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Medford housing development will go up if fees go down The proposed Almond Street apartment complex would have 108 units, but the developer is asking the city to cut system development charges. [Drawing by Oregon Architecture] Tuesday Jul 25, 2017 at 6:06 PM Jul 25, 2017 at 6:32 PM Damian Mann Mail Tribune @reporterdm Downtown Medford has more life than it used to, but many say the spark that would fire up Main Street is more housing nearby. A local developer, Dan Thomas, asked Medford City Council recently to cut fees, known as system development charges, in the downtown area to give him the incentive he needs to build a 108-unit apartment complex. "The SDC's are one reason we're not having downtown development," he said. Thomas has proposed building a $12 million complex on Almond Street, but he wants the SDC's cut in half from the $641,014 he would have to pay for the project. To make the development fly, Thomas said, he needs to cut costs by about 10 percent. Reducing city charges, which are used to pay for sewer, water and street improvements, would help.  The council appears willing to give Thomas' request some attention. "This will require a lot of discussion," Mayor Gary Wheeler said. Councilor Kevin Stine, who is also chairman of the Medford Urban Renewal Agency, said the city is interested in public-private partnerships to encourage development, particularly for housing. "That's been an idea that's been kicked around," he said. While waiving system development charges might be a difficult sell, Stine said the city may be open to delaying payment of those charges until the end of the project. MURA is scheduled to sunset in 2018, but city officials are considering an extension that could provide an additional $22 million to be invested within the district. It's possible a housing project would be eligible for some kind of financial help, Stine said. He said MURA is also considering seismic retrofits for downtown buildings to encourage housing on the second floor of buildings that have retail on the first floor. "These are the kinds of projects we want to see," he said. "I think there is the political will on the council to work with him." Thomas said he has the patience to wait for the city to hash over his proposal, but he would like to start the project at the beginning of 2018. He said he's cutting costs on his side, as well, including redesigning the structure. "I've got to knock off $1 million, and I'm asking the city for its help," he said. Medford’s Site Plan and Architectural Commission has approved the 22,290-square-foot complex, known as the Almond Street Apartments, on 1.23 acres. The fourth story of the U-shaped complex opening to the east would be 54 feet high. The project would be located near East Main Street, just east of Interstate 5. Thomas said the apartments are being designed for a younger market and won't be the kind of low-income housing that the Jackson County Housing Authority recently built on a former parking lot near the Grape Street and Sixth Street intersection. He said the apartments will be priced at market rates. He said the project would be a good fit in the city's goal to put more life in the downtown. "They need five or six of these projects to revitalize the downtown," he said. — Reach reporter Damian Mann at 541-776-4476 or [email protected]. Follow him on www.twitter.com/reporterdm.