The daily Astorian., October 31, 2018, Image 1

HAPPY HALLOWEEN!
DailyAstorian.com // WEDNESDAY, OCTOBER 31, 2018
146TH YEAR, NO. 88
ONE DOLLAR
Port
OKs
hotel
transfer
Portland hotelier to
take over operations
By EDWARD STRATTON
The Daily Astorian
The Port of Astoria Commission on
Tuesday approved a settlement and sev-
en-year lease of the Astoria Riverwalk Inn
with a new operator.
Param Hotel Corp., a Portland-based
hotelier, will take over on Thursday.
Param had been trying to take over the
hotel since 2014 from heavily indebted for-
mer operator Brad Smithart in exchange
for paying his debts. The Port Commission
approved a transfer in 2015, but the deal fell
apart.
Param sued the Port after the agency ter-
minated Smithart’s lease, opened the hotel
for bids and eventually installed another
operator, Astoria Hospitality Ventures. A
jury sided with Param, ruling the Port had
breached a contract and that Jim Knight, the
Port’s executive director, had knowingly
made fraudulent misrepresentations to the
company’s owner, Ganesh Sonpatki.
Judge Dawn McIntosh eventually
ordered the Port to honor an agreement with
Param to take over Smithart’s lease. After
initially appealing the ruling, the Port began
settlement negotiations with Param.
As part of the new lease, Param will pay
the Port $5,000 a month in rent, along with
7 percent of the gross profits from the Riv-
erwalk Inn. The company’s initial lease runs
until Oct. 31, 2020. By then, it must invest at
least $150,000 in the hotel to exercise a five-
year extension.
Param’s takeover of the hotel included
depositing $580,000 into an escrow account
to pay off Smithart’s debts. The city is owed
$115,858 for lodging taxes, along with
$4,633 to the county for property taxes.
The Port was to receive $273,180 for
Smithart’s back-due rent and revenue shar-
ing. But the settlement with Param included
paying $145,000 of the company’s legal fees
out of its portion.
The Port Commission on Tuesday also
approved paying $50,000 to Hospitality
Ventures to ensure the company does not
sue over being forced out of the hotel with-
out compensation, as owner William Orr
had intimated could happen. Param will pay
Hospitality Ventures $50,000 for equipment
to make sure the hotel continues operating
through the transfer.
The remainder of Param’s escrow
account — estimated at $186,327 — would
go to Smithart, who also owes significant
amounts in taxes and has since relocated to
New York.
“All the rooms in the hotel are ready to
go when the hotel changes hands,” Orr told
the Port Commission Tuesday.
About 30 people work at the Riverwalk
Inn. The parties are still trying to get resolu-
tion on what happens to the employees after
the transfer, Orr said.
Photos by Colin Murphey/The Daily Astorian
A housing study concludes many newer homes are not affordable for families with an average income.
VARIETY OVER QUANTITY
More than 86 percent of new houses not
affordable to families with average income
By JACK HEFFERNAN
The Daily Astorian
V
ariety, rather than supply, is the
biggest housing barrier in Clatsop
County.
Consultants
preparing
a
countywide housing study have noted
sufficient housing supply and buildable
land, especially in Astoria and Warren-
ton. More than 11,800 acres of potentially
buildable land exist, though officials have
cautioned that much of the property has
hurdles such as wetlands, which make
building more expensive.
The average household income in
the county is $69,000 a year, mean-
ing the average affordable home price is
$240,000. But 86 percent of houses built
in the past decade are sold for more than
$300,000.
The price gap is forcing would-be first-
time homebuyers toward rental units.
“That is a key takeaway,” said Matt
Hastie, a housing policy specialist who
has helped with the study. “Overall,
there’s availability and land for housing,
but there are gaps in the types of housing
people need.”
Various causes have been explored,
including a rise in vacation homes, eco-
nomic development, regulations and
municipal code quirks.
The result: houses are being sold at
higher rates than what they’ve tradition-
ally been worth. While homes are avail-
able at the $200,000 to $300,000 level
— about 14 percent of the market — first-
time homebuyers may be unsatisfied with
the condition.
Kevin Leahy, executive direc-
A sign advertises a property for sale in Astoria.
TOWN HALLS
• Astoria, Thursday, 5:30 p.m. to 7:30 p.m., Judge Guy Boyington Building,
857 Commercial St.
• Seaside, Nov. 13, 5:30 p.m. to 7:30 p.m., Seaside City Hall, 989 Broadway St.
tor of Clatsop Economic Development
Resources, referenced real estate listings
that summarize the quality of the area’s
cheaper houses.
“I would leave that to your interpre-
tation as to what you get for that price,”
Leahy said.
The region, particularly Warrenton,
has seen rapid economic development.
But, due in large part to a shortage of
workforce housing, employers have had
a difficult time finding workers.
“It’s impeding economic develop-
ment,” Leahy said. “I would say that loud
and clear.”
Recommendations to change tax lot
sizes and build housing in high-density
areas make sense, Leahy said.
See HOUSING, Page 7A
See PORT, Page 7A
Gearhart woman will help decorate the White House
Designer part
of Christmas
celebration
By BRENNA VISSER
The Daily Astorian
Brenna Visser/The Daily Astorian
Linda Goldfarb, of By The Way in Gear-
hart, was chosen to help decorate the
White House for Christmas.
GEARHART — While most
everyone else will be eating Thanks-
giving dinner, Linda Goldfarb will be
on a plane to the White House.
Goldfarb, the owner of By The
Way gift and coffee shop in Gearhart,
has been chosen to be one of a hand-
ful of designers to help decorate the
White House for Christmas.
“When I got the email, I was just
so excited,” she said. “It’s the biggest
honor to be asked to do this.”
Decorating the halls of the first
family never crossed her mind as a
possibility until a friend mentioned
there was an application open to do
it earlier this summer, Goldfarb said.
Having volunteers help set up the hol-
iday decor is a long-standing tradition,
with about 150 volunteers from 29
states helping to deck the White House
halls last year, USA Today reported.
At first she was reticent, figuring
the odds of being chosen would be “1
in a million.” But after working in the
world of interior design for the past 30
years, she couldn’t resist the urge to
throw in an application.
All was quiet until early Octo-
ber, when Goldfarb returned from an
extended trip to Europe and found an
email from the White House telling
her she had been selected.
But before the excitement could
take hold, slight panic set in. Because
of her extended time out of the coun-
try, she had not received the email
until the day after recipients were sup-
posed confirm their attendance.
“My heart dropped,” she said. “I
thought that I had gotten this once-in-
a-lifetime chance … and lost it.”
Much to her relief, the White
House ended up accepting her RSVP
anyway, and Goldfarb is now gearing
up to spend about a week in Washing-
ton, D.C.
Goldfarb isn’t sure what to expect
— details concerning the specifics of
how and what will be decorated are
kept tightly under wraps to prevent
leaks, she said.
See GOLDFARB, Page 7A