New projects, developments coming to downtown Salem in 2024

The departure of some beloved small businesses and longtime big box stores may seem like a harbinger of a struggling downtown, but Salem leaders say they are encouraged by several new projects, developments and revitalization coming to the city's center.

"We're seeing more investment in downtown than we have been in decades," said Kristin Retherford, Salem's director of Community Planning and Development. "We're looking at hundreds of millions of dollars of investment in downtown ... starting in the past four or five years."

She pointed to recent examples of the seven-story Holman Hotel, which opened its 127-room upscale hotel earlier this year, and the soon-to-be-open Rivenwood Apartments.

Retherford said the city has used programs like the opportunity zone grants and Multi-Unit Housing Tax Incentive Program to attract retailers, offices and housing to downtown.

She anticipates that downtown Salem will continue to attract new businesses and residents, despite having struggles seen nationwide like homelessness, the pandemic shift to work-from-home and the internet's impact on brick-and-mortar retail.

Here's a look at some projects underway downtown.

Rivenwood Apartments replace downtown Salem Nordstrom

After Nordstrom closed in 2018 with little fanfare, the building remained empty for years. Now, the former department store and connecting skybridge are gone, replaced by 157 apartments.

The five-story Rivenwood Apartments at the corner of Liberty and Center Streets are nearing completion and soon will be leasing studio, one- and two-bedroom apartments downtown.

The complex will have on-site parking, bike storage, a resident lounge and a rooftop deck with barbecues and outdoor games.

After real estate firm Deacon Development bought the property, investors floated ideas ranging from a gym to entertainment to office space. The pandemic changed this approach.

"When COVID hit, all of those sort of went away, and it caused us to relook at our plans — that's when multifamily came into play," Steve Deacon, manager of Deacon Development LLC, told the Statesman Journal in 2021.

The number of residential units in downtown is nearing unprecedented levels, with a variety of small, midsized and large projects opening in recent years.

Mayor Chris Hoy told the Statesman in 2022 that more housing would bring a 24/7 vibe to downtown. Instead of rolling up the carpet at 5 p.m., more residents will be out and about, visiting nearby parks, stores and restaurants. And, he added, more residents could bring in more services, such as a grocery store.

Old Salem City Hall site known as 'the pit' to become apartments

Deacon Development may be wrapping up Rivenwood in 2024, but their time in downtown is set to continue. The company is due to close next year on the parking lot at 277 High St. NE and replace the lot with a 98-unit, mixed-use apartment building.

Until demolition in 1972, the parking lot was the original location of the old Salem City Hall. It abuts "the pit," a fenced hole in the ground made after the First National Bank Building was razed in 2016.

City officials said Deacon Development is set to purchase the parking lot and the pit, making both prime targets for revitalization.

The design of the building will include a ground-floor commercial space, a lobby, a community deck, a fitness room, a resident community room and an on-site bike washing, storage and repair station. Developers said it will be designed to encourage people to use public and alternative transportation.

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, which means the apartments will be affordable to families making 80% of the median area income.

Last month, the city approved a $749,999 grant for the six-story building.

Longtime businesses exit downtown Salem, while others thrive

On Dec. 11, the Rite Aid on Liberty Street was among dozens closed nationwide due to the company's bankruptcy.

It joined a handful of other downtown departures of small and big box stores in the past five years.

JCPenney, a longtime anchor tenant at Salem Center Mall, closed in 2020 amid the company's financial struggles.

T.J. Maxx left its spot next the downtown Rite Aid in 2019 for east Salem's Willamette Town Center.

Some local retailers and restaurants, including Salem Summit Company, Busick Court, and Whitlcok's Vacuum & Sewing Center, have closed or relocated out of downtown.

Retherford attributed many of the departures, especially the big box stores, to the changing face of retail, the impact of the pandemic and employment struggles facing businesses across the nation.

"We're all having to figure out how to navigate those changes and repurpose those properties," she said. "Having more residents downtown provides 24/7 support for smaller boutiques, dining, coffee shops and entertainment."

And even as some businesses are departing, others are coming in. She pointed to recent examples like the renovation of the former Green Thumb florist building into a mixed-use development, the purchase of the White Seed building and hope for enlivening State Street near Riverfront Park and the proposed housing near the old city hall site.

Prime block near bridge preps for development

One year ago, the city demolished most of the block north of Chemeketa Street between Commercial and Front streets.

When UGM relocated its shelter to a new, bigger location a couple of blocks north, Saffron Supply moved north, Runaway Art and Craft Studio moved and ABC Music Company closed, the city bought the properties on the block to revitalize the site.

Some of the buildings were fire-damaged and in poor condition from years of deferred maintenance, and demolition and abatement had to be undertaken before the city could open the land to developers.

City leaders dubbed the project Block 50 and opened the site up for offers from developers.

Retherford said the development would change the profile of the city's center and add vitality and energy to the northwest corner of downtown.

The city outlined several goals for the site, including a mix of affordable housing, public open space, retail and commercial uses.

Retherford said this could include a grocery or other business that would address a needed service to the growing downtown residential population.

City leaders will soon meet with three finalists to determine who will develop the project. Negotiations will then continue for months, and a public announcement could be made in 2024.

More downtown changes on the horizon

After getting the ball rolling on Block 50, the city will turn its focus to the parcel of land at 295 Commercial St. SE. Once slated to be a skilled nursing facility, the previous developers backed out. The spot has languished ever since. The city purchased the land for $3.5 million earlier this year.

Mayor Hoy said during an April meeting the move was an exciting opportunity to open up the site to redevelopment. Retherford said the land's proximity to the Pringle Creek Path will give it unique access to the city's parks and pedestrian paths.

The path, partially funded by state grants and the city's infrastructure bond, will connect miles of sidewalks and trails to Riverfront, Minto-Brown Island and Wallace Marine parks.

Several cosmetic and parking changes will also be introduced in the coming months.

Under the direction of the Salem City Council, city staff are moving forward on implementing a paid-street parking system. The approach would eliminate free on-street parking, increase space availability, raise revenue and encourage alternative modes of transportation. Free parking at the parkades would remain in place.

Before the plan is implemented, staff will meet with consultants, review park use rates and undergo a community engagement process.

Staff and the Downtown Advisory Board are also exploring ways to cut down on trash and graffiti and increase downtown vibrancy. One option under review is replacing the old downtown trash cans, which frequently get broken into and overflow with litter, with secure, solar-powered cans.

Downtown Revitalization Manager Sheri Wahrgren said the city is also exploring the option of wrapping utility boxes to add pops of public art to downtown. Staff are working with a wrap vendor and will install one to check on the quality of the image and product.

"The pilot wrap should be installed before the end of January," she said. "It will be located on Chemeketa/Commercial near our office to allow us the opportunity to monitor if it attracts graffiti or gets vandalized."

For questions, comments and news tips, email reporter Whitney Woodworth at wmwoodworth@statesmanjournal.com, call 503-910-6616 or follow on Twitter at @wmwoodworth

This article originally appeared on Salem Statesman Journal: Downtown Salem projects, developments coming in 2024