The Deer Park Business & Industrial Center is on track to more than double its developed space within the next three years, and further growth is envisioned within five years.

Work on the second phase of planned infrastructure improvements, totaling about $6.2 million, is scheduled to begin in the spring and will kick off the impending new phase of development, says Joe Tortorelli, economic development consultant for the city of Deer Park.

Tortorelli says infrastructure improvements will include extending Cedar Road 2.5 miles north to the city limits and extending sewer, water, and electricity services there.

The 500-acre industrial park is located just west of the Deer Park Airport and east of the Deer Park Golf Club, about 15 miles north of Spokane.

Following the infrastructure work, Knight Construction & Supply Inc., the anchor tenant of the park, plans to build an additional 100,000 square feet of manufacturing space on roughly 15 acres the company owns on the northwest corner of Sixth Street and Cedar Road, Tortorelli says.

“(Knight Construction) is the key mover on this project,” he says.

Knight Construction and its subsidiaries were the first major occupants at the center, with 45,000 square feet of newly built space between 2016 and 2018.  

Doug Knight, president of Knight Construction, says the company plans to move more of its operations to the new manufacturing space upon completion. Knight Construction has committed to build the facility within five years following the infrastructure improvements, but Knight says it’ll likely be closer to three years.

“I hate to be too optimistic,” he cautions.

Also, construction is expected to begin this spring on a new 5,000-square-foot manufacturing facility for Spokane-based Metal Roll Forming Systems Inc. 

Initial budget estimates have the project valued at $500,000, but Metal Roll Forming Systems plans to invest over $1 million in its new Deer Park facility over the next five years, says company co-owner Dan McDonald.

McDonald says he expects the project will take a year to complete once work starts. Eight to 10 employees will be based at the new facility when it opens, he says.

A contractor hasn’t been selected for the project yet, and McDonald says he’s in the process of hiring an architect.

Both the proximity to Spokane and the workforce in Deer Park were draws to the area, and the company already owned the property, he says.

Metal Roll Forming Systems, a manufacturer of machines that roll metal into corrugated sheets for construction, occupies about 60,000 square feet of space at its headquarters at 4511 N. Freya, in Spokane.

The new facility will allow the company additional space to manufacture building components, says McDonald.

Tortorelli says the infrastructure work is being funded through a mix of grants and loans. The U.S. Department of Commerce Economic Development Administration awarded the project a $5 million grant, and the Washington state Department of Commerce Community Economic Revitalization Board loaned $1.2 million. The property owners are responsible for the loan, which will be repaid through a 20-year local improvement district agreement, he adds.

A news release from the state Community Economic Revitalization Board states Metal Roll Forming Systems is expected to provide $950,000 in private investment, while Knight Construction has committed $5 million in private investment in the project.

Knight, however, estimates the construction company has invested about $9 million in development of the Deer Park industrial park.

“We generate jobs, and those manufacturing jobs pay a pretty decent wage,” he says, adding that those wages trickle down into businesses within the city as employees shop and spend time there.

“So, they’re also complementing the other businesses in town,” he says of plans to develop the industrial park further.

Knight Construction owns a total of 37 acres of property west of the Deer Park Airport in the business and industrial center. Knight Construction and its subsidiaries, Knight Boat Docks Inc. and Knight Wall Systems Inc., have about 130 employees, says Knight.

Combined, the three companies saw a flat revenue trend this year, he says. Individually, however, Knight Boat Docks and Knight Wall Systems each have seen record revenue with 10% growth, while the construction company saw an offsetting dip, compared with 2019 revenue.

The first phase of the industrial park development included construction of two facilities for Knight Construction and its subsidiaries—a 25,000-square-foot facility now occupied by Knight Boat Docks and Knight Wall Systems and a 20,000-square-foot headquarters for the construction company.

The two facilities are located at 2401 E. Sixth and 2601 E. Sixth, in Deer Park, respectively.

Additionally, Knight says the construction company headquarters was built with the ability to expand up to 10,000 square feet.

The first phase of the infrastructure improvements for the Deer Park Business & Industrial center, which started in late 2014, extended Cedar Road to Sixth Street. Tortorelli estimates roughly $10 million in infrastructure improvements has occurred between the two phases. He adds the plan is to have only two phases of infrastructure improvements.

Phase one of the industrial park development included the construction of three buildings: A $6.5 million 24,000-square-foot service center for Avista Utilities, at 2301 E. Sixth, in addition to the two Knight buildings.

Much of the growth was spurred by the expansions at the Deer Park Airport, claims Tortorelli. The airport has added two to three new hangars a year.

Tortorelli estimates that the industrial park area could boast upward of 100 buildings of various sizes, and each 10-acre lot could hold about 100,000 square feet of constructed space, he adds.

“We’re working on trying to recruit additional business,” he says.

Targeted industries include aircraft or aviation-related industries and small manufacturers, he says.

“There are a number of other property owners who are interested in doing some other development there,” he contends. “And, with all these infrastructure improvements, it’ll be capable of handling any size (building).”

Tortorelli says there are roughly 17 property owners across the 500-acre industrial park area now.