A housing and redevelopment project planned along Riverside Avenue near Pacific Survey Supply and La Fiesta may become much larger with the inclusion of eight more lots by the Medford Urban Renewal Agency. 

A revitalization effort along North Riverside Avenue around La Fiesta Restaurant could become a lot larger with the potential purchase of up to eight more lots.

The Medford Urban Renewal Agency May 25 took the first of many steps required before it could purchase the properties.

MURA previously bought the former Pacific Survey Supply property at 908-920 N. Riverside Ave. for $1,275,000 and has spent about $95,000 for demolition to prepare the site for redevelopment.

A land swap deal is in the works with Esteban Gonzalez, who owns a 1.68-acre property along Bear Creek. MURA wants to exchange the 1.06-acre Pacific Supply property for Gonzalez’s lot, so that he can build a 17,000-square-foot Mexican market closer to Riverside. Some lot line adjustments would be made to ensure Gonzalez has enough space for the market and to allow sufficient access. Gonzalez’s current property is larger, but a good portion of it is along the riparian areas and in Bear Creek.

“We see this grocery store and other developments as catalysts,” said MURA director Harry Weiss.

MURA hopes to eventually attract a developer who could build an apartment complex closer to Bear Creek.

Other adjacent property owners who have expressed an interest in selling off lots include Kids Unlimited, Jackson County and the Douglas Dunn Living Trust.

The swath of properties extends from 824-1014 N. Riverside Ave.

The MURA Board May 25 authorized holding a public hearing in the near future, which would be one of the initial steps toward the purchase of some or all of the properties. Ultimately MURA would need an appraisal before its purchase.

Buying the additional land could provide better opportunities for the development, such as easier vehicle access, more flexibility in locating a pedestrian bridge over Bear Creek and to help build a new stormwater treatment facility.

Untreated stormwater currently flows directly into the creek from a roughly 60-acre area of the city to the west of Riverside, an area that includes residences and businesses.

The piping for the storm drain system would run underneath a pedestrian and bike trail that would lead through the development to the pedestrian bridge.

The new system would treat the wastewater before it dumps into the creek, improving water quality.

Weiss said the existing storm drain line has to be moved to allow for construction of the market, so it will be one of the first projects undertaken by the city. He said Gonzalez is anxious to start building the market.

The city has already set aside $500,000 to help build the storm drain system.

Another goal, which requires a partnership with a developer, is building an apartment complex of about 45 units, though this could become a bigger project if the additional land is purchased.

The redevelopment area would expand from just over 2.5 acres to more than 6 acres if MURA obtains all the properties, though a portion of it is in the flood plain and riparian areas of the creek.

Weiss said the city has had a long-term vision of orienting development toward the creek instead of backing buildings up to it.

He said this redevelopment project would treat the creek as an asset.

Also, it would allow the city to remove blackberry bushes and other invasive species that are now on private land. It would help police provide better enforcement.

“We always have issues of homeless encampments along the creek,” Weiss said.

The price tag to buy the properties isn’t known yet, he said, but MURA has $5.5 million in taxing capacity and land value.

This is just one of many projects MURA has undertaken to revitalize the economically depressed Liberty Park neighborhood.

Another project in the works is a $48 million low-income apartment building on MURA’s 3.25-acre Central Avenue property next to Les Schwab.

The four-story complex would have 115 one- to three-bedroom units, and MURA has an option agreement with Rubicon Investments and Edlen & Co. to apply for financing from federal, state and conventional sources to get the project off the ground.

Rubicon expects to hear whether the project qualifies for an Oregon grant this August.

Last year, Rubicon didn’t succeed in getting a $12.5 million Local Innovation and Fast Track housing program grant, though it often takes several tries to secure these types of grants.