TO: Mayor and City Council
THROUGH: Krishna Namburi, Interim City Manager
FROM: Kristin Retherford, Community Planning and Development Director
SUBJECT:
title
Purchase and Sale Agreement with Scymanky Rentals LLC for acquisition of unimproved real property located at 2445 Market Street NE.
Ward(s): Ward 6
Councilor(s): vacant
Neighborhood(s): NOLA 6
Result Area(s): Strong and Diverse Economy; Welcoming and Livable Community.
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SUMMARY:
summary
The unimproved real property at 2445 Market Street NE (Property) qualifies for low-income housing development using Community Development Block Grant (CDBG) funds from the Department of Housing and Urban Development (HUD). The Urban Development Department intends to acquire the Property to support the construction of affordable housing.
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ISSUE:
Shall City Council ratify the Purchase and Sale Agreement signed by the Interim City Manager with Scymanky Rentals LLC?
RECOMMENDATION:
recommendation
Ratify the Purchase and Sale Agreement signed by the Acting City Manager with Scymanky Rentals, LLC.
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FACTS AND FINDINGS:
Staff is seeking ratification of the Agreement rather than approval to execute the agreement. Due to the reorganization of the real estate group from Community Planning and Development to Public works at the end of 2024, the hiring of a new real estate manager during this same time frame, and the City Manager transition, the required process of coming to City Council for approval of the Agreement before execution did not occur.
Seller and Staff have come to terms on an Agreement for purchase of the property. The Agreement has been signed by the parties but Council ratification is necessary prior to completion of due diligence activities and closing. Key terms of the Agreement are below.
Contract Amount: $750,000
Acreage: .94 Acres
Earnest Money: $7,500
Seller Concessions: 2.5% of sales price
Buyer’s Conditions: Title review, Phase 1 & 2 Environmental studies, Archeological study, Survey, Appraisal, HUD Environmental Review,
Closing: Within 30 days of review deadline target date (4/30/25).
BACKGROUND:
In accordance with the Council-approved 2023 CDBG Annual Action Plan, the Urban Development Department seeks to acquire the Property to facilitate the construction of affordable housing units that will serve low-income individuals and families in need of stable, accessible, and affordable living conditions. The acquisition and subsequent development by Salem Housing Authority aligns with the City's broader housing goals, which include expanding affordable housing options, addressing housing shortages, and promoting equitable community growth.
Securing this site will enable the City to leverage federal CDBG funds efficiently, ensuring that the project meets both HUD requirements and local housing priorities. The development will contribute to community revitalization efforts, improve neighborhood stability, and provide long-term housing solutions for residents facing financial hardship.
Kacy Ramirez
Real Estate Services Manager
Attachments:
1. Assessor’s Map 1
2. Assessor’s Map 2
3. 2445 Market Street Purchase and Sale Agreement