Commercial portion of library project put on hold

Construction of a key downtown redevelopment project will be delayed for at least a year due to the uncertain economy, its developers said Friday.

But work will move forward on the public library component of the $160 million Riverwest mixed-use project, according to Vancouver-based Killian Pacific.

The company had planned to break ground in early 2009 on its portion of the development, which included condominiums, offices, retail space and 200-room hotel on the southeast corner of East Evergreen Boulevard and C Street.

“Since the project was conceived in 2005, the national and local market conditions have deteriorated dramatically,” said Lance Killian, the company’s chief operating officer.

Officials close to the project say its new start date will depend on economic recovery with renewed consumer spending that will prompt national retailers to resume their expansion plans.

Construction costs have also risen, Killian said. His company has already invested more than $3.4 million on the Riverwest project, planned for a four-block site that was primarily occupied by the Carr Auto Group.

The dealership moved in April, relocating to a new facility on Fourth Plain Boulevard near Andresen Road.

The Riverwest site was cleared further in May, when workers moved the historic Kiggins House from its 101-year perch on Evergreen Boulevard overlooking Interstate 5. The home was moved north to 24th and H streets.

Site-clearing activities are expected to continue. Riverwest developers will have to move forward by 2014 if they are to leverage $13 million in state tax credit financing awarded to the project in 2006. The funding is to be used on the project’s underground parking structure, to include public parking.

Library moving forward

In the meantime, design plans are moving forward to break ground in 2009 on the $37 million public library portion of Riverwest, said Bruce Ziegman, executive director of the Fort Vancouver Regional Library District.

“The final library design is quickly taking shape,” he said.

Voters passed a library facilities bond measure in 2006 to pay for the 83,000-square-foot library.

Cami Joner covers real estate for The Columbian. She can be reached at 360-735-4532 or via e-mail at cami.joner@columbian.com.