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Tourism and recreation make up an increasing portion of Hood River’s overall economy, but the manufacturing sector also plays a huge role, said regional economist Dallas Fridley. Unlike retail buildings, however, there’s a shortage of available industrial buildings, he said.

That helps explain why, during a deep recession, the Port of Hood River is developing a 20,000-square-foot industrial building without having a tenant lined up. Construction of the Halyard Building is scheduled to begin next month at Portway Avenue and North Eighth Street.

Michael McElwee, the port’s executive director, said the local economy hasn’t been as bad as Oregon’s. That combination of a weak state economy and a stronger Hood River economy could benefit the port in two ways, he said.

First, contractor bids are coming in low across the board, as more contractors bid on fewer projects. Seventeen responsive companies submitted proposals for the Halyard Building project.

Second, the demand for light industrial space locally makes McElwee confident that the port, which has other light industrial space available for lease, will have no trouble finding tenants. 鈥淭here’s real potential immediately, and there’s certainly going to be next year,鈥� he said.

Construction on the tilt-up building is scheduled to last eight or nine months, and finish next May.

The shortage of industrial space results from Hood River’s unique landscape and land ownership mix, Fridley said. 鈥淵ou have a hilly place with a lot of government land,鈥� he said. 鈥淭here’s simply not a lot of places available for light industrial (uses).鈥�

Because of that, Hood River has attracted small manufacturers tailored to the specific community. It’s a mix heavy on food and beverages, sports and recreation equipment, and agriculture.

Companies that need more space have had to look elsewhere, Fridley said. Cardinal Glass, for example, looked at Hood River before deciding to locate in nearby Odell.

The Halyard Building offers more than size, McElwee said. It won’t be the biggest building around, but it’s designed for a higher-profile company to use as a showcase as well as a manufacturing facility.

鈥淚t’s a signature location,鈥� he said. 鈥淚t’s by a new city park (and) it’s close to the river; it has a lot going for it.鈥�

Development along the river can be controversial, Fridley said. Residents are concerned about sight lines, and wind surfers and kite boarders worry about how new buildings could affect the wind. But this location, near the Hood River Distillery building, has raised fewer concerns.

鈥�(The port is) being more strategic about where (it) places (its) properties,鈥� Fridley said. 鈥淭here’s way, way, way less controversy here.鈥�

The building’s design, by Richard Brown Architects, can’t hurt, McElwee said. It’s not an industrial-looking box, he said; in fact, the side facing the city park looks more like a retail storefront than a manufacturing space.

But residents also see the need for continued employment in the region, he said. 鈥淭here’s a common recognition that the industrial core of the waterfront needs to be promoted and developed for job creation and business expansion.鈥