A Medford redevelopment project on Riverside Avenue has already caught the eye of a Portland housing developer.

The Medford Urban Renewal Agency recently discussed an ongoing property swap deal at 908-920 Riverside Ave., south of East McAndrews Road. MURA would exchange some property it owns with Esteban Gonzales, owner of La Fiesta Restaurant.

The property exchange should pave the way for Gonzales to build a new community grocery store and eventually for the city to build a proposed pedestrian bridge over Bear Creek.

Once the deal is finalized, MURA could end up with almost 4 acres behind the grocery store with the hope of attracting a developer to build an up-to-45-unit apartment complex.

The city also plans to upgrade the storm drain system in the same area.

MURA had offered to swap some of its land with Gonzales to build his proposed grocery store closer to Riverside on the former Pacific Supply property, freeing up an area along Bear Creek. MURA previously purchased the Pacific Supply property.

During a discussion about MURA projects, Kevin Stine, a MURA board member, wondered if any other potential new project is in the pipeline for MURA. “The next big thing,” he said.

In response, Harry Weiss, executive director of MURA, said he’d received interest from a developer who might want to build housing on a portion of the 4 acres along the creek.

“We’re in the early stages,” said Weiss, who didn’t want to disclose the developer’s name. “This will be contingent on finding funding sources.”

Weiss said he’s preparing a package that will provide the developer with information needed to assess the site.

He said MURA envisions a project that would treat the creek frontage as an asset, particularly with the longer-term plans to build a footbridge over the creek.

Weiss told the MURA board it might want to provide incentives to see the project come to fruition if the developer decides to pursue a project.

He gave the MURA board, which is composed city councilors, a rundown on the various projects being funded from $19,926,045 in tax increment money plus $1.1 million in interest.

MURA derives its money from increases in property taxes within a district that runs from Liberty Park, the downtown and into south Medford.

Most of the money — $13,964,503 — is being spent in the low-income Liberty Park neighborhood, just north of downtown.

Another $2,166,317 has been committed to downtown projects, including the $1,205,250 to help build the newly completed Genesis Apartments.

Some of the dollars are tied up in commitments to help build other projects, including the Dolores Huerta apartments on Central Avenue. MURA has set aside $4.2 million to help fund this project, which will require state grants to build more than 100 low-income apartments.

This will be the third year that a grant has been applied for to build the apartment complex, which has faced stiff competition in past years from other projects around the state.

“We’re hoping the third time’s the charm,” Weiss said.

MURA has another $5,923,798 in cash and land value remaining.

Another project that MURA hopes will advance rapidly is Western Hospitality LLC’s proposed 110-room, extended-stay Marriott Hotel on Fourth Street, bounded by Third Street to the north, North Apple Street to the east and North Bartlett Street to the west.

The five-story hotel, which will have a pool, would be located just north of Pear Blossom Park and near the Lithia Driveway & Fields headquarters.

An agreement between Western Hospitality and MURA has been postponed from February until March, but Weiss expects that once the agreement is finalized the hotel project should proceed fairly rapidly.