To: Board of Supervisors
From: Public Works
Agenda Section: Public Hearing
Vote Requirement: Majority
SUBJECT:
title
Public Hearing for the Purchase of Real Property Located at 4325 Broadway Street, Eureka, California
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Open the public hearing; and
2. Close the public hearing; and
3. Approve and authorize the Humboldt County Public Works Director, or a designee thereof, to execute the attached real property purchase agreement regarding the real property located at 4325 Broadway Street, Eureka, California.
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STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
On Mar. 11, 2025, the Humboldt County Board of Supervisors authorized the Humboldt County Public Works Director, and designees thereof, to negotiate terms for the purchase of real property located at 4325 Broadway Street, Eureka with John McNellis, and any duly authorized agents thereof.
On Aug. 12, 2025, the Board met in closed session with the Director of Public Works, and any designee thereof, concerning the price and terms of payment for the real property located at 4325 Broadway Street, Eureka, California.
On Sept. 9, 2025, the Board approved the Notice of Intention to Purchase Real Property located at 4325 Broadway Street, Eureka, California. Subsequently, the Notice was published in the Times Standard once a week for three (3) successive weeks, on Sept. 16, 2025, Sept. 23, 2025, and Sept. 30, 2025, pursuant to California Government Code Section 6063.
The attached real property purchase agreement has been reviewed and approved by County of Humboldt staff, as well as the property owners, John McNellis and Partners. County staff have carefully evaluated the terms of the agreement and acknowledge that certain provisions are structured to favor the property owners. The conditions of the sale include a purchase price of Five Million Seven Hundred Thousand Dollars ($5,700,000.00) and an escrow period of 45 days. The deposit for the property is Sixty-Five Thousand Dollars ($65,000.00) which is due within three (3) days of executing the attached purchase agreement. The County of Humboldt will equally split all escrow fees and closing costs with the owner and will not pay the owner’s broker any commission or compensation.
This public hearing will give the public an opportunity to respond to the Notice of Intention to Purchase Real Property located at 4325 Broadway Street, Eureka, California with questions and concerns regarding the County of Humboldt’s intent to purchase the property. Upon completion of the public hearing, and if no objections from the Board of Supervisors as a result of the public hearing, staff is recommending the Board of Supervisors approve and authorize the Humboldt County Public Works Director, or designee thereof, to execute that attached real property purchase agreement regarding the real property located at 4325 Broadway Street, Eureka, California.
SOURCE OF FUNDING:
2020 Finance Plan
FINANCIAL IMPACT:
|
Expenditures (3562-170) |
FY25-26 Adopted |
|
Additional Appropriation Requested |
$5,750,000.00 |
|
Total Expenditures |
$5,750,000.00 |
|
Funding Sources (3562-170) |
FY25-26 Adopted |
|
2020 Finance Plan |
$5,750,000.00 |
|
Total Funding Sources |
$5,750,000.00 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
The estimated cost to acquire the real property located at 4325 Broadway Street, Eureka, California, is $5,750,000. This amount includes the purchase price of $5,700,000 with an additional $50,000 that includes the cost of the City of Eureka Conformance Review, publication costs and estimated future escrow/closing costs.
Future development costs would be contingent on other factors beyond the scope of this initial assessment. Staff will assess possible development options for the site and will return to your Board to review the financial impact of those options as soon as practicable. The Humboldt County Administrative Office has approved use of the 2020 Finance Plan funds in the amount of $5,750,000 for the purchase of real property located at 4325 Broadway Street, Eureka, California. A supplemental budget was approved on Sept. 9, 2025.
STAFFING IMPACT:
Narrative Explanation of Staffing Impact:
The proposed property acquisition itself will not impact staffing. Staffing impacts due to future design, construction and operation of a new One Stop Permitting Center will be addressed in subsequent agenda items.
OTHER AGENCY INVOLVEMENT:
City of Eureka
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to approve the attached real property purchase agreement regarding the real property located at 4325 Broadway Street, Eureka, California. However, this is not recommended as it does not support the goals of the County of Humboldt’s 2020 Facilities Master Plan.
ATTACHMENTS:
Attachment 1 - Notice of Intention to Purchase Real Property at 4325 Broadway Street, Eureka
Attachment 2 - Real Property Purchase Agreement for 4325 Broadway Street, Eureka
PREVIOUS ACTION/REFERRAL:
Meeting of: 3/11/25, 8/12/25, 9/9/25
File No.: 25-248, 25-928, 25-998