The Salem City Council will vote Monday on giving a 10-year property tax exemption for an apartment complex planned for downtown.
The complex will be built at the site of the former city hall, now a parking lot at 277 High St. NE.
News of the project by Deacon Development, the developers involved in the Rivenwood Apartments at the former Nordstrom site, was made public last year.
They plan to demolish the parking lot and build a mixed-use building with 98 apartments and a ground-floor commercial space with seven live/work units.
The mix of units will consist of studios and one- and two-bedroom units. The project is expected to cost $27 million.
According to city reports, 15% of the units will be set at affordable housing rates.
On March 5, Deacon Development applied for participation in the city’s Multiple Unit Housing Tax Incentive Program.
For decades, the Multiple Unit Housing Tax Incentive Program has provided a property tax exemption for up to 10 years for new or converted non-transient multifamily housing units constructed within the defined core area that provide one or more public benefits like development or redevelopment of underutilized or blighted property.
The program provides a tax exemption only for the city’s tax levy, but developers can also seek tax exemption through other taxing districts like the county and school district.
Since 1976, the council has approved 12 properties for the program.
According to a staff report, the developer’s application detailed how the project will meet eight of the 19 public benefits outlined in the program, including developing an underutilized parking lot and providing programs and amenities supportive of public transit.
The building will include a large-screen monitor displaying real-time arrival information for Amtrak, Cherriots and vehicle sharing systems. It is within walking distance to much of downtown and the Cherriots transit center.
The program provides a tax exemption only for the city’s tax levy, which is estimated to be $44,758 in the first full year.
Other Salem City Council meeting agenda items
- A public hearing on 2024 Annual Action Plan for Community Development Block Grant and Home Funds.
- A public hearing on the annexation of a 1.32-acre territory at 4785 and 4815 Auburn Road NE.
- A vote on the authorization of the use of $660,000 of bond premium funding to complete the 2024 Pavement Rehabilitation and Replacement project.
- A vote on whether to authorize the city manager to pay $195,000 to settle the case of a woman who sued the city after she was injured in a car crash involving Salem Police. The city was likely at fault for causing the crash.
- A review of annual reports from the Center 50+ Advisory Commission, Planning Commission and Travel Salem.
- A vote on whether to direct staff to start an amendment to rules regarding Council Call-Ups. Earlier this year, the Council Rules Committee recommended changes to City Council rules. The committee recommended that City Council initiate a land use process to restrict Council Call-Up of certain types of land use decisions.
- An information report on the Planning Administrator’s approval of a 186-unit multi-family development at 2916 Orchard Heights Road NW.
How to participate in the Salem City Council meeting
The meeting is at 6 p.m. It will be held in person in the City Council Chambers at the Salem Civic Center, 555 Liberty St. SE, and also can be watched on Comcast Cable CCTV Channel 21 or on the Salem YouTube channel in English/American Sign Language and Spanish.
Those wishing to comment in person can sign up on the rosters at the chamber entrance before the start of the meeting.
Written public comments on agenda items can be emailed by 5 p.m. Monday to cityrecorder@cityofsalem.net. Or preregister between 8 a.m. and 2 p.m. Monday at cityofsalem.net/Pages/Public-Comment-at-Salem-City-Council-Meeting.aspx to speak during the meeting via Zoom.
For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com, call 503-910-6616 or follow on X at @wmwoodworth
