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Developers of a controversial project in Bend want to build an apartment complex on the empty concrete slab surrounding the Evergreen parking garage, formerly known as the Bella Vita. The Medford City Council will consider a resolution today allowing negotiations with Kuratek Holzman LLC to build a $5 million to $7 million structure abutting the parking garage and featuring 75 to 80 apartment units and commercial or office space. The apartments would be rented at the prevailing market rate, said Bill Hoke, deputy city manager. The council will meet at noon at City Hall, 411 W. Eighth St. Ray Kuratek and Jeff Holzman, principals in the company, were involved in the 1,500-acre Juniper Ridge development in Bend, but parted ways with the city as the economy nose-dived in 2008. Hoke said the developers appear to have the financial wherewithal and expertise to take on construction of the Evergreen project. He said he looked into the Juniper Ridge deal and believes the developers backed out because of unforeseen market conditions. He said any final agreement between Medford and Kuratek Holzman will have safeguards to make sure the project goes forward. A final agreement, known as a Disposition and Development Agreement, could take up to six months to hammer out. "Our intent is to have a DDA that protects the city and still ensures we have a good project," he said. Details of the project are still preliminary, but Hoke said the developers want to build out the apartment complex in three phases. The first phase would feature a 46,000-square-foot building on the west side of the Evergreen lot, facing Fir Street. The massive concrete slab would be partially covered by the new, four-story building, which would be shorter than the parking garage. The original Bella Vita project, which died in 2008 after disputes erupted over prevailing wage laws, was going to be six stories, with 64 condos and specialty shops. Phase two would feature a structure on the north side facing Main Street. The final phase would be on the south side of the parking garage, facing Eighth Street. Hoke said the size of those structures is still being worked out. Parking for the apartments is located under the exposed slab. The developers are still trying to work out how much commercial or office space the buildings would have, Hoke said. City officials have been concerned that water has seeped under the concrete slab, which wasn't designed to be left exposed. Since only a part of the slab will be built on, Hoke said something will need to be done to temporarily cover the remaining portions. Ideas such as creating a patio or commons area are being discussed, he said. The design of the building hasn't been developed yet, but Hoke said it will have to meet historic review to make sure it is compatible with other buildings in the downtown. Hoke said the developers are fully aware that they will have to abide by prevailing wage laws. "Everybody comes in with their eyes wide open," he said. Jim Clinton, a Bend City Council member and early promoter of the Juniper Ridge development, said he would have no problems with Kuratek and Holzman taking on a project in Medford. "I never saw them do anything dishonest," he said. When the city entered into an early agreement with Kuratek, the developer began working on a master plan. At roughly the same time, the city told the developers they needed a financial backup plan, so they started negotiating with a financial subsidiary of AIG. After the real estate market and AIG collapsed, Kuratek and the city could not finalize a contract. By then Kuratek had invested $2.5 million in the master plan for a project estimated to have a full build-out potential of $1 billion, Clinton said. The city paid the $2.5 million and they parted ways, he said. During the master plan phase, local developers began complaining about Kuratek, particularly grumbling about the developer coming from California. "Some people found it difficult to work with Kuratek," Clinton said. "There is no question that Kuratek rubbed people the wrong way." He described the developer as a shrewd businessman who was a little too blunt. Aside from these problems, Clinton said Kuratek had a vision of the project that is still being used by the Bend Urban Renewal Agency. Corporate headquarters for Les Schwab and three other companies have since become part of the development, though much of the land is still undeveloped. "The city is still in the hole financially, not because of the master plan, but because of the infrastructure such as roads and sewers," Clinton said. Jerry Mitchell, who is the Juniper Ridge development director, said Kuratek has the ability to handle building a multimillion-dollar project. He said Bend has spent roughly $15 million on Juniper Ridge, but has received about $10 million from the sale of four parcels to corporations. Much of the cost so far has been from road building projects, Mitchell said. Mitchell said Bend also built a parking structure and wrapped a boutique hotel and residential complex around it. He said the project has been successful. Reach reporter Damian Mann at 776-4476, or e-mail [email protected].