A land swap will allow the owner of La Fiesta Restaurant, Esteban Gonzalez, to build a neighborhood grocery store closer to Riverside Avenue on the former Pacific Supply property, freeing up an area along Bear Creek, where a pedestrian bridge and apartment building are envisioned by the Medford Urban Renewal Agency.

A land-swap deal could spur commercial development in the low-income Liberty Park neighborhood of Medford along Riverside Avenue.

The Medford Urban Renewal Agency last Thursday unanimously approved a property exchange to enable development of a community grocery store, attract a developer who could build an apartment complex and build a proposed pedestrian bridge over Bear Creek.

MURA had proposed the land swap to allow the owner of La Fiesta Restaurant, Esteban Gonzalez, to build a neighborhood grocery store closer to Riverside on the former Pacific Supply property, freeing up an area along Bear Creek.

“I think it’s a great project,” Councilor Tim D’Alessandro said. “It’s kind of a food desert in that area.”

The properties involved in the redevelopment are located at 908-920 Riverside Ave., south of East McAndrews Road.

Last Thursday, the MURA board, composed of city councilors, agreed to exchange a property valued at $525,000 for the Gonzalez property, valued at $435,000. Gonzalez will pay MURA the $90,000 difference in value.

Gonzalez plans to build a 20,000-square-foot market over the next three years.

“We have an option to buy back the property in case he doesn’t proceed,” said Harry Weiss, director of MURA.

MURA would be able to buy back the property for $525,000.

MURA has also retained easements as part of the land swap to provide access to the rear of the property.

One of the easements will allow repositioning and improving a storm drain line that will enable treating runoff before it flows into Bear Creek. Untreated storm water from a large area of west Medford currently dumps directly into the creek.

Funding of the storm water project is from a $500,000 American Rescue Plan Act grant allocated for regional storm water projects. Medford Public Works is in charge of design and engineering of the project.

Much of the storm water work is expected to take place before next July, when the city plans to repave Riverside Avenue.

MURA has been in the process of revitalizing the Liberty Park neighborhood, and the plans around La Fiesta could accomplish a number of goals toward that effort.

Gonzalez originally proposed building the market on its property closer to Bear Creek, but MURA proposed the land swap to enable La Fiesta to build the neighborhood grocery store closer to Riverside Avenue.

This would allow construction of a proposed apartment complex next to the creek and the proposed pedestrian bridge. MURA hopes to attract a developer to build an apartment building of up to 45 units.

One of MURA’s biggest goals is to redevelop the Liberty Park neighborhood with $18 million that will be used to leverage state and federal grants for a variety of projects.

Some of the money has been used to convert a hotel — the Redwood Inn — into housing for fire survivors and the homeless.

MURA has bought and demolished several nuisance buildings in the Liberty Park neighborhood north of the downtown, and the city has been installing new sidewalks on some streets.

A flagship project proposed by MURA is a $48 million low-income apartment building on a 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.

Last Thursday, MURA approved extending its option with Rubicon so it could continue its effort to secure funding for the project.