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Gerding Edlen is hatching plans for a new mixed-use development on the vacant lot next to the Oregon College of Oriental Medicine in Old Town Chinatown.

Jill Sherman, a vice president of the development company, said the Portland Development Commission has awarded the firm first rights to negotiate the acquisition of the 29,100-square-foot lot and redevelop it. The PDC in August began seeking developers interested in the L-shaped property that wraps around the OCOM Building on Northwest First Avenue and Couch Street. It’s currently a parking lot and dirt.

Sherman, who is managing the $31.5 million renovation of the 511 Federal Building for the Pacific Northwest College of Art, said that investment affects the appeal of the vacant lot.

“I’ve always liked that site, but I think it plays into the idea that there’s going to be stuff happening in that district, and PNCA coming into the area was relevant,” she said.

Sherman said Gerding Edlen is entering the early stages of negotiations with the PDC in terms of crafting a memorandum of understanding, and quite a bit of due diligence remains. The company’s early proposal envisions ground-floor retail with a mix of creative office space and multifamily housing.

Eric Jacobson, senior project manager and program coordinator for the PDC, said Portland-based Project Ecological Development was the only other firm to respond to the agency’s request for interest. The PDC purchased the property in 2005 for approximately $4.9 million, and helped OCOM and Beam Development with their $16 million redevelopment of the former Globe Hotel in 2010. Jacobson hopes Gerding Edlen’s proposal will now help fill the gap.

“They’re looking into a mixed-use building, and we think that would be a good fit for the neighborhood,” he said. “We were just looking for something that will develop that full three-quarters of the block, and really begin to build some momentum from the edge of the district into the neighborhood.”

Sherman said lenders these days are not willing to loan money for speculative office deals, so Gerding Edlen likely will perform some preliminary design work to market the project to prospective tenants. She expects interest in the area to grow with PNCA’s presence on the North Park Blocks.

“There’s plenty of underutilized land in Old Town Chinatown, so the idea that there are more eyes on the street perhaps … gives people more comfort and interest in making significant investments in the district,” Sherman said.