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Mountain West Investment Corp., as part of the Pringle Square project, has entered into a multilayered with the city of Salem.

The city is set to pay the developer $2 million for the 3.8-acre Park parcel to become part of Riverfront Park. The deal is contingent upon four provisions being met, said Doug Rux, Salem’s assistant director for urban development.

First, the city would need to receive the go-ahead from the Department of Environmental Quality, Rux said.

Second, Mountain West would need about $3 million in tax abatements (over 10 years) for the residential portion of the South parcel. That would incentivize development in a blighted area, Rux said.

Third, the city would need an agreement with Milwaukie-based Marquis Cos. to provide financial assistance for construction of an acute care rehabilitation center on the North parcel. Marquis would purchase the parcel from Mountain West, and the city would provide cash (an amount still undetermined) to cover construction costs.

Fourth, Mountain West would need to create a pedestrian corridor between Commercial Street and Riverfront Park.

“It’s all embedded in the purchase and sale agreement,” Rux said. “In order for the city to purchase the 3.8 acres, we would (need) DEQ approval, (tax abatements) on the South parcel, financial assistance on the post-acute care facility and a pedestrian connection.”

The deal is slated to close by Sept. 5.