SANDPOINT — Intermountain Community Bancorp — the parent company of Panhandle State Bank — is moving forward with long-term plans to enter into a sale and leaseback agreement for the Sandpoint Center.

The bank recently cleared up its parking obligations with the city, which means it can now begin negotiating with potential buyers on a leaseback deal, according to CEO Curt Hecker.

Hecker said the sale and leaseback practice is commonplace, particularly in the banking sector. The practice allows the sale of an existing asset to a financial investor who then leases it back to the user. He said the plan will free up capital to reduce debt, increase liquidity, and fortify other business activities.

“We’re in the business of banking — we’re loaning dollars out and taking deposits in — so the capital we have, we want to invest those dollars into our community,” Hecker said.

The Sandpoint Center, a 94,000-square-foot financial, commercial and community building, already leases office space to a number of business interests.

Company officials recently announced a plan, in conjunction with the City Council, to give the city use of office space for a new business incubator.

Hecker said a leaseback agreement would not affect the bank’s day-to-day operations or jeopardize the community’s use of the center’s common areas for events, nor would it alter plans for the business incubator.

“Anything we do, we will continue to do on a very long-term basis,” he said. “In terms of the activities we do, everything was designed for us to have the  control of the space we wanted to have control of.”

He wouldn’t specify the building’s asking price or the lease terms he will seek, but Hecker said the lease duration would likely follow industry standards.

“It ranges, they can be from five, 10, 15 or 20 years. Those are the typical ranges,” he said.

“The tenant would then negotiate renewal options for the lease.”