September, 2012
North Downtown Housing Investment Strategy Scope of Work
The North Downtown area, the area north of Union Street, east of Front Street, west of High Street, and
south of Market Street, within the Riverfront Downtown Urban Renewal Area boundary, represents a
distinct collection of properties in close proximity to Salem’s historic downtown. These two factors have
positioned the area as likely to attract market attention in the near-term and provide the Urban Renewal
Agency (URA), Downtown Advisory Board (DAB) and the community with an opportunity to shape the
area’s transition into a new residential neighborhood. The Investment Strategy is designed to remove
some of the perceived market risk associated with new housing by providing data that confirms the
appropriate number and type of housing units, identifies key locations for housing and recommends
zoning changes, infrastructure improvements, and other public actions needed to incent new investments
in housing.
The North Downtown Housing Investment Strategy was identified as a critical path project in the
Downtown Strategic Action Plan (Action Plan). The Action Plan states that the North Downtown could
support up to 880 new housing units, based on the current land use in the approximately 44 acre area.
Based on information contained in the 2012 North Downtown Condition Report we know that there are
191 housing units currently in North Downtown. The focus of the Investment Strategy will be two-fold:
1- Confirm need - consultant will review existing related plans and policies to confirm assumptions
(including 2011 Housing Needs Assessment and 2011 Downtown Strategic Action Plan), and
conduct market analysis for North Downtown, to confirm the proposed number of housing units is
appropriate, and identify the type and general distribution of units. This effort will include
downtown area stakeholders to ensure recommendations are substantiated with realistic
expectations for the area’s redevelopment.
2- Define implementation strategy – identify key development sites, infrastructure improvements,
and other public actions needed to incent new investments including, but not limited to mixeduse, mixed-income development. The implementation strategy will receive recommendations
from the Central Mobility Study for improved transportation access, connectivity, and safety in the
area (see below).
In addition to this Investment Strategy, the Action Plan anticipated the possibility of targeted property
acquisition within the URA and funding of the Housing Opportunity Fund for low interest loans to
incentivize housing development within the Riverfront Downtown Urban Renewal Area. The Investment
Strategy should address these future resources and consider methods to evaluate the merit of URA
investment in future housing project proposals and housing-supportive public improvements.
Purpose
• Confirm the appropriate number, type, and general distribution of future housing units in North
Downtown to provide a platform for future URA investments including acquisition, financial
incentives, and infrastructure to support its implementation.
• Develop a long-term comprehensive strategy to transition the North Downtown area from its mixed
industrial and commercial use into a vibrant mixed-use, mixed-income residential neighborhood
• Generate market and development interest in the area and define incentives and/or public sector
investments to attract and secure new investment.
• Identify potential sites to facilitate desired housing and other supportive uses.
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September, 2012
Define evaluation criteria for future urban renewal investment in housing supportive uses and
projects in the North Downtown area.
Proposed Schedule
September
Request Proposals from Agency/City Contractors of Record
2012
October 2012
Review proposals, interview consultant teams, award contract
November
Analysis and outreach (confirm need, conduct market analysis, initiate outreach,
2012
evaluate implementation strategies)
March 2013
Receive draft Mobility Study recommendations; draft Housing Strategy
recommendations
April-May 2013 Finalize recommendations; draft implementation strategy
Products
• Market analysis to confirm appropriate range and mix of housing types at mixed-income levels, and
other supportive uses appropriate for the market area. This market analysis will also aid property
owners in financing projects or selling property and establish short-term, mid-term and long-term
housing targets for the North Downtown residential neighborhood.
• Recommendation regarding zoning changes, if necessary, to encourage private investment. An
updated list of land use assumptions are needed to inform early tasks in the Mobility Study thus City
staff conducted a preliminary review of land uses in downtown to identify needed revisions to support
housing and mixed use in north downtown in August, 2012. Selected Investment Strategy consultant
will review those assumptions and identify fatal flaws and/or minor refinements, particularly for any
opportunity sites identified.
• Identification of catalytic opportunity sites for possible URA acquisition. Such sites, when
redeveloped, should be evaluated against their likelihood to spur reinvestment on adjacent sites
which may be underutilized or not be occupied by the highest and best use. City staff will supply
information contained in the Sustainable Cities Initiative (SCI), South Waterfront Redevelopment and
City Growth and Design projects to support this task. SCI students evaluated several potential sites in
North Downtown.
• Implementation strategy to help guide public actions and create incentives for redevelopment in
the area to leverage private investment in new housing. The strategy may include identification of
amenities (such as small parks, plazas, or trails) or other infrastructure needed to support
redevelopment of the area and a list of needed incentives. Incentives may include public funding of
parks and green space, construction of critical infrastructure (roads and utilities), policy tools
(development fee structure, tax abatement, expedited permitting), and coordinated marketing.
• Weighted scoring criteria to evaluate project proposals which should include return on investment
and other measures (such as value of new development, change in property values, new business
establishments and growth or expansion of existing businesses, etc.) in order to evaluate public
participation in future housing project proposals.
Key Tasks
• Work with and through an advisory committee made up of area businesses, neighborhood
representatives, and other key stakeholders, to develop the Investment Strategy; provide regular
updates to DAB regarding progress at key milestones.
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September, 2012
Coordination with Central Salem Mobility Study regarding potential future use for area, planned
transportation projects, and opportunity sites; coordination with Economic Development Division
staff to ensure that as the area transitions existing businesses remain in Salem.
Outreach to area property owners and developers regarding their experience with property in the
area; engage neighbors and other area stakeholders in the discussion; and build relationships with
local/regional developers and nonprofit housing providers to ensure the Investment Strategy is
realistic, achievable and supported by the community and prospective investors.
Identification of other potential barriers to redevelopment, not referenced in the Action Plan. Specific
solutions and concrete actions to these barriers should be identified in the Implementation Strategy
product.
To reduce the cost of the proposal, responding consultants are encouraged to identify areas in which
staff support could be valuable to the project.
Alignment with Previous, Planned, or Current Activities in North Downtown
Several recent studies have been completed that provide a basis for the Investment Strategy analysis,
including a preliminary Salem-Keizer Housing Needs Assessment (2011), North Downtown Property
Condition Report (2012), and the Sustainable Cities Initiative North Downtown Waterfront
Redevelopment and City Growth and Design projects (2011). Several other activities are planned or
underway which align with the Investment Study scope and objectives, including:
• Central Salem Mobility Study - The Mobility Study is designed to evaluate a range of multimodal
transportation issues affecting downtown Salem, including circulation, access, and safety for
people traveling to, through, and within central Salem. The Mobility Study boundary
encompasses an area much larger than the Investment Strategy Area focus area. Primary
objectives include improving pedestrian and bicycle access to the Union Street Railroad Bridge,
converting selected downtown streets to two-way, addressing street circulation and access for
large blocks in north downtown (Union Street to Market Street), and developing family friendly
bikeways. The Mobility Study will inform the Housing Investment Strategy recommendations.
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North Broadway/High Street Parking Management Plan- identifies current parking utilization and
capacity for businesses and residents in the area and recommends parking management
strategies to support future growth. Identifies possible locations for surface parking and parking
garages if future development requires. The primary study area is bound by Hood Street, NE
(north), Willow Street NE (south), 4th Street NE (west) and 5th Street (east).
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North Downtown Property Condition Report – identifies current property conditions and factors to
evaluate redevelopment potential including utilities, square footage, availability of parking,
zoning, property value and condition, rental rates, business inventory, and number of employees.
Data was completed in July, 2012.