Motorsports building project beats financial difficulties
After facing financial obstacles several months ago, the redevelopment project at the Estacada Motorsports building is moving forward once again.
The city's Urban Renewal Agency voted Monday, April 23, to proceed with the acquisition and redevelopment of building at the 192 S.E. Fourth Ave. Once a contractor is selected, the building will be renovated for two tenants, Clackamas River Outfitters and Yo Treats frozen yogurt.
The subsidy from the agency will amount to $101,100. That's a change from March, when initial bids from contractors came in higher than expected, and the subsidy was estimated at $173,000.
Rather than proceeding at the higher cost during the March meeting, the Urban Renewal Agency directed economic development manager Matt Lorenzen to solicit additional bids.
Since that meeting, the cost of the project has been reduced in several ways. City staff discovered the property had been previously used as a restaurant called Frankie's Fabulous 50's, which eliminated an $11,000 service development charge liability, and Yo Treats agreed to contribute an additional $15,000 toward the project.
Additionally, Lorenzen worked with contactors to reduce the cost of the building's remodel by $30,000. Several plans for the building's exterior have been eliminated, though the building will be reconfigured to front Main Street rather than Fourth Avenue.
"It will still be an attractive facade on Main Street. That will be the thing that makes people go, 'Wow, that's nice,'" Lorenzen said. "The scope of work has been scaled back."
Once a bid is selected for the project and the work on the building is complete, the new businesses could open later this summer.
The total cost of the redevelopment work is projected at $447,570, and the project is expected to generate $346,470 over the next 10 years in income through rent revenue, tenant contributions and other sources.
The Motorsports redevelopment project is the first under an amendment to the Urban Renewal Agency's plan that allows for the acquisition and redevelopment of properties in downtown Estacada.