turn around soon.
This is a time to be buckling down, limiting investments to maintenance of key existing infrastructure, and looking for opportunities to actually improve our economic base locally.
A bigger building does not fix incompetency, serious restructuring needed. Been the same people fumbling the ball for years. Bigger revenue for the county gets you to the head of the line, normal Joe Schmo good luck getting a response within 3months.
The county of Humboldt just needs to dissolve at this point and be absorbed into the surrounding counties. They’re leadership seems to actually be a lil bit more competent..
If Humboldt County stops paying its pension obligations or cant meet payroll, the State of California would intervene.
That threat is likely why the county redirected cannabis tax revenue from the taxpayers to cover its pension liabilities and other debts.
I personally am torn, Sacramento isn’t going to consider the human struggles that are unique to parts of our county.
But we probably would see equity and economic growth long term. More people would succeed because favoritism wouldn’t come into play. Like someone else said a lot of the “Bids” for taxpayer funded projects would look very different.
Crazy! The County just days ago reported a projected $12 million ongoing budget deficit heading into FY 2026-27. Paying $5.75 million to acquire the former Kmart building, with additional millions to be spent on design, renovations and furnishing. Add on, likely $100,000+ a year in maintenance, and operational costs. This is another prime example why the County continues to struggle financially. I bet the BOS will propose another sales tax increase in the next few years because they are financially inept. On top of being financially irresponsible, staff indicated the complete build-out could take five to seven years.
A One-Stop Permit Shop does not eliminate regulatory review. Even if Planning, Building, Public Works, and Environmental Health are housed in one location, applicants will still need reviews by multiple departments and agencies.
Do not expect “walk-in, same-day permits,” only a limited number of simple permits are likely to be issued over the counter, just like they are today. The physical location of staff is not the primary cause of permit delays. All projects are referred electronically these days.
Supervisor Bohn was spot on when he questioned whether the County should acquire another large facility when existing properties already face deferred maintenance issues.
Every dollar spent on acquisition and renovation is a dollar unavailable for:
· Road maintenance
· Public safety
· Parks
· Homelessness programs
· Deferred building maintenance
· Technology upgrades
· Additional permit-review staff
Purchasing the former Kmart building means the County is committing at least $5.75 million—and likely substantially more after renovations—to a project that may not materially accelerate permit processing while facing a projected $12 million deficit. I truly believe Permits will not be processed any faster. Given the County’s current financial situation, purchasing the Kmart building at a time when core services remain under financial pressure is pure CRAZINESS and financial irresponsibility.
As a county facing insolvency, how is this a good idea? Guaranteed this will end up falling through or the county will buy it and then never set anything up inside due to no funds to update the building to code. Once again Humboldt County shows how fiscally inept they are. Btw the county audit reports are still not publicly available, so I doubt they are actually all caught up. Can’t wait for this county to be dissolved and divided between Trinity, Del Norte, and Mendocino. It’s insane how those three counties are run by more competent people than the retarded, nepotistic idiots leading and working in Humboldt County.
Humboldt county supes deciding that a 6 million dollar analog paperweight is a good purchase in the rapidly exploding digital age is peak stupidity. 🤦♂️
Kind of ridiculous considering how much unpermitted and illegal work that has happened here. We need to go after the law breakers and get our money. We could probably build a brand new building if we took care of our unlicensed contractor problem.
Lots of different people see this as a foolish acquisition. So my question would be…Who profits? Follow the money. If the county is making a seemingly foolish move then who is making the money behind the scenes? And who are they potentially influencing? Yes- conspiracy theory but sometimes that IS what is going on…lots of money going on but not benefits for us as county taxpayers…hmmm….
Supervisor Natalie Arroyo supported the buy, saying developing the complex “has the potential to save us money” and allow more space for departments that need it.
This article doesn’t really get into those details– not that I would expect that. Nor would I expect most people to be able to read and comprehend such complicated financial data.
But I would caution against basing too much upon your observation that Lots of different people see this as a foolish acquisition.
Lots of different people seem to have no problem forming a belief without understanding, or even caring about, all the facts.
So… Humboldt County is paying $750K (or so) for leases on County Offices ?
(This is ‘grossly’ assuming a 10 year payback.)
Wonder where they are ?
The county of Humboldt plans on irresponsibly dumping additional remodeling investment money into the old Kmart building for the next 5-6 years, (while it remains totally unoccupied), at an unknown exorbitant additional cost for renovations, before any county leases elsewhere can even be ceased, moved out of, and/or discontinued, and before any county services are rendered at the eventually remodeled old Kmart building
whatsoever…
So, add that into the ”How many years before we break even?” equation…
And as Rex Bohn already pointed out…
Don’t forget about the maintenance…
Like many wants from motorboats to house cleaning services, it’s not that there isn’t a potential good use for this piece of property. There likely is. The problem is that it takes money needed for more basic government service that they aren’t covering now. The problem is they don’t have the money to take from other needs to simply buy it much less rehab it. They can’t afford it. The common delusion of spending your way out of insolvency has taken hold.
Rex is right. Waste of money we don’t have right now. A great future spot for housing. Once the current housing projects are complete(with no parking) this site will prove invaluable. Not only housing, but room for parking and space for farmers market,or community events,or food gardens. The good old boys in Eureka worst nightmare.
Yea great place for a farmers market or community event 😂😂😂beautiful neighborhood there. Bring a knife or bear made. Better