Plenty of signs point to sustained commercial and residential development in Jackson County. Eugene’s Papé Group Inc. figures with all that soil being turned, the local demand for heavy machinery will grow as well.

Papé is bullish enough on continued residential and commercial growth in the Rogue Valley to invest several million in new facilities in the Alley Industrial Park off Table Rock Road, just northwest of the airport.

Papé Group is the holding company that owns and operates six of the West’s largest equipment dealerships, including Papé Material Handling and Papé Machinery.

"We’ve tracked construction numbers — both residential and nonresidential — and we’re seeing that trend will continue and the Medford area will grow," says Tim Clevenger, director of corporate development. "The forecast is for the market to stay strong in the foreseeable future. We felt the facilities we had were not able to keep up with the needs of our customers."

A 2,329-square-foot Papé Machinery retail and repair shop will be built at 4300 Hadley Drive, along with a 600-square-foot wash building and 4,560-square-foot covered work area. The estimated value on the city permit is $2.182 million, and the shop and covered work space is listed at $100,000.

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A 12,049-square-foot Papé Materials structure, valued at $1.454 million, is permitted for 400 Pech Road.

"We’ve been wanting to upgrade those facilities for some time," says Robert Riecke, president of Papé Properties. "Both facilities, in machinery and material handling, we felt were inadequate for handling the future business in Medford."

The machinery store’s territory is bracketed by Eugene and Klamath Falls as well as Eureka and Redding, Calif., operations, while the material handling side dips well into Northern California.

Riecke says Papé will break ground this month and expects to finish the buildings by the end of May.

Papé Properties obtained parcels totaling 8.71 acres on Pech Road and Hadley Drive from the Alley Family in December of 2003 for $1,456,970. In August of 2004, a neighboring 2.16 acres was sold to Ore-Cal Trade Co. for $1.75 million.

The present 2720 Biddle Road, owned by Papé Properties, and 1492 Burlcrest Drive, owned by Burlcrest Properties, were on opposite sides of the airport, and two new buildings will be across the street. The shops presently employ about 40 people, but that number is expected to grow when the new buildings are opened.

"When your car breaks down, it’s an inconvenience," Clevenger says. "But when a forklift or excavator breaks down, the operator loses money. Having a facility where we can have enough service techs and parts available allows us to turn a repair around as soon as possible."

Reach reporter Greg Stiles at 776-4463 or e-mail business@mailtribune.com.