Medford to Pay $725,000 to Settle Stewart Meadows Road Fight After Appeals Court Loss
MEDFORD, Ore. — The City of Medford has agreed to pay $725,000 to settle a four-year legal dispute with the owners of the Stewart Meadows development over a proposed road extension.
The Medford City Council is scheduled to ratify the settlement on October 7. The agreement took effect on August 1 and resolves litigation between the city and KOGAP Enterprises, the family-owned company that owns the 121-acre Stewart Meadows development west of Highway 99.
The dispute centered on a city requirement that KOGAP extend Myers Lane south of Garfield Avenue to connect with Anton Drive. The extension would eventually become part of Medford’s road system.
The Dispute Began in 2020
The issue dates to 2020, when KOGAP sought changes to the Stewart Meadows project. The city required the company to extend Myers Lane and pay half the cost of a bridge over Hansen Creek. KOGAP argued the requirement was imposed late in a project that was already well underway.
KOGAP initially objected to the road proposal, but it resurfaced in 2022 when the Medford Planning Commission approved changes to the Stewart Meadows development plan and again required the Myers Lane extension.
KOGAP challenged the requirement, arguing that forcing the company to pay for the road amounted to an unconstitutional taking of private property. The company initially estimated the road extension would cost about $2 million.
The Appeals Court Ruling Behind the Settlement
After losing an appeal before the Medford City Council, KOGAP took the case to U.S. District Court in Medford, where it also lost. The company then appealed to the U.S. Court of Appeals for the Ninth Circuit.
In 2025, the 9th Circuit ruled in KOGAP’s favor and sent the case back to the federal district court. In a November 13, 2025, memorandum, the Appeals Court said the city had not provided evidence showing it had measured the traffic-distribution impacts of the proposed development.
Under the settlement, the city will pay KOGAP $725,000, including attorney fees and other costs. The city will also cover mediation expenses.
The Myers Lane issue could be reconsidered if KOGAP submits a revised application that would increase peak-hour traffic south of Garfield Avenue by at least 300 vehicle trips.
If future land-use disputes result in appeals to the Oregon Land Use Board of Appeals, Circuit Court or District Court, and the city loses an appeal, the settlement requires the city to pay KOGAP an additional $10,000 and any costs imposed by the courts or LUBA.