Workers still are buzzing around the building, but in a short time Bend will have its first all-Mercedes Benz dealership.

Around March 1, Mercedes Benz of Bend, a subsidiary of Dave Holt, Inc., will open in a new 17,000-square-foot building at 61440 S. Third Street. The company will continue to sell Toyotas and Isuzus at its dealership at 2225 NE Highway 20 in east Bend.

Dave Holt’s new location is the latest in a flurry of construction among car and truck dealers in Central Oregon over the past couple of years

Other dealerships that have expanded, moved or established new locations include Jim Smolich Motors, Carrera Motors and Hertz Car Sales in Bend; Miller Ford and Ron McDonald Chevrolet in Madras and Jack Holt Truck and Auto Sales in Redmond.

Why the move for Mercedes? Dave Holt cited a need for more space at the east Bend location, as well as a desire to give the Mercedes Benz franchise a place where it would have its own identity.

”It just makes sense,” he said. ”Mercedes has tripled sales in the United States over the past four years.” Mercedes now sells a sport utility vehicle, as well as a car that retails in the mid-$25,000 range.

The building includes showroom and sales space, plus more area for parts and service than now is available in east Bend. Holt said the combined cost of land and construction was about $2 million.

Holt in 2000 purchased the former Alpine West Lodge, which was located on a 1.8-acre parcel just south of Reed Lane. The motel was razed last year.

Holt may have raised a few eyebrows by choosing south Third Street as a location, since commercial activity has slowed and some businesses have closed over the past year or so. But he’s convinced the area is going to experience an upswing.

”We think this will become a commercial funnel for south Third Street, and where the growth will be,” Holt said. ”This was zoned right and was a workable property.”

Dave Holt has been in business since 1972 and has held the Mercedes Benz dealership since 1974.