Board to weigh talks on buying former Sears site in Eureka

A former Sears box at Bayshore Mall is about to become Humboldt County’s next major real-estate test, with supervisors set to consider whether to authorize negotiations for the 3300 Broadway Street property while the mall itself heads toward a trustee sale.

The item on the Tuesday, April 14 agenda would let the Public Works director and designees negotiate purchase terms with Bayshore Mall Partners, LP, and direct the clerk of the board to send a certified copy of the order to the county’s Real Property Division. County staff describe the site as a roughly two-acre parcel with more than 400 parking stalls and more than 87,000 square feet of usable interior space, built in 1987 as a Sears department store and attached to Bayshore Mall.

County planners say the property fits many of the needs for a proposed One Stop Permitting Center, the top priority in the 2020 Facilities Master Plan. That plan says permitting work now spread across Land Use, Planning and Building, and Environmental Health would be more efficient if those divisions were co-located on one campus or under one roof, a change officials say would improve public convenience and service delivery. The Sears site could also hold a Motor Pool and provide swing space for county programs.

The fiscal picture remains unresolved. The staff report does not set a purchase price, says the total acquisition cost is unknown, and notes that significant building improvements would likely be needed before the county could occupy the building. Those renovation costs were left outside the scope of Tuesday’s item, and the report does not spell out maintenance, security, or operating costs that could follow any purchase. Funding is described as available through the amended 2020 Finance Plan.

The timing is striking. SFGATE reported that Bayshore Mall is slated for a trustee sale on April 17 at the Humboldt County Courthouse and that the property carries nearly $39 million in debt. Eureka City Manager Miles Slattery called the situation “really weird” amid uncertainty over ownership, management, and creditor bids, and the mall has been managed by Spinoso Real Estate Group through receivership.

For Humboldt County, the question is whether a distressed retail property can be turned into a working public-service center without delaying other projects or locking taxpayers into a costly retrofit. Supervisors will begin confronting that question at 9 a.m. in chambers at the Humboldt County Courthouse, 825 Fifth Street in Eureka.