Public/private partnership. Creative problem-solving. The descriptions sound almost hackneyed, but Salem’s renaissance demonstrates how the collaboration between the public and private sectors can lead to tremendous improvements.
By leveraging creative public sector initiatives with an entrepreneurial spirit, Salem has transformed itself while preserving its unique character and charm.
Having the hustle-bustle of a big city but without the headaches or high costs, Salem offers a tremendous quality of life. Refreshing ocean breezes, rich architecture, a walkable downtown, diverse shops, and amazing restaurants combine for a unique experience. Salem is a place people want to be. Moreover, it’s a place where people want to invest.
While development in other communities faltered during the recession, development in Salem continued unabated. Abandoned buildings were transformed into gorgeous condominiums, shops, and offices. Downtown housing has blossomed with high absorption and low vacancy rates. The dining scene has exploded.
How has this transformation been possible? No, it’s not magic potions. The city is fortunate to have strong municipal leadership that values partnerships and thinks strategically about development opportunities. With good plans in place, a willingness to explore creative approaches, and a private sector that is focused on success, progress happens.
In addition to developing solid plans, the city uses its regulatory powers to support development. For example, Salem’s zoning code allows renovated downtown residential buildings to meet parking requirements off-site. Because there is a large public parking supply, there is no parking requirement for commercial development.
Public, Private Investments
Strategic public investments have helped make Salem an attractive community for investment. The most recent example is the $106 million Ruane Judicial Center which solidifies Salem’s role as the regional center for legal activity. As a creative solution to a tight site, a roadway intersection was redesigned so an access ramp could be added to the development parcel.
Next in the public pipeline is the $37 million MBTA rail station. When completed in 2014, new passenger amenities and additional parking will be available at one of the busiest commuter rail stations in the system. Adjacent sites present opportunities for transit-oriented development.
These projects are both publicly funded; however, the private sector’s advocacy has been critical to their moving forward.
On the private side, developers cite the $125 million expansion by the Peabody Essex Museum in 2003 as a reason they got interested in the downtown market. Like the judicial center, the museum’s expansion was made possible through a creative approach – a public street was vacated and became part of the expansion site. The PEM recently announced a $650 million advancement campaign which will bolster its endowment and fund a 175,000-square-foot expansion. When completed, the PEM will be the country’s ninth-largest museum.
Downtown development opportunities remain; however, Salem’s resurgence is not limited to downtown.
A second area undergoing transformation is the Blubber Hollow area adjacent to downtown. Formerly the region’s whaling and then tannery center, the neighborhood has more than $70 million in pending development. Guided by a community-based plan, the city changed the zoning to encourage development. The public sector has built new infrastructure and facilitated cleanup of contaminated land. The pending private investments will transform the largely vacant sites into a vibrant mix of residences, offices, and retail uses.
Waterfront Activity
Key changes also are rapidly occurring along Salem’s shoreline, creating rare waterfront development opportunities. Earlier this month, Footprint Power LLC finalized a deal with Dominion Energy Inc. to purchase the Salem Harbor Power Station. The new owners will commence comprehensive environmental site characterization immediately and, upon shut-down of the existing power plant in May 2014, will demolish all existing structures and undertake any necessary environmental cleanup. Footprint plans to construct a state-of-the-art 630 megawatt gas-fired plant on a portion of the site and will open the remaining two-thirds of the 63-acre waterfront property to private and public development opportunities.
Next door, the city is making a substantial public investment to construct a new wharf facility to accommodate water transportation, small cruise ships, excursion boats, fishing and other water-based industrial uses. Construction of these improvements is underway. City officials and Footprint have pledged to work together to improve public access to the waterfront, including the possible redevelopment of a portion of the deep-water industrial pier into a cruise ship terminal.
As with downtown and Blubber Hollow, Salem’s burgeoning waterfront development activity is the result of creative public initiatives, strong private sector partners, and a willingness to find solutions to complex challenges. n
Tom Daniel is the economic development manager for the city of Salem. Email: TDaniel@salem.com
