The deal to create a $150 million mixed-use hub at the former home of Truitt Bros. Cannery fell through, but the developer helming the project said his company hopes to revisit the contract if Salem can prove its worth as an investment.

Aaron Stickney, co-founder and managing member of SilverSphere Capital, previously told the Statesman Journal that the purchase was under contract and expected to close this summer, with demolition following shortly thereafter.

Stickney and SilverSphere stepped in after the plan to transform the former cannery north of downtown stalled under previous leadership. The deal fizzled because the seller wasn’t willing to extend the contract, Stickney said.

Almost 800 apartments, a grocery store, an automatic parking garage, a wine bar, and restaurants were planned for the site.

Jordan Truitt, who acted as the property’s listing broker along with Josh Kay of First Commercial Real Estate, confirmed that the purchase and sale agreement had expired.

“The buyer and seller have been unable to reach reasonable terms for any further extensions of the agreement,” he said. “The Truitt family has been a thoughtful and patient steward of this property for generations and remains fully committed to the redevelopment of the cannery site.”

Stickney said he was hopeful they could return to the table and close the deal, but he expressed serious concerns about investing in Salem.

“Several things are stalling any progress in Salem: the growing homeless situation that no one seems willing to address, ongoing City Council infighting, and no real support at the city level for changing anything,” he said.

Stickney recently crafted a white paper �پ��ٱ������“Economic Development & Growth Plan” for Salem City Council and City Manager Krishna Namburi. The proposal calls for introduction of a “Prosper Portland”-style model to spur economic development in the city that could generate $13 million to $34 million in revenue over the next five years.

The proposal also could bring in more than $100 million in private investment and up to 2,600 new jobs without new taxes or bonds, he added.

Stickney told the Statesman Journal in June that a private-public partnership between city leadership and businesses like his could turn Salem around.

“We’re at the point economically that Salem could be the next emerging market,” he said at the time.

He said city leaders showed little interest in his proposals, and he’s yet to see action on any of them.

“I’m surprised that Mr. Stickney is saying that a lack of public-private partnership is his reason for not moving forward with the project,” Community Planning and Development Department Director Kristin Retherford said. “We have had two very productive meetings with Mr. Stickney since he stepped into the lead development role this spring.”

The cannery is a very complex site, Retherford said, with river and creek frontage, potential historic and archaeological impacts, and a rail line running down Front Street. Salem is moving forward with creation of an urban renewal area to pay for infrastructure needed to support the project, and the city has obtained a federal grant to design the long-term improvements to Front Street for redevelopment in the area.

“We have been very excited about Mr. Stickney’s ideas and development experience and the opportunity to collaborate with him on the project,” Retherford said.

When talking to residents and business owners, Stickney said he hears that people want change. They want to clean up encampments, fill vacant storefronts and attract commerce. He said he doesn’t see that same desire to change among city leaders.

“If nothing changes, we may just take out money and go to Portland,” he said. “It’s been really disappointing. We had high hopes for Salem.”

Portions of the cannery were first constructed in 1914 and owned by various food processors until the Truitt Bros. Cannery began operating there in 1973. The business started by brothers Peter and David Truitt canned local pears, green beans and cherries. In peak season, the cannery would employ 800 people.

When the property went up for sale with a $13 million price tag in 2021, Peter Truitt said he had high hopes for the site. He wanted a seller who would honor its history while investing in the community and revitalizing the area north of downtown, he said.

“The lasting legacy of the Truitt family is to leave the property better than when they found it,” he said.

The city, neighbors and the Grant Neighborhood Association have been very supportive during the process, Jordan Truitt said.

“The site carries approved land use entitlements, strong interest from the development community and the continued support of city leadership and the community at large,” he said.

Editor’s note: This article first appeared in The Statesman Journal and then was distributed on the USA TODAY Network via Reuters Connect.

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