Nevada County approves exclusive option to buy Stagecoach Hotel for possible Homekey conversion

Nevada County supervisors on June 3 approved an exclusive option and right to purchase the Stagecoach Hotel at 405 South Auburn Street, authorizing the county chair to execute the agreement if the county’s Homekey grant application is successful.

The county authorized the Health and Human Services Agency to seek up to $8 million in Homekey funding to buy and rehabilitate the hotel, with 10 units reserved for veterans and additional units for permanent supportive housing, Tyler Barrington, interim director of planning, told the board.

Why it matters: The Homekey program provides one-time funding for acquisition and conversion of existing properties into permanent supportive housing. Using an option agreement allows the county to hold the property while the grant is decided without obligating it to purchase if the grant is not awarded.

What the board approved: Supervisors approved a resolution granting the county exclusive option rights to purchase the property and authorized the chair to execute the option agreement, conditioned on receipt of Homekey funds. Barrington said the county previously adopted Resolution 25-165 on May 13, which authorized Health and Human Services to submit the Homekey application for up to $8 million. He described the current item as “an option and exclusive rights to purchase the hotel” and said the purchase is contingent on grant approval.

Public reaction and board discussion: Public commenters raised concerns about long-term hotel conversions reducing visitor lodging and the condition of the building. One caller described the Stagecoach as “in very poor condition” and questioned whether conversion projects the county has purchased previously had taken years to complete. Supporters and supervisors said placement near the Veterans Building and transit and services made the site appropriate for veterans and supportive housing. Supervisor Lisa Swartout noted Grass Valley city officials were supportive of the location. Supervisor Michael Taylor (public commenter earlier on the consent calendar) had asked for the item to be pulled from consent for public visibility; the board held public comment before voting.

Vote and next steps: The motion to approve the exclusive option passed unanimously. If Homekey funding is awarded, the county will proceed with purchase and then pursue the necessary rehabilitation and land-use approvals for permanent supportive housing. Barrington said the option does not require purchase and that the owner would not sell the hotel while the county holds the exclusive right.

What the county said about timelines and fiscal details: Barrington and other staff said the option is a holding step; costs beyond the grant were not specified at the hearing. The board will return to consider purchase and rehabilitation terms only if Homekey funds are awarded. The application authorized May 13 sought up to $8 million from Homekey for purchase and rehab.

Ending note: The board’s action preserves the county’s ability to pursue Homekey funding for a site near veteran services and downtown Grass Valley, while leaving purchase contingent on the grant award.