The Northeast Public Development Authority plans to break ground later this year on a $12.5 million workforce housing project in Spokane’s Hillyard neighborhood, says Jesse Bank, executive director of the PDA. 

As envisioned, the project centered on a half-acre property at 3011 E. Wellesley, will be a three-story structure with a child care facility on the ground floor and 30 residential units on the upper floors. The child care facility will serve people in the service industry, which is a large part of the Hillyard population, Bank says.

“Access to child care is a huge burden for folks wanting to enter the workforce,” Bank says. “There are a lot of single heads of households living in northeast Spokane, and so those folks, if they can’t access child care, they can’t work.” 

The workforce housing will target people within the income range of 80% and 115% area median income, Bank says. 

The Northeast PDA is the developer on the project, which selected a design-build method for the project, Bank Says. Coeur d’Alene-based Architects West, Inc. is designing the project, and Bouten Construction Co., of Spokane, is the contractor. The Northeast Community Center is also a partner on the project and has been working with residents and employers to identity needs, Bank says. 

Bank says he anticipates a 12- to 18-month construction phase, with possible completion in the third quarter of 2026, though that could be as far out as the second quarter of 2027. 

“I’ve pushed the design team to create a project that can be flexed up or down depending on the money that comes in,” Bank says. “Time is not our concern. Our biggest concern is doing this properly the first time.” 

The Northeast PDA acquired the half-acre parcel for the project from the city of Spokane last April through a Treasury’s Deed for $6,702. The site was formerly home to the Alhambra Courts Apartment building, which burned down in 2017. After the property’s owner refused to tear down the damaged structure, the building was deemed a hazard to public health by the city of Spokane, which spent $418,000 to demolish the site—well above the property’s worth, Bank says. 

“The city actually has a piece of policy on the books by which we are able to transfer surplus assets to the public development authorities for the purpose of redevelopment,” Bank says. 

As part of the contract between the city of Spokane and the Hillyard PDA, the organization will develop the site, and in the future when it decides to sell the property, the city will be made whole again on the $418,000 spent to demolish and clean up the site.  

“It’s all about experimenting with our different economies to see what we can do to stimulate activity in the community, to stimulate investment in the community, and to signal to the wider market that investment is viable in Hillyard," Bank says.