Tumwater Passes Brewery Property Ordinance

Above: The five story RST Cellars Building at 240 Custer Way is part of the planned action land use ordinance passed by the Tumwater City Council on Tuesday evening. Built over a period of years starting in 1966, the industrial building housed large beer cooling tanks and is not historic. It is located near the historic Schmidt House. In promotional materials, Falls Development has marketed it as a possible hotel with retail on the ground floor. Recently, it has been suggested as the location for a craft brewing and distillery center. It could also be a structured parking garage. Falls Development has said that the redevelopment of this building is one of its first priorities. Photo taken April 16, 2016.

By Janine Gates

www.janineslittlehollywood.blogspot.com

“We’re on our way, for better or worse,” said City of Tumwater Mayor Pete Kmet, after the Tumwater city council voted 5 – 2 on Tuesday evening in favor of a planned action land use ordinance that includes the site of the Old Brewhouse.

Councilmembers Ed Hildreth and Joan Cathey voted no.

The action concluded a lengthy public hearing and finalized a land use plan three years in the making for the 32 acre area currently owned by developer George Heidgerken and Falls Development LLC.  The area is roughly bounded by Custer Way to the south, the Deschutes River to the west, Capitol Lake to the north and the railroad to the east.

Out of three land use alternatives offered by the city, the modified ordinance was a compromise of sorts, landing somewhere between a do-nothing approach and a maximum redevelopment build out. 

The council did not give Heidgerken his desired full build-out, instead opting for an alternative that limits a new parking garage to 625 stalls. Parking for a new building, a residential component, would be within that garage.

It also limits any new building within the planned action area to a maximum elevation of 126 feet, which is the ground level in the immediate vicinity of the Schmidt House, to preserve views from the house.

Offering a flexible design, the types of development and square footage of new development may be shifted between land uses, but the total of new PM peak hour vehicle trips can not exceed 306 trips.

The planned action ordinance will be reviewed again in five years by the city’s State Environmental Policy Act official, at which time it could be amended.

On April 5, the City of Tumwater approved a letter of agreement between the city and Falls Development LLC to acquire the six story, historic tower. The acquisition would also include easements to access the property and construct trails.

The tower is currently owned by Heidgerken, who has not yet signed the letter of agreement. He has until April 30 to do so.

During public comment time on Tuesday evening, concern was expressed by a member of the public that Heidgerken may back out and not sign the agreement if the council did not give Heidgerken his desired full build out.

Anthony Hempsted, a new hire of Falls Development LLC, spoke to that concern, saying it has taken partnership and vision to get this far with the city.

“Clearly, the city and Falls Development are in a long term relationship….In no way, shape or form would we walk away from it,” said Hempsted about the letter of agreement.

He praised the council for a transparent website, saying he had reviewed videos of past meetings.  

Regarding the ordinance, he said that Falls Development does not think it is perfect and would have preferred a full build out and more parking, but is willing to work with the city in good faith and the ordinance as written.

He said Falls Development will work on the first phase as soon as possible, the RST Cellars building, saying it could be a great craft brewing and distillery center, and would be a natural catalyst for future development.

The second phase would be the historic site.

“We have not done extensive work on what that would look like in the future. Any development would have to fit within the guidelines of the Historic (Preservation) Commission and we will certainly not do anything to infringe upon the historic nature of the four buildings.…”

Redevelopment of the area includes preservation or restoration of the historic buildings within the planned action area, which are the Old Brewhouse, the east and west warehouses, and the keg house.

Several individuals spoke in support of the ordinance.

Michael Cade, executive director of the Thurston Economic Development Council, admitted this was not an easy site, but spoke in support of the planned action and mentioned other successful planned actions he’s been involved with such as the Southwest Everett Environmental Impact Area and the Bellingham Waterfront District.

Mariella Cummings, chair of the Thurston County Chamber of Commerce, also supported the ordinance, saying the Chamber recognizes the importance of the brewhouse property as a critical jewel in our community’s character. She commended the council, as did others, for the creative, deliberative, thoughtful approach the city has used to get this far in the process.

