TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Urban Development Department Director
SUBJECT:
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Exceptions to the West Salem Redevelopment Grant Program guidelines to assist with lead clean-up at 576 Patterson Street NW.
Ward(s): Ward 1
Board Member(s): Board Member Kaser
Neighborhood(s): WSNA
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ISSUE:
Shall the Agency Board authorize exceptions to the West Salem Grant Program guidelines to increase the grant match from 20 percent to 50 percent and permit grant commitment and disbursement to follow the start of the lead clean-up project of the industrial building located at 576 Patterson Street NW?
RECOMMENDATION:
recommendation
Approve exceptions to the West Salem Grant Program (Grant Program) guidelines to increase the grant match from 20 percent to 50 percent and permit grant commitment and disbursement to follow the start of the lead clean-up project of the industrial building located at 576 Patterson Street NW.
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SUMMARY AND BACKGROUND:
576 Patterson Street NW is owned by West Salem Storage. A commitment for $81,136 from the Grant Program was agreed to on January 13, 2017, by the President of the company, Chris Blackburn (Owner). The grant is a 20 percent funding match to renovate the space for brewery product manufacturing and associated retail uses.
Given the building’s prior use for battery production and storage, the Owner had the walls and ceiling tested for hazardous substances. The Oregon Department of Environmental Quality determined that the lead levels were unsafe. The Owner acted immediately by closing the building to all tenants and ceasing renovation until the areas contaminated with lead could be cleaned by licensed professionals. Experienced contractors are presently cleaning the space so that the tenants (Little Lois and CrossFit) may return and construction resume as soon as possible.
FACTS AND FINDINGS:
The Owner estimates the total clean-up project cost is $718,614.
The Grant Program was established to fund up to 20 percent of an eligible project; with a maximum grant amount of $300,000. Grants structured in this way have helped owners and businesses construct multiple redevelopment projects in the area. Requiring a grant commitment before a project begins is to properly track expenditures and disburse the grant funds accordingly.
An exception to the Grant Program guidelines to increase the grant match from 20 percent to 50 percent will help offset some of the costs and permit the clean-up effort. The exception to allow the grant amendment to be awarded after the work has begun will allow the clean-up to continue. A 50 percent match of the grant eligible clean-up costs totaling $186,410 would result in a grant of $93,205. The clean-up effort is anticipated to take two months.
Should the grant recipient obtain future compensation from another party as settlement for remediating this contamination, the grant recipient will reimburse the Urban Renewal Agency up to the full amount of this grant award, commensurate with the amount of compensation received. This requirement will be included in the language of the grant commitment.
Staff will inform the Agency of its progress through the City Manager’s Office report and the Agency quarterly information reports on economic development update.
Among the individuals who have been tested, none have exhibited elevated blood lead levels.
Tory Banford
Project Manager
Attachments:
1. Map and photo of the building site