The city of Spokane has won a $200,000 grant from the Washington state Department of Ecology to plan the cleanup of a 28-acre parcel it owns near the University District.

The city's water department administrative offices are located on the site, which also is used for storing the city's fleet of refuse trucks, and has two drinking water extraction wells. It's bounded by North Foothills Drive to the north, Perry Street to the east, Marietta Avenue to the south, and Hamilton Street to the west. The site also includes 2 acres immediately northeast of the intersection of North Foothills and Hamilton, but that area is not part of the proposed work plan, says city spokeswoman Ann Deasy.

The city would like to address environmental issues there such as possible soil contamination from prior uses at the site, and protection of the wells, before redeveloping it to enhance economic development in that area. The city says it hopes to relocate the current operations there to a new public works facility eventually.

The Department of Ecology says a market analysis the city conducted showed that the surrounding Logan neighborhood has a need for additional office space for small-business startups and affordable high-density housing. The city's application for the grant indicates it will seek private investment for redevelopment efforts in line with its comprehensive plan.