Kitsap Peninsula Business Journal
11-3-2007
Plans for Port Orchard multi-use
downtown building on the drawing board
By Rodika Tollefson
Now that the Port Orchard City Council has approved the Downtown Overlay District, plans for at least one new development are a little closer to reality. Even so, it could be another year before the property owners, Rudy Swensen and Ron Rider, can move forward — pending the creation of a new design review board and design review guidelines for the area. The two have been working on their idea for more than three years.

The plan is to build a four- or five-level complex that would include retail and office space on the first and second floors, and luxury condominiums on the top levels. Preliminary architectural drawings have been ready for months, but the project has been on hold while the highly contentious debate about the Downtown Overlay District and building heights was ongoing. The plan, approved by the City Council in September with a 5-2 vote, allows buildings up to 55 feet in height with a conditional use permit on the south side of Bay Street, where the Swensen/Rider project is being proposed.

Swensen has owned Rings & Things downtown for about 17 years. The jewelry business is the second-oldest downtown business under the same ownership. He says the building has been badly damaged during the 2001 earthquake and has become unsafe. It’s also leaning, and its floor has dropped. The building has been substantially renovated once, and Swensen said it is more feasible to tear it down instead.

Rider owns the building next door, occupied by Moondog Bar & Grill, as well as an adjacent vacant lot.

“We decided to combine our properties together and get a larger footprint instead of building a bunch of smaller buildings,” Swensen said.

Swensen also recently purchased the building next to Myhre’s Restaurant on Bay Street, and will renovate it and move Ring & Things into there while the new project is under construction. There is no word yet on the fate of the Moondog.

The idea of mixed retail and residential use is new to Port Orchard’s downtown, but has been used successfully around the country and other parts of Kitsap. Swensen said his building is mortgage-free, and Rider’s is nearly paid for, and investing into a potential multimillion-dollar project and creating a high mortgage doesn’t make business sense. So their idea is to have the residential portion pay for construction costs of the retail areas.

“People think we’ll put millions of dollars into our pockets and walk away, and that’s not the case,” Rider said. He acknowledges the idea is opposed by many nearby residents concerned with losing their views, but feels strongly he should be able to use his property as he sees fit. “This is our retirement plan,” he said. “It’s an investment.”

The ironic part is that any new building constructed to the allowable building height on Prospect Street, the block behind Bay Street — which isn’t included in the DOD — would have more of a negative impact on views than what Swensen and Rider are proposing.

Swensen said, “We agree there should be protection of views, but they (residents) should not dictate what we do to our properties. We have money invested into our properties, and we expect to use them.”

Swensen said not only will their project follow all the new guidelines, it is also planned to be aesthetically pleasing. The condominiums will not be built in a “single block” style, but to appear as elevated homes. They are considering the theme of a New Orleans, French Quarter appearance, and hope to encourage other property owners to incorporate the more upscale look into their buildings.

The two business owners are planning to talk to other potential developers who have plans for their buildings downtown and encourage them to move forward and build momentum for changes. They fear that even with the DOD approved, the issue may be brought back to the table after the elections, when the city council mix may change.

Rider, a former councilman himself, said he’s been frustrated with the city’s slow pace in moving forward over the years. As an example, he mentions a downtown revitalization plan funded by a $50,000 state grant that was developed after various stakeholders worked on it for more than a year. The plan won an award — but was ultimately voted down by the council.

“It’s been difficult because some people in the city have been sitting on the fence… trying to appease everybody,” he said.