The Salem City Council Monday night approved a redevelopment agreement with Riehm Renovations, LLC to renovate two existing buildings at 300 and 306 West Main Street for commercial operations.
Paul and Lynn Riehm have purchased the buildings from Leon Chapman who is downsizing his business into its original location.
The total cost of the project is at $375,000, including the building purchase. The Riehm’s will be eligible for reimbursement through the downtown tax increment financing district of up to $110,000 for renovation work estimated to total $185,000.
Paul Riehm says their goal is to move their business, Sterling Avenue, from the Westgate Shopping Center to the 300 West Main building by February or March of next year.
“We’re going to be redoing the outside of the building, and there’s work to be done on the inside as well,” he said. “A lot of improvements, updated lighting, make the front a little more presentable.”
Lynn Riehm says plans for the second building are incomplete.
“We are starting with the one building,” she said. “We are working with Leon and letting him have some time to get everything cleaned out. We’re going to move into the first building first, and move into the bigger one later. We’re still in the process of figuring out what we’re going to do with it.”
The Riehms had bid on the former Save-a-Lot building, but it was sold to a higher bidder.
The council Monday night also voted to allow residential occupancy on the first floor of a commercial building if the planning commission agrees to a special use permit.
The liability and worker’s comp insurance coverage was renewed at a six percent increase. The increase includes higher coverages in several areas as well as a drop in the cost of workers compensation due to the city’s low loss experience.
A 2025 CAT Skid Steer was purchased for the water and sewer department from Fabick Tractor at a cost of $82,449.
The council annexed property at 525 East Lake, 1700 East Main, and Walsh Properties on Airport Road and Hotze Road.
The city will surplus four police cruisers to Enterprise Leasing with proceeds to offset the lease agreement for four new police cruisers.
