A Spokane nonprofit concern plans to develop a $5 million, four-story work-force housing project at 1420 E. Sprague that would include 35 apartment units and ground-floor retail space.

The nonprofit, Inland Empire Residential Resources, recently bought the site, formerly the Farmers Market & Garden Center, which has been cleared in preparation for the project, says Darryl Reber, its executive director.

Inland Empire Residential Resources is seeking more than $2.5 million in grant funding through the Washington state Housing Trust Fund, Reber says. Pending grant funding, construction likely would start late this year, he says.

"We do need grant money in addition to funding commitments from the city and county," he says.

Spokane County and the city of Spokane have committed a total of more than $1 million in stimulus funds that were distributed to them through the U.S. Department of Housing and Urban Development.

Reber says Inland Empire Residential Resources also is in the process of buying the neighboring Rocky Cafe building, at 1424 E. Sprague. The cafe's owner is planning to retire, and the 1,700-square-foot restaurant building will be demolished to create parking that will be needed for the planned commercial space, he says.

The project, which has yet to be named, would house tenants that earn 30 percent to 65 percent of the area median income, Reber says.

"We're hoping it will tie into the International District and the University District," Reber says.

Walker Construction Inc., of Spokane, would be the contractor on the project, and Wolfe Architectural Group PS, also of Spokane, is designing it, Reber says.

The housing plans include studio, one-bedroom, and two-bedroom apartments, Reber says.

Reber says floor plans still are being designed for the living space, and the entire project would have a total of 40,000 square feet of floor space, including 9,000 square feet of commercial space.

Mark McLees, of NAI Black, of Spokane, and Bob Travis, of Windermere/Manito LLC, also of Spokane, handled the real estate transaction involving the former Farmers Market site.

Inland Empire Residential Resources recently developed Market Street Station, a $4.4 million, 33-unit, four-story apartment building with ground-floor commercial space, at 5101 N. Market in the Hillyard neighborhood. Walker Construction also was the contractor on that project.