NEWBERG, Ore. — After a 30-day closing period, the sale of the Butler Property is complete, and development of the site into a mixed-use facility is officially underway.
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Dundee residents Brent and Polly Peterson, co-owners of Heated Candle LLC with two other partners, had their bid for the vacant lot on First Street across from City Hall — known as the Butler Property — accepted in late December. Following the closing period, the sale has now been finalized. Per City Council direction, the Petersons are committed to constructing a mixed-use building on the 0.24-acre property.
The Petersons bring extensive experience in real estate and land development. After meeting at George Fox University in the late 1980s, the couple moved around the region before settling in Dundee in 1996, with Polly working for George Fox and Brent as a financial adviser. They have owned several downtown properties and area vacation rentals, as well as multiple properties they have purchased or developed on the Oregon coast.
The opportunity aligned with both their experience and investment strategy. They compared it to their investment in the Morris, Miles, and Co. building, where they founded Chapters Books & Coffee before selling the business to Maureen and Bill Rodgers in 2005.
“We understand vacation rentals, but the idea of a commercial space is kind of intriguing,” Polly Peterson said. “When we look in Newberg, sometimes we consider what Newberg needs and wants, or what it will need and will want.”
What they saw — and what City Council indicated it wanted — was a mixed-use project with commercial space on the ground floor and short- or long-term residential units above, a parking lot, and “a good-faith attempt” at including a restaurant.
“They put a wish list together, and we didn’t really resist any of it,” Brent Peterson said. “It is restrictive, and we figured if they’re going to take the haircut on the price, then they’d get the terms they wanted.”
The deal closed at $341,250 on Friday, Jan. 9. The Petersons are scheduled to receive the deed on Tuesday, Jan. 13, starting the project’s formal development timeline.
Under the sale agreement, they must secure all necessary approvals and permits within one year of the closing date, begin construction within two years, and substantially complete the project within four years. If those milestones are not met, the city has the option to repurchase the property for the original purchase price.
“They didn’t want someone to buy it and then sit on it and wait to develop it,” Brent Peterson said. “And we don’t either.”
The Petersons said they are excited to help bring downtown Newberg its first new building in decades and are preparing for the challenges of filling both commercial and residential space.
Current plans call for four short- or long-term residential units above the commercial spaces, each with two bedrooms and one-and-a-half bathrooms. Each unit would be approximately 1,000 square feet, and a potential rooftop element remains a long-term possibility.
“I don’t really know how we can monetize that yet,” Brent Peterson said. “Do you just have a deck up there with a rail and give people access? Technically, we can build up to three stories, but that’s all part of the dreaming right now. We’re more focused on getting started.”
The Petersons have previously worked on several downtown projects, including Chapters Books & Coffee and the building at 701 E. First St., which houses Therapeutic Associates of Newberg Physical Therapy. They said this project has the potential to bring new energy to a highly visible part of downtown.
Mostly, they view it as another way to continue investing in the community they have long called home.
“We also see what is happening in the tourism industry,” Brent Peterson said. “We’re participants in it. We feel like there’s room for what we’re doing. We don’t really know what the results will be, but we’re willing to build it and just see.”
“This has been a really good community for us,” Polly Peterson continued. “We’ve chosen to raise our kids here, we’ve chosen to stay here and invest in this community — it’s a way to keep us connected, and that’s really important to us.”
The Butler Mouse’s New Home
The bronze mouse sculpture that previously sat on a concrete pad in the center of the Butler lot was excavated on Tuesday, Jan. 7.
In a post on social media, city officials say the sculpture is currently housed in the City of Newberg’s public works yard and hope it will be affixed to a pillar outside the library’s main entrance on Howard Street for continued public enjoyment.
However, the piece is loaned to the Newberg Public Art Council, which will have the final say in where the sculpture resides. NPAC board president Terry Emery said they hope the mouse can remain in Newberg’s cultural district in a space where children can easily access, touch, and decorate it. She said they are going to start working with the city and potentially the Chehalem Parks and Recreation District once they find a suitable location.
The sculpture was created by Whidbey Island, Washington-based artist Georgia Gerber and is part of a trio titled Boys’ Night Out, which was previously displayed on the grounds of The Allison Inn & Spa in Newberg. Gerber’s public sculptures can be found throughout the Pacific Northwest, including installations in McMinnville and Portland.
While the three-piece installation is titled Boys’ Night Out, the individual mouse was never officially named. Over the years, anonymous community members often decorated the sculpture with seasonal attire, including Santa hats during the holidays, umbrellas in the spring, hula skirts in summer, and costumes in the fall.
