April 2022 Volume 21 | Issue 4
Local Bounti ‘pauses’ $40M Pasco greenhouse By Wendy Culverwell editor@tcjournal.biz
Hanford
A specialty publication of the Tri-Cities Area Journal of Business Page C1
Diversity
Longtime community leader works to make an impact Page A21
Real Estate & Construction
Transit hub to anchor development near Queensgate wine village Page B1
NOTEWORTHY “All the major decisions in life are made over a cup of coffee. That’s kind of my idea. I want people to slow down here.” -Nena Cosic, owner of Café Magnolia
Page B5
Local Bounti Corp., the Montana ag startup behind one of the biggest economic development wins in 2021, has “paused” construction of its $40 million greenhouse complex in east Pasco. The Pasco facility was supposed to be the second in a network of high-tech complexes where Local Bounti planned to cultivate lettuce, herbs and other greens in its pursuit of a share of the $30 billion U.S. market. The first is at its Hamilton, Montana, headquarters. Local Bounti said it remained committed to building the facility, but was pausing to assess its needs after it entered a $123 million deal to acquire Hollandia Produce Group Inc., an established California indoor farming company that operates under the name Pete’s. The pause, which includes stripping the construction site of all equipment other than a water tank, will “ensure that its design is fully optimized to drive best-in-class unit economics and that synergies with Pete’s existing growing systems are considered prior to continuing construction,” it said in its first-ever 10-K annual report, filed March 30 with the Securities and Exchange Commission. The company dismissed questions that it was unhappy with the local developer and said the property, at Oregon Avenue and A Street near Big Pasco Industrial Park, is not for sale. Matt Dallas, a spokesman, said Local Bounti sees demand for fresh produce rising in the Tri-Cities. Its existing network of greenhouses is not capable of keeping up with expected demand, he said in response to questions from the Tri-Cities Area Journal of Business. The company will provide an update on the Pasco project in its first quarter earnings report in May. Dallas added that Local Bounti felt welcomed by the Pasco community and remains “very excited” about the project. Established in 2018, Local Bounti became a publicly traded company in January 2021 when it merged with a special purpose acquisition corporation formed for that purpose, Leo uLOCAL BOUNTI, Page A4
Courtesy Douglas Browning Homes A custom home under construction by Douglas Browning Homes, a Tri-City builder specializing in upscale homes. The $1 million-plus market is taking off, brokers say.
Luxury market takes off while estate-worthy land lags behind By Wendy Culverwell editor@tcjournal.biz
Nearly 5,000 new and existing homes sold in the Tri-Cities in 2021. While most would be considered midrange, a small but growing number carried seven-figure price tags. The top tier of the housing market tends to get overlooked in an economy where midrange homes – currently considered those in the $300,000-$500,000-plus range – sell in days. About 2,800 of the homes sold last year fell into this category. But a growing number sold for $1 million or more, according to the Tri-City Association of Realtors, which recorded 35 such sales in 2021. Within that group, the median price was
$1.14 million. The most expensive home closed for about $3 million in 2021, more than twice the highest price paid five years earlier, $1.2 million. “It wasn’t that long ago that a $1 million home in the Tri-Cities was unheard of,” said Ron Almberg, president of the Realtors association and managing broker for Keller Williams Realty. “Now it’s ordinary.” Strong demand means more homes will hit the million-dollar range, joining a growing number of custom-built homes that start north of $1 million. It’s a market that is here to stay, brokers say.
A luxury market focus Coldwell Banker Tomlinson serving Eastern Washington, Idaho and Montana is creuDREAM HOMES, Page A10
Pasco will buy, demolish troubled Thunderbird Motel By Wendy Culverwell editor@tcjournal.biz
The city of Pasco will raze the Thunderbird Motel and turn the site into a parking lot after reaching a $1.2 million deal to buy the “nuisance” property. The deal is expected to close by late April, with the city set to take possession by May 25. The city will demolish the 40-room motel at 414 W. Columbia St. as quickly as possible. It will close the business and install a fence to keep out vagrants. Police patrols will be stepped up as well, said Mike Gonzalez, the city’s economic development manager. The city and downtown denizens have
long viewed the Thunderbird as a barrier to plans to refashion downtown into a friendly and safe destination. Demolishing the motel and replacing it with parking will serve two purposes – eliminate a nuisance and provide added parking in an area that needs it. Gonzalez negotiated the deal with Thunderbird owner Song Ha “Mike” Hwang. The 16,000-square-foot motel was built in 1965 and has two and three stories on either side of an “L” shape. It will be cleared of furnishings and equipment and will be assessed for hazardous materials such as asbestos before the wrecking ball comes in. The .64-acre site will be repaved as a parkuTHUNDERBIRD, Page A13
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