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File #: 20-134    Version: 1
Type: Action Item Status: Agenda Ready
File created: 3/20/2020 In control: Urban Renewal Agency
On agenda: 4/27/2020 Final action: 4/27/2020
Title: Fourth Amendment to the Development Agreement between the Urban Renewal Agency of the City of Salem and Salem LTC Properties, LLC. Ward(s): 1 Board Member(s): Kaser Neighborhood(s): CANDO Result Area(s): Strong and Diverse Economy ISSUE: Shall the Urban Renewal Agency Board authorize the Executive Director to execute the attached Fourth Amendment to the Development Agreement between the Urban Renewal Agency of the City of Salem and Salem LTC Properties, LLC? RECOMMENDATION:
Attachments: 1. Agreement, 2. Proposed Fourth Amendment
Related files:

TO:                      Urban Renewal Agency Board   

THROUGH:                      Steve Powers, Executive Director  

FROM:                      Kristin Retherford, Urban Development Dept. Director 

 

SUBJECT:

title

 

Fourth Amendment to the Development Agreement between the Urban Renewal Agency of the City of Salem and Salem LTC Properties, LLC.    

 

Ward(s): 1 

Board Member(s): Kaser   

Neighborhood(s):  CANDO

Result Area(s):  Strong and Diverse Economy 

 

 

ISSUE:

 

Shall the Urban Renewal Agency Board authorize the Executive Director to execute the attached Fourth Amendment to the Development Agreement between the Urban Renewal Agency of the City of Salem and Salem LTC Properties, LLC?

 

RECOMMENDATION:

recommendation

 

Authorize the Executive Director to execute the attached Fourth Amendment to the Development Agreement between the Urban Renewal Agency of the City of Salem and Salem LTC Properties, LLC.     

 

body

SUMMARY:

 

Salem LTC Properties, LLC, (Developer) has requested the Development Agreement (Agreement) (Attachment 1) be amended to extend the construction commencement and completion dates for a post-acute rehabilitation center (Project) at the corner of Front Street SE and Commercial Street SE. 

 

FACTS AND FINDINGS:

 

The proposed Fourth Amendment (Attachment 2) will revise the Project commencement date from March 1, 2020, to January 1, 2021, and completion date from March 1, 2021, to October 1, 2022. The City asked Salem LTC Properties to postpone plans for the 2019 construction season to accommodate the Pringle Creek restoration work.  The site is located on the north bank of Pringle Creek at the former Boise Cascade site and within the South Waterfront Urban Renewal Area. 

 

 

BACKGROUND:

 

On March 9, 2015, the Agency Board authorized the Executive Director to execute a Development Agreement (Agreement) with the Developer, principals L. Charles Bloom, Kathleen Le Vee, and Silver Gardens Real Estate, LLC (Steve Fogg, Manager), for development of the Project. The Agreement was previously amended to extend the deadlines on February 27, 2017, April 9, 2018, and February 8, 2019. The three amendments were due to market changes, construction costs, financing challenges, or a combination of the factors.

 

Salem LTC Properties granted construction access across their site at no cost for the Pringle Creek work and will be allowing no-cost access to Riverfront Park for construction of the Gerry Frank Rotary Amphitheatre.    

 

 

                     Clint Dameron    

                     Real Property Services Manager     

 

Attachments:

1.  Agreement   

2.  Proposed Fourth Amendment