SALEM, Ore. — Downtown Salem is undergoing a period of accelerated change, as a wave of private development projects reshapes the city’s urban core alongside renewed public-sector focus on safety and long-term livability.
Among the most prominent signs of economic activity is The Forge, an $8 million mixed-use development at 285 Liberty St. N.E. in the north downtown district. Marketed as a “lifestyle collective,” the project signals growing investor confidence in the area. The adjacent former JC Penney building was recently purchased for $5 million by the same development group, which has indicated plans to convert it into an entertainment and retail venue.
The development momentum extends to city-owned land. The City of Salem is currently reviewing six private-sector proposals for Block 45, a property near Pringle Creek. The proposals include a mix of market-rate and affordable housing, which could increase downtown’s residential capacity if approved. These projects are advancing in a commercial environment where storefront vacancy remains low—currently about 3.8%, according to city data.
While economic activity appears robust, concerns about safety and livability continue to shape the conversation around downtown’s future. These issues took center stage at the July 23 “State of the Downtown” meeting hosted by the Salem Main Street Association. The event convened business leaders, nonprofits, service providers, and city staff to discuss challenges and share feedback.
“This wasn’t just a meeting of businesses looking to clean things up,” said Derek Gilbert, a financial advisor based in Salem who attended the meeting. “It involved a much broader group of stakeholders—nonprofits like Punks with a Purpose, Isaac’s Room, and Church in the Park. The idea was to bring together anyone with a vested interest in improving downtown.”
Gilbert described the meeting as a productive effort to bridge communication gaps between stakeholders and city leadership. “The goal was to create an open, constructive dialogue—not just about safety, but also about issues like paid parking and public perception,” he said.
Tom Hoffert, CEO of the Salem Chamber of Commerce, also attended and highlighted the nuance in the discussion. “A strong message within the room centered on the unique balance between empathy for our houseless community members and equal empathy for our small business owners dependent on customers being able to safely patron their businesses,” Hoffert said. “These business owners are risk takers, committed to providing our community with the strong tax base which our City government depends on for economic security. There is a sweet spot in the middle, I believe, that balances the respect for those risking it all in small business ownership as well as addresses the myriad of health needs for our friends and neighbors on the street.”
Hoffert added that city leadership appears receptive to concerns raised at the meeting. “City staff leadership is listening to both perspectives, but it will ultimately be our City Councilors who chart any course forward regarding the request for heightened public safety and cleanliness initiatives in downtown and Northeast Salem.”
Salem Police Chief Trevor Womack addressed public safety concerns in blunt terms. “Behind Portland, okay? People don’t realize that sometimes Salem has the second highest violent crime rate in the state of Oregon,” Womack said. “We have the lowest staffing ratio—that’s per capita—police officers to citizens of Oregon’s eight largest cities. So, while we have the second highest violent crime rate, we have the eighth bottom staffing ratio, okay? So what that says is, it indicates to me every day when I think of that and I see what our men, the men and women of my department do. We do more with less every single day.”
City Council has recently discussed several public safety proposals, including reinstating the downtown police bicycle patrol, launching a co-response model that would pair paramedics with mental health professionals, and expanding police coverage through overtime shifts. These proposals remain under review following community feedback and reported concerns from downtown business owners.
City staff who attended the July 23 meeting took notes that, according to Gilbert, have already been shared with council members. “The city asked for follow-ups. That tells me they’re engaged,” Gilbert said. “There’s no guarantee, but I’m cautiously optimistic. The dialogue is happening.”
Another recent policy shift went into effect on July 10, when Salem implemented a paid on-street parking system in the downtown core. City officials say the change is intended to improve customer access to parking and to generate revenue for cleaning and safety services. Gilbert acknowledged the reasoning but expressed caution. “Paid parking makes sense in theory,” he said, “but when people are already hesitant to come downtown because of what they’re seeing, it could become another barrier.”
Business owner Lexy McKay echoed that sentiment. “I think it is upsetting that the city is trying to ‘revitalize Salem’ but is still continuing to make the business owners pay for parking,” McKay said. “They sent out a letter saying they make over $300,000 a year off the small businesses alone and they just said that they make $7000 a week from paid parking. The constant question I’m always thinking about is where is all that money going because downtown is not currently safe nor clean.”
Gilbert emphasized that the path forward will require a multifaceted response. “A lot of it relates to unsheltered individuals, mental health, and substance use. This isn’t something that gets fixed overnight,” Gilbert said. “What’s needed is a compassionate, coordinated response—services, support, and economic development all working in tandem.”
The City of Salem began operating under its Fiscal Year 2026 budget on July 1, which includes a projected shortfall. City officials have noted that fiscal constraints may influence the timeline and scope of future initiatives.
Despite that uncertainty, Hoffert and Gilbert both point to the value of continued conversation. “What we’re seeing now is at least a willingness to sit down and talk,” Gilbert said. “That’s a start.”
