POST FALLS - Much of the groundwork for major expansion of a local manufacturing firm is expected to be laid tonight.

The Post Falls City Council will hold three public hearings on Ground Force Manufacturing's expansion starting at 6 p.m.

Ground Force builds mining support equipment at its plant along Seltice Way between Post Falls and Coeur d'Alene.

It purchased the former Knife River property across Seltice and the new company that will occupy the site, UnderGround Force, will manufacture equipment for underground mining companies.

"We believe this expansion will employ 125 people over the next two years," said Ron Nilson, CEO of Ground Force, adding that the hiring and training process has started. "Mining worldwide is growing and commodity prices continue to rise. It's a huge opportunity for a company like ours, and we're attacking the business the best we can.

"We're sold out through 2011 and are actually contracting work out right now."

The public hearings will focus on:

* amending the city's future land-use map for the area from commercial/light industrial to solely industrial;

* an annexation request of 24 acres north of Seltice and south of the Port of Entry along Interstate 90; and

* the application of a $495,000 Idaho Community Development

Block Grant that would extend water and sewer to the site and frontage improvements.

"For us to put that many workers on site, we need to bring sewer and water there or we can't do it," Nilson said.

The commercial designation does not facilitate manufacturing facilities. By amending the future land-use map to industrial, it will assist the facilitation in assessing future industrial-oriented annexation requests in the area.

"The city supports this annexation request and believes strongly that the company's success will also prove to assist the community to recover," said Eric Keck, Post Falls city administrator. "This project will have an immediate impact on our local economy."

UnderGround represents 10 acres of the annexation request. The remaining 14 is being requested by the city to allow for utility extension and to square off the boundaries.

The business expansion is an estimated $6.5 million private investment. An existing 9,000-square-foot building is being renovated and a 72,000-square-foot building will be added. Construction on the new building is expected to start as soon as August.

"From an economic development standpoint, this is a huge project on the scope of a Harper's, Buck Knives and ALK Source Materials," Keck said.

The city would provide $45,410 in matching funds to allow the grant application to move forward.

Keck said the city may be able to have the match waived by the Idaho Department of Commerce for the job creation.

"Our state delegation is working on this for us," he said.

The city is working with the Panhandle Area Council on the grant application.

John Barlow, secretary of Hagadone Hospitality, said his company, which owns and operates The Resort Boat Shop near the site, believes the annexation and rezoning would be good for the region.

"The location is ideal for their manufacturing operation and is consistent with other uses in the area," Barlow wrote to the council.

Wages and positions at UnderGround will range from $12.50 per hour for office staff, $42,000 a year for shop floor positions, $50,000 for supervisors and the vice president of operations $80,000.

Staff will include sales, engineers, accountants, welders, mechanics and machinists.