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September 7, 2004
By Aimee L. Curl
Local
developer Art DeMuro of Venerable Properties and Keith Pochter of the
Northbrook, Ill.-based The Pochter Group Limited have very different ideas
about the best use for the historic Custom House, located in downtown
Portland.
DeMuro is contemplating a mix of uses, including space for the University
of Oregon School of Architecture and Allied Arts, a community center,
an art gallery and a ground-floor restaurant.
Pochter, on the other hand, envisions an 82-room boutique hotel.
Located at 220 NW Eighth Avenue, the four-story, H-shaped, granite building
was constructed more than a century ago. The U.S. Army Corps of engineers
has occupied the building since the late 1960s.
The U.S. General Services Administration, which will retain ownership
of the Custom House after the Army Corps leaves the building, has selected
Venerable Properties and The Pochter Group Limited as finalists to redevelop
the space. Complete proposals are due to the GSA by October 1. The federal
agency plans to select a developer for the project by November.
“For anyone who loves historic preservation, the Custom House represents
an elite challenge. The building is an architectural classic,” DeMuro
said. “I’ve heard many people describe it as one of the most
beautiful buildings in the city. The opportunity to get to be in charge
of revitalizing it is mouthwatering.”
DeMuro said in addition to the architecture school, multiple disciplines
from the University of Oregon—including the journalism, business,
law and education departments as well as the university’s development
and alumni offices—have voiced interest in opening satellite locations
in the Custom House.
“There’s no question the university is interested, but they’re
just now starting the process of some more detailed space planning and
budgeting,” DeMuro said.
Also as part of Venerable Properties’ proposal, Zimmerman Community
Center would move from its temporary location in the Pearl District and
the Contemporary Crafts Museum & Gallery would move from its home
on Southwest Corbett Avenue to the Custom House.
He said the restaurant that would occupy the Custom House’s ground
floor would likely include an entertainment component geared for adults
like a jazz club.
DeMuro said his company is also in discussion with the nonprofit organization
BetterBricks about a possible move to the building.
Although Pochter’s firm has not developed any projects in Portland,
he said he has been interested in doing something in the area for some
time. Pochter called the Custom House a “very unique structure.”
“It represents a very unique presence in the area and an opportunity
to revitalize the neighborhood,” he said. “The neighborhood
is just on the fringe of the Pearl District. The Broadway corridor is
an exciting corridor and we want to be part of it.”
Under Pochter’s proposal, Wyndham International Historic Hotels
would operate the property.
Bill DuBray, a spokesman for the GSA, said the agency is evaluating the
proposals based on how they meet public interest goals, historic preservation
goals and the economic benefit for the government.
“Our pitch would be in historical sensitivity,” DeMuro said.
“All of the users are large space users that would require minimal
partitioning and changes to the interior, whereas the hotel would have
to divide up the building.”
He said the proposed uses such as the community center and the museum
would also benefit the community and surrounding neighborhood, while the
restaurant would activate the street level.
Pochter said a hotel would allow the best public access to the property.
“The whole idea of historic preservation is to allow the opportunity
for a use to be created that allows the public as much continuous and
regular access to the property as possible,” he said. “Another
function would not office the same access to the community as a hospitality
use would.”
The Army Corps isn’t moving far from the Custom House. The agency
will relocate a few blocks west to Block 4 of Gerding/Edlen Development
Co.’s five-block Brewery Blocks development in November. According
to Scott Eaton, director of marketing for Gerding/Edlen, the Army Corps
will take 40,000 square feet on the fourth and fifth floors of Block 4.
Eaton said Gerding/Edlen was also interested in redeveloping the Custom
House and submitted a proposal that featured Portland State University’s
School of Architecture as a major tenant. He said PSU was unable to
proceed for budgetary reasons and that Gerding/Edlen decided to withdraw
once it was clear that DeMuro’s proposal featured a similar partnership
with University of Oregon.
“We felt of all the uses we could think of, a school of architecture
was the most appropriate use there,” Eaton said. “We felt
it was better to do the right thing and drop out.”