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City likely to get Santo Center; picture could clear some today By JIM DAVIS The U.S. Marine Corps doesn't want the Santo Center. Nobody is sure about everyone else. For the second time, the U.S. Navy has laid claim to the brick building in west Medford that city leaders want as a community center in an economically depressed part of town. And Thursday, Jackson Education Service District officials announced they were interested in the property -- and later said they weren't. In the end, however, the city of Medford will probably get its community center, said L. Jay Pearson, regional administrator of the federal General Services Administration, which decides who gets the building. "I assume that if we don't get any other interest from any other agency that the city should get the property fairly soon," Pearson said. Still, state, county and local governments have until today to express interest and possibly derail the hopes of city leaders. The Santo Center, originally a U.S. Army Reserve Center at 701 N. Columbus Ave., has been used by several nonprofit and local groups in Medford since 1997 -- although most moved out last year because the center does not have air conditioning. City leaders wanted to turn the building into a community center, but were reluctant to put in money and time unless the city owned it. On June 3, the city applied to the federal government to take over the property -- embarking on the beginning of a 10-month struggle through red tape. First, the U.S. Naval Reserve laid claim to the building, then after months of negotiations gave up its claim and decided to stay in the former West Side School building at 3070 Ross Lane. In return, the city of Medford agreed to pay rent on that building for 10 years at a cost of $440,000. The city also agreed to pay for a $173,000 water line to the building. Then, in March, the General Services Administration told city leaders that Medford would need to apply a second time. That meant that federal agencies would have 30 days to lay claim to the Santo Center. Then local, county and state governments -- including Medford -- could file for the building. Last week, the U.S. Naval Reserve, through the Navy, again laid claim to the building. Pearson, however, said his agency knows the Navy already worked out a deal with the city. "We've gone through a couple of hoops with the Navy over it and we decided that we would deny their request," Pearson said. On Thursday, the ESD sent its letter of interest on the property. ESD superintendent Shelby Price said his office might want the building for a conference and training center for 3,500 teachers from Jackson, Josephine and Klamath counties. He said he didn't know the city had been struggling to get the property -- and had even called the city to find out if it had a stake in it. "I've had two or three people calling me up today (Thursday) angry about it," Price said. "I didn't know they had been working for years on this." At a Medford City Council meeting Thursday, Councilman Matt Hart wondered how Price couldn't have known -- with several newspaper and television stories as well as a march on the issue. "We've done everything but put up hot-air balloons," Hart said. The point apparently became moot later Thursday. Price said administrators checked out the building and found it would require too much work to convert into a conference center. Price said he was sending the General Services Administration a letter Thursday evening officially withdrawing interest. Even so, Medford City Attorney Ron Doyle said the federal government is trying to put a loophole in the deed that would allow the Navy to take over the Santo Center if the West Side School becomes unusable. Medford City Manager Michael Dyal said that would be unacceptable. Pearson declined to talk about contract negotiations. But he said the city should get the property quickly. "It's moving along smoothly at this point," Pearson said. "These things are never quick." Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA