Jeff McDonald//August 28, 2014//

Portland-based Colas Construction, a minority-owned firm, is getting its foot in another doorway via a deal to build a high-profile grocery store and adjacent commercial building in Northeast Portland.
That agreement between Natural Grocers, the Portland Development Commission and Majestic Realty, announced by the city Thursday, will bring the Lakewood, Colo.-based grocer to a site previously pegged for a Trader Joe’s store.
For Colas Construction, which had been selected as the builder for the Trader Joe’s store, the agreement represents a huge opportunity to grow and for minority-contracting firms to take on more such projects in the future, said Andrew Colas, the firm’s president and co-owner.
鈥淭here are a lot of barriers in the construction industry,鈥 he said. 鈥淚f you don’t have a portfolio for a certain type of work, it’s difficult to get that type of job. We haven’t built a grocery store before, but every company needs that first opportunity.鈥
Since Trader Joe’s announced in February that it was pulling out of the project, Colas Construction had worked with Majestic Realty to identify cost estimates for potential alternatives. Then Natural Grocers, which has four other stores in the Portland area, signed a letter of intent to open a store at the site 鈥 Northeast Martin Luther King Jr. Boulevard and Alberta Street.
The road to Majestic Realty’s deal with the contractor began via Colas’ longtime friendship with Adam Milne. He owns Old Town Pizza, which is located near the 1.79-acre property that Majestic Realty purchased from the PDC in November.
Majestic Realty officials reached out to local business owners around the property, and Milne recommended that they speak with Colas. That meeting, however, was just the first step, Colas said.
鈥淚’ve met with countless developers, but at the end of the day they prefer to work with someone who has done those types of projects before,鈥 he said. 鈥淭here are countless barriers to getting that first job.鈥
The connection led to a lunchtime meeting with Edward Roski, Majestic Realty’s president and chairman who also is a co-owner of the Los Angeles Kings and Los Angeles Lakers franchises. The meeting brought out a deep connection between the two business owners, Colas said.
鈥淗e was not looking for a company that had built 10 other grocery stores,鈥 he said. 鈥淗e was intrigued because he was the same age as I was when he took over his father’s business. Both of us were second-generation companies. He wanted a family-owned business (to build the project).鈥
While Colas Construction has self-performed bigger projects than the estimated $8 million Natural Grocers project, including the $14 million IronCrest Estates project in Gresham and the June Key Delta Community Center project in North Portland, this will be the company’s most highly visible project to date, Colas said. His hope is that it will spur growth.
鈥淭here’s certain barriers you have to overcome as a small growing business,鈥 he said. 鈥淲e want to grow so we can continue to hire a diverse workforce.鈥
Majestic Realty ultimately chose Colas Construction, PDC spokesman Shawn Uhlman said, because it knew the contractor could do the work.
鈥淐onsidering Majestic is a large real estate development company, they had the opportunity to choose any contractor they wanted,鈥 he said. 鈥淐olas was chosen based on who they are, what they do and how they do it. They weren’t given this. They earned it.鈥
Community leaders who previously expressed concerns about the lack of transparency in the PDC’s sale of the 1.79-acre lot to Majestic Realty in November, were always on board with the project being built by a minority-owned firm.
鈥淣ortheast leaders were very excited about (the agreement),鈥 said Dana Haynes spokesman for Mayor Charlie Hales. 鈥淭hey believe it will promote jobs in the area and are excited that it’s Colas Construction that will be doing the work.鈥
The design process will include development of a community benefits agreement, which will guide minority contracting goals and how they are met through the development process, Haynes said.
罢丑别听Portland Housing Bureau聽also announced a series of workshops featuring discussions about how to create an affordable housing strategy for the area. The city plans to invest $20 million in affordable housing in North and Northeast Portland over the next five years. The first workshop will be held Sept. 18 at 6:30 p.m. at the聽Highland Christian Center聽in Northeast Portland.
Construction of the Natural Grocers-anchored development will begin by February 2015, Colas said.