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.

The post $150M project in Salem stalls; developer slams city appeared first on Daily Journal of Commerce.

The first half of 2026 saw the completion of some major construction projects in Salem, as well as the start of several more.

Workers are continuing to build the six-story Citizen Apartments in downtown and the Kuebler Village commercial development near Costco.

Meanwhile, efforts to revive the ex-Rite Aid building, the former JCPenney department store and the empty lot dubbed “The Pit” are showing signs of progress.

Here’s an update on some key projects.

Citizen Apartments joins downtown skyline

Originally the site of Salem City Hall and then a parking lot, the property at 277 High St. N.E. is gaining a six-story, 105-unit apartment building.

Deacon Development, which delivered the Rivenwood Apartments nearby in 2024, has dubbed this $25 million project Citizen Apartments as a nod to its storied history as the heart of Salem government.

Crews broke ground this past October and are scheduled to finish in early spring 2027.

The 78,855-square-foot building will include 16 affordable housing units as part of the city’s Multiple-Unit Housing Tax Incentive Program.

Amenities will include a coffee bar, a mail room with parcel lockers, a fitness center, secure bike storage, a pet wash station, electric vehicle parking and charging, a co-working lounge with a private work pod, a community room equipped with a kitchen, games, a semi-private theater room, and a roof terrace with a grill and city views.

Company submits proposal for ‘The Pit’

A fenced hole in the ground remains after a bank building was razed in 2017, leaving what is commonly known as “The Pit” at the southeast corner of Liberty and Chemeketa streets.

Deacon Development initially also purchased this land next to the Citizen Apartments site but sold it after determining the conditions placed on it by the city would make development financially infeasible.

The property was reacquired by the previous owner, West Linn-based FT LLC, which also owns the adjoining building used by Pacific Office Automation. Company officials said they want to build a surface parking lot to serve the adjacent building, but that is not permitted under the city zoning code.

FT LLC has submitted a land use application, and it remains under city review. It’s the first official redevelopment proposal since the bank building was demolished.

Mexican grocery store to open in downtown

A long-awaited downtown grocery store is due to arrive in September, ending a yearslong vacancy in a former Rite Aid building.

El Torito Supermarket will open at 435 Liberty St. N.E.

Husband and wife Alfredo Mendez and Lily Perez opened the original El Torito Meat Market on Lancaster Drive about 20 years ago. Their stores have a meat counter, a produce section, a bakery, a hot deli, and grocery items.

The Rite Aid on Liberty Street closed in December 2023 following the company’s bankruptcy.

Salem’s Urban Renewal Agency Board voted in May to allocate $470,000 from the Riverfront Downtown Urban Renewal Agency capital improvement grant program for the supermarket.

According to city documents, the store is expected to provide 30 new jobs.

New tenants on the horizon to fill space

When the planned purchase of the former JCPenney building fell through in October 2025, it remained under the ownership of Penny Building, a company tied to developer Stuart Lindquist.

The 100,000-square-foot building has been vacant since JCPenney exited in 2020.

Lindquist confirmed in April that a furniture retailer would lease an 11,070-square-foot spot on the first floor. He said his company wants to fill the empty space with street-facing businesses that complement the area and cater to the increase in foot traffic brought by new apartment complexes in downtown.

“A single-tenant department store is being converted into a multi-tenant building in response to Salem’s demand for smaller office and retail spaces,” developers stated in their land use application submitted to the city.

A site plan approved by the city in May calls for a 5,000-square-foot jiujitsu gym on the first floor, along with separate retail spaces in the basement and the first and second floors.

Cannery transformation gains traction

A new developer is stepping up to helm the $150 million transformation of the former home of Truitt Bros. Cannery north of downtown Salem after the project stalled under previous leadership.

Nearly 800 apartments, a grocery store, an automatic parking garage, a wine bar and restaurants are planned at the site.

The deal is currently under contract and expected to close this summer. Demolition would begin shortly thereafter.

Aaron Stickney, co-founder and managing member of SilverSphere Capital, said in March that funding for the sale and construction has already been secured.

