TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Urban Development Department Director
SUBJECT:
title
West Salem Redevelopment Grant Program guidelines
Ward(s): Ward 1
Board Member(s): Board Member Kaser
Neighborhood(s): WSNA
end
ISSUE:
Shall the Agency amend the West Salem Redevelopment Grant Program guidelines to include environmental clean-up in the definition of an eligible project?
RECOMMENDATION:
recommendation
Approve an amendment to the West Salem Redevelopment Grant Program guidelines to include environmental clean-up in the definition of an eligible project.
body
SUMMARY AND BACKGROUND:
Amending the Grant Program guidelines to include environmental clean-up in the definition of an eligible project will help incentivize the redevelopment of blighted industrial properties by offsetting some of these costs. The proposed amendments expand grant eligibility to include environmental assessment and remediation of hazardous substances to the extent required by State and Federal standards.
The Urban Renewal Area (URA) Plan supports the clean-up of environmental hazards and pre-development assistance. Urban Renewal funding throughout Salem has been used successfully in the mitigation of environmental hazards on blighted properties. Examples of successful redevelopment involving environmental remediation utilizing urban renewal funding include the North Broadway development, Riverfront Park, and the Hollywood Station.
The West Salem Urban Renewal Plan (URA Plan) supports the establishment of financial programs that incentivize building rehabilitation, redevelopment, and new development. Since 2008, the Urban Renewal Agency (Agency) has provided grants to incent redevelopment. From 2008 to date, there have been over 20 grants issued totaling around $484,000, with an average grant commitment of $24,000 and private match investments of over $2.2 million for an average of $110,000 per grant commitment.
The majority of the grants have been for properties near Edgewater Street NW. Two of the most recent grant commitments have been issued to properties in the industrial area between Patterson Street NW and Wallace Road NW. There is redevelopment opportunity in this area, but opportunities in former manufacturing facilities may come with the added complexity and cost of completing environmental remediation prior to construction for new uses.
FACTS AND FINDINGS:
The Grant Program guidelines define a grant eligible project as a Capital Improvement to be constructed in the West Salem URA that is: (a) a new industrial, commercial, or mixed-use multi-family residential building or structure; (b) a permanent improvement that increases the useable space and utility of an existing industrial, commercial, or mixed use multi-family residential building or structure, or; (c) a fixture and trade fixture that is permanently affixed to the building or structure, and associated planning, architectural, engineering, and construction services. The proposed amendment would clarify that environmental clean-up may be part of an otherwise eligible project. The proposed amendment is set forth below:
(5) Eligible Project means a Capital Improvement to be constructed in the West Salem URA that is: (a) a new industrial, commercial, or mixed use multi-family residential building or structure; (b) a permanent improvement that increases the useable space and utility of an existing industrial, commercial, or mixed use multi-family residential building or structure or; (c) a fixture and trade fixture that is permanently affixed to the building or structure, associated planning, architectural, engineering, and construction services. This definition includes Environmental Clean-Up, planning, architectural, engineering, and construction services associated with a Capital Improvement.
(6) Environmental Clean-Up means environmental assessment and remediation of hazardous substances to the extent required by State and Federal standards.
Tory Banford
Project Manager
Attachments:
1. Proposed changes to the Grant Program guidelines