David Nicandri, a member of Tumwater’s Historic Preservation Committee, the group that will ultimately decide whether or not to issue Heidgerken the required Certificate of Appropriateness for his projects, if they are ever submitted, spoke in support of the planned action. Nicandri is also the former longtime director of the Washington State Historical Society.

Speaking at length as he did at the April 5 public hearing in support of the city’s acquisition of the historic tower, Nicandri likened the city’s challenge regarding the Old Brewery to the City of Tacoma’s revitalization of the Old Union Station into a district courthouse.

Explaining that it was a former Superfund site, he said that every development project has its limitations and opportunities. The Union Station had outlived its usefulness as a station and the only way it was going to be saved was if new development filled in around it. Ideas for its purpose were bantered around. He said the city did the necessary planning and was ready to go when the creative energies of the community finally mobilized around the project.

“So it is possible, with solid design criteria… to do significant infill and do it sensitively, as was done in the case of the Tacoma Union Station project.”

Adding that the Old Brewhouse site is not a pristine, environmental preserve, he continued, saying that Rome wasn’t built in a day, and neither was urban Tacoma. He said this property, when fully built out in 10 to 20 years, could be nationally recognized.

Others expressed concerns or spoke in opposition to the ordinance.

Krag Unsoeld, president of the South Puget Environmental Education Clearinghouse (SPEECH), expressed concerns about sea level rise for this area and that all the environmental impacts of developing the hillside, removal of the artesian springs, and widening of the road to access the site have not been taken into consideration.

He also expressed concern about the city’s questionable business practice of entering into a hefty financial commitment to restore the tower, and asked how the city is going to follow through if it does not get grant money.

He said the situation was like a tragic comedy.

“…There is some belief that none of this (redevelopment) will ever happen….If you believe that Heidgerken is not serious (about his plans)… then don’t rely on him backing out in hopes of getting what you hope to attain.  Just draw the line and say no, that’s not appropriate, it’s not environmentally appropriate….”

Ryan Carlson said he supports the idea of redevelopment at the site but that the ordinance went too far in scope and scale.  He said that because the brewery is in a historic district, the bar for redevelopment should be set higher, and urged the council to maintain the integrity of the site. Specifically, he said the mitigation plan for the hillside’s stability would require significant re-engineering and the integrity of the site would be lost in the process.

Speaking of diminished integrity, Carlson said he grew up on Tumwater Hill, and noted that the once spectacular Overlook Park, which had allowed for a 360 degree, panoramic view of the city and the region, was reduced to the size of a postage stamp.

Others who spoke in opposition to the ordinance included former Olympia Mayor Bob Jacobs.

“It is ironic that at the same time Olympia is working to eliminate its 'Mistake on the Lake,' Tumwater seems determined to have one of its own,” he said.

The vote was put in the form of a motion by Councilmember Neil McClanahan who said everyone has done their homework. The motion was seconded by Councilmember Tom Oliva.

Councilmember Nicole Hill said that while this was the hardest issue she has considered since she’s been on the council, she was pleased that details have been tightened up in the last few weeks.

Councilmember Joan Cathey expressed concern that the council is not in control of the “sweet spot” –  the balance between responsible development and protecting the environment.

Councilmembers were influenced by the thoughtful comments made by the public and all appreciated the high level of civil discourse demonstrated by the public and councilmembers.

Councilmember Tom Oliva, choking up, said the issue was surprisingly hard to talk about, and reminisced how, 20 years ago, he saw the tower, was immediately intrigued by it and wondered why it was dark.

Saying the planned action ordinance was “a little bit overbuilt, in my opinion,” Oliva said he was hopeful and confident that this last opportunity to preserve the buildings will work.

For more photos and information about the planned action, the Old Brewery property and historic tower, George Heidgerken, Falls Development LLC, Tumwater, the brewery district planning efforts and related issues, go to Little Hollywood, www.janineslittlehollywood.blogspot.com.

For more information about the Planned Action from the City of Tumwater, go to www.ci.tumwater.wa.us.

