Astoria leaders find cash to boost Fort George, Red Building

Published 5:00 pm Monday, June 7, 2010

Two Astoria businesses that are located in urban renewal districts will receive financial help in the form of loans and grants approved by the Astoria Development Commission after a lengthy executive session Monday.

Fort George Brewery and Public House at 1483 Duane St. in the Astor East Urban Renewal District, owned by Chris Nemlowill and Jack Harris, will receive a $30,000 grant and a loan of $122,000 from urban renewal funds.

The Red Building, at 20 Basin St. in the Astor West Urban Renewal District, will receive a $350,000 loan and a $325,000 grant from urban renewal funds. The building is owned by Mark Cary and Shawn Helligso of Union Fish Properties LLC.

After the executive session, the members of the ADC, who are the members of the Astoria City Council, reconvened in public session to hear reports from Community Development Director Brett Estes and to discuss and vote on the items.

The vote on the Fort George grant and loan was 4-1, with Mayor Willis Van Dusen and councilors Arline LaMear, Blair Henningsgaard and Russ Warr in favor and Councilor Peter Roscoe opposed. The vote on the Red Building was 4-0 in favor, with Henningsgaard recusing himself because he represents one of the parties involved in the financing arrangements.

Calling Fort George a catalyst for redevelopment of the east side of Astoria’s downtown, Estes said $20,000 of the Fort George grant will be used for repairing and repainting the exterior of the Fort George building, and the rest will go toward removing the big rental car sign and trailer across the street on the north side of Duane Street. The business is also expanding into the old Lovell Auto building at 14th and Duane streets and expanding its brewery, which will eventually provide the equivalent of eight to 10 fulltime jobs.

City Manager Paul Benoit said Nemlowill and Harris are taking buildings that have been vacant for a long time and making a significant upgrade that is key to revitalizing that area.

On the other side of town, the Red Building is helping to meet Astoria’s need for a large meeting space by rehabilitating the Loft on the second floor. Estes said one of the main reasons the Astor West Urban Renewal District was created was to develop a convention center, but that never occurred. He said the URD is working with Cary and Helligso of Union Fish to assure that the Loft remains as a community asset. “We have an interest in preserving that amenity,” Estes said.

Estes explained that John Berdes of ShoreBank Enterprise Cascadia assisted the city in structuring the finance plan for the Red Building. “John Berdes is an incredible resource. He has been a great partner,” Estes said.

Before turning to ADC matters Monday, the Astoria City Council held a public hearing on the city’s budget for fiscal year 2010-2011, which begins July 1. The budget, which preserves a beginning cash balance of around $1.5 million, is based on projected resources of $8.8 million for the city’s general fund. Benoit said budget adjustments during the current fiscal year, including a decision to end an annual subsidy to the Astoria Aquatic Center, a transition to a different medical insurance plan, a wage freeze and a reduction in the number of city employees, helped stabilize the budget during a difficult economic period.

The only testimony during the hearing was from Astoria resident Don Webb, who said there should be more of a turnover in the membership of the budget committee, which he characterized as a “rubber stamp.” Some of the members have “been there for ages,” he said. The City Council is expected to adopt the 2010-2011 budget at its next meeting.

The Council meeting began with Van Dusen reading a proclamation that declared the Goonies movie an “official treasure” and made June 7 officially “Goonies Day” in Astoria.

The Council also heard an hour-long presentation from historian Rex Ziak on John Jacob Astor and the founding of Astoria. And the Council voted to change the date of the first meeting in July to Tuesday, July 6.

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