Obviously you want to keep your overhead down. Ideally, your editor will be the person doing the graphic design/layout, so you would be best served by seeking out an editor with graphic design experience. Short of that, look for a production person/art director with journalism/newspaper experience. A hoity-toity artsy, ad-agency-type person is not the best choice for art director. The important thing is to hire folks who know how to produce a newspaper.
You're in Seattle, right? See if your city has a "neighborhood newspaper association". An association, while not all participants are of like-mind, can help you get started, recommend local printers, etc. And, most important, a newspaper association will often bring in advertisers that are shared by all members of the association.
Hope this helps for now. I'm glad I can be of help.
GW, the organization I think you're referring to is WNPA (Washington Newspaper Publisher's Association) and they are not in the business to taking someone by the hand and teaching them the trade. (Besides the fact that most of them are slowing going under too.)
I've already told Chad where he can get an 8-page tabloid printed for barely over $100 and you can't get much cheaper than that.
There are MANY jobs (professions, really) that Chad has to learn: how to write, edit, proofread, do layout, design, write headlines, do the typesetting, sell advertising, do distribution, the bookkeeping, taxes, and running the office and warehousing stuff. This also doesn't include the time to research, study and think-through what you're writing about.
Even knowing what you're doing, putting out any kind of a publication regularly is a whale of a big job, and starting one from a dead start had better have a lot of thought and preparation put into it first.
You've given Chad some good advice, and I'm just saying this project should be a little smaller to start off with, and either have him learn the ropes first, or as he goes.