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

Old Brewhouse Foundation Provides Solutions To Save History

Above: Structural repair and rehabilitation is needed in order to meet current building standards and prevent further deterioration and damage to Tumwater’s historic Brewhouse tower. The six story tower, as seen this week from Tumwater Falls Park, is 10,000 square feet in size with the entire facility encompassing 100,000 square feet. 

By Janine Gates

www.janineslittlehollywood.blogspot.com

The Old Brewhouse Foundation was formed in 2008 as a nonprofit organization to bring together groups and individuals to develop a plan for the acquisition, restoration, and public use of the Old Brewhouse area.  

Their next meeting, which is open to the public, is Saturday, October 17, 10:30 a.m., at the Tumwater Timberland Library.

In August, the Foundation briefed the Tumwater city council at a work session on the group’s efforts. Among other suggestions, the group is proposing that the public purchase the entire brewhouse facility through a 20-year bond of $100 million over 20 years funded by a property tax. 

The Brewhouse tower and surrounding buildings are still viable structures, but need new roofs, seismic retrofits, and additional improvements.  At the very minimum, weather-proofing the buildings is necessary to include adding new roofs and windows to preserve the structures.

According to the Foundation, the initial brewhouse restoration is estimated to be $5.6 million, which reflects the cost of acquisition. The likely acquisition cost is a rough estimate of $2.5 million and includes some assumptions for project management costs.

No action is possible as long as the current owner, George Heidgerken, owns the building. Very little activity has occurred since his acquisition of the property about five years ago. The building's deterioration is reaching a point of no return, says the Foundation.

It is not known if George Heidgerken or his company, Falls Development, LLC, is interested in selling the property.

Above: The Old Brewhouse Tower and related buildings are in serious disrepair. Photo taken October 18, 2014.

Little Hollywood recently asked Rob Kirkwood, president of the Old Brewhouse Foundation, for specifics on the group's suggestions and interest in the property.

Kirkwood: George Heidgerken is still the owner of the Old Brewhouse property. The Old Brewhouse Foundation is asking the county to place the creation of a special purpose district and a property tax of about $0.35/$1,000 on the ballot.  The mission of the special purpose district would be to purchase and rehab the 1906 brewery complex into museums, art galleries, public gathering spaces and meeting rooms, large and small, over a period of many years.  We will ask Heidgerken about selling the property when we have a better idea about the county commissioners willingness to place the issue on the ballot.

Little Hollywood:  Please describe the group's idea of "rehab." Due to the condition, would the tower building be deconstructed and reassembled on site or in a different spot to accommodate this vision? It seems that everything you've described is similar to Heidgerken's vision. It seems there are multiple problems with that vision because of the location. Please explain.

Kirkwood: I agree there are multiple problems - all great community projects have challenges. Public recognition of the opportunities and challenges will create a facility that the community can be proud of.  The tower has been assessed by a structural engineer as actually in pretty good shape despite what you see.  It is built of concrete and brick, both materials that weather better than the wood roofs did.  It will require some major repairs and seismic retrofitting, but disassembly won't be necessary. Our project will be of a smaller scale than what Heidgerken is proposing. 

The Planned Action EIS that Tumwater prepared proposed three different levels of activity: 1. Do nothing; 2. Development within the existing foot print; 3. Expanding the foot print.

Heidgerken's published plans are at a strong Level 3 because the additional space is needed to create the synergy of commercial activities and support the private development of utilities, access and parking expenses. 

Our plan is closer to Level 2 - we would stay within the existing foot print other than building some level of parking facilities. Using public financing allows the triple bottom line of economic, social and environmental success. The atmosphere would be more like a college campus instead of the traffic required for commercial activity.  The site does present challenges, but also some incredible opportunities. Our outreach at community events keeps finding people that are excited about museums, art studios, the brewery distillery institute and large public gathering spaces. 

According to the Foundation, and the meeting minutes of the August 25 work session, the first element of their plan would cost approximately $45 million in investment that could be converted to a countywide levy at $.30 to $.35 per $1,000 of assessed valuation costing the average homeowner of a $250,000 home approximately $75 to $87.50 annually.

During information sharing at public events, the response has been positive with most people conveying a willingness to pay the levy, says the Foundation.

