TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Kristin Retherford, Director, Community and Urban Development
SUBJECT:
title
Economic development quarterly report.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Strong and Diverse Economy
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SUMMARY:
summary
City Council requested economic development reports from the Urban Development Department. This report includes activity from quarter four of calendar year 2022.
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ISSUE:
Information report on economic development activities.
RECOMMENDATION:
recommendation
Information only.
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FACTS AND FINDINGS:
Urban Renewal Area (URA) Activity
In the Riverfront-Downtown, capital improvement grants in the amount of $552,590, partially funded two projects with total project costs of $3.19 million. Grant funds will be used to preserve the former Whitlock’s building and convert upper floor vacant space into eight rental units, and the expansion Issac’s Coffee.
The conversion of Court Street from one way to two way is progressing, along with streetscape improvements on Commercial Street.
Construction of the West Salem Machinery building addition in West Salem is complete. The improvement houses investments in new manufacturing equipment to enhance their competitiveness in the market and add new jobs.
The design of 2nd Street NW is nearly finished. With input from area Urban Renewal Agency Members and the West Salem Neighborhood Association, the design includes additional safety measures such as reduced speed limit and crosswalks at multiple intersections. Construction is planned to start in spring 2023.
The North Gateway URA grant program has matched private funds to start improvements to existing buildings on Portland Road NE. It is also helping a small business with the installation of food processing manufacturing equipment at 3590 Portland Road NE. A new grant is pending for infrastructure improvements to bring vacant property on Brooks Avenue NE online for new business prospects.
Building is underway at the Mill Creek Corporate Center. Construction is advancing of the two final spec buildings at the PacTrust site along Aumsville Highway SE. The same developer is erecting new buildings east of the recently built Truax Street SE. New sewer lines will be installed in order to abandon existing lines that conflict with the construction of the Dollar General distribution center. This work is in the final stages and the new building will start as soon as the lines are functioning.
The Salem Business Campus, located in southeast Salem off Gaffin Road SE, is not an Urban Renewal Area, but it is employment land that was rendered development ready through City efforts. Wetlands and sensitive natural habitat lands have been mitigated and secured. All the development lots have sold, with one remaining. This one lot is in the final stages of wetland mitigation. The construction of Gaia Street SE from Gaffin Road SE to Culver Drive SE is 90 percent complete. As soon as the emergency only gates are installed, the City will have met its obligation to Marion County.
Further south, the Fairview URA provided grant funding to Yamasa Corporation USA to support their Salem expansion project, which includes $10 million new investment. Work is also progressing to prepare appropriate materials for the Urban Renewal Agency to consider a minor change to the URA so that remaining project cost savings from completed infrastructure improvements may be applied as matching funds to improve the Salem Airport.
Salem Airport
City staff and consultants are finishing the design for the required terminal modifications to accommodate TSA baggage and passenger screening equipment. Demolition/construction is expected to start in late February and scheduled to be complete in mid-May. The Airport is also finalizing the development of a new airport security plan which must be submitted to and approved by TSA before commercial service can begin. That effort should also be completed sometime in the May/June timeframe. TSA is in the process of procuring the equipment and staffing needed to serve the Salem Airport, and ideally this entire effort is working to be complete and ready for air service launch in the late spring/early summer 2023.
Tory Banford
Project Manager
Attachments:
1. None