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 Urban Development staff. This report includes activity for quarter three of calendar year 2023.
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ISSUE:
Information report on economic development activities.
RECOMMENDATION:
recommendation
Information only.
body
FACTS AND FINDINGS:
Urban Renewal Area (URA) Activity
Downtown Riverfront URA capital improvement grant funds in the amount of $63,408 were issued to support retail expansion of an existing business in downtown and exterior beautification for a historic building. Property ownership has recently changed for Liberty Plaza and the former Green Thumb building. Proposed plans for adaptive reuse of Green Thumb is underway which will include rental housing. Seven proposals were submitted in response to the outreach for redevelopment options for Block 50 with the selection process underway.
Construction continues one phase one of 2nd Street NW from Wallace Road NW to Patterson Street NW in the West Salem URA. Grading and paving work will cease as the rainy season approaches, but utility work will proceed through the year. Private development is also under construction tied to the public investment in the street improvements.
Construction of the first phase of the McGilchrist Complete Street Project is underway. Improvements of the first phase include areas between 19th Street SE and Ford Street SE, along with the realignment of 22nd Street SE. Due to the scope and size of the entire project, it has been divided into three phases, the final design of phases two and three is underway with the goal of moving into construction at the completion of phase one. Phase two and three bookend the area currently under construction with the entire McGilchrist Corridor being improved from 12th Street SE to 25th Street SE at the conclusion of the project. The effort will complete a 20-year vision for the arterial that will promote business development, support the creation of new jobs, and provide safer transportation options to help alleviate traffic congestion for the nearby residential areas. People will be able to use this corridor to support economic development in a sustainable manner while reducing greenhouse gas emissions, flooding concerns, and improving the water quality for Pringle Creek. The project website will be updated to reflect progress toward milestones along the way.
To the southeast, at the Mill Creek Corporate Center, Agility Robotics announced they will expand to one of the new PacTrust buildings where they will manufacture working robots and employ more than 500 people. Logistics Street SE and Dollar General are under construction. Plat of the eastern properties along Deer Park Drive SE is final and Oregon Department of Administrative Services has sold property to site new businesses.
Salem Business Campus
In 1993, City Council authorized the purchase of the 79-acre property located in southeast Salem off Gaffin Road SE. Through the early 2000s, staff worked to prepare the property to be development ready for renewable energy products manufacturing and other industrial uses. The preparation work involved wetland delineation and mitigation, archeological studies, and extension of public and private utilities. New industrial businesses and a Portland General Electric substation were the first to be constructed.
Staff have since completed the establishment of the Oregon white oak conservation area, full street improvements to Gaia Street SE from Gaia Street SE to Culver Drive SE, along with the extension of all utilities. Development lots were surveyed, platted, and sold to businesses that should soon construct new facilities and create job opportunities. The intergovernmental agreement with Marion County is fulfilled. There will be an owner transfer meeting in October, as required by the conditions covenants and restrictions, where the responsibilities for the common areas and other roles will move from the City to the owners’ association.
Salem Airport
Avelo Airlines launched nonstop commercial air service to Las Vegas on October 5 and Burbank on October 6. The first four chapters of the airport master plan are in draft form. FAA is reviewing the proposed aviation forecasting models, including the introduction of commercial air service. The Master Plan update is expected to be complete in mid-2024 and will guide development of the airport over the next 20 years.
The Career Technical Education Center (CTEC) is relocating its aviation program to the Salem Airport and expanding the program to include pilot training and aircraft maintenance technician, in addition to the existing drone operations program. CTEC Aviation students will graduate with the knowledge, skills, and abilities to fill high-demand jobs in the aviation industry. The program is partnering with Alaska Airlines, Garmin Aviation Technologies, and other locally-based organizations to gather hands-on experience in their chosen aviation field. The transition was delayed from fall until after the first of the year.
Airport and City Real Property Services staff have been in negotiations with WattEV, a company based in California, to lease approximately eight acres of off-airport property on Airway Drive SE at the south end of the airport to construct a heavy-duty electric truck charging station. WattEV currently has an operational site at the Port of Long Beach and are in the process of opening sites in Gardena, Bakersfield, and San Bernardino. The lease will be considered by council this fall. They hope to be operational in late 2024.
In late 2022, Metal Innovations purchased partially developed aviation property and assumed the long-term ground lease on the northwest side of the airport to begin transition of their business from the Aurora Airport to Salem. Plans for development are still in process, and it is likely they will begin development in late 2023 or early 2024. Metal Innovations is an industry leader is aircraft maintenance, repairs, alterations, modifications and providing innovative solutions for both fixed wing and rotor wing aircraft. They are an FAA-certified repair station with professional technicians who are factory-trained and have experience maintaining a multitude of airframes and powerplants. They have already secured an agreement with Avelo Airlines to provide any needed maintenance onsite and with Garmin to be an authorized Garmin dealer and repair facility.
Tory Banford
Project Manager
Attachments:
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