Preliminary work has begun at the now vacant block off South Division between First and Second streets southeast, known until recently as the Chamber of Commerce block or the Gambini block.

Teutsch Partners LLC, the Seattle-based real estate development firm that owns the block, has taken the first steps toward raising a four-story retirement community there, offering 111 assisted-living and 16 memory-care apartments.

Jeff Tate, assistant director of community development for the City of Auburn, said that heavy equipment operators have been compacting the soil, laying the groundwork for the massive project, which gets under way this spring.

After compacting, Tate said, no work may be done there for six weeks.

No date has yet been set for a groundbreaking.

Plans for Merrill Gardens at Auburn show a U-shaped building with a center-landscaped courtyard, part of the courtyard accessible to the public, facing South Division.

Its 168,331 square feet of space will be divided between the below-grade parking level and three stories of memory-care units above ground, a mixture of one-bedroom, one-bath studio and two-bedroom, two-bath apartments.

There will be two entrances, the first off First Street Southeast and the second off Second Street Southeast.

According to City officials, neither Merrill Gardens nor the Trek Apartments project to its immediate north will offer Section 8 housing. All of the units will be market rate.

In 2007, the Economic Development Administration awarded the City a $2.2 million federal grant and a $7.2 million local revitalization bond that upgraded streets, sidewalks and utilities to support such construction on South Division.

City officials estimate that between them, the Trek Apartment retail project on the former Cavanaugh block on East Main and the Merrill Gardens project should bring 300-500 new residents into the downtown core.

According to its website, Merrill Gardens, a privately-owned, family-run company, owns and operates 21 senior living communities in four states with a focus on lifestyle. Each Merrill Gardens community is different in physical structure, reflecting the characteristics of the area where it is and the needs of its residents.

Teutsch Partners, LLC was formed in 1987 as a privately-owned, regionally-focused, commercial real estate services and development company.