A new facility for Spokane Valley-based grain-silo and storage-bin fabricator Scafco Corp. is being mulled.


A real estate development company formed by Scafco President Lawrence Stone, named Lawrence B. Stone Properties #11 LLC, has asked the Washington state Economic Development Finance Authority to issue about $2.6 million in bonds for development of a 45,000-square-foot plant, says Finance Authority spokesman Jonathan Hayes. Its unclear whether $2.6 million would cover the entire cost of the project or just a portion of it.


Hayes says the plant would house Scafco operations and is proposed for a site at 5316 E. Broadway. Scafcos current operations are located at 6200 E. Main.


Attempts to contact Stone were unsuccessful.


Hayes says the finance authoritys board has approved for the project whats called an initial-action resolution, which is the first step toward a bond issue, but doesnt commit either the finance authority or the requesting company to move forward with the financing.


The finance authority has begun the due-diligence process it undertakes with each bond-issue request, Hayes says. A date hasnt been set yet for the next hearing regarding the request involving Scafco, he says.


The authority is a self-supported state agency that provides financing for qualifying projects at interest rates that it contends typically are several percentage points below prime rates.


Scafco sells its grain silos, storage bins, and related products worldwide, Hayes says. According to the Scafcos Web site, it operates seven branch offices in Washington, Oregon, Idaho, and California, in addition to its corporate headquarters here, and also manufactures steel studs.


The company said earlier this year that it employs between 75 and 80 people.