$25-Million Downtown Hotel Project Moves Forward

Medford, Oregon– The Medford Urban Renewal Agency (MURA) convened on March 21, 2024, to review the latest developments regarding the proposed hotel project in downtown Medford. After years of negotiations with Western Hospitality LLC, the agency was presented with updated plans for a long-awaited hotel near The Commons District.

Originally slated as a 100,000 square foot, 5-6 floor Residence Inn by Marriott, the project faced delays due to the pandemic, leading to escalating costs and a reassessment of the plans. The revised proposal now entails a scaled-back concept—a 75,000 square foot, 4-floor Element by Westin hotel, an extended stay Marriott product.

According to the updated plans, the hotel will boast 123 rooms, a medium-sized meeting space accommodating 50-60 persons, an enhanced lobby featuring a bar and a limited food menu, an outdoor pool/patio area, and off-street parking in line with brand standards.

Design Schedule:

Kick off meeting: March 21, 2024
Conceptual design: 4 weeks
Schematic design: 8 weeks
Construction documents: 10 weeks

Summary of Terms:

Option for MURA property on or before June 1, 2025
Purchase price based on re-appraised value of MURA property as of January 1, 2025, capped at $1,750,000
Closing 30 days after Option exercise; construction commences 45 days after Closing; estimated 20-month construction timeline
MURA commits up to $1,000,000 for development fees, permits, and SDCs (not considered “public funds” for prevailing wage purposes)
MURA offers up to $749,999 cash incentive grant after Western has expended $4,000,000 (counted as “public funds”)
MURA initiates and completes vacation and relocation of existing gas line

Kevin Stine, a member of the MURA board, expressed satisfaction with the anticipated return on investment, with developers estimating privately funded building costs around $25 million. The proposed site for the hotel is directly north of the Pear Blossom Park Block, situated near the intersection of N. Bartlett and E. 4th.

During the meeting, the MURA board unanimously voted 7-0 to accept the proposed terms, signaling a significant step forward for the project. The next substantial update on the development is slated for May.

Detailed specific architectural designs are expended to be presented at a future May MURA meeting.

Stay tuned for more updates on this developing story.