Share to Facebook Share to Twitter Bookmark and Share
File #: 20-517    Version: 1
Type: Action Item Status: Agenda Ready
File created: 12/15/2020 In control: Urban Renewal Agency
On agenda: 1/11/2021 Final action: 1/11/2021
Title: Fifth 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): Stapleton Neighborhood(s): CANDO Result Area(s): Strong and Diverse Economy
Attachments: 1. Agreement, 2. Proposed Fifth Amendment
Related files:

TO:                      Urban Renewal Agency Board   

THROUGH:                      Steve Powers, Executive Director  

FROM:                      Kristin Retherford, Urban Development Dept. Director 

 

SUBJECT:

title

 

Fifth 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): Stapleton   

Neighborhood(s):  CANDO

Result Area(s):  Strong and Diverse Economy 

end

 

ISSUE:

 

Shall the Agency Board authorize the Executive Director to execute the attached Fifth 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 Fifth 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 Fifth Amendment (Attachment 2) will revise the Project commencement date from January 1, 2021, to October 1, 2021, and completion date from October 1, 2022, to December 31, 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, February 8, 2019, and April 27, 2020. The first three amendments were due to market changes, construction costs, financing challenges, or a combination of the factors, the fourth amendment and proposed fifth amendment were due to the City’s daylighting and reconstruction of Pringle Creek adjacent to the Project site.

 

Salem LTC Properties granted construction access across their site at no cost for the Pringle Creek work and allowed 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 Fifth Amendment