An eye on redevelopment in Kings Beach
February 14, 2018
A $3 million purchase agreement could pave the way for the first Kings Beach hotel to be built in years.
The Placer County Board of Supervisors unanimously approved the agreement with developer Kings Beach Center LLC at their meeting on Feb. 6. Kings Beach Center LLC is a joint venture between Craig Clark and Kalthia Group Hotels LLC.
The idea would be to redevelop the county's Kings Beach Center property in the Kings Beach town center. The 3.5-acre parcel is located at North Lake Boulevard and Salmon Avenue.
The negotiated development proposal includes a hotel with 80-150 rooms, 10-40 condominiums, 15,000 square feet of retail space, and 2,000 square feet of public use. A library is among the options considered for the space.
"Placer County has mad an enormous investment in Kings Beach with the Kings Beach Commercial Core Improvement Project, in hopes of attracting redevelopment projects of exactly this caliber," said Placer County District 2 Supervisor Robert Weygandt.
"I'm really looking forward to seeing a project proposal and continued accomplishments in Kings Beach."
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The property has long been eyed for redevelopment as a mixed-use project — something that was achieved through public outreach as part of the Tahoe Basin Area Plan. The plan was approved in 2016.
The Feb. 6 agreement does not complete the sale of the property, nor does it mean the project has been approved. But it does set the stage for its eventual sale, if the project receives formal approval from the board of supervisors.
Kings Beach Center LLC will be tasked with securing permits for the project, as well as environmental approvals. The environment approval process typically involves extensive public comment and review opportunities on the project's design, amenities, and impact.
Kings Beach Center LLC and Placer County would be jointly responsible for relocating tenants should the project be approved.
Placer County would also retain reversion rights to the property for three years after escrow closed. That would afford Placer County the opportunity to buy back the property for $3 million if a project has not been initiated by that time.
The agreement stems from the time Placer County started to solicit letters of interest to develop the property in April 2016, which resulted in two submittals. Neither of those submittals panned out.
Placer County then later contracted with the firm of Jones Lang and LaSalle to conduct a feasibility study for the best use of the property. That study confirmed the mixed-use hotel concept, and estimated the land value between $2.3 million and $3.5 million.
Placer County continued to solicit interest in redeveloping the property, but received nothing until an unsolicited bid was received from Clark in October 2017. That eventually resulted in the agreement approved on Feb. 5.
Placer County District 5 Supervisor Jennifer Montgomery was not present for the meeting because of illness.
Staff writer Wyatt Haupt Jr. can be reached at 530-550-2652 or via email at email@example.com.