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The Central Eastside Industrial District鈥檚 grittiness is evident in its old buildings. But for many business owners, that is the appeal. They鈥檙e flocking to the area to revitalize buildings rather than change them, according to Terry Taylor, executive director of the Central Eastside Industrial Council.

鈥淭here鈥檚 some history there and true vibrancy that you can鈥檛 get in other sections of town,鈥� he said. 鈥淧eople come here for that, and they don鈥檛 want to change it.鈥�

In fact, the area has seen a constant stream of renovation and rehab projects recently. Small business owners are converting the district鈥檚 old warehouses into offices and creative spaces. And the trend is expected to transform the district into a hub for innovative startups, according to business owners and city officials.

鈥淲hat鈥檚 happened is you have newer, incubator-type of companies moving in,鈥� said Steven Shain, development manager for the . 鈥淭hey鈥檒l move into a space, rehab it and then grow. It鈥檚 happening now all the time.鈥�

Small business owners like the Central Eastside Industrial District鈥檚 creative makeup and the fact that land there is cheaper than in other industrial areas like the Pearl District, Shain said. Also, proximity to both Interstate 5 and downtown is favorable for shipping.

But many businesses also want to be part of the collaborative and creative environment growing in the eastside district, said Stephen Fox, business director of 52 Limited, a creative resource company that moved there in January.

鈥淚t鈥檚 all about the community; it鈥檚 about being among people that are out to create and to make,鈥� he said. 鈥淏ecause people are here to create the future, I think it鈥檚 Portland鈥檚 neighborhood of optimism.鈥�

A space that formerly housed Schoolhouse Electric Co. was renovated to accommodate 52 Limited. Most of the renovations that occur in the district are based on the needs of incoming tenants, according to Shain. Often, because of their ages, buildings require some electrical and seismic work. But businesses are taking on projects anyway.

Next Adventure, an outdoor store, will soon expand into a former car dealership on Seventh Avenue. Preserving the building鈥檚 aesthetics was key, said Brian Emerick of , which designed the project. Eighty businesses now occupy the Olympic Mills Commerce Center, a 90-year-old mill grain elevator that was repurposed. And a building鈥檚 original wood beams and tile flooring from 1917 were kept as part of a renovation for the Dig a Pony bar.

PDC grant programs often are aiding such projects. Because central eastside properties lie within an urban renewal district, the PDC is able to provide assistance through both its Storefront Improvement and Development Opportunity Services programs. In some instances, the agency provides up to $32,000.

These programs have helped spur construction in the district, said Dan Pitman, a property owner who is adding a building there.

鈥淭hey鈥檝e really made a push recently to come out and help businesses in the area,鈥� he said. 鈥淭he progression from it is obvious.鈥�

With the sudden increase of construction in the district, many observers are suggesting that it could become the next Pearl District. However, most of the zoning in the area, which the city has deemed an industrial sanctuary, prohibits the construction of any residential units. Additionally, unlike the Pearl, the district includes some businesses that have been there for close to 100 years and 鈥渨ouldn鈥檛 allow it to turn into the Pearl,鈥� Taylor said.

The PDC wouldn鈥檛 allow that either, according to Shain. Instead, the agency is working to continue to attract small businesses to the district by developing new programs.

鈥淭here are still second, third and fourth floors that are vacant and underutilized, and we would like to find a way of working with (property owners) to identify what the opportunities are to rehab those, so they can provide space for the creative service industries to occupy them,鈥� he said.

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