By MATT PATNEAUDE

The heart of Greenwood - the intersection of North 85th and Greenwood Avenue N - once lay at the edge of town.

Prior to 1954, North 85th Street was the northern city limit for Seattle, which people had to venture across if they wanted to find beer halls and gambling.

Go back in time even further, to before the city of Seattle ever existed, and you'll find that trees and streams once covered the rolling hills between what is now known as Ballard and Green Lake.

Wildlife roamed freely and Native Americans camped in the area between what is now Crown Hill and Green Lake.

By the 1890s, pioneer settlers, including a man named Guy Phinney, had come to the area.

Phinney was born in 1852 in the Canadian province of Nova Scotia. After graduating from McGill University, the tall, handsome young man made his way to Victoria, British Columbia.

High prices on food and supplies depleted Phinney's small reserve of cash as he soon found that gold nuggets weren't as abundant as he had hoped.

Utilizing his college degree, Phinney found a teaching job that paid him $85.33 per month and he saved up in hopes of moving to San Francisco. Not finding a bonanza in San Francisco, Phinney hopped a boat back to the Puget Sound region.

About two years after his arrival in Seattle, Phinney married and had two sons. Prospering in real estate and insurance, Phinney soon found that he had accumulated a neat little bank account.

Taking a trip to the "Old Country" of Nova Scotia, Phinney became taken by the large estates and enclosed houses of his homeland.

Upon returning to Seattle, Phinney bought a large piece of forested land just north of the city where he planned on building a mansion for his family. Phinney's land ran along a ridge and sloped gently eastward to a spring-fed lake.

With few other homes in the area, and no public transportation, Phinney built a private railway. One electric car painted with the name "Woodlands" serviced the area.

Pending construction of the mansion, the Phinney family lived in a cottage constructed of large square granite blocks and timbered gables.

Phinney built a small Episcopal church on what is now known as Phinney Avenue and he also built runs for deer, ostriches, and other animals. These animal runs were the forerunners to the Woodland Park Zoo.

Unfortunately, Phinney didn't live long to enjoy his life. He passed away at the age of 41. Some years after his death, his widow sold the land to the city of Seattle for $100,000.

As more loggers moved into the Greenwood area, the forested land was thinned and the wood was used to construct homes and plank roads. Two sawmills were in operation by the turn of the century. Logs were hand carried and floated across Green Lake to be processed at the mills.

In 1902, the Interurban Railway Company was started and streetcar Phinney 21 ran from downtown Seattle, across Lake Union on a trestle to Fremont, and up through Greenwood to Everett. Due to low ridership, Phinney 21 went into storage in 1939. Buses began serving Greenwood in 1941.

In 1903, there were only three stores in the Greenwood area, but by 1939 a small town had grown with 135 stores employing more than 450 people. Banks, theaters, law offices, a fire station and a public school were, by this time, serving the community.

Greenwood was also home to a fair that ran year 'round whenever the weather was good. People from all over the Seattle area would visit the edge of the city for carnival rides, pony rides, exhibits, and shopping.

Roy Davidsen started the Greenwood Chamber of Commerce and the Greenwood Boys Club in 1947. As the original president of the Greenwood Chamber, Davidsen helped get modern lighting and trees in the district. The Greenwood Boys Club was funded in part by the beer halls and gambling that took place north of 85th.

Annexed by Seattle in 1954, Greenwood was promised streets, sewers, and other city services. Those improvements to the infrastructure came slowly; to this day many streets still lack sidewalks.

Civic groups have helped build Greenwood's character over the past several decades. These include the Phinney Ridge Community Council, Greenwood Community Council, the Chamber (now known as the Greenwood Phinney Chamber of Commerce), Greenwood Arts Council, and the Phinney Neighborhood Association.

The diverse business district has grown as new businesses have moved into the area. These include art galleries, antique shops, restaurants, cafes, thrift shops, clothing stores, collectible stores, coffee shops, and supermarkets.

Gary Teachout, current treasurer for the Greenwood Phinney Chamber, says the, "quality of businesses are going up" in the area. He adds that most are small, local businesses that have a stake in the neighborhood.

In Greenwood today, young families live next to senior citizens. Custom-built, high-priced homes sit blocks away from low-income townhouses.

Development is taking place as a huge mixed-use project looms near North 85th and Greenwood Avenue North.

The central core of the Greenwood district will also be home to the new Greenwood Library, set to open (on the site of what is currently a McDonald's fast-food restaurant) in 2002.

The sense of community can be seen in the annual merchant trick or treat event held the Saturday before Halloween. Sponsored by the Greenwood Phinney Chamber, local businesses serve as candy distributors to local kids.

According to Teachout, an average of 600 kids trick or treat at his business each year. He also notes that each year more and more parents have been showing up in costumes and the event has turned into a great thing for the area.

One business owner that recently brought their business to Greenwood is Jim Lustig of the Upper Crust, a catering business located on the corner of North 85th and Greenwood. Lustig says, "It's a fabulous area with high visibility. People care about this area."

Even with the new development, Greenwood has managed to retain its unique character. And while it no longer sits on the edge of the city, there is still a small town feel of community.