UPDATED: Council votes to buy Market St property for affordable housing development

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Salem city councilors on Monday voted to buy a northeast Salem property to be developed into affordable housing.

City Councilor Vanessa Nordyke abstained from voting due to a conflict of interest. Nordyke said she has a family member who owns property in that area. 

The city’s Urban Development Department will buy an unimproved lot at 2445 Market St. N.E. for $750,000 from Scymanky Rentals LLC. The lot is just under one acre and is a few blocks south of the Oregon State Fairgrounds.

The money to buy the land comes from federal money set aside for affordable housing development. Once purchased, the Salem Housing Authority would develop the site, according to a staff report from Kacy Ramirez, Salem’s real estate services manager. The decision comes amid discussions of expanding affordable housing options throughout the city.

There was no timeline given for the project or details about how much housing could be built.

APPROVED: Interim city manager agreement

Councilors voted unanimously to ratify an employment agreement with acting City Manager Krishna Namburi, which increases her car allowance and several other benefits, but does not increase her salary of $257,441.

“I am really in support of our interim city manager, Krishna Namburi, and she has really stepped into this role with professionalism and steady leadership and a clear commitment to serving our community,” Council President Linda Nishioka said leading up to the vote. 

City Councilor Paul Tigan thanked Namburi for her leadership so far and for “stepping up in a very, as we know, challenging time for the city, and we have appreciated your steady hand so far.” 

Hoy echoed her colleagues. 

“The same goes for me,” Hoy said. “Thank you for all your hard work.” 

The ratification of Namburi’s contract comes as Deputy City Manager Scott Archer prepares to leave his post at the city next month. Archer’s last day will be April 11 and then he will start a new job in Oregon City. 

The council appointed Namburi interim city manager on March 10 following the abrupt departure of former City Manager Keith Stahley. Namburi was a deputy city manager under Stahley and has worked for the city for more than 25 years.

The council did not set an end date for her appointment, but voted to delay hiring of a new city manager until at least September so Namburi can lead the city through a tumultuous budget cycle and effort to seek a property tax increase from voters to help fill a nearly $14 million budget deficit.

Under the agreement, Namburi would receive severance pay if a new city manager is hired and fires her within 18 months of the end of her interim appointment. She would not receive severance pay if she resigns, or if she is terminated from the interim job and resumes her role as deputy city manager.

“Severance is typically provided for interim city manager appointments in order to encourage individuals to accept the appointment and safeguard the individual from arbitrary termination after the appointment ends,” according to a staff report from City Attorney Dan Atchison.

The agreement also specifies that a portion of the city charter requiring city managers to live within city limits does not apply to Namburi’s interim appointment. Namburi lives in Keizer, according to a city spokeswoman.

Other items

• Councilors voted unanimously to apply for a $50,000 state grant to develop a plan to address post-wildfire water quality concerns in the North Santiam watershed. City drinking water comes from the North Santiam River and is treated at the city’s Geren Island facility.
• Councilors also voted to apply for a federal grant to rebuild the 1965 bridge that serves as the only access point to the Geren Island treatment plant. The project would be about $12.3 million, with 25% of that total paid by the city. The new bridge would be taller, accounting for future predicted increases in water flow, and seismically sound.
• Councilors took no action on a request from Chemeketa Community College President Jessica Howard to support the college’s property tax renewal measure, which would fund renovations and improvements at college campuses, allowing for expanded career education programs. The Salem-Keizer School Board earlier this month approved a statement in support of the measure to be included in the voter’s pamphlet.

Contact reporter Rachel Alexander: rachel@salemreporter.com or 503-575-1241.

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