County revives Kmart site plan for Eureka permitting center

The county’s long-promised permitting hub is back on the old Kmart site at 4325 Broadway after Walmart backed out of its plan to buy the property, reopening a fight over one of south Eureka’s biggest commercial parcels. The Eureka Planning Commission is being asked to grant General Plan Conformance Review for the county’s proposed purchase of the 7.99-acre site, a step that would let Humboldt County move ahead with a One-Stop Permitting Facility at a property once slated to change hands for $5.75 million.

The site’s owner, McNellis Partners, had previously lined up interest from Tractor Supply Company, Alder Grove Charter School, the County of Humboldt and then Walmart. When the county’s deal collapsed, city and county leaders shifted their attention to the old Sears building at Bayshore Mall, but Walmart’s withdrawal has pushed the county back to its original target. City Manager Miles Slattery confirmed Walmart pulled out, and the county is again asking Eureka planners to bless the former Kmart use as consistent with the city’s General Plan.

For county staff, the appeal is practical as much as political. The One-Stop Permitting Facility would consolidate three permitting offices in one place, with the county saying it would improve service delivery and cut long-term leasing costs. That matters in a county where Planning and Building reduced in-person counter hours effective July 1, 2024, and walk-in service is closed on Fridays. The county first floated the same Kmart site for a one-stop-style campus back in 2017, when officials talked about bringing Planning and Building, Public Works and Environmental Health together under one roof. The 2020 Facilities Master Plan now identifies the facility as the county’s top priority.

The building itself already looks the part of a government campus. The former Kmart parcel includes a 54,184-square-foot building, a 4,800-square-foot patio, a 1,700-square-foot garden shop, a 237-space parking lot and a 20.5-foot pole sign. The property was most recently used by Papa & Barkley for cannabis product manufacturing. About 4.9 acres sit in Eureka’s inland zone and about 3.1 acres fall in the coastal zone, which means any future work on the coastal portion could require a Coastal Development Permit. Under California Government Code section 65402, the Planning Commission’s review is advisory and non-binding.

The Kmart site’s return also keeps pressure on Bayshore Mall, where the county’s fallback option was the vacant former Sears store. County staff said that space offers about 87,000 square feet of usable indoor room and more than 400 parking stalls, but city leaders worried about losing retail and tax base from the mall. That concern has only sharpened as Bayshore Mall, operated by Bay Shore Mall Partners, LP, was described as carrying nearly $39 million in debts and moving toward foreclosure-related sale proceedings this spring. Slattery has also said Home Depot discussed a possible large-format location with the city for well over a year.

The Planning Commission’s docket shows how much is at stake on south Broadway and beyond. Along with the county’s permitting center proposal, commissioners are also set to consider The Krazy Baker at the old Gallagher’s Restaurant site and a possible alley naming for artist Duane Flatmo. But the bigger question remains the same: whether a former big-box store should become a government service hub, or stay in the retail orbit that Eureka says it still needs.