Cynthia Stewart, another Foundation member, reviewed the possibility for the councilmembers of a bond issue of $100 million for inclusion of the large warehouse to be paid at six million for the next 20 years. The bond presents some challenges and includes different options as there is no available special district option that fits this specific scenario.

One of the options is a Park and Recreation Service Area (PRSA). Categories allowed by state statute are broad and include park, recreation facilities, and senior centers. Under that scenario through a countywide financing option, it would require all Thurston County cities to agree to participate and it would require a separate vote by the public. It would require a super majority, 60 percent, to pass.

A second option is under the Cultural Access Program recently passed by the Legislature. The option allows a 1/10th of one percent increase in sales tax countywide. The option wouldn’t generate as much money. The PRSA statute is broad and could entail the entire complex to include trails. The option is more indirect as it focuses on culture and population.

Stewart said the county commissioners have expressed interest in the proposal.

Above: The interior of the long building on the property that was built as a pulp mill could be used for high school reunions, weddings, and other special events, says the Foundation. The facility is 21,000 square feet and is 300 feet long and 70 feet wide.

For more stories and pictures of the Old Brewhouse, go to Little Hollywood, www.janineslittlehollywood.blogspot.com, and type key words into the search button.

Public Comment Sought for Tumwater Brewery Planned Action

Above: The Old Brewhouse property in Tumwater is located within the shoreline environment of the Deschutes River and encompasses critical areas such as steep slopes and wetlands. The City of Tumwater is seeking public comment on a draft environmental impact statement which addresses three proposed planned actions.

By Janine Gates

www.janineslittlehollywood.blogspot.com

A handful of community members were present at an informal public meeting Wednesday evening at Tumwater City Hall to discuss a draft Environmental Impact Statement (EIS) for three land use scenarios that include the Old Brewhouse.

The City of Tumwater is seeking public comment on the document which addresses three proposed planned actions for the area. The public review and comment period for the document ends at 5:00 p.m., Friday, October 30.

Tumwater Mayor Pete Kmet opened the meeting for information gathering and questions.

“The (Old) Brewery is a very important part of Tumwater. Historically, it’s in the heart of Tumwater….We’ve been doing a lot to position this property for future development, updating our zoning and comprehensive plan related to the property and the neighborhoods around the brewery, and taking a comprehensive look at the transportation requirements and improvements that will need to occur along with any future redevelopment.

“….To make historic preservation work, it has to be tied to a feasible development for the property….The issue is trying to figure it out….” said Kmet. 

The specific area of the EIS is a 32 acre piece of property bounded by Custer Way to the south, Deschutes River to the west, Capitol Lake to the north and the Union Pacific Railroad to the east.

The city doesn’t own the property - it is owned by George Heidgerken of Falls Development, LLC who purchased it about five years ago for $1.5 million. 

Heidgerken has yet to submit a formal proposal to the city but has presented the public with drawings of a massive mixed use development which includes a hotel, restaurants, residential units, and a 1,000 vehicle parking garage located directly behind the historic Schmidt House.

Above: The maximum build out development scenario proposed in the Tumwater Brewery Planned Action Draft Environmental Impact Statement. 

The EIS addresses the natural environment such as geology, wetlands and shorelines, and the built environment such as land use, transportation, historic, and cultural resources.

Community members asked questions about seismic retrofit of the buildings, floodplain areas, the trail system, transportation and access to and size of a proposed parking garage, stormwater collection and discharge, tree removal, the nearby Union Pacific Railroad, and more.

There are no specific projects formally submitted to the city, but three land use options have been identified, ranging from no action to a full build out for the site, the latter of which is the development vision of Heidgerken. 

Above: The RST Cellars building, left, on Custer Way in Tumwater is not considered historic and could be remodeled or demolished. In previous conversations with Little Hollywood, the current owner, George Heidgerken, has said he would start redeveloping this property first. Transportation improvements are needed in this area.

The EIS refers to two areas of the Brewery Planned Action Area: 1) the upper portion of the site where the RST Cellars building is located near the historic Schmidt House, and an existing parking lot already there, and 2) the lower portion of the site on which the historic brewhouse is located adjacent to the Deschutes River and Capitol Lake.

