Two large projectsa 214-lot residential subdivision and a $12 million biodiesel production plantare planned in or next to the small town of Spangle, on the east side of U.S. 195 about 15 miles south of Spokane.


The projects, if approved, potentially could triple the towns population within the next several years, plus provide jobs for the community.


Nothing happens in Spangle for 100 years, then all hell breaks loose, says Clint Koehler, the towns public works director, whos enthusiastic about the growth prospects created by the projects. If its done right, we can still keep the small-town feel.


AHO Construction 1 Inc., of Vancouver, Wash., is proposing the Rolling Hills Estates subdivision there, which Koehler says could boost Spangle to a population of about 1,000, up from less than 300 currently. He says a public hearing still needs to be held for the project, and that a preliminary plat submitted earlier by AHO and engineering drawings, which still are to be submitted, must be approved by the city before any work on the project can proceed. Because the citys planner resigned her position after the subdivisions application was submitted, Spangle is seeking assistance from the Spokane County Planning Department to help it navigate the permitting process, says Koehler.


Wi BioFuels Inc., of Apache Junction, Ariz., is proposing the biodiesel plant, which would be located both inside and just north of the city, produce 5 million gallons of fuel in its first year, and employ 25 people initially. All paperwork from the state level has been completed to site the plant there, conversations have been had with the county, and, though no applications have yet to be filed with the county, the county is very affirmative, says Nave.


The question is how fast the plant will be built, not if it will be built, he says. Its 90 percent a done deal.


Tom Arrowsmith, AHOs land and development manager, is equally confident that AHOs project also will come to fruition in Spangle.


Weve invested a lot of non-refundable money for this project, he says. With that amount of money, it would be hard to walk away. That investment includes non-refundable earnest money on 60 acres of land within the city, and money spent to produce the plans and drawings for the project, which already have been shown to the City Council.


I dont see any reason why we wouldnt proceed with this project, Arrowsmith says.


Although Arrowsmith says its too early to estimate the total value of the project, an average home price of $150,000 would put the projects value at more than $32 million.


Koehler says the biodiesel plant likely will begin operating before homes are built in the subdivision. He says the city was informed this week by a Bio Fuels marketing manager that Bio Fuels just bought 20 acres of land just north of town as a site for its plant. Thats in addition to the 5 acres it bought earlier within the city that includes a grain-storage silo, he says. Koehler anticipates Spangle will annex the 20 acres Bio Fuels just bought.


Wi BioFuels President Bruce Nave says that company is negotiating with Spokane County to get permits for the project. Wi BioFuels has withdrawn a proposal to develop the plant at the Port of Wilma, across the Snake River from Clarkston, Wash., and instead will build the plant near Spangle, he says. One reason is that construction costs were too high on the Snake River. Another is that the Spangle property has rail access.


Plans already are under way to move machinery and pre-fabricated buildings from the Port of Wilma, where they had been delivered in preparation for the shelved project, to Spangle, Nave says. In addition, canola oil extraction equipment, which removes oil from canola seeds, is scheduled to arrive in Spangle from Iowa next month, he says.


Nave says he expects no delays in the permitting process.


Wi BioFuels has been evaluating possible plant sites in this region for the past year. Nave says the company already owns 24 million pounds of harvested canola thats stored at different sites around the Northwest, and within the next few weeks will begin shipping that canola to Spangle for storage in the grain silo on its property there.


He says two pre-fabricated structuresa 21,500-square-foot oil-extraction building and a 2,000-square-foot boiler housewill be moved in pieces to Spangle from the Port of Wilma, and an 8,400-square-foot oil-processing facility will be constructed near Spangle. Western Industrial Corp., an affiliate of Wi BioFuels thats also located in Apache Junction, is a real estate development and industrial construction company, and will do all of that work, Nave says.


He anticipates the extraction of oil from canola seeds will begin at the Spangle operation in January, and expects the production of biodiesel fuel to begin there in April. He says Wi BioFuels will use two railroad spurs on the Spangle property to ship canola seed to the plant and transport biodiesel to market.


Rolling Hills Estates


AHO Construction hopes to begin work on its housing development on more than 60 acres in the northwest portion of Spangle next spring, says Arrowsmith. The company has put down earnest money to buy the property. He anticipates that the Rolling Hills Estates development will be completed within three years.


AHO, which is 19 years old, has a history of bringing large projects to small towns, Arrowsmith says. It not only puts in water, sewer, and streets, but also typically builds all of the homes in the subdivisions it develops, he says.


We normally dont sell a lot without a house on it, Arrowsmith says.


He estimates the 214 single-family homes to be built in Spangle will be priced at between $130,000 and $200,000 each. He says one reason those prices seem low compared with the prices of other new homes in the area is that AHO doesnt employ Realtors to sell the homes it builds. He adds that each purchaser of a home in the development will be offered a wide range of upgrades, ranging from stainless-steel kitchen appliances to a three-car garage.


AHO-built homes normally range in size from 1,000 square feet to 2,700 square feet of floor space. Arrowsmith anticipates many of the homes will be marketed to people who will commute to Spokane or Cheney, and dont mind the drive in return for the opportunity to live in a quieter, less hectic area.


AHO is just completing a 285-unit single-family development near Medical Lake that it started two years ago, Arrowsmith says. That development, located along Aero Road, is called Big Sky.


Arrowsmith says that Moxee, Wash., four miles east of Yakima, is another small town where AHO has developed a sizable residential project. He says Moxee had about 300 residents when the company, in less than two years, constructed a 317-unit subdivision. He says AHO is in the preliminary stages of developing another subdivision there that would include 208 single-family homes.


Cliff Morey, regional manager for Thomas Dean & Hoskins Inc., of Spokane, Spangles engineering consultant, says the key challenge facing the two big projects is a need to expand Spangles current water and waste-water systems.


He says, The town doesnt have the money to make those improvements, so it will have to look toward the developers to help pay the costs.


Koehler says the city currently has two wells to meet its water needs and a waste-water treatment plant built in 1998 that has the capacity to serve about 600 people. He says there likely will be a need to dig a third well and to expand the waste-water treatment plant, if the projects proceed as planned. He says the city is already seeking grants to help pay for infrastructure improvements.


Morey says he thinks the city initially has enough water to meet the needs of the proposed biodiesel plant, but suggests the possibility that Wi BioFuels might need to install a pretreatment system before its waste water is released into the citys waste-water treatment plant.


Arrowsmith says AHO will pay its share of costs for infrastructure upgrades necessitated by the new development.


Morey says the separated, four-lane section of U.S. 195 that extends from Spokane to just north of that highways exit to Spangle, and the towns proximity to Spokane, make Spangle a natural setting for such growth.


Contact Rocky Wilson at (509) 344-1264 or via e-mail at rockyw@spokanejournal.com.