Port explores smaller business spaces at Cashmere Mill District, drawing on Trades District demand

CASHMERE – The Chelan Douglas Regional Port Authority is exploring whether dividing space at Cashmere’s Mill District into smaller units could attract contractors and other emerging businesses, with the former Blue Spirits premises among its priorities.

The concept surfaced during the Port’s Nov. 4 retreat, received support during a Nov. 9 presentation to the Cashmere City Council and returned to the Port board’s discussion Nov. 10.

The Port has begun advertising the former Blue Spirits space as “coming soon,” staff reported Nov. 10. But recovering the premises through the bankruptcy process, assessing demand and determining renovation costs remain part of the work ahead.

CEO Jim Kuntz told the Cashmere council that demand at the Port’s Trades District in East Wenatchee offered a potential model. Its small-business spaces, generally around 1,700 to 2,000 square feet, were fully leased, with four businesses waiting, he said.

“Why can’t we go in and subdivide it into more bite-sized pieces that small businesses can afford to start a business?” Kuntz said.

Kuntz described the former Blue Spirits facility as approximately 8,000 to 9,000 square feet and discussed possible units of roughly 2,300 square feet. He said the Port would work with architects to examine the possibilities.

“And so we’re going to work with our architects to take a look at getting it into more leaseable type space,” he said.

At the retreat, commissioners discussed marketing the Mill District as an Upper Valley location for trades businesses. Contractors serving Cashmere, Leavenworth and surrounding communities could potentially use the space as a base closer to their customers, as they currently have limited options only in either Leavenworth or all the way down the valley in Wenatchee.

The discussion centered on whether the buildings’ configuration was limiting interest and whether smaller units would better match the market.

Staff reported inquiries for spaces of approximately 3,000 to 5,000 square feet. Commissioners wanted additional analysis before investing in renovations, including identifying the sizes and features prospective tenants would need.

That distinction matters because adapting the buildings would require more than installing partition walls.

Existing plans to divide unfinished space in Building B, which is partly occupied by Hurst International, were estimated at about $1.7 million. The work would include restrooms, an entry vestibule and basic heating and cooling for shop space.

That estimate applies to the Building B improvements, rather than a final plan for subdividing the former Blue Spirits facility.

Staff said the original building designs accommodated three suites each. Creating additional units could require more entrances, restrooms and separate utility services.

Commissioners also questioned whether rents sufficient to support the improvements would remain affordable to the businesses the Port hopes to attract. The retreat discussion ended with support for examining demand and feasible subdivision options before committing to construction.

Kuntz told the Cashmere council that approximately 5,000 square feet remained available in the building partly occupied by Hurst International.

“And so our big focus is getting those full as soon as we can with businesses,” he said.

Cashmere officials expressed support for the smaller-space concept, discussing the city’s dependence on small and growing businesses and the potential to serve contractors working throughout the Upper Valley.

At the Nov. 10 Port meeting, officials reported that favorable response and again discussed whether smaller units would appeal to construction businesses. They also acknowledged that converting the space would carry substantial costs.

The discussion was part of a broader review of efforts to market vacant Port properties. Staff described advertising through property listings, social media and other outreach, including promoting the former Blue Spirits space ahead of its availability.

Although Kuntz compared the Cashmere concept to another phase of the Trades District, it is separate from the Port’s planned Phase II expansion in East Wenatchee.

For the Mill District, the immediate task is to determine what businesses would lease, what alterations the buildings would require and whether the investment would improve occupancy enough to justify its cost.

No final renovation plan, construction commitment or opening date was announced during the three meetings.

Andrew Simpson: 509-433-7626 or andrew@ward.media