It is anticipated that the final EIS will be completed by the end of 2015 although City of Tumwater councilmembers do not necessarily need to choose and adopt a preferred land use alternative by the end of the year.

To provide comment on the EIS or for more information, contact the City of Tumwater, Community Development Department, 555 Israel Road SW,  Tumwater, WA 98501 (360) 754-4180, or cdd@ci.tumwater.wa.us .

Jon Potter, project manager for Falls Development LLC attended the Wednesday night meeting, and said that the planned action process and outcome will give Falls Development, LLC certainty as they progress with their plans for the area.

For more information and photos about the Old Brewery and Brewery District Planning, go to Little Hollywood at www.janineslittlehollywood.blogspot.com. Articles dated October 12, 2014, “Tumwater Seeks Public Comment on Old Brewery Proposed Development,” and October 16, 2014, “Developer Heidgerken Shares Old Brewery Vision,” are just two stories. Many more related articles can be found by using the search button on this blog and typing in key words.

Tumwater's Old Brewery Stop Work Order Update

Above: Aerial of the Old Brewhouse property in Tumwater, after cleanup and straw waddle remediation. Property owner George Heidgerken of Falls Development LLC received a stop work order last year from the City of Tumwater for unpermitted construction activities in this area. Heidgerken recently received a permit to fill a hole, visible here in the southeast corner of the property, upper right, where the road curves. Photo taken on December 18, 2014.

By Janine Gates

www.janineslittlehollywood.blogspot.com

After a stop work order was placed by the City of Tumwater at the historic Old Brewery exactly a year ago this month, the property may soon see some progress.

Chris Carlson, permit manager for the City of Tumwater, said that a permit was issued last month to Falls Development LLC on September 17 and the city approved a plan for the owner to fill a hole with 644 cubic yards of fill at the southeast corner of the Brewhouse building.

The property is owned by George Heidgerken of Falls Development LLC.

Construction equipment and maintenance debris was witnessed by Little Hollywood around the Old Brewhouse building on October 8 and October 18, 2014, indicating a dramatic difference in road construction and water diversion efforts between those two dates.

Multiple areas with black tubing were seen in place, diverting water which was streaming from the nearby hillside. The illegal, unpermitted activities were reported by Little Hollywood to authorities and a stop work order was placed on the property on October 28.

The city said this week that filling the hole is necessary to install groundwater monitoring wells, required as a part of soil remediation work associated with a paint shop that was formerly in that area. Groundwater monitoring results need to be reported to the state Department of Ecology.

Jon Potter, project manager for Falls Development LLC, said he and city representatives had a pre-construction meeting on site late last week and are ready to get started as soon as possible. He said he is working with engineering companies MC Squared Inc. and Associated Environmental Group, both of Olympia.

As for mitigation for the damage done last year to wetlands on the property, the city is waiting for the owner to submit a Joint Aquatic Resource Permits application and a SEPA checklist, which should be in shortly, said Carlson yesterday.

For more information and photos about the stop work order and the Old Brewery in Tumwater, go to Little Hollywood, www.janineslittlehollywood.blogspot.com and type key words into the search button.

Above: The Old Brewhouse tower, built in 1906, as seen this week in Tumwater.

Stop Work Order at Old Brewhouse Draws Comments, Reactions

Above: The window may be closing on resurrecting the Old Brewhouse. Photo taken of the ground floor of the Old Brewhouse Tower on October 18.

By Janine Unsoeld

www.janineslittlehollywood.blogspot.com

It was the first time he had been on site for perhaps a year when Paul Knight gave a tour of the Old Brewhouse in Tumwater for a group of citizens on October 18.

“I saw more deterioration of mortar on the bricks and rust on the beams. The window is closing on resurrecting that place,” says Knight.
 

Citizen complaints about significant, unpermitted road grading, water diversion and construction activity led to the City of Tumwater's stop work order at the Old Brewhouse on October 28.

Knight met Little Hollywood today at the Mason Jar, an eatery popular with brewery employees until the Olympia Brewery Company blew its whistle for the last time in 2003. 
 
