Thousand Oaks pivots from new city hall to hotel for downtown project

The city of Thousand Oaks abandoned its plan to construct a new city hall, opting instead to build a hotel in a major shift to its proposed downtown project.   Though the update, presented to the City Council June 24 and May 20, may have seemed sudden to the public, city officials said the idea of a hotel near the existing city hall dates back to the 1987 Civic Arts Master Plan. Four decades later, it is nearing reality.  

The proposed hotel in downtown Thousand Oaks would likely be six stories and 147 rooms.

“With this downtown plan, I believe we’re finally building that place ... that keeps our kids here, that attracts young professionals and that gives families a reason to spend time in their own city,” Councilmember Mikey Taylor, a member of the project’s ad hoc committee, said by email. “We have a rare chance to shape not just the look of Thousand Oaks but its identity for the next generation.”  

The initial concept

The process to create a vibrant, walkable 100 acres began in June 2018, when the council adopted the Downtown Core Master Plan.  

The area was to be centered around a newly created Main Street south of Thousand Oaks Boulevard, lined with buildings featuring businesses on the ground floor and housing above.  

Estimated at nearly $125 million, the initial concept included construction of a new, $50 million city hall at the intersection of Dallas Drive and Main Street.   

The existing city hall, built in 1994 along with the Scherr Forum Theatre and Fred Kavli Theatre at the Civic Arts Plaza, was to be converted into retail and office space.  

The project also featured about 10 gathering spaces, including an outdoor public market.  

Pivoting to hospitality

In recent months, the ad hoc committee decided to replace the concept of the new city hall with a hotel.  

Taylor and Deputy City Manager Akbar Alikhan said the decision ultimately came down to dollars. Constructing a new city hall would have been costly and would not have enabled the project to sustain itself economically long term.  

“A standalone city hall was cost prohibitive and didn’t offer the same level of return or community benefit,” Taylor said. “This project will complement the investments taxpayers already made in our two performing arts venues by bringing more visitors, driving revenue to surrounding businesses and enhancing the vibrancy of our downtown."  

The average tourist, staff said, spends more than double the amount of the average resident, as they are more reliant on nearby restaurants, retail and entertainment.   

The proposed hotel would be six stories and 147 rooms, Alikhan said. The city plans to issue a request for proposals next summer to identify the most suitable development partner, which would be responsible for construction and operation costs.   

Other changes

The east portion of the existing city hall at 2100 Thousand Oaks Blvd. is set to be demolished and then reconstructed with an additional fourth floor.  

The renovated building is designed to be easier to navigate for residents. It will feature condensed staff offices, a new council chamber and a centralized public services counter.  

There will also be multi-use event space, library outpost and rooftop terrace. The public market will now be indoors, with food vendors on the first floor and local businesses and arts incubators on the second.  

Other recent changes to the project include the addition of a town square and standalone restaurant and the reconfiguration of a stormwater culvert to increase the number of housing units in the four mixed-use buildings. At least 15% of the units must be affordable.  

Positive feedback

Though Alikhan said the city did not receive any feedback during the five workshops opposing the construction of a new city hall, he and Taylor agreed that community input played a vital role.  

“As the plan evolved, residents helped shape key changes,” Taylor said, referencing the indoor public market. “These refinements came directly from community priorities and reflect our commitment to creating a downtown that works for everyone.”   

The response to the changes, they said, has been positive, especially because of the promised economic viability.  Danielle Borja, president and CEO of the Greater Conejo Valley Chamber of Commerce, said the organization and many of the local business owners it serves are supportive of how the project has shifted.   

“It’s a positive thing that we’ve seen changes because it means the city is listening to what residents and businesses are wanting,” she said. “We needed to be flexible along the way to ensure the project is going to be feasible from an economic standpoint.”  

She said a hotel is key to any downtown and will provide a built-in customer base for the surrounding small businesses along with the additional housing units. The relocation of the public market will also boost the businesses. 

Lining up the finances

The estimate for the city’s investment in the project has now increased to roughly $150 million, Alikhan said.   

The city has already set aside $40 million for the project.  

Remaining constructions costs could be paid for through additional reserve allocations, surplus land sales, one-time grants, leases from the new city hall tenants, a lease revenue bond and tax revenue from private developments.   

The city will not increase property or sales taxes to cover costs, Taylor said.  

"This project is about making smart use of an underutilized public asset to generate long-term economic development— not creating new financial burdens for the community,” he said.

Staff anticipates the private investment in the mixed-use buildings and the hotel to be at least $200 million.  

Halla Maher, east county vice chair of the Ventura County Taxpayers Association, said the agency is pleased that no taxpayer funds will be used for the proposed hotel.  

“VCTA supports the Thousand Oaks City Council’s decision to move forward with the hotel project,” she wrote in a text.  

The private investment will increase area property values and property tax revenue while generating new jobs, she said. 

Next steps

On July 8, the council is expected to declare several portions of the downtown area surplus land.   

The environmental review is expected to begin soon thereafter and will take at least six months to complete.  

Public hearings will be held in May 2026 for the Planning Commission and the following month for the City Council, and there will continue to be public engagement throughout, staff said.   

Makena Huey is an investigative and watchdog reporter for the Ventura County Star. Reach her at [email protected]. This story was made possible by a grant from the Ventura County Community Foundation's Fund to Support Local Journalism.