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Oregon Road Conditions & Cams Email Story to a Friend November 10, 2005 Councilman: Court Lithia immediately, push downtown HQ By MEG LANDERS Mail Tribune The city must take the lead in bringing Lithia Motors’ $62.6 million headquarters downtown or it may lose its greatest economic development opportunity, a City Council member says. Jason Anderson urged the city to take the project from the Medford Urban Renewal Agency, which had been leading efforts to make it possible for Lithia to build its corporate headquarters downtown rather than on a site it already owns near the airport — a plan that would be $25.6 million cheaper. "I’m afraid that the city and MURA are getting off on the wrong foot and I want to ensure that both MURA and the city are communicating to the degree that we’re going down the same path," said Anderson, council liaison to MURA, during the recent council meeting. "This is much too great an opportunity to where we let miscommunication, egos, whatever, get us off target." Outgoing MURA Director Kurt Olsen said he supports turning the project over to the city. Advertisement "Urban Renewal really acted in its role of really being the catalyst to develop visions," Olsen said Wednesday. "The city needs to step forth and take on the role of directing it through the city’s process and use urban renewal as a tool." Lithia executives have said they want to know by January whether local government supports a downtown headquarters and hopes to complete the project in three years. The Medford auto retailer owns stores in 12 Western states and reported total sales of $2.3 billion during the first nine months of 2005. Telephone calls to Lithia executives were not immediately returned Wednesday. The council agreed last week to give the Lithia reins to city staff. The headquarters would be the key component of the proposed Middleford Commons, a $147 million redevelopment project covering seven blocks between Central and Riverside avenues and Main and Jackson streets. Since fall 2004, MURA and Lithia have been formulating plans for one, and eventually two, 10-story buildings, four mixed-use residential/retail buildings and park space where Lithia automobile dealerships are now located. Lithia is looking at moving its six dealerships on those blocks to 113 acres it owns on Highway 62 near the airport. The move would take place within the next six years, when current leases on the Medford lots expire. Anderson told the council the development should be a city project using MURA as a resource. "We’re going to drop the ball," said Anderson. "If we don’t get this straight right now and give staff some direction that the city take the ball and run with it, then I’m afraid that we’re going to fumble this thing and Lithia’s going to end up developing out of town." He said there has been a lot of miscommunication between the city and MURA. "What I’m hearing from city staff and what I’m hearing from the urban renewal agency, they’re not jivin’." City Manager Mike Dyal countered that MURA staff reports to its board, not to the city manager. "No one at MURA reports to the city," he said. "If there’s a built-in dysfunction, it’s right there." Olsen, who’s leaving Dec. 5 to take a similar post in Lincoln City, said there are many reasons for the difference between the cost of building Lithia’s headquarters downtown and the cost of building at the airport. At the airport, Lithia would not have to put in sidewalks, do street improvements or provide retail on the first floor of its headquarters building, he said. The city’s role will be lining up local and state funding to help bridge the gap. The Governor’s Economic Revitalization Team and Oregon Housing and Community Development already have indicated they could help with different project pieces, said Olsen. The city also would assist with the planning and building process of the project. Urban Renewal’s role would be acquiring property and building a parking structure, as well as widening Fourth Street and building park blocks along Bartlett Street. Olsen said the only way the project will succeed is with solid leadership from the city. "It’s such a large vision, it’s not just, ‘Let’s go build a sidewalk,’" he said. He said Middleford Commons could proceed even if Lithia chooses not to build downtown. "We’ll just step up the effort and try to find new partners," he said. Reach reporter Meg Landers at 776-4481 or e-mail Councilman: Court Lithia immediately, push downtown HQ ">[email protected] . 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