The Salem City Council agreed to seek several federal grants during its meeting on Monday, Feb. 26, that would pay for improvements at the Salem Municipal Airport and a study of Northeast Front Street.
Councilor Micki Varney was absent, meaning unanimous votes were 8-0.
Airport updates – APPROVED
Councilors unanimously approved an application for federal grants that, if awarded, would add a place for an airplane to park with a terminal ramp, improve security fencing, rehabilitate a taxiway and reimburse the Salem Fire Department for a foam testing system in the airport fire truck.
The projects total $1.1 million, and the federal grants would pay for most of the work. The remaining costs would be covered using around $88,000 from the state and $24,750 from the city’s airport operating funds, according to a staff report from Public Works Director Brian Martin, who said the local and state matching funds were previously approved.
The grants would be awarded by May and, if awarded, construction would start in the early summer to be completed by the fall.
The airport started offering commercial flights in October 2023, and on Monday the carrier Avelo announced a new route to the Charles M. Schulz Sonoma County Airport, located in the city of Santa Rosa, California.
The airline will also add another round trip flight to Burbank, California in June, meaning it will have service three days a week. That will bring the Salem Municipal Airport to seven inbound and seven outbound flights per week this summer, Mark Bechtel, the city’s public works operations manager, said during the meeting.
Councilors also heard an update on the first three months of commercial air service, which saw over 13,000 passengers on 56 round-trip flights. The average flight was 83% full.
The airline has used $23,800 of the $1.2 million reserved for minimum revenue guarantees, money airlines can apply for if they fail to meet targets during the first few years of operation. That money was raised by an $850,000 federal grant and a $350,000 grant from Travel Salem using private donations.
Bechtel said the airline had a loss its first month, was around even its second month and made a profit its third month, and the payments from the city use the average.
The airport earned $81,40 in its first three months of operation through things like fueling and parking, with $183,700 in personnel and materials expenses, according to an attachment in the agenda.
Bechtel said revenue was around what they anticipated, but parking revenue, at $35,000, was lower than expected. He said that a lot of passengers are getting rides to and from the airport. He said the revenue has improved over time and he would expect more use if the airport added more flights and marketed more toward people from outlying cities like Wilsonville.
Improvements to Northeast Front Street – APPROVED
Councilors unanimously approved a grant application to pay for a study of renovations to Northeast Front Street. The railroad track in the middle of the road is a safety issue, according to a report by Martin, the public works director.
The study would cost between $2.5 and $5 million, and the city is eligible to have its costs fully covered by the U.S. Department of Transportation’s Rebuilding American Infrastructure with Sustainability and Equity program.
The study would include analyzing land use, environmental impacts, and a property and market analysis that looks 20 years ahead. It would also begin the design process to accommodate the bikes, cars and pedestrians who would use it and fund project management.
Costs for Sleepy Hollow water repairs – MOVED TO FIRST READING
Councilors moved forward a plan to bill property owners for the cost of converting the private water system serving the Sleepy Hollow community into the city’s public water supply. The water system served 44 homes and a community center, supplied by a community well. Due to elevated levels of arsenic found in 2012, the community voted in 2019 to connect their water supply with the city.
The work was completed in December 2023 and assessed to cost $5,000 per property, with the full project costing $768,100. The city will pay around $129,000, the state will contribute $414,000 and the rest will go to the property owners, according to a staff report by Martin. Property owners would pay with either a lump sum, payment plan or by having a lien placed on the property.
Other items
-Councilors unanimously approved a resolution to transfer general fund money to pay for citywide software upgrades and the expenses of the payroll tax election. The software upgrade would be $381,000 and the election cost $188,300.
-Councilors unanimously approved an agreement with Polk County stating the city is responsible for maintenance and improvement to build Northwest Marine Drive in west Salem. The project is scheduled for 2027 and is estimated to cost $23.5 million in city infrastructure bond funds which voters approved in November 2022.
Original Story:
The Salem City Council meets Monday, Feb. 26, to discuss upgrades to Salem Municipal Airport, future repairs to Northeast Front Street and to hear a progress report from the revenue task force.
READ IT: City council agenda
The council meets Monday at 6 p.m. in-person at the city council chambers, 555 Liberty St. S.E., room 220, with the meeting also available to watch online. The meeting will be livestreamed on Capital Community Media’s YouTube channel, with translation to Spanish and American Sign Language available. Anyone may attend the meeting to listen or comment.
The public comment portion of the meeting takes place after opening exercises, such as roll call and the Pledge of Allegiance. Residents are invited to comment on any topic, whether it appears on the agenda or not. If a public comment does not relate to an agenda item, it may be saved for the end of the meeting.
To comment remotely, sign up on the city website between 8 a.m. and 4 p.m. on Monday.
For written comments, email [email protected] before 5 p.m. on Monday, or on paper to the city recorder’s office at the Civic Center, 555 Liberty St. S.E., Room 225. Include a statement indicating the comment is for the public record.
Airport updates
Councilors will consider whether to apply for federal grants to add a place for an airplane to park with a terminal ramp, improve security fencing, rehabilitate a taxiway and reimburse the Salem Fire Department for a foam testing system in the airport fire truck.
The projects total $1.1 million, and the federal grants, if awarded, would pay for most of the work. The remaining costs would be covered using around $88,000 from the state and $24,750 from airport operating funds, according to a staff report from Public Works Director Brian Martin, who said the local and state matching funds were previously approved.
The grants would be awarded by May and, if awarded, construction would start in the early summer to be completed by the fall.
The airport started offering commercial flights in October 2023, and on Monday the carrier Avelo announced a new route to the Charles M. Schulz Sonoma County Airport, located in the city of Santa Rosa.
Councilors will also hear an update on the first three months of commercial air service, which saw over 13,000 passengers on 56 round-trip flights, according to the update. The average flight was 83% full.
The airline has used $23,800 of the $1.2 million reserved for minimum revenue guarantees, money airlines can apply for if they fail to meet targets during the first few years of operation. That money was raised by an $850,000 federal grant and a $350,000 grant from Travel Salem using private donations.
The airport earned $81,40 in its three months of operation through things like fueling and parking, with $183,700 in personnel and materials expenses, according to an attachment in the agenda.
Improvements to Northeast Front Street
The city needs to address safety issues caused by a railroad track in the middle of Northeast Front Street , according to a report by Martin. Councilors will consider whether to apply for millions in federal funding to study and make a plan for repairs.
The study would cost between $2.5 and $5 million, and the city is eligible to have its costs fully covered by the U.S. Department of Transportation’s Rebuilding American Infrastructure with Sustainability and Equity program. The stretch of road north of downtown is categorized “as being of persistent poverty” by federal standards, Martin said.
The city is looking to make a transportation corridor plan for Northeast Front Street, from the bypass to Northeast South Street.
Councilors will decide whether to take a step toward improving Northeast Front street by asking for federal money for a study and transportation improvement plan. It would include analyzing land use, environmental impacts, and a property and market analysis that looks 20 years ahead. It would also begin the design process to accommodate the bikes, cars and pedestrians who would use it and fund project management.
Public hearing on costs for Sleepy Hollow water repairs
Councilors will hear the public’s input about how to bill property owners for the cost of converting the private water system serving the Sleepy Hollow community into the city’s public water supply. The water system served 44 homes and a community center, supplied by a community well. Due to elevated levels of arsenic found in 2012, the community voted in 2019 to connect their water supply with the city.
The project was completed in December 2023, and assessed to cost $5,000 per property, to contribute to the total project cost of $768,100. The city will pay around $129,000, the state will contribute $414,000 and the rest will go to the property owners, according to a staff report by Martin.
The public hearing will seek comments on the $5,000 assessment to the property owners in either a lump sum, payment plan or by having a lien placed on the property.
Revenue task force update
Councilors will hear a progress report from the revenue task force, which met on Jan. 30 and Feb. 22. The group is seeking new money sources for the city, which faces a multi-million dollar budget shortfall if city leaders don’t find a new revenue option or make cuts.
Their first meeting included appointing Sean Nikas, a real estate broker, as chair and TJ Sullivan, an insurance broker and former city councilor, as vice chair through a vote.
The agenda for the second meeting included discussing revenue targets for the city, and a city-presented overview of what options are within its ability rather than up to the state.
Three town halls have been scheduled for April to give the task force community feedback on the options. They are:
-April 10 at 6:30 p.m. at South Salem Baxter Hill Community Hall, 1780 Baxter Rd. S.E.
-April 16 at 6:30 p.m. virtually. Sign-up will be posted soon, according to a staff report by Keith Stahley.
-April 23 at 6:30 p.m. at Center 50+ in North Salem, 2615 Portland Rd. N.E.
Other items
-Councilors will consider a resolution to transfer general fund money to pay for citywide software upgrades and the expenses of the payroll tax election. The software upgrade would be $381,000 and the election cost $188,300.
-Councilors will consider an agreement with Polk County, stating the city is responsible for maintenance and improvement to build Northwest Marine Drive in west Salem. The project is scheduled for 2027, and is estimated to cost $23.5 million in infrastructure bond funds.
-Councilors will hear projections of future revenue at the Gerry Frank | Salem Rotary Amphitheater, and plans for its future development. See the presentation here.
-Councilors will hear results of the Arts and Oregon Arts Commission’s Economic and Social Impact Study for local nonprofits in the arts and culture industry. The study found that the sector generated $26.1 million in economic activity in 2022, and supported 342 jobs.
-Councilors will hear a quarterly report of economic development, mostly in the riverfront area downtown.
Contact reporter Abbey McDonald: [email protected] or 503-575-1251.
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Abbey McDonald joined the Salem Reporter in 2022. She previously worked as the business reporter at The Astorian, where she covered labor issues, health care and social services. A University of Oregon grad, she has also reported for the Malheur Enterprise, The News-Review and Willamette Week.
