Tanasse Ends Olympia Mixed Use Project

Above: Citing cash constraints, John and Tiffany Tanasse have ended their effort to build their mixed use building on State Street near downtown Olympia. 

By Janine Unsoeld

www.janineslittlehollywood.blogspot.com

After years of planning and personal sacrifice, John and Tiffany Tanasse have ended their effort to build their mixed use building near downtown Olympia. 

Citing financial constraints, local chiropractor John Tanasse warns others in a similar situation to be prepared to bring a whole lot of cash to the table.

The project involved designers, architects, construction companies, city planning officials, and banking representatives. The Tanasse’s also surmounted the objections of the nearby historic Bigelow neighborhood association last October by prevailing in a hearing examiner case, which allowed the couple to build their modern design, urban living combination of home and business.

Bigelow neighborhood residents were upset with the building’s proposed design on the long vacant lot at 924 State Avenue, saying it was not in keeping with standards or the historic nature of the area.

State Street, however, is not part of the historic Bigelow neighborhood boundary. It is considered to be a high density corridor by both the City of Olympia and the Thurston Regional Planning Council.

On Saturday, the couple issued an open letter, reprinted below:

Hello Friends, Neighbors, and Community Members,

We are writing to let others know that we have decided not to build the Tanasse Mixed Use Building at 924 State Ave. 

We arrived at this decision with great difficulty given all of the challenges that we had previously overcome and all of the community support we have received. Ultimately, we embarked on this journey to simplify our lives and make a difference along the way. We have come to a point where the cost of the project makes simplifying very complex. Unfortunately, with all of the delays, we entered the perfect storm of a hot commercial construction market that has moved our project beyond our comfort zone, which was a moderate stretch from the outset.

We apologize that we were unable to finish what we started but hope we have sparked and added to the ongoing interest and conversation regarding a new way forward in Olympia.

We want to personally thank Gretchen Van Dusen, for her friendship and splendid design, Mike Swarthout of Kaufman Construction for his professionalism, Garner Miller of MSGS architects, Paul Strawn of Riley Jackson Real Estate, Catherine McCoy and entire team at the City of Olympia, Karen Messmer for her tireless quest to make Olympia a livable city for all, Duane Edwards, landscape architect, Kevin Ekar of Heritage Bank, Chuck Hoeschen of South Sound Bank, Nick Benzschawel of Washington Business Bank, and for all community members, for and against, who engaged in vigorous debate over this and city direction.

The road ahead has a positive plan B that will allow us to continue to thrive and provide excellent expanded chiropractic services in a new location, as we have long since outgrown our current location.

Thank you for understanding.

Sincerely,

John and Tiffany Tanasse

In an interview with Little Hollywood, John Tanasse described the frustrating experience and their final breaking point.

“Of course, we started the process with many conversations with our bank to explore our readiness as a business and as a borrower. We got the go ahead and commenced on a long journey of check boxes, some easy, and others quite difficult.

“Part of the puzzle included selling our personal residence, then selling a condo we had acquired for our parents, and then, finally, the sale of our office. And while the appeal delayed us a building season, to be fair, so did the sale of our office that did not sell until this past June.

“Meanwhile the building clock was ticking with the final details of the project and financial package coming together as expected, except for a moving budget target related to an increasingly tight commercial building market that saw enormous increases in materials and labor costs regionally.

“This squeezed us into a corner for a commitment that was ultimately beyond our break point. We were positioned to handle the increase, but it changed all available financing formulas for an odd ball building in terms of finding comparison sales to reasonably meet appraisal value, as no matches existed from here to Seattle.

“In other words, our building, having both owner occupied residential and business, failed to conform to the typical loan products available, leaving us in a position of needing to cash roll a much larger portion than we were prepared or willing to, compared to when we started….”

Tanasse said it was this need for cash that ultimately led them to reluctantly shut the project down. A bulldozer has been seen in recent weeks leveling the site, work which was dependent upon the dry season.

“….We were unable to see this coming. This should serve as a heads up to others interested in this…and for the city that has to incorporate more mixed use projects as a part of its comprehensive plan….There are severely limited bank products available to assist with this type of project,” said Tanasse.

Former Olympia city councilmember Karen Messmer, who stays active with city land use issues, is mentioned as a supporter in Tanasse’s letter.

“This project had the right elements for new development - housing above a business, on a transit corridor, close to downtown.  And, this is a well-respected locally owned business and a wonderful family. I am sad that the circumstances did not work out for this project to move forward,” said Messmer.

For more information about the Tanasse’s project, go to Little Hollywood, www.janineslittlehollywood.blogspot.com, and type key words into the search engine.

Above: The Tanasse property at 924 State Street today.

The Pet Works To Open in Downtown Olympia

 Above: The Pet Works is set to open in downtown Olympia in about a week or so. Potential customers have been stopping by in anticipation every day Little Hollywood has stopped by.

By Janine Unsoeld

www.janineslittlehollywood.blogspot.com

Rebecca and Eric Smith, owners of The Pet Works in Longview and Astoria, are excited to open a pet shop in downtown Olympia at 407 Fourth Avenue. The Pet Works staff has been busy stocking shelves and hiring employees, and is set to open any day now.

The store will be open at least six days a week, from about 9:00 a.m. - 7:00 p.m., with shorter hours on Sunday. “We're not sure yet what's appropriate for the area, but we'll figure it out soon,” said Eric Smith.

