Hotel is ‘best use’ for Kings Beach Center property, new study finds
Published on August 31, 2017
A mixed-use redevelopment of the Kings Beach Center property - which could feature a hotel, retail space and some residences - is confirmed to be the ‘highest and best use’ of the land, according to a new report by leading real estate services firm Jones Lang LaSalle.
Placer County commissioned the market study to determine the feasibility of the site’s proposed redevelopment potential. The county acquired the 3.5-acre property fronting state Route 28 in Kings Beach in 2014. The existing site is currently home to several businesses and a few rental residences.
Through more than a decade of community input around plans to revitalize downtown Kings Beach, the need for a mixed-use redevelopment emerged as a clear priority for the community, and achieving that has been the county’s goal in seeking a development partner.
A focus on sustainable redevelopment in Kings Beach’s downtown core is central to the county’s current land use plans governing North Lake Tahoe and the approximately $50 million Kings Beach Commercial Core Improvement Project, now in its last year of construction.
“This report validates that the vision Placer County has for redeveloping Kings Beach isn’t just what our community wants, it’s what makes the most business sense, too,” said Jennifer Merchant, deputy county executive officer for Lake Tahoe. “With the insights in the report, we can focus now on actively seeking a partner to help make it a reality as soon as possible.”
Last fall the county issued a request for interest for developers to submit project proposals for the Kings Beach Center and two other former redevelopment agency properties. While conversations with some parties continue, no proposals have been settled upon.
According to previous market studies, Kings Beach would benefit from as many as 200 additional hotel rooms. Under the concept recommended by the JLL report, the site could accommodate an estimated 100 hotel rooms, 15,000 square feet of retail space and 20 condominiums.
The Tahoe Basin Area Plan identifies the Kings Beach Center as one of the sites for future environmental redevelopment opportunities within the Kings Beach town center. As noted in the area plan, North Lake Tahoe’s town centers are “targeted for redevelopment in a manner that improves environmental conditions, creates a more sustainable and less auto-dependent development pattern and provides economic opportunities in the region.” A conceptual, mixed-use design for the Kings Beach Center was included in the environmental analysis for the area plan.
Placer County staff are developing a plan to market the property more broadly to real estate developers, with the plan expected to come before the county Board of Supervisors in the coming months.