November 2019
Volume 18 • Issue 11
Downtown changes coming with sale of Herald building BY JEFF MORROW
for Tri-Cities Area Journal of Business
Labor & Employment
TC Futures helps students transition into real world Page 11
Real Estate & Construction
West Richland eyes raceway for development Page 21
Retail
Mall celebrates 50-year anniversary, despite changing retail market Page 39
NOTEWORTHY “It’s a concentration of all the coolest, weirdest stuff we get as a company.” -Michelle Price, e-commerce manager for Goodwill Industries of the Columbia Page 41
It took almost eight years and a lot of on-again, off-again negotiations with different prospective buyers, but the Tri-City Herald building in downtown Kennewick has new owners. Pasco investors Mike Detrick Sr., his son Mike Detrick Jr. and their wives bought the building at 333 W. Canal Drive for $3.9 million in October with plans to transform it into multi-tenant office space. The Tri-City Herald will remain a tenant—for now—but it has plans to move elsewhere after spending 71 years there. “I think it’s a good thing for us,” said Jerry Hug, the Herald’s general manager. “We’ve been trying to sell the building on and off since 2011.” Hug said when the building went on the market, they expected it could take a few years to find the right buyer. “We’ve been close a couple of times, but then it fell apart. That’s the way these large sales happen,” Hug said. The Herald no longer needs such a big building. It has 45,000 square feet of office and 57,000 square feet of industrial space. The McClatchy Co., the Herald’s California-based parent company, invested more than $9 million to build the new building and renovate the production facilities in 2004. The Detrick family has the experience to develop the property. It already owns smaller apartment complexes in Kennewick and Richland and a multi-tenant office building in Kennewick, and is building an office in an industrial park in the south Richland area. Mike Detrick Jr. owns D9 Contractors, a commercial drywall business that has already begun moving into the former press, newsprint storage and circulation areas. The company will store its construction uHERALD, Page 19
Photo by Robin Wojtanik Richland Tumbleweeds owner Keith Moon recently announced plans to raise food prices before the end of the year to offset the higher minimum wage requirement taking effect Jan. 1.
Minimum wage increase likely means higher costs for consumers BY ROBIN WOJTANIK
for Tri-Cities Area Journal of Business
Tri-City fast food restaurant owners say there’s no way to avoid raising prices when the latest minimum wage increases kick in at the start of 2020, requiring workers be paid at least $13.50 an hour. “Anybody who thinks that prices aren’t going to go up, you’re fooling yourself,” said Tom Tierney, owner of the Tri-Cities’ DQ Grill & Chill restaurants. After 40 years of restaurant ownership, Tierney said, “You can only absorb so many costs. You can control the cost of food, what we pay for it, and we can control our cost of labor. When either of those goes up precipitously, we can staff less people, but we don’t necessarily want to do that because we’re the service business, so you don’t want to give less service. So ultimately, we’re all go-
ing to have to raise prices.” The owner of Tumbleweeds Mexican Flair in Richland said a 2 percent increase across the board is “almost mandatory.” “If the average person is buying two to three items, it could be $1 more a visit. For the people who come every day, that’s a concern of mine: Are they going to pay?” asked owner Keith Moon. A voter-approved initiative in 2016 hoisted the minimum wage from $9.47 an hour to $11 an hour beginning in 2017, and then increasing by 50 cents each year through 2020, when it will jump $1.50 an hour—from $12 an hour to $13.50—on Jan. 1. Starting in 2021, and every year after, the state Department of Labor and Industries will make a cost of living adjustment based on the federal Consumer Price Index for Urban Wage Earners and Clerical Workers. uMINIMUM WAGE, Page 16
Developers plan $5M solar-powered commercial building in west Pasco BY ROBIN WOJTANIK
for Tri-Cities Area Journal of Business
A “green” office building will brighten and lighten up a busy west Pasco neighborhood, courtesy of green paint and green energy. The Wrigley Place development is intended to be the first solar-powered commercial building in the Tri-Cities. Developer Dennis Gisi said Wrigley Drive LLC is behind the $5 million investment on Wrigley Drive, just west of North Road 68, between the west Pasco branch of the MidColumbia Libraries and Lourdes Health. The LLC was formed between his corporation, Gisi Investment Services; Jay Hen-
dler, architect for the building; and Terry and Karen Gilmore, who own the property. Gisi owns the land next door that’s leased by Mid-Columbia Libraries. With about 18,000 square feet across three levels, the only confirmed tenant so far is John L. Scott Real Estate, where Gisi is the owner and broker. Hendler is also a broker with the agency. The real estate agency currently is just a short distance away at 5109 N. Road 68 in a strip mall north of Yoke’s Fresh Market. Gisi said he has letters of intent for about 45 percent of the available space, including a wine bar, and hopes to get another uSOLAR BUILDING, Page 24
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