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Motel conversion for fire survivors stalls By Damian Mann Sep 25, 2022 12:45 AM A A Project supported by state grants could be $1.8 million in the hole Conversion of Redwood Inn on North Riverside Avenue into housing for Almeda survivors and homeless people has been stalled for six months and could be up to $1.8 million in the hole. [Jamie Lusch / Mail Tribune] An effort to convert a downtown Medford motel into a home for fire survivors has been stalled for six months and could be up to $1.8 million in the hole. “All of a sudden there was no money, and the project stopped,” said Kelly Madding, deputy city manager. The Redwood Inn Motel conversion at 722 N. Riverside Ave. received a $2.5 million grant from the state as part of Project Turnkey, a program to help provide housing to fire survivors and the homeless. The state provided an additional $139,000 to help add kitchens to the units. Medford Urban Renewal Agency, which helped secure the Project Turnkey grant, also provided $450,000 to help renovate the motel and add small kitchens. Providence had agreed to contribute $120,000 to convert four of the rooms at the hotel for people with medical conditions. Rogue Retreat, a local homeless organization that has faced a major administrative and financial shakeup in recent months, is managing the hotel conversion and previously expressed concerns that it would need additional dollars to complete the project. Madding said state officials have acknowledged grants to local communities probably weren’t sufficient, and other hotel conversion projects around the state have faced funding gaps. Project Turnkey is a state grant program that was designed to aid survivors of the 2020 fires, including the Almeda Fire, which wiped out 2,500 residences, mostly in Talent and Phoenix. This is the second hotel in the valley obtained through Project Turnkey grants. A 50-room Super 8 motel in Ashland was purchased by Options for Helping Residents of Ashland after receiving a $4.2 million grant. At the MURA board meeting Thursday night, Madding said rough estimates to finish the Redwood Inn remodel run from $1 million to $1.8 million, but she said it would take some additional effort to get a more precise number. Once completed, she said, it looks like Rogue Retreat could more than break even on renting out the rooms at Redwood Inn to low-income residents. If money can’t be found to finance the project, Madding said the city could either sell the hotel and pay the state back, or find another nonprofit willing to take on the project. Madding said another nonprofit likely would still appeal to the city for dollars to complete the project. She asked the MURA board if it would be interested in putting more money to help Rogue Retreat finish the motel conversion. Kevin Stine, a board member and city councilor, said he couldn’t approve any more money. “I don’t know how we’re not chasing good money after bad,” he said. Other board members said they needed to see more firm numbers for the remainder of the renovation before committing additional dollars to the project. Clay Bearnson, a board member and councilor, said one of MURA’s primary marching orders is to eliminate blight, particularly in the low-income neighborhood of Liberty Park, just north of downtown. “I don’t see this as bailing out a nonprofit,” he said. “I see this as returning the favor.” Bearnson said Rogue Retreat has made significant efforts to deal with the city’s homeless issues — and has taken on a number of projects including the Urban Campground, Hope Village and the Navigation Center. If MURA provided more money for Redwood Inn, it would be money that is staying in the Liberty Park neighborhood, Bearnson said. He said the MURA board has been discussing the investment of almost $1 million into a four-unit housing project on a blighted property not far from Redwood Inn. By investing those dollars in Redwood Inn, the city would be creating 47 units for people to live in, Bearnson said. Tim D’Alessandro, a board member and councilor, said, “There is a lot more that needs to be discussed. It comes down to what is the ask.” He said the board needs some solid numbers for the renovation and then can consider its options. Board Chair Eric Stark also said MURA needs more information before taking any action. “If this is a prudent use of funds, then we should move forward,” he said. “Right now, it looks pretty bad. I would like to move the gauge and move forward.” Reach freelance writer Damian Mann at [email protected].