Staff says the low $8,000 price for four city-owned lots is meant to keep future homes affordable; splash pad funding resolution moved to Nov. 23
SALEM CITY – The Salem City Council introduced an ordinance Monday night to sell four city-owned Hubbell Avenue lots to FAS Estates, LLC for $8,000, and approved a $174,999.99 contract to demolish 25 New Market St.
The council also introduced a second ordinance expanding the Adopt-A-Lot Program and moved a resolution on splash pad funding to its next meeting at the very start of the session. Both ordinances now go to public hearings and final votes on Monday, Nov. 23, at 5:30 p.m. Council members met at City Hall for their 5:30 p.m. caucus meeting.
Splash pad funding
Council moved Resolution 2026-269 to its next meeting at the very start of Monday’s session, so it was not voted on. The resolution was added to the agenda the day of the meeting. It asks the state Department of Community Affairs to approve a plan to reallocate funds to the City Pool’s splash pad/pool renovation, where Phase One is estimated at $3,071,271.
The attached reallocation plan would move about $1.02 million from other city accounts, including $295,506.95 in 2022 Supplemental Transitional Aid labeled for Windport, $200,000 for the municipal complex, $154,000 in utility sale proceeds interest, $150,000 labeled Finlaw, $125,000 for PFNA filtration and $100,000 for sidewalk replacement. The resolution lists the amount as $1,024,312, while the attachment totals $1,024,506.95.
Hubbell Avenue lots sale
Ordinance 26-25 would sell four lots to FAS Estates for $8,000:
- Block 15, Lot 9 (50 Hubbell Ave.)
- Block 18, Lot 7 (114-116 Hubbell Ave.)
- Block 18, Lot 13 (126 Hubbell Ave.)
- Block 17, Lot 8 (78-80 Hubbell Ave.)
The buyer would have to rehabilitate or construct single-family homes and sign a redevelopment agreement with the city. The ordinance would name FAS Estates the designated redeveloper.
The sale would not go out for public bid. State law lets municipalities sell property without bidding, at prices and terms they consider reasonable, as long as the sale is tied to a redevelopment plan. Council declared the entire city an Area in Need of Rehabilitation in 2013 and adopted a redevelopment plan in June 2022.
The sale drew the meeting’s only substantive discussion. This reporter asked who FAS Estates is and what redevelopment experience the company has, noting that it was formed in September 2026.
City staff said the company was created specifically for this process, so the city performed due diligence on its single owner, who has a history of owning properties in Salem and completing successful projects. Staff said the proposal passes through the staff office, the housing committee and the city solicitor before it reaches the council agenda.
Staff said the low price is deliberate. “The most important goal is that we have a homeowner that buys our property, that pays their property taxes, and then that money goes into making that place as nice as possible,” a staff member said.
The city keeps its acquisition costs low so the final price of each home stays affordable, the staff member said. “The final purchase sales price of that house has to be kept within an affordable amount,” the staff member said, adding that many residents qualify for mortgages over $240,000.
Staff also said this is the first time a for-profit developer has bought multiple properties on one block with the goal of developing the whole lot. Staff said every vacant and abandoned property in the area will be fully developed within the next 18 months.
If the ordinance is adopted, the sale and redevelopment agreements would be kept on file in the city clerk’s office and open for public viewing during regular business hours.
Adopt-A-Lot changes
Ordinance 26-24 amends Chapter 66 of the city code, which governs the Adopt-A-Lot Program. Council adopted the current chapter in March 2025.
Right now, Salem residents 18 and older and Salem-based organizations or groups can petition the city’s Department of Inspections to adopt a lot next to property they own or rent. Under the amendment, any organization could petition, including qualifying nonprofits, community groups and for-profit entities, as could Salem residents 18 and older. The requirement that an adopted lot be next to property the applicant owns or rents would be removed. The city would decide which lots are eligible.
The changes would take effect on final passage and publication.
New Market Street demolition
Council approved Resolution 2026-267, awarding the demolition of 25 New Market St. to Hook Construction of Pennsville for a base bid of $174,999.99. Five companies bid on Oct. 1. The city clerk and the city’s brownfields consultant reviewed the bids, and the consultant recommended Hook as the lowest responsible bidder.
The work will be paid for with a state Department of Community Affairs demolition loan, and the city’s chief financial officer has certified that the money is available. The mayor and clerk are authorized to sign the contract in a form approved by the city solicitor. The resolution passed as part of the consent agenda.
Other resolutions
Council also approved these resolutions on the consent agenda:
- Resolution 2026-268: transfers $20,000 in utility sale proceeds into the Infrastructure/Community Center Initiative account for the final payment to Think Pavers for the Historic Brick project on Market Street. The transfer follows Ordinance 26-09, adopted May 26, which set up the process for moving utility sale proceeds into spending categories, and it is pending certification of funds by the chief financial officer.
- Resolution 2026-265: authorizes a strategic plan for the Salem City Municipal Alliance grant for fiscal year 2028. The request totals $1,940 from the Governor’s Council on Substance Use Disorder, with a $485 cash match and $1,455 in in-kind contributions. The money supports substance use prevention efforts through the city’s Municipal Alliance Committee.
- Resolution 2026-266: supports an application to the state Department of Transportation’s Safe Routes to School program to rehabilitate sidewalks and pedestrian crossings along routes serving John Fenwick Academy, Salem Middle School and Salem High School. The city would take over maintenance of any completed work, except where local ordinances put upkeep on property owners or where crosswalks sit on state or county highways.
What’s next
The two ordinances and Resolution 2026-269 return at the council’s next meeting, Monday, Nov. 23, at 5:30 p.m. The Hubbell Avenue sale and Adopt-A-Lot ordinances will get public hearings and final votes.