The Medford City Council and their Urban Renewal Agency approved a major step in efforts to build the Cherry Creek low-incoming housing project on Spring Street and downtown.

The proposal generated strong opposition from neighbors in the Spring Street area and the city rejected the project in 2011. The Oregon Land Use Board of Appeals ruled the city made errors in denying the Housing Authority’s application.

The Housing Authority threatened a lawsuit which led to a compromise with the Housing authority reducing the size of the complex and transferring 2.5 acres to the city for park land.

In exchange the city would swap a commercial zoned lot at Sixth and Grape to the Housing Authority to build a 30,000 square foot building for commercial space on the bottom floor and 50 units of low income housing.