Annual Report 2016Urban Development

Department

Urban Development Department

Director’s Offi ce, Financial Services, Real Property Services, Economic Development,

Salem Municipal Airport, Federal Programs, Downtown Revitalization & Parking Services

The Urban Development Department MissionTo provide for the sustainable expansion of the community’s prosperity, measured in terms of jobs and income growth, economic and human development, education, health and environmental sustainability.

The Urban Development Department administers and oversees a variety of programs and services aimed at strengthening Salem’s economy, including managing Salem’s seven urban renewal areas.

In addition, the Department provides loans and grants to fi nance activities that create emergency, transitional and permanent affordable rental housing for low and moderate income families in Salem and Keizer; and allocates funds to non-profi ts to provide emergency services to homeless and families at-risk of being homeless.

The Department also facilitates economic opportunities and reinvestment; invests in economic empowerment for individual prosperity and small business growth; issues commercial loan and grant programs; performs real property management, acquisition, sales and leasing services for the City; manages downtown parking services and revitalization; manages Salem’s Municipal Airport; and functions as the liaison to community organizations, businesses, and City Council and Agency Board appointed advisory groups.

What is Urban Renewal?Urban Renewal, or Tax Increment Financing, is a tool used by municipalities to fi nance improvements and redevelopment in specifi c areas of a city by reinvesting the increase in the area’s property tax revenue.

When a district is created, the assessed value of property within the district is set (or “frozen”) and those taxes continue to go to the government (city, county, and school districts throughout the State).

Any property value increase above that frozen amount is called the “increment.” The amount of taxes on the increased value (or “increment”) is what is collected for the urban renewal district to use for redevelopment projects.

The State of Oregon created the legislation that allows for urban renewal; districts are created by local municipalities. In Salem, the City Council decides what areas should be included in urban renewal districts. The Council also creates a Plan for improving the area.

There are seven Urban Renewal Areas in Salem and each area’s Plan includes a list of specifi c projects that were approved by the City Council. Oregon law allows a city to have 15% of it’s land in urban renewal areas; Salem has 12%.

Examples of Urban Renewal Investment in Salem

Salem Convention Center

Union Street Railroad Bridge

Riverfront Park

Portland Road

Mill Creek Corporate Center

Gilgamesh Brewing

295 Church

Business retention and recruitment: Help local companies create or retain jobs; attract new companies to Salem.• Funded $1.1M in grants to help businesses locate and

expand in the City’s West Salem, North Gateway, and Riverfront Downtown Urban Renewal Areas, leveraging $4.6M in private investment.

• Launched a small business retention and expansion program; made 65 retention visits with businesses in North Salem.

• Responded to 39 inquiries from site selectors with information

about locating businesses in Salem and the region.

• Reduced development fees for projects locating within the Mill Creek Corporate Center in southeast Salem.

• Expanded the boundary of the City’s Enterprise Zone Program by 57 acres. Seven companies in Marion County claimed the Enterprise Zone benefi t for business expansion totaling $26,500,878 in private investment and 115 new jobs.

• Re-certifi ed the Salem Renewable Energy and Technology Center and Mill Creek Corporate Center as state certifi ed, shovel ready parcels.

• Supported the creation of 52 microenterprise businesses through the MERIT and Latino Microenterprise programs.

Public improvements: Support public improvement projects.• Completed 19 public right of way acquisitions to support

infrastructure projects.• Managed 138 leases.

• Completed the acquisition of 3.8 acres of the former Boise Cascade site along Pringle Creek for incorporation into the existing Riverfront Park.

• Replaced 668 coin operated parking meters with new parking technology accepting credit/debit cards.

• Rehabilitated Grant School Park, providing greater accessibility to the park and removing health and safety hazards.

• Installed two art pedestals in Downtown Salem.

• Completed rehabilitation of Taxiway Charlie.

Environmental best practices: Promote environmental best practices for City and Agency projects• Committed grant funding for seven Phase I and Phase II

Environmental Site Assessments to help facilitate the sale, purchase, and/or re-use of underutilized properties in Salem.

FY 15/16 Accomplishments

Affordable housing: Create and preserve affordable housing.• Assisted 96 households secure housing through the

security deposit assistance program.

• Assisted 130 households secure and retain housing through the tenant based rental assistance and rapid rehousing programs.

• Rehabilitated 74 rental and owner occupied housing units for low income families.

Social services: Provide critical emergency services to low income individuals.• Provided funding for over 83,000 food baskets for low

income families in Salem.

• Provided emergency safety services to 1,833 victims of domestic violence and sex traffi cking.

• Provided case management services to 204 homeless individuals, connecting clients to housing, employment,

• and other social service programs.

• Assisted 1,782 homeless - or at risk of becoming homeless - youth with education, food, shelter, and family counseling.

Downtown RevitalizationThe Roth Company Building and McGilchrist Building, built in 1916, are in the Salem Downtown Historic District. The buildings underwent an $8 million renovation, with a $450,000 contribution from the Urban Renewal Agency. This investment transformed the nearly vacant retail property into a fully-leased mixed use building with ground floor commercial/retail space and second floor housing.

Salem Municipal Airport

There are 700 acres of land at the Salem Municipal Airport.

Over 37,000 operations are completed each year at the Salem Municipal Airport.

17 businesses are located on the Airport, employing over 500 people.

Investing in New TechnologyNew parking technology at the Capitol Mall allows visitors to pay for parking with credit cards, debit cards, and coins.

New technology was also installed at the Salem Airport. With the return of HUT shuttle to the Airport, this allows customers the added convenience of using debit and credit cards for parking fees.

Business Investment in SalemHenningsen Cold Storage Co., a 93-year-old Oregon family owned refrigerated warehousing company, will invest approximately $27 million in a new 166,000 square foot facility in Salem at Mill Creek Corporate Center. The new facility will serve as an innovative hub of activity for food processors, providing infrastructure needed for an industry that accounts for approximately 50 percent of the region’s manufacturing base. This is the first of an anticipated four phase development, with future phases expected to generate additional jobs and investment. The company anticipates opening in spring 2017.

Don Pancho is a state-of-the-art processing company with distribution throughout the United States. Assisted with Enterprise Zone support, Don Pancho expanded its operation with a new tortilla line at its Salem plant, creating 10 new Salem jobs.

Kristin Retherford, Director kretherford@cityofsalem.net 503-540-2486

Annie Gorski, Economic Development Manager agorksi@cityofsalem.net 503-540-2480

Renee Frazier, Financial Services Manager rfrazier@cityofsalem.net 503-540-2471

Sheri Wahrgren, Downtown Revitalization Manager swahrgren@cityofsalem.net 503-540-2495

Salem Urban Developmentwww.cityofsalem.net/UD

Clint Dameron, Real Property Services Manager cdameron@cityofsalem.net 503-540-2404

Rena Peck, Federal Programs Manager rpeck@cityofsalem.net 503-540-2446

John Paskell, Airport Manager jpaskell@cityofsalem.net 503-589-2058