Authorizing the Issuance and Negotiated Sale of the Riverfront/Downtown Urban Renewal Area Short-Term Subordinate Urban Renewal Bond, Series 2026. Ward(s): All Wards Councilor(s): All Board Members Neighborhood(s): All Neighborhoods Result Area(s): Good Governance; Safe, Reliable and Efficient Infrastructure; Strong and Diverse Economy.

The Urban Renewal Agency of the City of Salem is authorizing the issuance and negotiated sale of the Riverfront/Downtown Urban Renewal Area Short-Term Subordinate Urban Renewal Bond, Series 2026. This bond will be issued to pay for costs associated with urban renewal projects within the Riverfront/Downtown Urban Renewal Area.

Key Details:

• Bond Amount: Up to $6,000,000, limited by available Tax Increment Revenues.
• Purchaser: U.S. Bank National Association.
• Repayment Source: Solely from Tax Increment Revenues of the Riverfront/Downtown Urban Renewal Area. It is a subordinate lien, meaning it is paid after any Senior Lien Bonds.
• Purpose: To finance costs of carrying out the Urban Renewal Plan for the Riverfront/Downtown Urban Renewal Area.
• Security: Not a general obligation of the City or Agency; secured by Tax Increment Revenues and proceeds of the bond itself.
• Issuance Date: Expected around February 26, 2026.
• Maturity Date: February 27, 2026 (short-term).
• Interest Rate: To be determined by the Agency Official, potentially variable, based on the Prime Rate minus 2.00% as per the Bond Purchase Agreement.
• Prioritization of Funds: Tax Increment Revenues will first pay Senior Lien Bonds, then this subordinate bond, and finally for other lawful purposes.