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It’s out with the ODOT Blocks, and in with the Workshop Blocks.

Beam Development is moving forward with Prosper Portland to develop the first of three vacant blocks in the Central Eastside Industrial District. The agency’s board on Wednesday voted unanimously to authorize negotiations with Beam for a 99-year ground lease and a disposition and development agreement.

Beam would also have exclusive development rights on two neighboring blocks acquired from the Oregon Department of Transportation in 2017. All three blocks are pinched between Water Avenue and the Eastbank Esplanade in the fast-growing employment area.

The lease agreement would allow Beam the option to purchase the property in year 20 and again in year 30.

Beam plans to build approximately 100,000 square feet of industrial office space on Block A 鈥� the northernmost block between Taylor and Salmon streets along Water Avenue. The developer is branding the project Workshop Blocks.

The building program for Block A would revolve around what Beam calls an 鈥渋nclusive technology cluster.鈥� A nonprofit is being sought to potentially anchor the ground floor. The building would have a modest complement of retail space and, possibly, on-site day care. The upper floors would be dedicated to industrial office space. Some of the office space is likely to be coworking or flexible office, said Jonathan Malsin, a Beam principal.

鈥淲e’re focused on continuing to deliver innovative office space,鈥� Malsin said during Wednesday’s Prosper Portland board meeting, which was a video conference.

The structure is likely to be constructed of cross-laminated timber, Malsin said, and build upon Beam’s experience with District Office 鈥� a six-story office building on Southeast Martin Luther King Jr. Boulevard.

The Block A building would have one level of underground parking.

Hacker, which designed District Office, is on board to design the Workshop Blocks building on Block A. Colas Construction will serve as general contractor.

Prosper Portland will contribute $725,000 to remove polluted soil from the site.

Construction is expected to begin on Block A in 2022, and be completed the following year. The build-out of all three blocks is expected to be done by 2027.

Conceptual plans for the other two blocks imagine Block B centering on creative production, and Block C focusing on food and beverage production and related retail.

Zoning in the industrial district limits retail and residential use. The developable parcels are 34,809 square feet, 34,862 square feet and 25,601 square feet, respectively.

Beam was chosen as the developer in May 2018 after Prosper Portland’s request for proposals drew five applications.