Lithia Motors Inc., the Medford, Ore.-based automobile-dealership chain that owns Spokanes Camp Automotive Inc., plans to build a new building on Spokanes North Side and move its Mercedes-Benz dealership there from downtown.


Mark DeBoer, the Medford-based vice president of Lithias real estate division, says the company has bought a former State Farm Insurance Co. building on two acres at 519 E. North Foothills Drive, a couple of blocks northeast of Lithias Camp Chevrolet Cadillac and Camp Imports stores. He says Lithia will demolish the structure to make way for its planned new building.


In place of the former office structure, Lithia plans to build a two-level, 25,000-square-foot building that will include office and showroom space, a vehicle-service area, and a detail shop, DeBoer says.


The structure will replace the companys Mercedes dealership facility at 1027 W. Third, which is similar in size to that of the planned new building, but is old, DeBoer says.


Mercedes clientele expects a certain level of standards, and that store doesnt meet it, he says.


The new building is being designed by a Boise architectural firm and will incorporate Mercedes-Benzs latest dealership design standards, referred to as an Auto Haus design.


DeBoer says the company hasnt finished budgeting construction costs, but the cost likely will be between $2.5 million and $3.5 million.


Work on the project could start this fall, he says, and the structure could be completed by this time next year.


Lithia hasnt selected a general contractor yet, but likely will work with Garco Construction Inc., of Spokane, DeBoer says. Garco recently wrapped up work on improvements at Camp Chevrolet Cadillac and has handled other projects for Lithia in the past, he says.


Guy Byrd, of Cornerstone Property Advisors Inc., and Craig Soehren, of Kiemle & Hagood Co., handled the transaction involving the former State Farm structure. Both real estate companies are Spokane based.