Construction on an 8,000-square-foot retail and restaurant building located between St. Charles Bend and Bend Memorial Clinic is expected to start this month.

The developers, including Darren Powderly, Erich Schultz and Steve Toomey of Compass Commercial Real Estate, are also co-owners of the 1.6-acre lot on which the commercial development called Neff Place will be built.

Powderly said the project, which is estimated to cost about $2.5 million, has been in the works since 2006, but has undergone some transformation.

“Originally, we were going to build a 70,000-square-foot medical office building,” Powderly said. “Now that the market changed, we scaled down our vision. While we still think there’s a market for a medical office by the hospital long term, in the short term, we’re phasing the project.”

The first phase of the project is constructing the retail building, he said.

The second phase allows for a 15,000-square-foot, two-story building that has the potential for offices, other retailers or medical uses.

“We went out to the community and said, ‘What do you need most right now?’” he said. “There was an overwhelming response from employees and patients, but also from the neighborhoods. … They all get in their cars and drive to The Forum (Shopping Center), but said they’d be better off if they could walk and have some really good healthy-eating options.”

Jackson’s Corner is anchoring the development on Northeast Cushing Drive, with a 4,000-square-foot restaurant, market, bar and coffee house. Powderly said he is still looking for other restaurants and retailers to fill the remaining space.

Palmer Noble, who will be the general manager of the eastside Jackson’s Corner, said opening a second location in east Bend makes perfect sense for the company.

“We feel the east side is greatly underestimated, that people are scared of it,” he said. “What better place to bring sustainable, local, organic food that’s sourced than near a hospital, which is Central Oregon’s largest employer.”

He said the menu and experience will be the same as the current Jackson’s Corner on Northwest Delaware Avenue.

“It’s not a separate entity. It’s not eastside Jackson’s Corner, westside Jackson’s Corner,” he said. “We’re still one, we have the same goals. We’ll continue to work as one big family, just in two different buildings.”

Noble said he hopes the eastside location will be open by early fall.

— Reporter: 541-617-7818, rrees@bendbulletin.com