The city of Medford may take over $8 million in urban renewal obligations to make Middleford Commons a reality.
The juggling of finances is the latest proposal under consideration as the Medford Urban Renewal Agency and the city look for ways to fund a multiblock urban redevelopment project.
The Medford City Council will consider extending MURA’s life to 2025 at 7 p.m. Thursday in the Council Chambers, City Hall, 411 W. Eighth St., Medford. A public hearing was held April 6, and
the period for comment closed Friday.
If MURA’s 12-year extension is approved, the city would consider taking up to $8 million of the agency’s remaining financial obligations of $9.5 million, including $4.25
million toward the new south Medford interchange and $500,000 to go toward a new Liberty Park in west Medford.
"We haven’t presented it formally to the City Council," said City Manager Mike Dyal. "We’re exploring different ideas and opportunities."
Sid DeBoer, chairman and chief executive officer of Lithia Motors Inc., said locating Lithia’s headquarters downtown hinges on the council’s decision.
"If they don’t extend MURA then we’re going to go someplace else, and it probably won’t be Medford," he said. In addition to property the company owns near the airport,
it is looking at other sites around the county for its new headquarters, DeBoer said.
Lithia is considering building two 10-story corporate office towers as its new headquarters with retail on the first floor and underground parking.
Other development includes three urban park blocks on Bartlett Street; a 625-space parking structure with retail on the first floor; a six-story mixed-use building with more than 100 residential
units with first-floor retail and underground parking; and additional surrounding mixed-use buildings with uses yet to be fully defined.
Based on a study done in 2005, the cost of Middleford Commons would total $169.3 million. Of that, MURA would contribute $17.3 million, the city would contribute $3 million and $2
million would come from grants. The office/housing/retail space would cost $147 million, including the $62.6 million Lithia towers.
The agency has asked for more time beyond its remaining seven years to pay back bonds for the partnership project. The extension would mean MURA would receive a portion of taxes that would
otherwise go to other taxing districts in the area.
During the last council meeting, several people questioned the project and the agency’s involvement.
Launched publicly in 2005 as a MURA project, the plan has since been taken over by the city, according to Eric Iversen, MURA’s senior planner.
"We are the toolbox," said Iversen.
MURA’s contribution of up to $17.3 million would be spent on sidewalks, street trees, curbs, property purchases for park blocks, replacement of 90-year-old water lines and parking.
"We’re doing a parking study to determine what exactly is the parking need," said Iversen.
In addition to obligations to south Medford interchange and Liberty Park, the city would also consider taking from MURA:
A project to make Bartlett Street more pedestrian-friendly, including traffic-calming devices — $2.1 million.
"There are projects that they have commitments to that they would not have to go forward with," said Dyal.
To pay the $4.25 million owed on the south Medford interchange project, the city would either have to increase street system development charges or postpone street projects, Dyal said.
"It would have to come somehow out of our street fund," said Dyal.
Dyal said it was too early to speculate on how other MURA projects would be completed.
Jackie Rodgers, MURA’s acting director, said the city’s proposed assumption of some or all of the $8 million would allow MURA to redirect its funds into Middleford Commons.
"That is one of the scenarios," said Rodgers.
She said if MURA’s life is not extended, the agency still would be able to pay its financial obligations.
Public opinion varies on Middleford Commons. A letter by Winston and Cynthia Lora of Medford was among the 17 letters sent to the city:
"We both strongly believe that public money should not be used to support businesses," the Loras wrote. They urged the city to take MURA’s extension to a public vote.
George Kramer, historic preservation consultant who also works with MURA on its façade improvement program, wrote that he supports the extension, but asks for more time for community discussion
and to "re-establish support."
"I am concerned ... about the confusion surrounding this issue, the lack of understanding about its impacts and long-term benefits. While I hope that you will ultimately approve the
amendment, I think doing so on April 20 will be unnecessarily divisive and counterproductive," he wrote.
Joyce Loyd, manager of the Heart of Medford Association, wrote that her board supports the extension.
"Our downtown would not be what it is today without the support this agency has given to merchants and building owners downtown," she wrote. "We have seen the advantages of
matching funds, façade improvements, buildings renovated, parking structures built, sidewalks, streetscapes, the Ninth Street pedestrian bridge, railroad crossing improvements, parking lots and
so much more.
