Tumwater in Negotiations with Heidgerken to Obtain Old Brewhouse Tower

Above: The historic Old Brewhouse in Tumwater as viewed from the former keghouse in October 2014. The City of Tumwater is seeking public comment on a final environmental impact statement for a planned land use action for the 32 acre property owned by George Heidgerken. The city is also in negotiations with Heidgerken to obtain the 110 year old, six story tower. 

Planned Action Conversations Continue, Another Public Hearing to be Scheduled Soon

By Janine Gates

www.janineslittlehollywood.blogspot.com

After a lengthy conversation at their Tuesday night work session, Tumwater city councilmembers agreed to hold another public hearing on the planned action land use ordinance for the historic Old Brewery area.

The hearing will be scheduled soon, and no decisions about the property will be made at their next council meeting.

City administrator John Doan also acknowledged that the city is indeed in negotiations with Old Brewhouse owner George Heidgerken about the historic, six story tower.

Doan said that it makes economic sense for Heidgerken to give up the tower because it is in the worst shape with the least amount of square footage of any building on the property.  

“If we acquired it somehow, how much would that cost? (For Heidgerken) to develop, it doesn’t have a lot of value. It’s in a tough spot…it’s an expensive building…with not a lot of return. There are certainly a lot of business reasons why he would want to turn that over to the city,” said Doan.

Doan suggested that the council create a developer’s agreement that would clarify the parameters of the arrangement. That agreement would most likely look like a deed to transfer ownership and some piece of land in the form of an easement so the property could be accessed.  

If obtained by the city, Doan said, the tower could be the impetus for obtaining state grants and future fundraising opportunities to restore the tower, independent of what Heidgerken does with the rest of the property. 

Doan later told Little Hollywood that he hopes to have an agreement with Heidgerken within a couple of months.

Councilmembers agreed to hold a public hearing about the city’s possible acquisition of the tower separate from a public hearing on the proposed planned action land use ordinance.

“It would be a big step for the city. The desire to acquire (the tower) is an opportunity again at long last. There would be a lot of good to have people comment on it,” said Councilmember Tom Oliva. Oliva is a co-founder of the Old Brewhouse Foundation, a local nonprofit formed in 2008 that seeks to acquire, restore and provide public use of the tower.

At a February 16 public hearing about the proposed planned action land use ordinance, Heidgerken dangled the possibility of donating the tower in front of the council, which gave the appearance that he was doing so in exchange for the council’s approval of his desired full build out land use scenario for the 32 acre property.

Public comments since the hearing have urged the city to secure a commitment from Heidgerken in writing first, then move forward with a land use decision, if what he was offering was a legitimate option.

Above: The 400 page Final Environmental Impact Statement (FEIS) for the proposed planned action land use ordinance for the Old Brewery property welcomed each councilmember at their work session meeting on Tuesday.

New Information about Planned Action

Staff also came prepared for Tuesday's work session with a new, draft 10 page supplement to the 400 page Final Environmental Impact Statement (FEIS) for the proposed planned action land use ordinance.

The document called Exhibit C clarifies the scope of what the planned action is approving and made the restoration and preservation of the existing historic structures along the Deschutes River as part of the plan. 

Councilmembers Joan Cathey and Nicole Hill in particular asked many questions about the implications of a planned action, and requested that a developer’s agreement be written that would ensure that some kind of phasing process would prioritize public amenities, should the developer bail on the project.

Councilmember Hill said she still had a hard time grasping the fact that the property owner could rearrange the proposed uses for the property within the footprint allowed. She suggested that parking be placed up near the RST Cellars Building.

Doan admitted that the proposed 1,000 vehicle parking garage where it is currently proposed in the hillside would obstruct views to and from the historic Schmidt House and that its environmental impact that has not yet been assessed.

Doan also said that it is always a possibility that a developer could bail mid-way through a project but expressed confidence in Heidgerken.

“I think if he gets started down there, that he’ll finish….”

Councilmember Cathey said she is uncomfortable approving the project up front without knowing the full description.

Councilmember Debbie Sullivan said she sensed fear and anxiety by fellow councilmembers that she couldn’t grasp.

“When we get into these processes, there are no absolutes. I think there’s checks and balances in the whole process...I don’t think it’s going to be an out of control project. Are we ever going to be able to control 100 percent of everything? I don’t think so,” said Sullivan.

She said the conversation would be different if councilmembers were talking about the modern brewery properties, which was how it was originally envisioned. Sullivan said she is looking at this project holistically as an opportunity for making Tumwater more economically attractive to investors.

Councilmember Hill responded that she didn’t think she was commenting out of fear, but was responding to all the public comment and trying to ask appropriate questions. 

Councilmember Cathey responded that she too didn’t feel fearful, but felt profoundly protective of the culturally and environmentally sensitive property.

Mayor Pete Kmet acknowledged it was a challenging project and said that to make the area work, a residential component is needed. Since the construction of a new building was nixed by staff as unfeasible, Kmet suggested that a part of the warehouse could be “torn off” to create condominiums.