Starting out as an hourly production employee in 1961, Knight went through a series of promotions to eventually enjoy a long career as the Brewmaster at the “modern” brewery, the Olympia Brewing Company, from 1974 to 1997.

Above: Retired Brewmaster Paul Knight leads a tour of the Old Brewhouse on October 18, 2014.

Now 80 years old and more active than ever, Knight spends his time volunteering for the Old Brewhouse Foundation, Habitat for Humanity, the Olympia Flight Museum, restoring old cars, and woodworking.

“It’s a grand old building,” he said as he helped provide captions for pictures taken of the Old Brewhouse on the October 18 tour.
 
The importance of the structure was recognized in 1978 when the property was placed on the National Register of Historic Places. In 2004, it was listed as one of "Washington State's Ten Most Endangered Historic Properties" by the Washington Trust for Historic Preservation.

Stop Work Order Comments, Reactions

Above: Unpermitted construction with old and new pipes at the base of the hillside near the Old Brewhouse on October 8, 2014.

 

The current Old Brewhouse owner, George Heidgerken, Falls Development LLC, has violated environmental regulations in the past.

According to a 1993 Seattle Times article, a U.S. District Court, Tacoma sentenced Heidgerken to five months' imprisonment and ordered him to pay a $4,000 fine for illegally storing 260 drums of hazardous wastes. Heidgerken was also ordered to serve a four-month term of home detention when he completed his jail term.

In June of that year, he pleaded guilty to storing the drums in Shelton without a permit in violation of federal law. The drums contained lacquers and stain used in furniture finishing.

In another case, Heidgerken was fined $10,000 by the state Department of Natural Resources (DNR) for his failure to comply with a Forest Practices Act reforestation order in Grays Harbor County. That case dragged on throughout the 1990s and was settled in early 2000, when Heidgerken lost an appeal of the fine imposed by DNR in 1994. More information about that case is available at:  http://caselaw.findlaw.com/wa-court-of-appeals/1474716.html

Local reaction to the stop work order has been steady since the news was first reported by Little Hollywood on October 30.

Michael Chun of Associated Environmental Group, a local engineering firm working with Heidgerken, was shocked when he saw recent pictures of the site on the Little Hollywood blog.
 
Chun said that his firm’s involvement with the project is focused on the hazardous material cleanup of metals contamination due to the painting of barrels with leaded paint. A former paint shop was located on the site, near the hillside that contains several artesian springs.

“Barrels were scattered all over the place,” he said. As part of a voluntary cleanup agreement with the state Department of Ecology, Heidgerken hired Chun’s firm to characterize the contamination and remove the top level of soil.

“Now we need to deal with the groundwater….We’re looking for dissolved metals. At this point, we don’t know if it’s contaminated. We need to set three resource protection wells,” explained Chun. Chun said he had wanted to place the wells this past summer, but Heidgerken delayed for unknown reasons.

“The sooner we get this started, the better. I am waiting for grading to get a drill rig down there….it’s a challenging site. I’d like to get started by the end of the year.” Chun said that Ecology requires that the water be sampled four consecutive quarters for a year.

Chun, who has led several successful environmental restoration efforts in downtown Olympia, said he hadn’t been at the Old Brewhouse property in quite a while. Chun reacted upon seeing the most recent Little Hollywood article about the old brewery. 

“Holy Cow!” Chun exclaimed when he saw the pictures. “ ….I can tell you right now I won’t be able to get a drill rig down there….George clearly went above and beyond what we needed,” said Chun. With a new perspective on the situation, Chun said he would visit the site in person as soon as possible.

Asked to comment on the stop work order, City of Tumwater Mayor Pete Kmet wrote a response to Little Hollywood last week. He also sent his statement to the Thurston County commissioners, the Port of Olympia commissioners, and City of Olympia and Tumwater councilmembers.

“I’ve read your blog and appreciate your interest in the environment and this iconic site. I assure you that it is my desire to have any redevelopment of this site protect the historic assets while respecting the location from an environmental and cultural perspective. We continue to work with a number of experts to try and find that balance,” wrote Kmet.

