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Council ratifies purchase of 2445 Market Street using CDBG funds; councilor declares conflict and abstains
Summary
The City Council ratified a purchase-and-sale agreement for property at 2445 Market Street, bought with Community Development Block Grant funds for future affordable-housing use; Councilor Nordyke declared a conflict of interest and abstained from the vote.
The Salem City Council ratified a purchase-and-sale agreement executed by the acting city manager for property at 2445 Market Street at its March 24, 2025 meeting. The council approved ratification after staff described the reasons the purchase took place prior to council approval.
Councilors read the motion to ratify the agreement with Cheminke Rentals LLC; Councilor Teigen seconded. Kristen Rutherford, a city staff member, explained the item had been pulled originally so councilors could hear why staff executed the agreement before seeking council approval: the acquisition used Community Development Block Grant (CDBG) funds budgeted in fiscal year 2024, staff had searched for a suitable site for more than a year, and the property was an opportunity that met price and program requirements. Rutherford said the property adjoins land the Salem Housing Authority is developing and the purchase will allow creation of a fire waterline easement needed by the housing authority.
Rutherford described the site as a previously blighted property that had generated code complaints and that past private owners concluded redevelopment costs were high. City staff said the plan is to create the easement for the housing authority and then pursue a future disposition process; any future development must comply with CDBG restrictions and be an affordable housing development.
Councilor Nordyke announced an actual conflict of interest because a member of his family owns property on Market Street and said he would not take part in deliberations or the vote on this item. At the ratification vote Councilor Nordyke abstained. The final roll call: Councilor Gwynn, Councilor Brown, Councilor Varney, Councilor Teigen, Councilor Nishioka and Mayor Julie Hoy voted aye; Councilor Nordyke abstained; Councilor Matthews was absent.
The motion was approved by the council; staff said next steps include securing the required easement for the adjacent housing authority development and then returning to council for disposition and developer selection as required by CDBG program rules.
