The donation would bolster the city of Potlatch's effort to help PNW Arms create more jobs in its operations there.
PNW Arms, located just north of Potlatch off U.S. 95, is looking to expand into a 30,000-square-foot building that would be built in a new business park and probably be finished by late summer, Mayor David Brown said.
"PNW Arms has ramped (up) quite a bit where they are and they're out of space. That's one of the big hurries," he said.
PNW Arms CEO Mark Baciak was less specific about what his company's plans are.
"We're exploring opportunities in the region, but we haven't made any decisions yet," he said.
PNW Arms relocated from Issaquah, Wash., to Idaho in late 2011, filling a vacant 14,500-square-foot building that formerly belonged to D8, a company that manufactured molds for objects such as bicycle helmets and airline parts.
The City Council is slated to decide whether the 10 acres will be annexed into Potlatch at its March 10 meeting.
The city also is working on upgrading the infrastructure at the site. The city expects to hear soon whether it will receive a $50,000 grant from the Idaho Department of Commerce to bring a water line to the property. It's also seeking $300,000 from the agency to extend water and sewer into the park, as well as make other upgrades such as flattening ground.