“Tumwater is committed to compliance with all the applicable environmental regulations. Mr. Heidgerken needs to comply with those regulations. We will work with the applicable resource agencies and Mr. Heidgerken to address the situation with the wetlands. Similarly, his involvement in the study of the Craft Brewing and Distilling Center doesn’t waive his requirements for environmental compliance. The Center, for that matter, is not limited to the historic site and could be located in an existing building up on the hill. Our studies will be assessing the degree to which this site can be used for the Center or other viable activities.

“As we know from the redevelopment of numerous historic properties throughout the State and the Country, finding a viable reuse is critical to generating funds to preserve them. I hope you and your readers will work with us to help make that happen before we lose this iconic landmark. I am looking forward to the next step in this process, the Draft Environmental Impact Statement, for an opportunity to identify and evaluate the issues related to redevelopment of this property in more detail,” said Kmet.

Rob Kirkwood, co-founder of the Old Brewhouse Foundation (OBF), a non-profit organized in 2008, also responded to the news:

“We can all agree that the Old Brewhouse site is a special place. The Old Brewhouse Foundation (OBF) recognizes that the Old Brewhouse site is where people have gathered for thousands of years to rest, celebrate, work and trade.  In addition, the site is geologically unique and also attracts a huge variety of wildlife.  The OBF mission is to gather all the stakeholders in the area and help create a facility that is sensitive to the site’s previous, current and future inhabitants. The site has many challenges and many interested parties that all have their own idea as to what the site’s future should look like. Your story highlights some of the challenges that will need to be addressed and recognizing all people’s interest will be an important part of the process….” said Kirkwood. Kirkwood also said that he assumed all the proper permits were in place for the work being done on site.

Kirkwood, along with Tumwater City Councilmember Tom Oliva, toured the Old Brewhouse site on October 18 with several citizens. Kirkwood, along with Oliva founded the organization in 2008 to “motivate the community in developing the Old Brewhouse for a public purpose.”

The Old Brewhouse Foundation has chosen not to take a formal position on Heidgerken's plans nor did the organization comment on the city's determination of significance and scope of the environmental impact statement for the area.

Above: Looking through a cavity from the third floor to the second floor of the Old Brewhouse Tower on October 18, 2014. The cavity is where a mash tub once operated and hung down towards the second floor. The Deschutes River can be seen out the window frame.

Market Study Results

According to Tumwater city council meeting minutes for October 14, a market study on the brewery properties north of Custer Way was recently completed to explore potential types of uses and marketability of the site.

Richard Gollis and Adam Seidman of The Concord Group summarized the market study results for the council. The team identified the potential for a wide array of land uses at the site, taking advantage of existing structures as well as building new ones.
 
The group says there is approximately 400,000 to 500,000 square feet of supportable development over a 10-year period. A phased in, mixed use approach could be developed along Custer Way as an early catalyst, as well as working through the concept of the craft brewery and distilling center.

The group said that of the three proposed land use alternatives identified by the city, the third alternative, the full mixed use redevelopment alternative, would maximize the area's potential. A mixed use project off Custer Way, including the Cellars Building at 240 Custer Way, and the historic brewhouse, could serve to bring people to the area.

The analysis considered different land uses at the site, such as an apartment building, condominiums, hotel, retail, office, and special destination uses, such as the craft brewery and distilling center.

Limiting development to renovation of the historic structure was not recommended because of the amount of infrastructure development required for the site.

The consultants said that the reason people would come to the area is to enjoy retail and hospitality, and would want to live here because it is near historic structures and the Deschutes River. Educational institutions would be an important component of the property’s future success.

City Administrator John Doan commented on the importance of the craft brewery and distilling center or another special destination use to help accelerate the development timeline.

Above: The five story RST Cellars building at 240 Custer Way in Tumwater is not historic. It is part of the “modern” brewery complex and built in three sections in 1966, 1967 and 1970. New cellars were built as needed to store beer. The building is currently owned by George Heidgerken, Falls Development LLC.

 

In previous conversations, Heidgerken has said he anticipated starting his redevelopment work on the RST Cellars building on Custer Way.

 

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

 

For past stories about the Old Brewhouse, go to www.janineslittlehollywood.blogspot.com and use the search engine to type in key words.