POWELL, Wyo. (AP) - In need of more space, the Powell Mercantile is looking no further than next door.

The three-year-old, community-owned Merc is hoping to double its square footage by acquiring the vacant former Skyline Drug building, one door to the north on main street. In order to do so, state assistance is sought in the form of a Community Development Block Grant through the Wyoming Business Council. The nonprofit organization, Target Powell Valley (the land/building development arm of the Powell Valley Chamber of Commerce), would be the intermediary in the case of successful block-grant funding and would own the building, renting it to The Merc.

The 7,000-square-foot former drug store building, owned by the Sande family, has been vacant since the December close of the Dollar Depot. The dollar store was located in the building after Skyline Drug went out of business.

The Sande family has indicated willingness to sell the real estate, but a purchase price has not been agreed upon, pending a certified appraisal.

At a public hearing Monday, the Powell City Council was asked to sponsor a block grant application for $185,000 through the Wyoming Business Council's Economic Development Downtown Development program. The amount is based on a market analysis estimated value of $180,000 for the building. The block grant request includes $2,500 for a certified appraisal, $1,500 for administration and $1,000 for legal work.

If the block grant is approved, the appraisal will be ordered. If the appraisal comes in less than the market analysis value, the amount of the grant would be reduced to the amount of the appraised value.

The total scope of the proposed Powell Merc expansion is $250,000, said Ken Witzeling, president of The Merc board and president of Target Powell Valley. The Merc must put up a cash match of $65,000 to qualify for the grant, he said.

The Merc's capital outlay would be used for remodeling and fixtures ($35,000) and operating capital ($30,000).

"The cash we're putting up is the profit we've made from three years in business," said Ron Blevins, Powell Mercantile board member.

"We've operated in the black since the day we opened," Witzeling added.

The Merc currently occupies 7,000 square feet in its main store. In addition, a second outlet a few doors away houses the Junior Merc, a basement rental which features children's and baby's departments.

With the acquisition of the new building, the plan would be to close the Junior Merc and locate everything in one area, which would have a total of 14,000 square feet.

"It would alleviate overcrowding," said Witzeling, who feels that the inability to properly display merchandise in present conditions probably hinders sales.

"If you're going to have a shoe department, you need space," he said. "There are 15 sizes in any one style of shoe. That takes a lot of room."

Blevins also noted that the fact that the Junior Merc is downstairs in a basement location makes it difficult for a lot of people to shop.

"The teenage and baby lines have been one of our best profit centers. If we eliminate the stairs, it would be even better," he said.

Another benefit to the addition of the drug store building would be more backroom work space for receiving and shipping merchandise. The former Skyline Drug also has a small basement, which The Merc doesn't have now.

Information from: The Powell Tribune, http://www.powelltribune.com