Thursday, July 31, 2003, 12:00 a.m. Pacific

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Pints to paintbrushes: Old brewery may become artists' home

By J. Martin McOmber
Seattle Times business reporter

Plans to transform the old Rainier Brewery into a home for artists have generated a lot of excitement in a city where large, cheap space for blowing glass, twisting metal, cranking amps and applying paint to canvas has grown scarce.

But as the interest in Ariel Development's "Artsbrewery" grows, so does the skepticism: Building a business around artists — particularly the struggling and starving variety — is a tricky proposition.

Ariel bought the landmark building along Interstate 5 last week for $6 million. A proposed $4 million renovation would turn the collection of stout four- and five-story buildings into living and working space for painters, sculptors, glass blowers, ornamental metal workers, musicians and other artist.

Tom Gomez wishes the company luck. The owner of InnerMountain Realty has spent years converting the original Rainier Brewery a few miles south in Georgetown into work space for artists and craftsmen, and he thinks that the high cost of converting the brewery and the low rent working artists can afford will eat Ariel alive.

"I love the idea, but I'm concerned they are somewhat optimistic about what their rental rates will be and the expectation that this will happen sometime soon," Gomez said.

Ariel's Herzel Hazan shrugs when he hears the doubts. During the past decade, he and partner Shimon Mizrahi have made their mark around the area with a series of high-end convenience stores and gas stations. They are building a Silver Cloud Hotel on Capitol Hill and are developing another near Safeco Field.

From the moment word leaked that they were talking with The Benaroya Co. about buying the landmark building along Interstate 5, they heard the naysayers. Many questioned whether they could even close the deal.

Hazan has never developed anything like the brewery. But he says the company is committed to pushing forward.

"I won't make promises for the future," Hazan said, standing next to a freshly painted mural that marks the project's office at the plant. "So far we've pulled off what we said we would. The rest, time will tell."

Ariel tapped financial investors Michael Goldfarb, former owner of the Carpet Exchange, and his son, Brett Goldfarb, for the project.

The building's first new tenant could be the Jam Box, which rents rehearsal space to bands. The Queen Anne company has signed a letter saying it intends to move into the building.

Ariel needs approval from the city Department of Design Construction and Land Use for the proposed changes. The developer is preparing to tear out the old brewery equipment and tightly packed metal tanks that for decades produced Rainier beer under the building's trademark "R." The plant closed in 1999 when Pabst, which owned Rainier, moved its local brewing to Tumwater.

Tully's Coffee moved its headquarters and roasting plant to the building after Benaroya bought it. The specialty coffee company leases a third of the building. And Chief Executive Tony Gioia said the company has no plans to leave before its lease runs out in seven years. In fact, he said, it would welcome the burst of creative energy in the old brewery.

"We actually look forward to the new tenants," Gioia said. "It's an eclectic building. It is cavernous. It has a lot of different add-ons."

And that's the problem, Gomez said. He figures it will cost nearly twice the $4 million Ariel has said to install the ventilation, wiring, plumbing and interior to meet regulations. And then he wonders whether there will be enough artists willing to pay rents high enough to cover Ariel's costs.

"I'm just talking about the mathematical realities of an old building," Gomez said.

Hazan said his renovation budget is reasonable because they intend to let the artists themselves do much of the finishing work. It is part of the company's concept of turning the building into a community of artists working together and sharing ideas.

"We can afford to give the artists lower rates, with the idea that the artists would be involved with finishing the space and keeping the budget low," Hazan said.

The company is still working on the business plan, but the initial thought is to lease the building to several co-ops.

About half the space would go toward apartment studios for artists and the rest divided between rooms for music rehearsal and gallery space.

Cheap places where artists could live and work has been in high demand since the economic boom of the late 1990s led to the renovation and gentrification of traditional haunts like Pioneer Square.

Fionn Meade, director of grant programs for Artist Trust, said the arts community is intrigued with the Artsbrewery project but is waiting to learn more.

"We list studio space and housing on our Web site 'for artist,' and it is always, always taken," he said. "If that is any indication, there is still a need for affordable space."

J. Martin McOmber: 206-464-2022 or mmcomber@seattletimes.com