MIRA study session: Element hotel moves toward closing; Beatty Street parcel pitched for multifamily; capital tracker shows limited unallocated resources

In a MIRA (Medford Urban Renewal Agency) study session the agency’s project specialist updated the board on three items: the Element hotel downtown, a potential multifamily development on a Beatty Street parcel MIRA owns, and the agency’s capital tracker showing project allocations and remaining resources.

Element hotel: Harry Wise reported the site (corner of Fourth and Bartlett, previously exchanged with Lithia Real Estate) received an updated appraisal at $1.5 million, within the development agreement cap of $1.75 million. Western Hospitality LLC has bank financing in place from Bank of Colorado and plans to close in August. Wise said construction is expected to begin within roughly 45 days of closing; MIRA has agreed to pay up to $1,000,000 of system-development charges (SDCs) and development fees directly and a separate $749,999 incentive grant to the developer, structured to avoid triggering prevailing-wage requirements. The board was briefed on a required vacation of portions of Third and Apple streets to assemble the hotel block, which will proceed through land-development review and planning commission notice with final council action anticipated on Aug. 6.

Beatty Street parcel: Wise described a complex historical-title parcel in Liberty Park that MIRA assembled and cleared of blight. Developer Werner Constanza (Better Built Construction) proposed phased construction of three 3‑story, 12‑unit prototype buildings (one per lot), marketed as workforce housing targeted at moderate-income households. The board discussed whether to negotiate a direct disposition to Constanza, run a competitive solicitation, or ask staff to seek multiple proposals. Members asked for more detail about unit types, affordability targets, disposition price (appraisals pending) and whether MIRA should fund predevelopment design work; several board members requested a site tour and additional financial detail before committing staff resources.

Capital tracker and finances: Wise presented a revised capital tracker that inserted the hotel appraisal and summarized past expenditures and current allocations. The tracker shows most downtown and Liberty Park commitments already set or allocated, with roughly $1.2M in unallocated resources on paper but only limited unallocated cash; several line items are “soft” commitments and could be reallocated. Wise noted some previously earmarked items (for example a potential Lithia parking-deck incentive) may not proceed and could free funds for new projects.

Why it matters: The hotel would add 134 rooms and an estimated transient lodging tax (TLT) contribution; MIRA’s incentives and SDC payments are intended to leverage private investment. The Beatty parcel offers a small-site, city‑owned opportunity to deliver infill housing but will require additional appraisal, design and negotiation work.

Ending: The board asked staff to arrange a site tour for members, produce a pro forma and clarify disposition terms for Beatty Street, and to continue quarterly capital-tracker updates. MIRA members agreed to revisit the items at the June 18 meeting for follow-up direction.