Developers of the proposed 84-acre Northgate Centre complex received approval late Thursday from the Medford Planning Commission to rezone the majority of their land from industrial to commercial and office use. Their neighbor — Timber Products — vows to appeal the decision.

The commission also forwarded a recommendation to the Medford City Council to amend the Comprehensive Plan to accommodate the zone change. The amendment is tentatively scheduled to come before the council Nov. 16.

"Obviously it's a very positive decision, and to have both decisions unanimous says a lot about the project," said Greg Hathaway, a Portland attorney representing the Northgate developers.

But Timber Products, which has led the fight opposing the project, is not throwing in the towel.

"They have not made the case that this piece of property is something that can be converted to commercial," said Alan Johnson, a Portland attorney representing Timber Products. He said he will appeal the zone change decision as well as the Comprehensive Plan amendment should the City Council approve it. If the council does not approve the Comprehensive Plan amendment, the zone change decision is voided.

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The shopping/office/industrial development, proposed for the former site of the Medco lumber mill complex, will cost about $220 million, provide 1,800 jobs and take at least 10 years to build, the developers say. The property is owned by Northgate LLC, made up of Steve Morgan and Russ Dale, local developers, and Guy Farthing, a San Francisco investor. It includes three of the four quadrants created by the intersection of Highway 238 and Central Avenue. The property was annexed into the city in recent years and has retained its general industrial zoning, used for heavy industry.

Two wood products manufacturers adjacent to the proposed development have asked the city to reject it. Representatives for Timber Products and SierraPine say open air boutiques and restaurants that are being proposed are not compatible with their existing manufacturing activities which generate noise, dust, odors, fumes, truck traffic and round-the-clock activities.

Planning Commissioner Jerry Shean added to both the zone change approval and the comprehensive plan amendment a condition that would protect neighboring heavy industries from being sued for conducting business.

"To me the concerns of the industrial neighbors are important," he said.

The master plan for the project will be reviewed at later date by the Site Plan and Architectural Commission. Planning Commissioner Bob Tull said he wanted to include a request that SPAC look at improving walkways and streets within the complex.

"I am disappointed in the inability of the applicants to plan more interconnection between the quadrants," he said.

Following the decisions, Hathaway said the applicant is "totally committed" to a covenant that protects the neighboring heavy industries from frivolous lawsuits.

Johnson said he was pleased the commission added language that provides protection of Northgate's neighbors.

"It's just a way of making sure we don't subsidize the shopping center," he said. "It should be their cost of doing business if we end up having to put enclosures around our activities."

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