The city of Medford awarded Ledford Construction a contract to demolish a portion of the former Red Lion Inn to create a new downtown parking lot.
The city, which received six bids, selected the Medford company based on its low bid of $103,000.
Ledford will demolish three buildings and a pool at the southern end of the property to make way for a 100-space parking lot at 56 N. Riverside Ave.
Chris Reising, public works director, said there will be minor asbestos and lead-paint abatement prior to demolition of the buildings.
The buildings will be torn down to their concrete slabs. All holes will be filled and pipes removed to create a smooth surface, Reising said.
Next year, the city will pave the entire parking lot and pave over the slabs to create additional parking spaces. The paving work will be under a different contract.
Ledford will begin preliminary work almost immediately but will begin major demolition later this month and into January.
This is the latest effort to improve the area around The Commons, a downtown redevelopment project that has two parks, Lithia Motors headquarters and the soon-to-open SkyOak Wealth Management on Bartlett Street.
The Red Lion featured 185 rooms, but that number dropped to 118 under The Inn at the Commons because the city took over the three buildings to the south. The Inn at the Commons is being remodeled.
City officials wanted to buy the 3.29-acre portion of the Red Lion because they say the city needs additional parking in the downtown, particularly if more businesses move into The Commons.
City officials have eyed more parking because long-range plans indicate more corporate offices could locate around The Commons.
An 18-space parking lot to the south of Lithia's headquarters eventually may be replaced with a proposed three-story office and retail complex.
Other buildings are hoped for in the future to the north of Lithia's headquarters.
Reach reporter Damian Mann at 541-776-4476, or email firstname.lastname@example.org.