Police officers talk with pedestrians near the Pine Shed, former home of Spoken Moto, on NE Second Street in Bend. 

A failed agreement between a business owner and a developer has left an iconic former mill mechanic’s shop, home to Spoken Moto, still up on blocks on Second Street in Bend.

Spoken Moto, which is owned by Sortis Holdings Inc., had occupied the former mill mechanic repair shop and planned to reopen its coffee shop at a new site on Second Street after it was moved 1.5 miles from its old location in March.

The site will be called The Catalyst, and the historic mill mechanic repair shop, the Pine Shed, is a cornerstone of the city’s Central District revitalization.

But the company and the developer, Petrich Properties, could not reach an agreement on the lease terms. Now, Petrich Properties is in discussion with an undisclosed Bend business to occupy the former mechanic repair shop and the owners of Spoken Moto are left without a home for their business.

“I’m highly disappointed,” said Paul Brenneke, Sortis Holdings Inc. executive chairman. “We honored the original agreement. We signed his proposed lease, and he withdrew the offer. He decided to go with someone else who offered him more money.

“That’s what happened. This will likely put Spoken Moto out of business.”

Sortis, a Portland investment group, also owns Bamboo Sushi in Bend, which it acquired in 2020. The company spent $100,000 to help move the building, which is owned by the developer, Brenneke said.

Kurt Alexander, who owns Petrich Properties, said in an email, “While I am disappointed for the community that a lease agreement with Sortis Holdings … never came to fruition, I am happy to announce that The Catalyst project is on time and is in talks with a locally owned and operated business to become the anchor tenant.”

The new location for the historic Pine Shed is on the corner of Hawthorne Avenue and Second Street, in an area that the city calls the Central District. It’s slated for redevelopment and revitalization, of which the Pine Shed will play a key role as an anchor for an event space and food cart area.

Bend’s Spoken Moto is moving to help anchor a new, vibrant city center

Bend’s Spoken Moto is moving to help anchor a new vibrant city center

The project is expected to be completed in the spring, Alexander said.

The Pine Shed had been slated for demolition at its old location to make way for a 315-unit residential and retail development

315 unit housing development proposed next to Box Factory in Bend

315-unit development proposed next to Box Factory in Bend

In March, Alexander paid to have the building housing Spoken Moto hauled intact through Bend streets from the old site at SW Industrial Way to The Catalyst site on Second Street.

Alexander received $450,000 from Visit Bend’s Sustainability Fund, for the development of the event space and food cart area. In return he agreed to allow nonprofits to use the event space for free in perpetuity.

The funds come from a portion of the 10.4% transient room tax the city collects from hotels. The use of public funds was to support the development of the space, not the moving of Spoken Moto, said Kevney Dugan, Visit Bend CEO.

Popular Bend coffee house Spoken Moto gets ready for its slow-motion relocation

Popular Bend coffee house Spoken Moto gets ready for its slow-motion relocation

“The funds were to be used to bring The Catalyst project to life. Who the developer chose to work with as a tenant, is his choice,” Dugan said. “We were never financially involved with anything having to do with Spoken Moto.”

The city supports the project, said Ben Hemson, Bend economic development manager. Hemson, who is a representative on the Sustainability Fund, said he supported moving the historic building because it was a public benefit.

The Central District is part of a plan that includes bike routes, street trees and wider sidewalks to create a place for mixed-use residential and commercial buildings similar to downtown Portland.

“We’re very confident of what the end result will be: an event space and food cart area that will jumpstart the Central District revitalization,” Hemson said. “While it’s not moving as quickly as we’d hope, there is a path forward to get it all done. They need to iron out the lease.

“We’re keeping an eye out. “