Eureka, California Development News
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Bellaco Foundation Donates $2.875 Million for New Homeless Shelter Project
The Eureka City Council approved the acceptance of a $2.875 million donation from the Bellaco Foundation to acquire and develop a 16 2nd Street property for interim housing. The project aims to create 40 units for individuals experiencing homelessness. The Betty Kwan Chin Foundation had previously purchased the property to secure it, and will now sell it to the city using the Bellaco Foundation's funds. The property will have a 50-year deed restriction ensuring its use for affordable/interim housing. The city will operate the shelter, providing supportive services through Uplift, similar to their Bayside Village program. This initiative is seen as a significant step in addressing homelessness in Eureka.
Eureka City Council Approves Nomination for Opportunity Zone 2.0 Designation
The Eureka City Council discussed and adopted a resolution supporting the nomination of several census tracts within the city for Opportunity Zone 2.0 designation. This federal program offers capital gains tax incentives to encourage private investment in low-income communities. The proposed tracts include areas in downtown, Old Town, the waterfront, parts of the Hinge area, and eastern Eureka. The state will nominate a selection of eligible tracts to the federal government, with final decisions announced later. This designation is a financial incentive layer and does not impact zoning or regulations.
Eureka Council Votes to Place 2% Transient Occupancy Tax Increase on Ballot
The Eureka City Council discussed a potential 2% increase to the city's Transient Occupancy Tax (TOT), which would raise it from 10% to 12%. Currently, the city generates approximately $3.7 million annually from TOT. Staff estimated a 2% increase could generate an additional $700,000 annually. The council heard significant opposition from hotel owners who argued that increasing the tax would deter tourists and harm local businesses, citing that Eureka would become one of the highest-taxed lodging markets in Northern California. Some council members proposed a phased approach, implementing a 1% increase initially and another 1% in a subsequent year. Ultimately, the council voted to approve placing the measure on the ballot for voter approval, with a motion passing 4-3, with amendments to spread the increase over two years.
City of Eureka Takes Over Management of Bayside Village Shelter, Shifts to Emergency Model
The Bayside Village emergency shelter, previously operated by the Betty Kwan Chin Foundation, is now being managed by the city of Eureka's staff since May 15th. The shelter's model has shifted from transitional housing to emergency shelter, allowing residents to maintain their chronic homelessness status, which is crucial for accessing permanent supportive housing programs. The city aims to get the shelter, which has 38 beds across 33 units, back to full capacity after necessary repairs. Services offered include mobile medical care and daily housing navigation. The city is committed to allowing residents to stay as long as needed to stabilize and transition to permanent housing.
Eureka Moves Forward with Housing Element Update, Aims to Plan for 1,740 New Units by 2035
The Eureka City Council was presented with an update on the city's Housing Element process, which is a state-mandated plan for addressing housing needs. The plan requires Eureka to accommodate 1,740 new housing units by 2035. Staff discussed outreach efforts, including an interactive online hub and community events, to gather public input. Key challenges identified include the city's developed urban fabric, reliance on non-vacant sites for development, and the state's limitation on parcels less than half an acre for lower-income housing. The council discussed potential strategies such as accessory dwelling units (ADUs), mixed-use zoning, small lot subdivisions, and adaptive reuse of commercial buildings. The discussion also touched on the mall property as a potential site for development and the need for increased homeownership opportunities. The council provided direction to staff on community engagement and site inventory considerations.
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