A proposed 115-unit apartment complex near downtown Medford isn’t going to be built, and Medford Urban renewal agency is looking for other projects on the 3.25-acre Central Avenue property. (Courtesy image)

Efforts to redevelop low-income Liberty Park neighborhood have been ongoing; MURA now looking where it can spend money elsewhere

A four-year effort to build a flagship affordable housing project just north of downtown Medford is dead in the water.

The Medford Urban Renewal Agency Board, made up of city councilors, signaled at a Wednesday study session it would not be renewing an agreement for a 115-unit apartment complex on Central Avenue, just north of Les Schwab Tire Center.

The developers of the project, Medford-based Rubicon Investments and Edlen & Co., recommended MURA terminate the agreement in light of uncertainty over federal and state funding needed to get the project built.

“We’re not going to be progressing with Rubicon/Edlen on the Dolores Huerta project, much to my dismay,” said Harry Weiss, a MURA consultant and its former director.

MURA is expected to take action to officially terminate the agreement in July.

MURA had set aside a $4.2 million matching grant to help with the $50 million project, and the MURA board indicated it wanted to free up the money for other potential projects on the city’s wish list.

The proposed four-story affordable housing complex, known as the Dolores Huerta Apartments at 723 Central Ave., was proposed about four years ago. Attempts to secure up to $35 million in grants haven’t been successful.

The apartments would be located in the low-income neighborhood known as Liberty Park, which has been the focus of redevelopment efforts by MURA for years.

Rubicon and Edlen have indicated that it was doubtful that any grants would materialize in the next two years.

“Edlen recommends the board terminate the option agreement,” Weiss said.

MURA bought the 3.25-acre property with a 20,000 square-foot warehouse next to the railroad tracks for $1.75 million.

Weiss said other possibilities for the property include a new fire station that would be located closer to the downtown and a police evidence locker.

The city is trying to attract a medical school, and the property could serve as the site for apartments for students.

Kevin Stine, MURA board member and councilor, said the board needs to provide direction to MURA staff, suggesting trying to attract market-rate housing to the site.

Stine, who has expressed frustration about the slow progress for the affordable housing project in the past, said, “This is a good example of it’s not easy to spend money.”

Councilor Kevin Keating said the 3.25-acre property might be attractive to another development.

“Conceivably we could sell it on the open market,” he said.

Weiss said the sale of the property has to be done in light of MURA’s goals and objectives. Possible uses for the site that would be in line with the goals and objectives could be for public projects or for affordable housing.

He suggested having a conversation with the Jackson County Housing Authority, which has developed other affordable housing project  in the area and in the downtown.

Board member Mike Kerlinger said, “Personally I felt like this was a very awkward project for an infill housing opportunity. I’d rather look at other options. I remember thinking I wouldn’t want to live here.”

Board member Nick Card said, “I would agree that it is a terrible site for housing.”

Board member Jessica Ayres said she wondered what type of housing is the most needed in Medford, particularly after a considerable amount of new housing has been built in recent years.

“I’m really curious what our vacancy rates are now,” she said. “I want to understand what type of housing we need the most.”

Weiss said affordable housing remains the most needed type of housing in Medford.

He said affordable housing on Central Avenue was a good fit because it reduces the potential for “NIMBY” opposition from neighbors, also known as “not in my backyard.”

Mayor Mike Zarosinski, a MURA board member, said he was no longer interested in setting aside $4.2 million to attract a developer for this project site.

“There’s other things in the district that are coming together so fast,” he said.

The city is in talks for both a medical hospital associated with Oregon Health and Science University as well as a $90 million baseball stadium in the downtown that would be in collaboration with the Eugene Emeralds, which hopes to move to Medford.

Reach writer Damian Mann at dmannnews@gmail.com.