URM Stores Inc., the Spokane-based grocery distribution cooperative, says it will expand its warehouse and distribution center on the North Side to meet increasing demand for frozen and perishable goods.

The co-op has selected Contractors Northwest Inc., of Coeur d'Alene, as the contractor to build a 75,000-square-foot expansion to increase its freezer and refrigeration capacity by about 40 percent, says Ray Sprinkle, president and CEO.

John Pederson, Spokane County planning director, says URM recently had applied for a building permit, a process nearly completed as of May 2. The permit information lists the estimated project value at just over $4 million, Pederson says.

Sprinkle says URM expects construction to begin soon on the north side of its existing 650,000-square-foot facility, at 7511 N. Freya. ALSC Architects PS, of Spokane, designed the project.

"Hopefully, we'll start the expansion the middle of this month," Sprinkle says. "It should be up and operational in April 2014."

CNI also will work on a minor renovation to the current warehouse that will include upgrading compressors, putting in new lighting, and installing doors. The contractor also will build 22 loading docks, because the building expansion will take over a space where loading docks currently are located, Sprinkle adds.

He says URM began considering the freezer- and refrigeration-area expansion in 2008, but it held off in part because of the recession and also after determining the space wasn't needed then.

Workers at URM pull roughly 95,000 cases a day from its warehouse for distribution, Sprinkle says. URM employs 550 workers at the warehouse and administrative offices there, and the number of jobs is expected to grow, he says.

"As our business grows, yes, we'd be adding employees," Sprinkle says, although he doesn't know an approximate number of new jobs at this time. As for its revenue, the cooperative is up about 3.5 percent over a year ago, he says.

"That's year-to-date for our fiscal year that ends at the end of July," Sprinkle says.

He adds, "We've been looking at this for a number of years. The growth in the supermarket business has been on the perishable side. Therefore, we need the additional capacity to bring in the items required to support the consumers who shop with our customers."

"Obviously, it allows us to continue to grow as our customer base grows," he says.

The grocery cooperative has 94 member-owners, including Yoke's Fresh Markets and the Trading Co. stores.

It serves independent supermarkets in Eastern Washington, Idaho, Montana, and Oregon. URM's member-owners also operate stores under the banners of Rosauers, Super 1 Foods, Family Foods, Harvest Foods, and Centerplace Markets, among others.

URM last expanded its warehouse and distribution facility along Freya in 1994.

The cooperative was founded in Spokane in 1921 by a group of Spokane-area grocers and was originally named United Retail Merchants.

In addition to selling groceries and general merchandise, it offers its members planning, design, financial, marketing, insurance, technology, and real estate services.