The City of Salem offers a matching grant program to help fund new construction, building additions, or building improvements for commercial, industrial, or mixed-uses in the West Salem Urban Renewal Area (URA). The program also supports projects involving manufacturing equipment and related building improvements.

Why This Program Matters

This grant program is designed to encourage development and investment in the West Salem URA. By supporting new construction, building improvements and manufacturing upgrades, the program helps create jobs, increase property values and enhance the area’s economic vitality. It is an important opportunity for property and business owners and tenants who want to expand their operations while contributing to the growth of the community.

Grant Details

Small Project Grant

Total Project Costs: $10,000 to $100,000
Grant Amount: 50% of eligible project costs

Large Project Grant

Total Project Costs: $100,001 to $500,000
Grant Amount: $50,000 + 30% of eligible project costs over $100,000

Total Project Costs: $500,000+
Grant Amount: $150,000 + 20% of eligible project costs over $500,000

Maximum Grant Amount: $300,000

Grant Requirements

• Projects must increase building space utilization or configuration for new tenant operations, increase usable building space through new construction or new building additions, or building remodel for new manufacturing purposes.
• New permanent capital improvements, not maintenance.
• Investment must remain in the district for at least 5 years.
• Applicants must demonstrate financial need.
• Grant funds cannot be used for costs incurred before the grant is awarded.
• Requirements may vary depending on the grant amount.

Who Can Apply

Eligible Recipients

• Property owners with full ownership rights (fee title).
• Business tenants with written authorization from the property owner to make improvements.

Ineligible Recipients

• Tax-exempt properties and businesses.

Eligible Projects for Grant Funding

The West Salem URA Capital Improvement Grant Program is a matching grant that supports a variety of projects that promote economic growth and community improvement. These projects help property and business owners and tenants expand their operations, improve their facilities and contribute to the overall development of the district. Below are the types of projects that qualify for funding.

Types of Eligible Projects 

• New Construction and Additions: 
  Projects that involve adding new space to an existing building or constructing a completely new building.

• Manufacturing Upgrades: 
  Remodeling projects that include installing new manufacturing equipment to improve the building’s utility and productivity.

• Location Requirements:
  The building site must be in the West Salem URA.
  The building must be used for industrial, commercial, or mixed-use multi-family residential purposes.

• Permanent Building Improvements: 
  Grant funds can be used for permanent interior and exterior construction.
  Funds cannot be used for demolition or for installing non-permanent items that could be removed from the building or district.

• Trade Fixtures and Equipment:
  Large equipment or fixtures that are permanently attached to the building or property to improve manufacturing productivity and create jobs in the area.

• Environmental Cleanup and Remediation: 
  Projects that involve cleaning up hazardous substances, conducting environmental assessments, or remediating contamination on the property.

Required Application Documents

Applicants must provide the following documents as part of their grant application:

• West Salem URA Capital Improvement Grant Application 
  Complete the official application form for the grant program. Ensure all sections are filled out accurately and completely.

• Subcontractor Transparency Form
  Transparency documentation identifying each contractor, subcontractor and all sole proprietors performing work on the projects that have received either Multi-Unit Housing Tax Incentive Programs or URA grants with a grant exception must be filed with the City at the time building permits are obtained. The Subcontractor Transparency Form must be displayed at the job site and kept up to date until the completion of the project.

Additional Resources

• Multi Unit Housing Tax Incentive Program
• Fairview Urban Renewal Area Grant Program
• North Gateway Rehabilitation Grant Program
• Riverfront Downtown Capital Improvement Program

To learn more about the West Salem URA and other Urban Renewal Agency programs, contact the City of Salem.