A new Wal-Mart Supercenter at Miles Field is a step closer to reality after a minor oversight by city staff led to dismissal of Medford’s appeal to the state.

Both sides said they will now begin discussions on a compromise that would satisfy the city’s concerns over the neighborhood compatibility of a 207,000-square-foot Supercenter in south Medford.

"We were going to go into mediation," said Lori Cooper, senior assistant city attorney for Medford. "We were trying to file an appeal as a place holder. Now we’re back to the (Land Use Board of Appeals) remand situation."

According to a spokesperson at the Oregon Court of Appeals, the case was dismissed on April 12 because the city did not mail the appeal by certified mail, which provides proof of mailing and date and time of delivery.

Wal-Mart Attorney Greg Hathaway of Portland said the corporation is willing to modify landscaping and wall designs and make other changes to the City Council’s liking.

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"We’re still open to discussing it," he said.

Medford took its case to the state Court of Appeals in March after LUBA determined that the council exceeded its authority in rejecting plans for the Supercenter, to be built at the former site of Miles Field at Highway 99.

The council had determined the project was incompatible with the neighborhood based on its size and design.

LUBA also ruled the city illegally rejected an appeal from property owners concerned about the project’s impact on traffic.

Cooper said the city has about 90 days to beef up its findings and spell out the traffic impact more clearly to satisfy LUBA requirements.

Some of the council members said last year they would like to see a two-story store on half the footprint.

"It’s the one thing that we will not consider," said Hathaway.

Cooper said she anticipates Wal-Mart will submit a new design to avoid dragging it out further.

"I think we’re going to be back in front of the Site Plan and Architectural Commission in the next two months or so," said Cooper.

Hathaway said the proposed Wal-Mart Supercenter store in Eagle Point doesn’t mean the corporation is not pursuing other proposals.

"The plan is to have a store at Eagle Point, Central Point and Miles Field," he said.

Reach reporter Meg Landers at 776-4481 or e-mail mlanders@mailtribune.com.