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Real Estate

East Side Rising

In Portland's historic industrial heartland, businesses new and old are making pom-poms, curing meats, designing clothes—and creating jobs

By Zach Dundas

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Photo: Larry Letters
View Slideshow » Photo: Larry Letters

“In general, the neighborhood’s manufacturing owners welcome change as long as it’s organic change. The real creative class in the Central Eastside includes machinists and engineers—people who can solve real, practical problems.”
—David Lorati, owner of School Specialty Co, an east-side manufacturer since the ’60s

View Slideshow » Photo: Larry Letters

“I want to get the entrepreneur off the kitchen table and out of the garage. People down here are gentrifying the neighborhood—but from the poor man’s perspective, from the ground up.”
—Walt Pelett, owner of City Liquidators and landlord to “about 100 tenants” in the Central Eastside

View Slideshow » Photo: Larry Letters

“It’s great for the whole city to have a neighborhood where you can find a great bar or café next door to a small factory, next to an advertising production studio.”
—Juliana Lukasik, owner of @Large Films and vice president of the Central Eastside Industrial Council

View Slideshow » Photo: Larry Letters

“We first located here because it was cheap, and we liked the idea of being in a neighborhood that’s busy during the day. It would be a bummer if it got a bunch of big apartment buildings.”
—Tommy Habetz, chef and co-owner of Bunk Sandwiches and the recently opened Bunk Bar

View Slideshow » Photo: Larry Letters

“We’ve always sold a little retail, but since we put out our stand [of vegetables], our sales have quadrupled. The people down here love their vegetables.”
—David Rinella, owner of Rinella Produce, a 93-year-old Central Eastside fruit/vegetable wholesaler

View Slideshow » Photo: Larry Letters

“City Hall hasn’t paid a lot of attention to the Central Eastside over the years. Downtown—or I should say, the other downtown—is the golden one. But the new East Burnside-Couch Couplet is really bringing streets alive with activity.”
—Bob Wentworth, co-owner of Wentworth Chevrolet Subaru and six blocks in the Central Eastside

View Slideshow » Photo: Larry Letters

“The Central Eastside seemed almost abandoned when we moved in 21 years ago. Now it’s a destination for home remodeling. The city was smart to loosen the industrial zoning, but to also not let it become another Pearl District.”
—Michael Pratt (with wife and partner Reta Larson), co-owner, Pratt & Larson

INSIDE FIVE-WEEK-OLD WATER AVENUE COFFEE on a recent August morning, gleaming countertops—all venerable fir reclaimed from some century-old industrial building nearby—caught the milky light from an overcast sky. Espresso machines hissed as a steady stream of walk-in customers homed in on the counter. In the street outside, two men steered a Skyjack crane above yet another new business next door: Bunk Bar, the latest venture from celebrated chef Tommy Habetz.

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Photo: Larry Letters

The low-key but enterprising scene is typical of the Central Eastside, where about 1,100 increasingly busy businesses keep more than 17,000 Portlanders employed. While the nightly news bemoans sluggish job-growth rates, stubborn unemployment, and, potentially, a long and irreversible decline, the district’s nearly 700 acres are blooming with counter-cyclical optimism.

“In general, the neighborhood’s manufacturing owners welcome change as long as it’s organic change. The real creative class in the Central Eastside includes machinists and engineers—people who can solve real, practical problems.”

—David Lorati, owner of School Specialty Co, an east-side manufacturer since the ’60s

“Throughout the recession, the Central Eastside has stayed strong,” says Trang Lam, a senior project manager for the Portland Development Commission (PDC), which has overseen the neighborhood’s Central Eastside Urban Renewal Area since 1986. “You have legacy businesses, which tend to be owner-occupied light-industrial spaces, and you have whole generations of new businesses in creative and professional fields. It’s not blue-collar or white-collar—it’s a mix of both.” (According to the PDC’s most recent stats, as the nation plummeted into recession in 2007 and 2008, the Central Eastside added about 500 jobs.)

To be sure, the district’s practical ethos seems to be the fuel of its own regeneration. “We looked at other places that would have been a much better fit for pure retail,” says Matt Milletto, co-owner of Water Avenue Coffee. “But we’re not just a retail café. We’re doing factory-style roasting and wholesale shipping, and this facility allows both sides to exist in the same space. This area has been an industrial stronghold for decades, and we’re both paying tribute to that heritage and building on it.”

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Published: October 2010

 

Comments Speech Bubble

By Matt Buhler on Jan 31, 2011 at 3:35PM

Jerry,

You obviously dont know Dave Lorati. if you did you would know that Dave is one of the kindest people in America. I have been in business for over 20 years and I have never seen anybody go above and beyond when it comes to taking care of his employees. If more business people had half the integrity and work ethic of Dave Lorati, the Business community would have much stronger values and productivity. Dave, not only is a great family man, one of the best coaches in his community, great friend to so many people. He is the example. The problem with the internet today is that people that dont have a clue what they’’re talking about can make up stuff about people. We should all be proud that Dave has carried on the tradition his Dad started. You dont see that much anymore as well. I have never seen Dave take credit for anything he is every done. He is the most unselfish and humble individuals.

I feel sorry for you for making up so much garbage about one of the brighter spots in the business community in portland.

By jerry dutty on Jan 15, 2011 at 8:01AM

I think this David Lorati sucks as far as a business owner and his reputation for the way he acts and treats people needs alot to be desired, his employees are all asian mind you so he can keep controll, you talk about sweat shops this is one here in the city that should be investigated back at least 15yrs ago having minor children working for him. The neighborhood has changed but not do to his imput, but to the imputs of business established well before lorati’s time of being here, but once again heres a guy that takes credit for everything and is stereotyping all he claims he must have had done in diapers to what his father had built from the ground up.

By Jon Ward on Jul 28, 2011 at 1:30PM

RINELLA PRODUCE IS A VERY BAD EXAMPLE TO FEATURE!
You need to look at this company and the owners very closely. They should be ashamed at how they conduct business. This puts a very bad face on Oregon and the respectible people who work and do business here. I looked up what the Rinellas did in the past, they need to hang a sign that say’s “OUT OF BUSINESS” People hate thieves and liars and the Rinella’s don’t have many friends. Looking at the facts, it’s not hard to see a clear pattern on how these people conduct thier business. The public is pointing an accusing finger at the Rinella’s. What scam artist they are!

By Jason Weaver on Jul 29, 2011 at 5:33PM

It’s hard to imagine how bad this family is. I have refused to eat at any establishment that buys Rinella Produce. Out of everything I know,(and I know a lot) these people are bad news. Like most people, I hate liers and cheats. Many many people have spoken about a full blown boycott on any business that buys produce from these people. The issue will be raised again by people who know how to run these people out of business. You featured David Rinella as a prominate businessman in your article and that was a mistake. I would advise people to look at David Rinella criminal record and the Rinellas’ were caught stealing from neigboring suppliers and charities and everything they buy is COD, thier credit is no good… and no one really wants David Rinella around them.
The Rinellas’ make Portland look bad. THEY NEED TO GET OUT OF PORTLAND NOW!

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