Sputtering Economy Creates Some Problems For Speculative Builders

‘When’s it all going to stop?’

This is a familiar question in North Idaho as new stores, housing developments, parking lots and roads mushroom in nearly every area.

Usually this question is followed by “Don’t you think we’re overbuilding?”

Usually, the answer to the first question is: “It won’t.”

I’d have to agree. Unless the entire country goes into a major economic recession, North Idaho’s population (and everything related) will steadily grow. It won’t stop.

The answer to the second question depends on whom you’re talking to. Developers probably would tell you that overbuilding isn’t happening and won’t be a problem.

However, take a look around. Many of the planned subdivisions are hurting. Many of them have an inviting sign and aesthetically pleasing fence, but not much is happening inside. The subdivisions that started about two years ago are doing OK. Many of those that started this year are hurting.

Potential buyers just aren’t eager to move into a subdivision that looks as though it may indefinitely be graded dirt and weeds. It doesn’t do much for their property values, and they want neighbors.

Also, city and county planners finally are thinking twice about approving developments until roads, utilities and schools are ready to take more use.

Caution also is advised for owners of commercial buildings that are constructed without reliable tenants lined up ahead of time.

However, developments that are built with buyers and tenants signed on probably have good life ahead.

Such is the case with the new 7,000-square-foot building at 1605 Seltice Way, Post Falls. Owners Bob Spears and Ron Janney of Spokane have filled the facility, just east of Northern State Bank between Seltice Way and I-90, with three fast-food occupants.

Subway will open Friday with seating for 32 customers in 1,500 square feet in the west end of the building. The store will employ about 15 people and will be the fourth Subway for Janney, who owns three stores in Spokane.

Coldstone Creamery, an ice cream and yogurt company named for its preparation of its products on, yes, cold stones, will open at the end of the month with about 15 employees.

Spears and Janney hold the Coldstone franchise rights for North Idaho and all of Washington. They plan to expand in the Coeur d’Alene and Spokane areas and later to Western Washington. The 8-year-old company, with about 20 stores now, has its headquarters in Phoenix.

Godfather’s Pizza is the third and largest occupant. The 4,000-square-foot store, slated for completion this fall in the east end of the building, will employ about 30 people.

With its headquarters in Omaha, Godfather’s has about 525 outlets in 40 states and Canada. The Post Falls outlet will be company-owned, as are 147 outlets of the 22-year-old company. The others are owned by franchisers.

Spears was raised in Spokane and educated at Washington State University. He works with ERA Heritage Realty. Formerly a central California golf pro, Janney acquired a Subway franchise and moved to Spokane five years ago.

Now get into your “picture this” mode.

Just east of this new 1605 Seltice building, a frontage road will be constructed north from Seltice to the I-90 fence, where it will turn east and extend about half a mile to Greensferry Road.

The road, two lanes and 40 feet wide, will surround Seltice Plaza, a 13-acre commercial subdivision, and the Cathay Inn East Chinese restaurant. Commercial development will not be on the north side of the road.

Seltice Plaza is a 23-lot subdivision being marketed by Coldwell Banker Schneidmiller Realty and owned by Jireh Investments of Post Falls. Jireh is owned by Jake Dodge. Seltice Plaza’s final plat hearing will be in September.

One tenant penciled in for the west end of this development is Post Falls’ second McDonald’s restaurant.

Not surprisingly, 5,910 people attended the Parade of Homes show sponsored by the North Idaho Building Contractors Association last week. The attendance is nearly double last year, which was hampered by too many houses spread into a wide geographical area.

The eight houses this year offered a variety priced from $130,000 to $1.5 million. The latter, the home of Bob and Connie Coles of The Highlands in Post Falls, received the Peoples’ Choice award.

The following fields overflowed: CREDIT = Nils Rosdahl The Spokesman-Review