Following the recent opening of a new dairy processing plant in Pasco, Washington, Seattle-based Darigold Inc. is turning attention to its Spokane plant, where the company is proposing upgrades, says Chris Arnold, vice president and head of communications at Darigold.

As envisioned, upgrades at the Spokane facility, located at 33 E. Francis, will include the construction and installation of five new 60,000-gallon raw milk tank silos with foundation support that will stand 60 feet tall, and two new 10,000-gallon raw milk tank silos, plus an adjacent, enclosed equipment support room, according to a State Environmental Policy Act checklist filed with the city of Spokane.

Silo upgrades at the 68-year-old, 118,000-square-foot manufacturing plant are proposed to occur in phases, according to a preliminary site plan information.

"The new 60,000-gallon silos are replacing existing silos," Arnold says in an emailed statement to the Journal. "Two of those will be inside the plant, and three will be outside (still within the boundaries of the existing property)."

The overall development cost and a timeline for construction is unavailable, Arnold says. However, development of the first phase, which will focus on the construction and installation of two 60,000-gallon raw milk tank silos, is valued at $1 million, permit information on file with the city of Spokane shows. 

A second phase of construction involves the addition of three 60,000-gallon silos and two 10,000-gallon silos, preliminary site plans show. 

The 10,000-gallon silos will be used as pasteurizing tanks, adds Arnold.

"We are making these changes for a couple of reasons," he explains. "First, the 60,000-gallon silos are due for replacement. ... That, coupled with the addition of the smaller silos will also upgrade our milk receiving and throughput, lessening the chances for lost milk."

Spokane-based Bernardo Wills is the architect for the silo upgrade project, permit information shows. The Spokane office of Cushing Terrell, of Billings, Montana, is providing engineering services. No contractor is listed on permit information yet.

Darigold expects the city of Spokane to issue permits in early August and to start construction shortly thereafter, according to the environmental checklist.

Darigold is the marketing and processing subsidiary of the Northwest Dairy Association, which is owned by nearly 300 family-owned farms in Washington, Oregon, Idaho, and Montana, according to the company's website.

The project follows a much more extensive Darigold project in the Tri-Cities. After five years and a $1 billion investment, Darigold's new 229,000-square-foot plant, located on 137 acres at 8201 N. Railroad in Pasco, has already started receiving and processing dairy for the production of butter and powdered milk products. About 75 people currently work at the facility and when fully operational, the plant is expected to have 200 employees and support 1,000 more jobs in the area in warehouse, transportation, and agriculture, according to the Tri-Cities Area Journal of Business.

In fiscal year 2024, which ended March 31, Darigold had $2.8 billion in gross sales, according to the Journal's annual Food Producers list, published July 17. The company's Spokane production facility reported 110 full-time employees as of June 1. Products manufactured at the Spokane plant include milk, buttermilk, and half-and-half creamer.

Project update:

Developers plan to build a new industrial project, dubbed the Space 4U Business Park, on a 14.5-acre parcel of vacant land in Airway Heights.

Lidiya Chepa, who co-owns the property with her husband, Vadim Kachur, says the proposed $2 million development will help address demand for modern, insulated commercial and industrial space in the rapidly growing West Plains community.

The proposed business park will be located at located at 2310 S. Hayden, in Airway Heights.

Some of the property currently is used as a parking lot for semitrailers, and about two acres are being leased to a Commercial Driver's License school for training purposes, Chepa says. The developers will keep the semitrailer parking and add five new warehouse buildings featuring shop and office space at the site.

As planned, two buildings will have 9,700 square feet of storage space, and two others will have 10,000 square feet of storage and shop space, plus 2,000 square feet of office space. A fifth building will have 10,000 square feet of storage and reloading space, and 2,000 square feet for office use.

While designated for industrial and commercial use, the developers plan to have offices comprise about 20% of the property, she says.

"I'm just hoping to help local tenants like shop operators have better space. We have a whole bunch of different possibilities," Chepa says of future tenants at the business park. "It's a flex space, so we can make anything out of it."

Plans for the business park were already in mind when Chepa and Kachur purchased the property for $845,000 in August 2022, she says.

The business park will be constructed in stages, one building at a time, through their company V C Construction, Chepa says, adding that this project will be a new experience for the residential contractors.

Tacoma, Washington-based AHBL Inc. is providing architecture and engineering services.

Construction is expected to start following environmental approval later this year and is anticipated to be completed by the end of 2026, Chepa says.

The property in Airway Heights was selected for its proximity to major transportation hubs and development opportunities.

"The area is developing and growing, and we want to be a part of it," says Chepa.