436 housing units on the rise near school

A big multifamily development is under construction at Doaks Ferry Road and Orchard Heights Road near West Salem High School.

The project is set to bring 426 apartment units and 10 townhomes to the previously undeveloped site.

There will be a mix of 31 three-story buildings and three townhome buildings along with a clubhouse, a recreation area and parking.

Shopping center under construction

Kuebler Village is now being built at the southeast corner of 27th Avenue and Kuebler Boulevard near Costco.

According to city documents, the project is connected to Mosaic Management, which also owns several senior living facilities in Oregon.

A listing for the 24.64-acre parcel says Kuebler Village will be a “vibrant and dynamic, mixed-use community with I-5 visibility.”

The listing details several components, including drive-thrus, a hotel, a “destination shopping center,” multifamily housing and the Mosaic corporate headquarters.

The city approved a site plan review for a planned U.S. Market convenience store and eight gas pumps along 27th Avenue near the roundabout in 2025. Plans for a Black Rock Coffee Bar drive-thru were approved this past December.

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

The post Key commercial projects advancing in Salem appeared first on Daily Journal of Commerce.

The developer behind one of the biggest revitalization projects planned for Salem in recent years is proposing a Prosper Portland-style model to spur economic development in the city and bring in $13 million to $34 million in revenue over the next five years.

Aaron Stickney, a co-founder and managing member of SilverSphere Capital, said his proposed plan could also bring in more than $100 million in private investment and up to 2,600 new jobs.

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

His company is banking on it. SilverSphere Capital stepped up in early 2026 to helm the $150 million transformation of the former home of Truitt Bros. Cannery north of downtown Salem after the revitalization stalled under a previous developer. A total of almost 800 apartments, a grocery store, an automatic parking garage, a wine bar and restaurants are planned at the site.

Stickney recently crafted a white paper titled “Economic Development & Growth Plan” for Salem City Council and City Manager Krishna Namburi. In the in-depth analysis that detailed Salem’s economic challenges and provided solutions, he proposed that to address the structural challenge of service costs outpacing revenues faced by many midsize Oregon cities, Salem should draw from a Prosper Portland model to generate revenue instead of relying on increased taxes or service cuts.

The plan also proposes:

• creating tax increment financing (TIF) districts in places like downtown and the Willamette waterfront to use rising property tax values to fund redevelopment;
• monetizing city-owned assets by raising parking rates, shifting from selling land to executing long-term leases;
• using private capital to build a riverfront hotel and mixed-use buildings over parking lots;
• creating a revolving loan fund for small businesses; and
• creating a Salem Science & Innovation Anchor District, similar to Portland’s master-planned OMSI District, to link the A.C. Gilbert Discovery Village, Willamette University, Salem Health and Chemeketa Community College.

Stickney said his proposal has been well received by city leaders, who previously voiced struggles with a looming structural deficit.

It provides a viable solution to the city’s revenue challenges and will free up more resources to address top issues like homelessness and public safety, he said.

“The conclusion is straightforward: Salem can generate an estimated $6 million to $12 million in new annual revenue by 2030 from assets it already controls,” he said. “No bond measure. No new taxes. No condemnations. The barriers are policy decisions, not capital constraints.”

Stickney urged residents to look at his plan, encourage city leaders to take action and hold them accountable.

“There’s an actual path forward to generate more revenue and make the city better,” he said.

Through a spokesman, Namburi, Mayor Julie Hoy and Mayor-elect Vanessa Nordyke confirmed city leaders are in close and productive conversations with Stickney about the proposal.

“We are excited about several new ideas being proposed, which present intriguing opportunities for exploration,” city leaders said. “The city of Salem encourages and seeks out conversations with our community, engaging residents and business owners to better understand how we can serve them effectively and explore new ideas, proposals and diverse perspectives.”

City spokesman Rob Layne said leaders and council are examining the city’s economic development programming through multiple initiatives, including the recently announced Downtown Vision Framework. Leaders said some of the items outlined in the report, like Block 50 and Block 45, are already in progress or under development.

