As the Mill Pond development is now well into its second stage, Astoria’s plans to further improve its eastern entrance are also moving forward.

Astoria City Manager Dan Bartlett said the houses being built on the property located on Marine Drive between the end of Commercial Street and 29th Street is an excellent example of how properties can be changed to fufill a new purpose.

With water on three sides and steep hills on the fourth, Bartlett said Astoria is “probably the original urban growth boundary city” and this has forced it to be creative when it comes to land use and development.

When Astoria Plywood Co. went bankrupt in 1991 the city was left with a 10-acres parcel that was also one of the most environmentally damaged in the state after four decades of heavy industrial use. Yet following an intensive clean-up effort, Mill Pond Village is now the future spot of upscale homes with Columbia river views built on lots costing $32,500 to $90,000.

That change is illustrative of what city planners are hoping will take root in other areas on the eastern edge of town as part of the Astoria Gateway Master Plan that was created in April 1997.

“We think it’s fitting in great,” Bartlett said. “We think that it gives the Gateway a real lift … the whole Gateway planning area is coming together at least in appearance and the vitality has improved.”

Bartlett points to the new Mexican restaurant and the demolition of a dilapidated building in the area as other signs the neighborhood is changing for the positive.

Development enters second phase

Venerable Properties, based in Portland, is developing Mill Pond Village, and its president, Art DeMuro, said he’s pleased at the interest the area is receiving from potential buyers.

Of the lots laid out in the first stage of construction, about 10 percent have been purchased so far, he said. Most of the lots are about 2,500 square feet on average and range in price depending on their location. The most expensive at $90,000 is on the northeast corner of the pond with a prime view of the river and Astoria Bridge.

By the time the development is completed, DeMuro said he expects to see 85 single family homes with four commercial or mixed-use buildings built.

One of those commercial buildings will likely be the new headquarters of Wauna Federal Credit Union.

Wauna CEO Dave Baggett said his company “continues to be committed to developing” at the Mill Pond site, it just needs to receive the go-ahead from the National Credit Union Administration. The NCUA is waiting for Wauna to demonstrate that no more than 5 percent of its total assets were “fixed” or nonearning before building the new headquarters.

In October, Wauna went before the city’s Design Review Committee to extend its permit from the city for construction until it gets approval from the NCUA. Baggett said the credit union is hoping to know by spring when it can establish a timeline for construction.

In addition to the Wauna property, DeMuro said there has been a taker for another commercial development on the site. “I’m pretty pleased with that,” he said.

That new commercial project is with the Bellevue, Wash.-based developer Shelter Resources Inc. for a 3 1/2-story building with 40 single family units, mainly geared for senior citizens. DeMuro said he believed each unit would be about 700 to 800 square feet.

More such projects?

While Bartlett said the city is pleased with what has been accomplished at the Mill Pond development, he said that is not necessarily what people should expect the future of Astoria to resemble.

“We want a mix of housing opportunities, and that whole development is supposed to be one type of a neighborhood,” he said.

With its mix of houses, condos and commercial buildings Bartlett said the Mill Pond Village is its own “microcosm” which is a nice addition to the city but not something that should replace Astoria’s historic neighborhoods.

But while that type of development may not be expected all over Astoria, Bartlett said it’s quite possible that there will be more examples of land being converted to other uses.

“We’re evaluating other city-owned parcels that maybe will be transferred for development,” he said.

One may be the former Pacific Power gasification plant property on Youngs Bay. He said the city is seeking funding from the Environmental Protection Agency to begin work on reconverting it for some type of commercial development.

The property was used for decades for manufacturing heating gas, electricity and as a service dispatch center. The cost for treating that property for residential use is prohibitive, because of the high level of pollutants.

Bartlett said the city would also like to see more businesses come to Astoria.

“To turn it into housing would be a monumental expense, but we’re also short of industrial land in the city,” he said.