“…We already know through the marketing analysis that this is a challenging project. To do anything down there will cost a lot of money and anything we can do to streamline that is going to increase the chances that something will actually happen to preserve it….If we end up being successful in acquiring the tower, having this (planned action) done allows us to move ahead with preservation. If we don’t, we’re back to square zero and doing this process again….” said Kmet.

For more photos and many past articles about the Old Brewery, George Heidgerken, the stop work order imposed upon Heidgerken for environmental violations at the site in October 2014, groundwater monitoring, the Old Brewhouse Foundation, historic preservation, and the planned action land use alternatives currently before the Tumwater city council, go to Little Hollywood, www.janineslittlehollywood.blogspot.com and type key words in the search button.

For more information about the Final Environmental Impact Statement and Exhibit C, Supplement to Tumwater Brewery Planned Action, or to provide public comment, contact Chris Carlson, Permit Manager, City of Tumwater, 555 Israel Road SW, Tumwater, (360) 754-4180, ccarlson@ci.tumwater.wa.us, or City of Tumwater councilmembers at council@ci.tumwater.wa.us

Tumwater Seeks Public Comment on Old Brewery Proposed Development

 

Above: The Old Brewery in Tumwater and the Deschutes River as seen today.

By Janine Unsoeld
www.janineslittlehollywood.blogspot.com

The City of Tumwater is in the process of preparing an environmental impact statement (EIS) for the proposed redevelopment of an area that includes the Old Brewhouse.

The city has determined this redevelopment is likely to have a significant adverse impact on the environment.

The site is bounded by Custer Way to the south, the Deschutes River to the west, Capitol Lake to the north and the railroad to the east.

All comments to the city are due no later than October 20, 2014 by 5:00 p.m.

Comments on alternatives, mitigation measures, probable significant adverse impacts, and licenses or other approvals that may be required may be directed to: Tim Smith, AICP, City of Tumwater Planning Manager, 555 Israel Road SW, Tumwater, WA 98501; tsmith@ci.tumwater.wa.us or (360) 754-4212. 

In comments, refer to case TUM-14-0741. Be clear and concise and if possible, identify possible solutions. For a full description of the plans and proposed alternatives, contact the City of Tumwater.

The city was recently awarded a planning grant from the Community Economic Revitalization Board (CERB) to review the potential for public/private partnerships as the site redevelops.  

“According to the grant, we have to be done by June 2015, but we’re targeting a deadline in spring, and hope to have an open house for the public to review the draft EIS by the early part of next year,” said Tim Smith, City of Tumwater planner, earlier this week.

Owner’s Old Brewery Vision

The Old Brewery site owner, George Heidgerken, proposes to make the site into a hotel, restaurants, office space, retail, and a craft brewing and distilling center. Heidgerken bought the 22 acre property about four years ago for $1.5 million. His property also includes land on the Tumwater Historical Park side of the river.

Heidgerken has suggested building a walkway bridge across the river into the park. Currently, the only access road down to the property is a gated, narrow one lane road off of Custer Way.

Similar examples of his vision include worldwide destinations, and, closer to home, Spokane’s Riverfront Park with its historic Flour Mill, an area that contains a host of shops, restaurants, sights and activities for tourists and locals alike.  

Old Brewery owner George Heidgerken will speak about his plans in a presentation on Thursday, October 16, 12:00 – 1:00 p.m. at The Schmidt House, 330 Schmidt Place, Tumwater.  Doors open at 11:30 p.m. The event is open to the public. 

Above: The warehouse portion of the brewery has been significantly renovated. The extraordinary space has two floors, totaling about 36,000 square feet.

City of Tumwater – A City Divided

As I-5 cuts through the City of Tumwater, so are the city’s roles and responsibilities divided.

While the city is the lead agency in charge of determining the significant impact a redevelopment of the area would have on the environment, it is also a full partner in working with the current owner to redevelop the site into a craft brewing and distilling center.

A formal letter of mutual public/private partnership was signed in May by eight local organizations and their leaders expressly mentioning this as the primary purpose for their partnership.

The letter is signed by Old Brewery owner George Heidgerken, as president of Falls Development, and leading representatives of the Thurston County Economic Development Council, the Olympia Tumwater Foundation, the Port of Olympia, Washington State University Extension, South Puget Sound Community College, the Washington State University School of Food Science and the City of Tumwater.

No tribal, county, or City of Olympia organizations or representatives are listed as partners.

Additionally, according to the October newsletter of the Old Brewhouse Foundation, the city issued a contract in mid-September with a team led by an architectural firm to do a feasibility study on the craft brewing and distilling center goal. Part of their goal is to consider how the main Old Brewery tower can be purchased from its current owner.

The team’s report is expected to be presented to the city in January 2015. The Foundation says it will be “…monitoring the progress of this study and continue to encourage incorporation of a museum, beer-making demonstration opportunities and public gathering spaces as part of the project.”

