Construction industry sources here are somewhat optimistic that a construction turnaround has started in the residential market and that the nonresidential construction market is at or near its bottom. No one is expecting, though, that 2011 will give rise to a quick return to the brisk construction levels of just a few years ago.

Kate McCaslin, president and CEO of the Inland Pacific Chapter of Associated Builders & Contractors, says 2010 has been a rough year, especially for private nonresidential construction.

"The big question about 2011 is whether the private sector will be ready to step in as stimulus and public funds run out," McCaslin says.

She says she hopes the new Congress will bring more certainty to the private sector so it can plan for the future.

"That may bring on the recovery a little faster," McCaslin says.

The values of building permits issued through the first 11 months of 2010 in Spokane County and the cities of Spokane and Spokane Valley totaled $504.4 million, roughly level with the permit total of $502.5 million in the year-earlier period, and down 26 percent from $687.9 million in the first 11 months of 2008.

The 2010 values might be skewed somewhat by one public sector project—the Spokane County Regional Water Reclamation Facility under construction at 1004 N. Freya. Permits issued for that project alone are valued at $84 million so far.

Ed Walker, a principal at Walker Construction Inc., of Spokane, says the nonresidential construction industry here scaled back in 2010.

Walker says, though, that Walker Construction picked up a few jobs recently that make the start of 2011 look more encouraging. Those jobs include a $10.4 million project to remodel and expand two schools in the Medical Lake School District and an $18 million joint venture with Leone & Keeble Inc., of Spokane, to modernize a Wellpinit School District high school-middle school building on the Spokane Indian Reservation.

He says much of Walker Construction's recent work has been on school and public-sector projects.

"The private sector has been quiet during 2010, in our experience," he says.

Projects valued at more than $95 million are under plan review at the city of Spokane, including a $78 million expansion and renovation planned at Rockwood Retirement Communities' South Hill campus, at 2903 E. 25th. Walker Construction is the contractor on that project, and work there could start in late 2011.

"I'm optimistic 2011 is going to be a rallying year, but I'm not ready to say it will be a triumphant rebound, yet," Walker says.

One of the major Spokane building projects not yet in plan review but expected to start in 2011 is a $90 million construction and partial renovation project at Ferris High School, on the South Hill. Another is the construction of a $78 million Biomedical and Health Sciences Building on Washington State University's Riverpoint Campus east of downtown, though that project still needs additional state funding approval.

This year will mark the first upturn in new-home construction in the Spokane area following a four-year decline in that sector, but the level of activity still will be below normal, says Corey Condron, vice president of Condron Construction Inc., a prominent Spokane home builder.

Spokane County and the cities of Spokane and Spokane Valley issued 778 residential building permits with a total value of $133.5 million in the first 11 months of 2010, up from 612 permits with a total value of $104.1 million in the year-earlier period.

Condron says sales of new homes in 2010 mostly involved residences priced under $200,000.

"I'm not involved with that market, so I was down quite a bit," he says.

He's optimistic that sales of the mid-priced homes that have been Condron Construction's niche in recent years will increase gradually through 2011.

"I'm starting to see an uptick in activity in the $200,000-to-$300,000 price range that has been stagnant," he says.

Condron says the company's goal is to sell 45 homes in 2011, up from 35 homes sold so far this year.

"Our normal year would be 100 sales," he says. "At the peak in 2005, we sold 218 homes."

—Mike McLean