91ÊÓƵ

has been building projects in the area for nearly three decades. Employees say persistence is one of the main reasons the company has stayed busy throughout the recession.

Gramor is continuing to develop neighborhood, grocery-anchored projects in Portland-metro areas, and also work with the city of Vancouver, Wash., on the redevelopment of 21 waterfront blocks. Barry Cain, the company’s president, is hopeful that construction in Vancouver will begin in slightly more than two years.

In between searching for tenants, and eyeing new sites around the area, Cain took a few moments with the 91ÊÓƵ to talk about the Vancouver project and more.

91ÊÓƵ: Where are you at right now on the development of the former Boise Cascade site on the waterfront in Vancouver?

Barry Cain: As you know, the access project is under construction right now, which is a big part of making the waterfront redevelopment a reality. We’ve been working on the project for five years and that was the first big hurdle, to get the rail trestle that runs through the middle of town rebuilt with nice big access points going into the waterfront property, making it a part of the downtown and making it flow into it naturally.

91ÊÓƵ: The access to the site is going to run under the rail track?

Cain: Yes, the rail track is already elevated and there will be a slight dip going under the rail track just to make sure that there’s enough coverage so large trucks can go in and that sort of thing.

91ÊÓƵ: Who is this in conjunction with?

Cain: Washington (State) Department of Transportation rail, city of Vancouver, BNSF (Railway Co.) and the Port (of Vancouver USA). Everyone is involved because it’s all a part of a group of projects made into one. When we first became involved the port was already working on a new project that would provide for better rail access to its west-side property and (WSDOT), BNSF and the city of Vancouver were heavily involved with a $150 million bypass project to allow for more frequent passenger train traffic and eventually high-speed rail. Everyone agreed that access to the waterfront was important enough that it should be brought into the fold and that the three projects should be one.

91ÊÓƵ: So this is like the stepping-stone?

Cain: Yes, a big one. Along with that we now have a full master plan approval and a development agreement signed with the city that vests the project for 20 years. And we have 21 city blocks that are approved and ready to be built on.

91ÊÓƵ: When do you hope to get a shovel in the ground and actually working on a building?

Cain: The access project is going to be complete in mid-2013 and we would like to start right about then on the initial site work and buildings could start shortly after that.

91ÊÓƵ: Tell me what you envision for this site ultimately and in what time frame.

Cain: It’s probably a 10-year time frame after we start construction. Our master plan approval is for a maximum of 3,500 residential units, which is a mix between all kinds of residential: rental, affordable and condos, a million square feet of office space, 250,000 square feet of retail with various restaurants and a hotel.

91ÊÓƵ: Where are you at with lining up tenants? Do you have anything set in stone yet?

Cain: Up until just recently we’ve been fully involved with the land-use issues, but now we’re done with that and the economy is picking up and we’re ready to go. We have an amazing situation with 21 city blocks right on the Columbia River attached to downtown Vancouver in the fastest growing part of the Portland-Vancouver market that has no state income tax. We think we have the best spot for the next Fisher Investment or Peace Health. We’ve got great locations for all kinds of housing, hotels and restaurants. And we’re very encouraged by the people who are showing interest. George Diamond of Real Estate Investment Group is representing the development, by the way.

91ÊÓƵ: Is there anything else you want to add about the waterfront?

Cain: I think you have to understand that the waterfront is not just another project for us. We and our partners, who are well known citizens of Vancouver, got involved with it because we wanted to see the right thing done with it. We’ve taken the long approach, we’ve bought the property and we’re designing it so it will be something the city and the area can be proud of for years to come. Right now, our plan is to start in 2013, and we are encouraged it will be able to; but whenever it happens, it will be the right thing.

91ÊÓƵ: You aren’t going to make a move to just make a move?

Cain: Right.

91ÊÓƵ: You were out there working these last few years when others weren’t. How did you stay active?

Cain: We’ve been developing in this market for 26 years now and we’ve always tried to pick the best sites, sites that were going to be good no matter what the economy. And I think we’ve been conservative on our financing structure. We have a group of people that work together here that have been together a long time and like each other and like what we do. I think the combination of that has helped us to be one of the first ones out of the gate.

91ÊÓƵ: Have you had to adjust how you approach financing over the last few years?

Cain: Not really. The lending is more conservative – that’s for sure – but financing is generally the same. The biggest challenge was the delay of projects that were ready to start a few years ago but for all the right reasons were delayed ’til now. It’s certainly hard when you spend a lot of money and time on a project and then put it on hold. But we were fortunate that they were good projects with great tenants that were willing to wait.

91ÊÓƵ: Your bread and butter has been these grocery-anchored developments. Is that something you plan on sticking to? Are you going to try anything else?

Cain: No, we are happy to continue to do that. I think that our forte is building neighborhood centers that can become the focal point and gathering center for a neighborhood. Plus, we all live in the Portland area and don’t have any desire to go traveling around the country.

91ÊÓƵ: Moving forward, are there any markets that you see having a fast recovery? Anything you see as remaining stagnant?

Cain: Obviously, there was some pent-up demand for retail, which we’re trying to do our part to help. And the rental apartment market is in full swing. But I think we’ll see everything return to a more normal state in a short period time.

91ÊÓƵ: What other projects do you have going on?

Cain: We’ve got Lacamas Crossing that has the (new) Costco in Vancouver. A couple of our tenants just opened up and their business has been really strong. Qdoba had one of (its) strongest openings ever nationwide. We have the Old Town Square in Wilsonville that’s under construction and Fred Meyer is going to open in mid-July. Shortly after that Oswego Grill and McMenamins will open with about 20 other businesses. Of course, Progress Ridge Town Square, which is unlike anything that’s been built in this town or the Northwest. It’s a neighborhood entertainment center and it will appeal to the whole west side of Portland. Just the three (anchor) tenants – Big Al’s, New Seasons and Cinetopia – will bring 40,000 customers a week to that site. I think when people see the buildings and pedestrian amenities they might be reminded of the type of quality of Lake View Village in downtown Lake Oswego.