The city of Davenport has accepted an offer from an affiliate of Davenport contractor Halme Construction Inc. to purchase and develop five city block-sized lots on the west edge of town, about 35 miles east of Spokane via U.S. 2, says Steven Goemmel, Davenport’s administrator.

The Halme affiliate, 25 North Investments LLC, has offered to buy the lots for $75,000 and develop them for commercial uses.

“We’re excited to see this development take off and grow our downtown,” Goemmel says. “They are a local concern with business ties to Davenport and the region.”

The city had asked for development proposals for the lots in hopes of attracting businesses that would contribute to its tax base, because most of the developed commercial property in Davenport is occupied, limiting growth in the city center.

The vacant lots make up the undeveloped portion of the 40-acre Davenport Sports Complex & Business Park northwest of the city center.

All of the 1.7-acre lots front state Route 25 immediately west of the sports complex.

A principal of 25 North Investments couldn’t be reached for comment.

The purchase offer and development proposal submitted by 25 North Investments proposes to begin immediately a multiphase development plan.

The first phase would include constructing a $400,000 commercial office structure to be occupied by Halme Builders Inc., a spinoff of Halme Construction, the proposal says.

“Halme Builders has grown to a point where the current location is no longer feasible for the operation,” it says. The company is located at 1018 Morgan, which is on the portion of U.S. 2 that runs through the city center.

“The objective would be to develop a building which showcases some of our skill sets and also fits the site,” the proposal says.

The initial phase of the development would take up the southernmost lot and potentially a portion of the adjacent lot to the north.

The second phase would include the rest of the property and likely would be developed within five years of the acquisition, the proposal says. Costs for the second phase are estimated at $600,000 to $1 million.

The developer estimates that the first phase would generate $6,400 in property taxes annually, and the second phase would generate an additional $9,600 to $16,000 annually. 

Construction alone would generate $69,000 to $100,000 in sales tax for both phases combined, the proposal says. 

The sports complex, which includes a Little League field, a larger baseball field, a softball field, a basketball court, and a disc golf course, was constructed in 2011 and 2012. Halme Construction was a contractor on that $2 million project.