TO: Urban Renewal Agency Board
THROUGH: Steve Powers, Executive Director
FROM: Kristin Retherford, Urban Development Department Director
SUBJECT:
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Agreement between the City of Salem, the Urban Renewal Agency, and Oregon Department of Administrative Services for site work at the Mill Creek Corporate Center
Ward(s): Ward 3
Board Member(s): Nanke
Neighborhood(s): SEMCA
Result Area(s): Strong and Diverse Economy
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ISSUE:
Shall the Urban Renewal Agency authorize the Executive Director to execute the project management implementation agreement with Oregon Department of Administrative Services (DAS) to construct wetlands and add graded fill at the Mill Creek Corporate Center?
RECOMMENDATION:
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Authorize the Executive Director to execute the project management implementation agreement (Agreement) with (DAS) to construct wetlands and add graded fill to development lots at the Mill Creek Corporate Center.
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SUMMARY:
An Urban Renewal Agency wetlands project has been combined with a DAS fill project (Attachment 1). Combining projects allows for the movement of heavy equipment and the utilization of the same materials for operational efficiency and cost savings for the public. The Agreement (Attachment 2) stipulates that DAS will pay their portion of the construction invoices related to the fill project up to $3,340,000, and the Urban Renewal Agency (Agency) will pay their portion of the construction invoices related to the wetlands project up to $2,430,000.
The City, through the Mill Creek Urban Renewal Area’s tax increment, and DAS provide shovel-ready sites to encourage economic growth and business development.
FACTS AND FINDINGS:
On April 5, 2019, the Mill Creek Corporate Center Implementation Committee (two members from DAS, the City Manager, and Urban Development Department Director) recommended the Agency approve the Agreement.
The wetlands will be on City property. The wetlands project is consistent with the Mill Creek Urban Renewal Area Plan’s goals one, two, and four to stimulate development, preserve and protect natural amenities, and provide surface water management and wetlands. DAS is responsible for permits from the U.S. Army Corps of Engineers and Oregon Department of State Lands.
The wetlands have been designed in coordination with the DAS fill project to be constructed as a single project by the same construction contractor. The contractor will be selected by the City through bidding in order for the project to be cost effective.
Development land adjacent to Mill Creek is mapped in the Federal Emergency Management Agency (FEMA) 100-year floodplain. The fill project will direct stormwater to the south wetlands and raise the grade of the property outside the floodplain to encourage development of the property.
BACKGROUND:
The City, Agency, and DAS executed an Intergovernmental Agreement (IGA) in 2005, amended in 2012, (Attachment 3) to coordinate implementation of the Salem Regional Employment Center development program (later referred to as the “Mill Creek Corporate Center”), including financing of required on and off-site infrastructure, wetland mitigation, and overall marketing and sale of the property.
The IGA states that the City, Agency, and DAS shall be responsible for funding specific infrastructure and site preparation projects consistent with a master project list. The master project list is updated as project costs and conditions change.
Tory Banford
Project Manager
Attachments:
1. South wetland and grading map
2. Draft project management implementation agreement
3. 2012 Amended IGA DAS Agency