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The Morrison bridgehead development team is continuing to tackle site and financial challenges, but hoping to begin construction within a couple of years.

The high-profile project calls for creation of the James Beard Public Market and an 18-story mixed-use tower overlooking the market, Waterfront Park and the Willamette River. Developers updated Multnomah County commissioners on the effort during a meeting on Thursday.

Currently, the four-block site has parking lots split and occupied by the Morrison Bridge and its on- and off-ramps. The developers of the project, Melvin Mark Development Co. and James Beard Public Market, previously agreed to purchase the land from Multnomah County for $10.4 million.

“It’s more than likely going to be a mixed-use building with office and some kind of residential above,” Melvin Mark Development Co. President Dan Petrusich said. “I can’t say what kind until we are further along. It’s being driven by market conditions.”

Strong demand in Portland’s office, apartment and lodging sectors has fueled a design change for the tower. Petrusich is looking for an anchor tenant to fill a large portion, much like Stoel Rives LLP for nine of 13 office floors of Park Avenue West in downtown Portland.

“Portland doesn’t have a lot of huge tenants like those that are going into Park Avenue West,” he said.

Apartments and lodging sectors also have been strong, Petrusich said. The developers have had several discussions with hoteliers about potentially locating in the tower.

The design change, being performed by SERA Architects, will be the fourth for the project. Earlier designs included two office-related ones and a hotel one, he said. The fourth will meld the office tower and residential tower.

The four-block development also will include the public market, where pedestrian access issues between downtown and the waterfront are being worked out, Petrusich said.

“The site’s very complicated,” he said. “We are working among the bridge ramps. It presents a number of unique issues that you wouldn’t normally run into.”

The biggest challenge is to improve pedestrian access from downtown through the project site, Petrusich said. Most likely, a pedestrian bridge will be built from the tower to the market across Southwest First Avenue, he said.

“All four blocks have cut off pedestrian access to the river,” he said. “Our goal is to improve that.”

Projections are for the market to support 250 jobs at the site and 100 jobs related to local agriculture, said Ron Paul, executive director for the James Beard Public Market. It will likely have more than 100 vendor stalls and 45,000 square feet of space, he said.

The market will feature all locally-owned, non-franchise businesses dealing in fresh foods, Paul said. It will complement the Portland Saturday Market, which has more arts and crafts, he said.

“We don’t want it to devolve into a Pike Place (Market) type market atmosphere, which is souvenirs, tchotchkes and less food all the time,” he said.

The James Beard Public Market will promote the county’s public health agenda and serve as a regional “tourist mecca” and a downtown “foodie mecca,” Commissioner Judy Shiprack said.

Fundraising is critical and still being worked out, Paul said. The goal is $25 million to $30 million, including $5.2 million for the purchase of the three-block market site.

“We’re looking at building the market debt-free,” he said. “So we’re not layering debt onto the rents that merchants will pay.”

Some funding will come from private donations. Other money will come from tax increment financing, state revenue bonds and federal sources, Paul said.

Construction of the project will take 18 to 24 months, he said.

“We’re four and a half years from the opening bell ringing, but if you look at the horizon of 150 years, which we fully expect this market to last – it’s just a small blip of time,” he said.