“There are also some properties in the report that fall outside the city’s ownership or jurisdiction, such as the suggestions for Capital Mall lots,” Layne said. “We look forward to continuing our dialogue with the author and their team to further define and develop these concepts, including the Cannery project.”

Prosper Portland is the Rose City’s decades-old economic and urban development agency designed to create jobs and support small businesses. Salem can learn from Prosper Portland’s success and missteps, according to Stickney.

“The most impactful structural change Salem can make is creating a dedicated, semi-independent economic development agency — a ‘Prosper Salem’ — with its own board, budget authority, and mandate to generate revenue through strategic investments,” Stickney stated in the report.

The proposed Salem Economic Development Agency would include five to seven members appointed by the mayor and city council. Its executive director would operate independently to make investment decisions, enter contracts and manage a real estate portfolio on behalf of the city.

Initial funding would include $2 million to $3 million from the General Fund as well as federal Community Development Block Grant funds, Business Oregon partnerships and Enterprise Zone administrative fees, Stickney proposed.

To avoid equity pitfalls historically experienced by Prosper Portland, the agency should require an equity impact analysis for investments over $250,000, set targets for underrepresented, minority and women-owned business support, mandate community engagement, and publish annual scorecards on job creation, wages and displacement risk, Stickney stated.

Creating TIF districts would allow the city to fund development without drawing on the General Fund, Stickney noted. The districts have the potential to bring in tens of millions of dollars over the next two decades, he added.

Salem can use Prosper Portland’s framework to designate districts in which property tax growth above a frozen baseline is redirected into a dedicated fund for reinvestment within that district, Stickney stated.

First would be a Downtown Core district for revitalization of commercial blocks between Liberty and High streets. Districts at the Willamette Riverfront, south Salem Commercial Street corridor and West Salem could follow in the next three to four years.

The agency’s first-year priority would be an audit of city-owned properties to see which could be used for revenue generation as development catalysts or be held for future growth.

This could eventually yield up to $22 million a year in unrealized revenue, Stickney stated.

His ideas include increasing parking fees to match market rates, adding paid programming, concessions and sponsorships at Riverfront Park, and developing mixed-use public-private partnerships above surface parking lots in downtown.

“Riverfront Park is Salem’s most underleveraged asset,” Stickney said. “The 26-acre riverfront park with amphitheater, carousel, dock, and Gilbert’s Discovery Village generates almost no earned revenue.”

But with paid events, concessions and sponsorship, the park could bring in $500,000 to $1.5 million per year.

Stickney also proposed adding a small business hub and a revolving loan fund to target underserved businesses. Over time, the group could lend up to $5 million annually.

The hub would be a central point for Salem entrepreneurs and help them with business licensing, permits and access to loans. It should also include multilingual services for Salem’s large Spanish-speaking business community, he stated.

Salem has several brownfields — former industrial and commercial sites — that are contaminated or underutilized. Spots include former industrial parcels along the Willamette River, old gas stations and dry-cleaning spaces on Commercial Street, and industrial sites in West Salem.

Stickney suggested the agency leverage state and federal programs to turn these sites into productive commercial, industrial and mixed-use developments.

He also honed in on the importance of actively reaching out to recruit businesses and anchor tenants into Salem. He looked to the success Detroit, Michigan, had in turning around economic blight. The city drew Rocket Mortgage into its downtown in 2010 and added 8,000 new jobs by making itself attractive to businesses, he said.

Salem should work on recruiting government contractors, agricultural and food processors, healthcare, life sciences, clean energy and construction, Stickney said.

“You can’t wait for anchor tenants to come to you; you have to go out and reach out to them,” he said. “Bring in one or two, and that’s a game changer.”

He also emphasized the importance of private-public partnerships in bringing development into Salem. This would involve the city retaining ownership of land while leasing long term to private businesses. In execution, this could look like a hotel built along the Willamette River with a public promenade.

If the public and private sectors don’t work together, “nothing’s going to change,” Stickney said.

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

The post Developer proposes Prosper Portland-style model for Salem appeared first on Daily Journal of Commerce.