TO: Urban Renewal Agency Board
THROUGH: Krishna Namburi, Executive Director
FROM: Kristin Retherford, Community Planning and Development Director
SUBJECT:
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Grant exception to the West Salem Urban Renewal Area capital improvement grant to help fund the construction of a mixed-use building located at 415 Moyer Lane, NW.
Ward(s): Ward 1
Member(s): Board Member Tigan
Neighborhood(s): WSNA
Result Area(s): Welcoming and Livable Community.
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SUMMARY:
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Urban Renewal Agency Board action is needed to allow an exception to the maximum grant amount of $300,000. The West Salem Urban Renewal Area capital improvement grant program guidelines permit the Director to approve grant requests up to $300,000. Grant funds will be used to help fund the costs to construct a new mixed-use building that will have multi-family dwellings on the upper floors and commercial retail units on the ground floor.
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ISSUE:
Shall the Urban Renewal Agency approve an exception to the maximum grant amount from the West Salem Urban Renewal Area capital improvement grant program for a total grant award of $749,000 for new building construction for multi-family housing and commercial retail services?
RECOMMENDATION:
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Approve an exception to the maximum grant amount from the West Salem Urban Renewal Area capital improvement grant program for a total grant award of $749,000 for new building construction for multi-family housing and commercial retail services.
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FACTS AND FINDINGS:
The proposed three-story mixed-use development, located at 415 Moyer Lane, NW will transform an underutilized vacant site in a prime West Salem location, adjacent to a variety of services and recreational amenities near Wallace Marine Park. The project (Applicant: 415 Moyer Ln NW LLC, Jorge Brambila, principal) will deliver 32 market-rate multifamily housing units along with 2,365 square feet of commercial space. It also includes planned improvements to the nearby streets, Moyer Lane NW and Bartell Drive NW. Total private investment is expected to exceed $7 million.
In addition to diversifying housing options to help address Salem’s housing needs, the development will generate valuable construction and trade employment opportunities. For the prospective grant recipient, a Salem native, the project represents a meaningful full-circle opportunity to reinvest in the community that helped shape his life.
The Agency established exception criteria for grant requests greater than $300,000. The project meets the three requirements of adaptive reuse/new use, eligible project costs exceeding $3,000,000, and visual change where the building ground floor includes pedestrian-oriented project enhancements with awnings, building articulation, and materials.
Capital improvement grant program exception requirements:
1) Adaptive reuse/new use
• Transition from industrial uses to multi-family housing of four or more dwellings or mixed-use or commercial retail uses
• Increased density where the building will include more than one story
2) Greater investment
• Eligible project costs exceed $3 million
3) Visual change
• Ground floor pedestrian oriented main street style project enhancements (windows, building articulation, entry treatment, weather protection), as listed in the design review guidelines and design review standards of the Edgewater/Second Street Mixed-Use Corridor Zone
BACKGROUND:
The site has surrounding public improvements that significantly increase development construction costs, rendering it undeveloped to date. The grant will help overcome some of those costs. All grants are conditioned upon qualified contractors and meeting all city zoning and permitting requirements. If the exception is approved, they will be required to provide contractor transparency information.
Construction progress will be shared with council in quarterly economic development reports.
Tory Banford
Project Manager
Attachments:
1. None