City considers terminating housing project agreement with Rubicon Edlund due to funding failures

Medford City Council members discussed significant financial adjustments and the future of an affordable housing project during their meeting on June 18, 2025. A key decision involved reallocating funds from a sidewalk installation project in Liberty Park to address the Manzanita Street reconstruction, following the withdrawal of a grant application for the latter.

The council noted an additional $35,000 in lease income from a property on Central Avenue, which contributed to the city's unallocated cash balance now totaling $607,000. The original allocation of $950,000 for sidewalks in Liberty Park saw only $350,000 spent, leading to a remaining balance of $552,000 that was redirected to the Manzanita project. This shift was necessary due to the failure to secure a million-dollar grant aimed at enhancing safe routes to schools.

In a related discussion, the council addressed the stalled Dolores Ware apartments project, which has faced challenges in securing funding through the Oregon Housing and Community Services (OHCS). The joint venture responsible for the project, Rubicon Edlund JV, withdrew its application for funding this year, citing a lack of viable prospects for 2026 and uncertainty surrounding federal tax credit programs. The council is considering terminating the option agreement with Rubicon Edlund, as they do not foresee any funding opportunities in the near future.

As the council moves forward, they are tasked with exploring alternative development scenarios for the Central Avenue property, ensuring that the community's needs for affordable housing remain a priority. The next steps will be discussed in future meetings, with a resolution to terminate the option agreement expected to be presented in July.