The mission of the Old Brewhouse Foundation,  an organization created in 2008, is to facilitate development of a plan for acquisition,  restoration and public utilization of the Old Brew house area.

State Environmental Review Process

The City of Tumwater was awarded a grant from the Washington State Department of Ecology to assist with conducting an environmental review of the former brewery area.

The planned action environmental impact statement allows a project-level environmental review under the State Environmental Policy Act (SEPA) to proceed in advance of project permit application(s) within the planning area.

It will describe a range of development alternatives, evaluate the potential impacts of these scenarios, and identify required mitigation measures to reduce or eliminate significant adverse impacts.

Following its completion and the city’s adoption of a planned action ordinance, a specific development proposal can move forward without further environmental review provided the proposed development is consistent with the EIS and within the range of impacts that have been addressed.

Above: Construction equipment and maintenance debris was seen around the Old Brewery building earlier this week. Multiple areas with black tubing were seen in place trying to divert the water. The hillside is where a multiple story proposed parking garage would be in Alternatives 2 and 3. Tumwater planner Tim Smith said artesian springs are in the hillside and a 1000 stall parking garage as proposed in Alternative 3 would be about five to nine stories.

According to Chris Carlson, permit manager for the City of Tumwater, the concrete moats around the building are original to the building, to contain and divert water into a cistern, or large storage tanks, located under the building. This water was used in the brewing process.

Brewery District Vision

Through the Brewery District planning and visioning projects that have been conducted to date, the community has articulated a desire to make the brewery district a vibrant mixed-use destination.  

According to the City of Tumwater website, redevelopment of the historic brewery site has numerous public benefits. These include recreational opportunities and an expanded and integrated trail network. 

It also states that renovation of the historic tower represents civic pride in the brewery site and a successful redevelopment process retaining the architectural and aesthetic elements of the buildings are valuable for the site as living history. 

Potential areas to be considered in the environmental impact study includes: earth (a geotechnical analysis will be prepared), water (wetlands and shorelines), plants and animals; environmental health (former site contamination and hazardous materials); land use; historic and cultural resources; transportation, circulation and parking; public utilities; public services; economy, and a community policy analysis.

Washington Administrative Code 197-11-444 lists elements of the environment that could be considered.

Upper Picture: City of Tumwater planner Tim Smith provided a tour of the Old Brewery to a group of interested citizens earlier this week. When asked, Smith said the Old Brewery property was created on fill and the current parking lot is in a 100 year floodplain. He distributed a 1920’s era picture of the property, above, for reference.

 Proposed Alternatives

According to the City of Tumwater website, three build out alternatives will be analyzed for potential impacts over a 20-year planning horizon:

Alternative 1: No Action. The EIS is required to evaluate impacts associated with a No Action Alternative. For the purpose of the No Action Alternative in the Tumwater Brewery Planned Action EIS, it is assumed that development would occur within the site consistent with existing zoning. Any such development or redevelopment that is proposed within site in conjunction with the No Action Alternative would undergo environmental review on a project-by-project basis. Such projects would be subject to site-specific mitigation and potential SEPA-based appeals, without coverage under the non-project, Planned Action EIS process. Total lot coverage by existing buildings likely to be redeveloped is approximately 67,000 square feet (SF) with approximately 262,000 gross square feet (GSF) of buildable space. Alternative 2: Mixed-Use Redevelopment utilizing 493,500 GSF of space.

Alternative 2 is assumed to include redevelopment within existing buildings (262,000 GSF), a new parking structure (200,000 GSF) with approximately 625 stalls and rebuild two demolished structures (31,500 GSF). Prospective land uses would include: parking, office, retail, distillery, craft brewing, hotel, restaurant and a museum. Total lot coverage by buildings is approximately 140,000 SF. Improved vehicular access, pedestrian bridge over the Deschutes River, connecting trail system and boardwalk are also included in this alternative.

Alternative 3: Mixed-Use Redevelopment utilizing 763,500 GSF of space. Alternative 3 is assumed to include redevelopment within existing buildings (262,000 GSF), a new parking structure (320,000 GSF) with approximately 1,000 stalls, rebuild two demolished structures (31,500 GSF) and a new-build structure (150,000 GSF). Prospective land uses under Alternative 3 would be the same as those under Alternative 2, plus residential (apartments and condos). Total lot coverage by buildings is approximately 160,000 SF. Similar to Alternative 2, improved vehicular access, pedestrian bridge over the Deschutes River, connecting trail system and boardwalk are included in this alternative.

Above: The Old Brewery in Tumwater as seen on a tour earlier this week.

For more information about Tumwater's Brewery District Plan, go to the City of Tumwater's website at www.ci.tumwater.wa.us or see past articles at  www.janineslittlehollywood.blogspot.com and use the search button.

For more information about the Old Brewhouse Foundation, go to www.oldbrewhouse.org.