A tentative agreement for Key Development to buy the historic Paris Fair building at Fourth and Oak would lay the groundwork for a make-over to include new construction south of the structure toward State Street.
According to sources close to the deal, it would close in January if both parties agree to move forward after completion of a diligence period on Dec. 12.
Building owner North Cheatham listed the structure for sale in July, at an asking price of $1.98 million. The property extends south to State Street.
Key Development, active in several recent new construction projects at the Port of Hood River, also owns the parking lot south of the buildings that extend east from the Paris Fair.
Sources working with both parties say a completed deal would open the door for construction that could include ground level parking, and two floors of office and residential space above the parking.
While the real estate wheels turn, Cheatham has had to modify plans to let the Hood River Warming Shelter project use space on the top floor of the Paris Fair building for the winter. Other tenants in the building, learning of the plans, raised concerns about safety for their customers, and security of property, which led to a change of plans.
According to a story in the Hood River News, the warming shelter will temporarily open at the Center for Living on the Heights, while efforts to find a long-term location continue.
The Buzz has received no response yet for details about plans for the building should the sale close in January.