First reached in a telephone interview last November, Rebecca Smith had hopes of moving in by early December, but interior renovations to the historic railroad depot building have taken a little longer than expected.

The NW Cooperative Development Center (NWCDC) moved into a separate, upstairs space of new renovated offices yesterday. For more information about the NW Cooperative Development Center, see the October 17, 2013 story at Little Hollywood at www.janineslittlehollywood.blogspot.com

The building is next to the artesian well, which is being revitalized into an area with mobile food carts and restroom facilities. The Artesian Commons is scheduled to open in early May. During the project, access to the artesian well is available. 

The Pet Works store has seven new employees so far, and will continue hiring up into the 20 - 30 employee range.

While the Smith's will not be relocating to Olympia, they have hired a manager and employees to operate the Olympia business. Potential employees must have experience with dogs and other pets, be comfortable cleaning, feeding, and maintaining a healthy environment for pets, be a fast learner, have excellent customer service skills, genuinely love animals, must be able to lift 40 pounds, and have experience stocking and maintaining merchandise. Resumes may be sent to: petworksolympia@gmail.com.

Eric Smith adds, “We have a low employee turnover because we treat them right. Our manager at the Longview store has been with us for 10 - 12 years, and another employee has been with us over 20 years. At our Astoria store, most have been with us since we took it over in 2008.”

Above: Catnip and related products produced by From the Field in Rainier will be featured at The Pet Works in downtown Olympia. Little Hollywood knows of at least four cats who can't wait to try it! Meow!

The Pet Works Supports Local Businesses and the Environment

The Smith's are excited to have established firm relationships with several Thurston County and Western Washington area businesses.

“Our dog bones and treats are all made in Tumwater at Western Meats, our catnip and related products are brought to us by From the Field in Rainier, our dog wash tubs are made at Olympia Sheet Metal, and our nylon leashes and collars are from a business in Washougal called LoCatis. We've been dealing with that company (LoCatis) for about 30 years,” says Eric Smith.

“We're all about keeping as much money circulating in the Northwest. In fact, 100 percent of our business funding is through Thurston Bank. From the ground up, the whole project is geared toward keeping money in Olympia.”

Asked why they were interested in coming to downtown Olympia, Rebecca Smith said, “Our Longview store was established in 1975. We’re locally owned and operated. Then we opened an Astoria store in their downtown. We love it. It kind of fits with our whole vibe….We plan on being part of the community and all the improvements. I see downtown as being on the verge of something amazing.”

Rebecca Smith added, unasked, that the business does not use plastic bags, with a couple exceptions. “We've been supporting our local community from the beginning. We come from a logging community and we've used paper bags since 1975. We don't do plastic. The only thing we wish we could figure out is how to not bag our fish and crickets in plastic,” laughs Rebecca Smith.

Above: Rebecca Smith, center, checks a display with The Pet Works staff earlier today.

About the store inventory, Rebecca Smith said, “It’s very important to us to have no farm raised pets. Having USA made products is huge for us. We’re careful about what we sell. We’ll offer natural, organic foods made in the USA as much as possible, brands such as Fromm, Tuscan Natural, and Blue Buffalo.

“We’ll have animals for sale - no puppies or kittens - but we’ll have small animals like guinea pigs. The birds will be locally raised. We’ll have a large selection of fresh water and saltwater fish, and yes, we’ll have bunnies. We know where they come from.”

The Pet Works will also offer some turtles and reptiles. When asked, she said ferrets will not be offered. “They come from farms and they aren’t for everyone.”

Asked if the store will offer dog training classes, Smith said, “Maybe in the long term, but not in the short term. We will have grooming and self-service dog washes.” Smith said one current store manager relocated early to Olympia to find a dog groomer. ‘They’re hard to find!’”

“For us, customer service is huge, but we don’t want to ruin business for other independent, local businesses.”

The Smith's are aware that there are three pet shops in the area: Mud Bay in West Olympia on Harrison Avenue, PetCo, on Black Lake Boulevard, also in West Olympia, and PetSmart in Lacey.

“A man just stopped in this morning on his way to another pet store, wondering if we were open yet, saying that his pond fish got cleared out last night by a raccoon,” said Eric Smith.

Long Term Vision

Rebecca Smith has been a part of The Pet Works’ family for 15 years, starting with the original owners. She grew into managing the business for them, and in July of 2004, purchased the store to make a great life for her family. She has a blog that she maintains for the Longview and Astoria stores. Chances are, she'll start one for Olympia.

Asked if she’s concerned about the current difficulties facing downtown Olympia, Smith says, “We know how to do business in a downtown. In Longview, our business is next door to a historically known drug house. We’re not afraid of, or unfamiliar with, the situation.” And, she adds with a laugh, “Our manager comes from a background of security - he’s a big man.”

Asked if they were familiar with the Pet Parade celebration in downtown Olympia held every August for the last 85 years, the Smith's said they were not. But after hearing an enthusiastic description about it by Little Hollywood, they will no doubt be very involved.

Rebecca coordinates the Pug Parade in Longview and a pet fashion show in Astoria. It seems The Pet Works will fit right in.

Above: The artesian well saw non-stop business earlier this weekend, as it does everyday. In the background is the building now occupied by The Pet Works and the NW Cooperative Development Center. The NW Cooperative Development Center moved in yesterday.

For more information about the NW Cooperative Development Center, see the October 17, 2013 story at Little Hollywood at www.janineslittlehollywood.blogspot.com