Blue Skies at Blue Mountain Station

DAYTON-The sprawling Blue Mountain Station has become a key player in Dayton and Columbia County's economy. It provides production space for fine candy makers, craft spirit distillers, soap crafters, and growers of organic produce. The road to success has been long and, at times, rather difficult.

The idea for the Station first came to light in 2007, when Jennie Dickinson was hired as Executive Director of the Port of Columbia.

"When I moved from the Chamber to the Port, it was June of 2007, and Downtown Dayton was full," Dickinson recalled. "I had been at the Chamber for eight years, tourism was good, events were good, Chamber membership was the highest it had ever been."

At the same time, the Port of Columbia had been feeling a lot of pressure about the job base in Dayton. Dickinson said that one of the first projects she took on as a Port manager was obtaining a grant from the State of Washington for a marketing study.

"The manager before had done an excellent job with brick and mortar," Dickinson said. "The guy was a builder, he helped build so many buildings back when you didn't have a prevailing wage, rules, and regulations. But they didn't have any business development direction."

The marketing study included lots of research and a survey of the community. Some in the community were resistant to various windmill projects, and the Port wanted to find out what types of development they would support. The top two answers were renewable energy and value-added agriculture.

With this data from the survey, the Port decided to purchase property and develop a natural and organic food processing park, Dickinson said. A feasibility study examined local, commercial properties, including the Seneca building, for a location suitable as a natural and organic food park.

The Washington State Department of Agriculture assessed the Seneca building and advised that it would be complicated and costly for it to be retrofitted as any kind of food park, especially one with a natural and organic label.

"Then we looked downtown," Dickinson said. "It was pretty much out of the question because of zoning."

Aside from zoning issues, the buildings that were located downtown were not suitable for food production companies. Spirit distillers, brewers, and winemakers have particular design needs for the production spaces, including specific pipe materials, floor drains, and ceiling heights. Coffee roasteries can produce a toxic and unpleasant smell as they burn off the outer layer of the coffee bean. They need appropriate ventilation to reduce odors and fine ash.

The Department of Ag also noted that it would be challenging to secure an organic label with the old wood in most buildings, and semi-truck access for shipping needs would be hard to guarantee.

"At the time, in 2008, the idea was for bigger businesses than what we ended up with at the Blue Mountain Station," Dickinson said. The original plans were for mid-sized food production businesses instead of the small businesses now thriving on Artisan Way.

After the Port completed an inventory of commercial property throughout the Touchet Valley, the property where the Station now lives rose to the top. The proposed property was within the Urban Growth Area, which was slated for development, and close to city utilities.

"We were accused of paying too much, but we had followed the law," Dickinson shared.

The Port of Columbia did not escape the economic crash in 2008 and wondered when they would be able to start the project. In 2011, Dickinson said they received a $750,000 grant from the state to cover the majority of the development. Before long, Dickinson said she had small businesses expressing need and interest in the new space.

"They were little! One was a cheesemaker, one was granola, one was Rey's Roast," Dickinson said. "These little businesses said, 'I can't find space to do what I want to do."

Regina Weldert, owner and operator of Rey's Roast, said she had looked in Walla Walla to find a space, but the rent was way too high for her start-up. Every space needed upwards of $40,000 to make it suitable for coffee roasting.

"Here, I have a brand-new facility, made for food processing, that is already to code and everything," Weldert said. "The rent is reasonable, but when you are just starting out in a business, that's exactly what you need."

Weldert, who branched out and opened a coffee shop on Main Street in Dayton, described the Blue Mountain Station as the net that catches you while walking the business tightrope.

The original businesses, who paid deposits for their suites, were able to have input on the specific design needs to make their business a success. High ceilings for winemaking and storage, low ceilings to control bacteria for cheesemakers, copper pipes, water heaters that could keep up with the demands of food processing, floor drains, propane, food-grade wall coverings, three-compartment sinks, eye washing, and handwashing stations, and commercial hoods were just a few of the tailored items that were worked into the construction plans.

Since the building was expensive to construct, tenants at the Blue Mountain Station pay more rent per square foot than the other Port-owned buildings. An exception is the USDA building, which is full service as required by the federal government and pays roughly $1.00 per square foot of their space. Dickinson explained that rent at the Rock Hill Industrial Park ranges between 15 and 25 cents and 45 cents at the high end. Spaces are priced according to the level of finish and fixtures.

The Station tenants, however, pay more per square foot at 50 cents, because of the complicated nature of the building. The exception to the rule is the Co-Op which does not produce food, so it did not need food-grade wall coverings or commercial hoods. The market acts as a visitor and information center for people stopping off the highway. The Co-op sells products that are produced at the Station and supports an estimated 45 regional businesses.

"They pay a reduced rate in rent because they are such a valuable part of this site," Dickinson said. "They were part of our original plan; when we were advertising it, it said that there would be a place to sell your products on site."

The Co-Op's rent, however, is comparable with the other Port-owned rentals, according to Dickison.

Recently, the idea that the Port subsidizes rent for the tenants at the Station has gained popularity in the community, but the idea is unfounded. There is no subsidization at the Station.

Its current use brings in roughly $70,000 annually in revenue. The Port keeps the surrounding farmland in crop, and owns a rental home in the area, for a total of approximately $80,000 in revenue. Dickinson said that there is still growth to come, but cash flow has been better than she ever expected so far.

In 2018, there was an issue with the neighboring property's lease agreement, which resulted in the Port purchasing the partially completed Building 2 from the developer. The Port had to issue a bond and use its reserves to buy and complete Building 2. That took a toll on the Port's financial status, but the building was fully leased before construction was done.

"The tenants that are there- the rent more than covers the debt payment," Dickinson said.

Borrowing money to purchase and develop land is not new for the Port, Dickinson said. Where the Industrial Park now stands was once the Oliver Farm.

"The Port purchased the land in the early 1980s because Dayton needed to diversify the economy," Dickinson said, speaking about the Oliver Farm purchase. "If you go back through our records, we have a history of borrowing money to build buildings and then paying it off. Dayton Tractor, the one next to my office, the one where the USDA is, Building Number 3 where Jay's Garage is, Building Number 4 where Vestas was... all of those buildings. We borrowed money, built a building, rented them to businesses, and paid off the loan. The Blue Mountain Station is exactly the same."

"The Port has been a fabulous landlord, they are extremely supportive of small businesses, and it has been a joy to be here," said Nancy Monacelli, owner of Momma Monacelli's.

Monacelli said that she started her chocolate and fine candy business in a shared commercial kitchen. Moving into her own space was a step up for her business. Now, she has her production and small retail space in Suite H at the Station. Momma Monacelli treats are also available at the Co-op, giving her a bigger retail footprint.

"It gave me the ability to grow it to the point I could be profitable," she said. In the wake of the pandemic, Monacelli added espresso and a selection of baked items to her menu, something that would not have been possible in a shared kitchen.

Regina Weldert echoed Monacelli.

This is not necessarily the permanent location for all Station business. Once a business has developed a successful model, they often look for a building to own. Azure Mountain Botanicals, for example, started making their soaps and other skincare products at the Station before moving to Dayton's Main Street. The new owners of the Weinhard Cafe got their start in the Station's commercial kitchen before purchasing their restaurant.

The Station continues to thrive at its Artisan Way location, growing interest, attracting visitors, and embracing small businesses. Coffee, organic produce, sweet treats, and small-batch skincare products are just a few of the surprises waiting for you! If you'd like to check out the Station producers, visit their website, http://www.bluemountainstation.com, or, better yet, swing by 700 Artisan Way in Dayton.