Arch Building (copy)

The exterior of the Arch Building, located at 432 SW Sixth St., in downtown Redmond on April 7.

The Arch Building, a central and historic property in downtown Redmond, is nearing the final steps of its restoration.

Arome Holdings LLC, a kitchen supply retailer that purchased the nearly 100-year-old building in April, divided the project into two phases: construction of a retail store on the first floor and apartments on the second floor.

The company received an investment of $98,000 from the city’s urban renewal agency in April to complete its first-floor retail space. On Tuesday, the Redmond City Council, acting in its role as the Redmond Urban Renewal Agency Board, agreed to loan Arome up to $245,430 to support the residential phase.

The loans and grants provided by urban renewal make up $383,430 for both phases of the project and is matched by $1.4 million from Arome. The urban renewal funding makes up 22% of the entire cost of the project, which is projected to be $1.77 million.

The retailer expects to open its storefront by the end of the year. Construction of the apartments is expected to be completed and available for lease by July.

Mayor George Endicott thanked Janice and Nathan Bell, the owners of Arome, Tuesday night for pursuing the project. He reminisced on the time he spent working at the building in the late 1960s when it was a storage facility, adding that it has housed other business, too, including a gym and a roller-skating rink.

“That building has a long history, and I just want to thank you for stepping up and wanting to do something pretty creative with it,” Endicott said. “It’s sat there vacant a long time and we’ve just been waiting for someone to step up and do something like you’re doing.”

Nathan Bell presented the layout of the apartments to the board Tuesday night. Both he and his wife, Janice, are engineers who have invested in and built numerous properties and manage ones in Oregon and Washington.

Bell said the second floor will house six one-bedroom, one-bathroom apartments and two studio apartments.

The units will have a modern, open concept layout with high ceilings, exposed brick and original hardwoods. Each of the units will average about 400 square feet and include a full bedroom, bathroom and kitchen. Storage units will be available for each of the units, and tenants will be able to access a shared laundry facility with two washers and two dryers.

The renovation will include replacement and upgrades to plumbing, electrical and mechanical systems.

“These are small apartments, and we know from experience with other tiny homes and small apartments that this is a viable lifestyle for people and a property for us to own,” Nathan Bell said.

The city said the project will enhance the visual appearance of a key building downtown, increase the number of high-density housing units, bring more potential customers to downtown businesses and add jobs.

The retail store is expected to create six new jobs with wages ranging from $15 to $25 an hour.

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