"A city with a strong thriving downtown is a healthy city," she added.
DeBoer said urban renewal agencies were created for projects like this.
"This is as much their idea as it is ours," he said.
He said the urban renewal agency’s purpose is to increase the tax base downtown, which is precisely what this endeavor is about.
"Our motive is to try to help downtown, to try to be the economic engine," he said.
Reach reporter Meg Landers at 776-4481 or e-mail
mlanders@mailtribune.com.
Questions about MURA and the extension plan
Frequently asked questions about MURA and the proposal to extend the urban renewal district for 12 years, to 2025:
Q: How much will my taxes go up if the Medford Urban Renewal Agency’s life is extended?
A: They won’t. MURA is funded by tax increment financing, which means when property values within the district increase as a result of improvements, the additional tax money goes to
the agency instead of county, city, school and other government coffers.
Taxpayers are currently paying 44 cents per $1,000 of assessed value to MURA because of a special levy created after 1997. That levy expires in 2013.
"You won’t see anything (pertaining to MURA) on your tax bill after 2013," said board member Skip Patterson.
Q: What do affected taxing districts have to say about MURA’s extension?
A: It doesn’t matter. Medford Schools Superintendent Phil Long said the agency was merely required to notify affected districts, which it did.
"The authority to do this was already granted" when the agency was formed, Long said. "There really is no legal authority for our board to say ‘no, you can’t do
that’ or ‘yes, you can.’ In the long run it will result in more resources coming to our school."
Q: What happened to MURA’s promise to build Liberty Park in west Medford?
A: MURA may hand its obligation toward Liberty Park over to the city, which is looking for vacant property in the Beatty-Manzanita area, according to City Manager Mike Dyal.
"We don’t want to tear down homes to put in a park," said Dyal. He did say there were some options under consideration.
"We don’t want to get into detail there, either, because that would affect price," he said.
Q:Is MURA’s façade-improvement program going away?
A:Patterson said the money for this fiscal year is already committed to façade improvement programs, but new applicants are encouraged to visit MURA.
"They’re told they have to put their application in for next year’s budget," said Patterson. He said it is undetermined whether money will continue to be funneled into that
program next year.
Q: Is it legal for an urban renewal agency to get involved with economic development?
A: Yes. Helping private businesses and economic development is what urban renewal strives for, said Dan Thorndike, MURA’s attorney.
"It’s the model of how it’s supposed to work," he said. Though MURA has contributed to many public projects — including the Craterian Ginger Rogers Theater, the Central
Library and Rogue Community College — its ultimate goal is to create a downtown attractive to development and to help fund sidewalks, infrastructure and open space.
Q: What if the project falls apart? What is the risk to the city?
A: "Even if Lithia went bankrupt we would still collect the taxes (on the property)," Dyal said. "The city and its taxpayers would not be out anything." He added he
believes Lithia is a stable corporation. "What’s the possibility or probability of Lithia not being able to perform — we could all go into calamity scenarios."
Q: Will Middleford pull the retail and business focus away from the downtown corridor, ultimately having a negative impact on downtown businesses that exist?
A: "I don’t see at all that there’s competition," said Eric Iversen, senior planner for MURA. He said, for example, restaurants such as nearby Porter’s and
Habañeros would benefit from new restaurants. "You get the clustering. The clustering of businesses is a good thing." He also said with hundreds of additional Lithia employees walking
around with money in their pockets, downtown retail will benefit.
Q: Do two 10-story buildings really fit into downtown?
A: Bill Dames, vice president of the MURA board, said Lithia could construct the two 10-story buildings right now.
"What happens when Lithia steps up and says we would like to build a couple buildings downtown for our headquarters, you could say, well, here’s the code book, go ahead and do it,"
said Dames. He said MURA is presented with a chance to make it into more than just two 10-story buildings.
"We can deal with public areas like streets and sidewalks. We certainly can try to see that the planning for the area makes sense. ... They don’t really need us. They can just go in
under existing ordinances and build. If anybody wants to build downtown, we’re going to do the same thing," said Dames.
"We’re just trying to make it so it fits in."
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