Thank you so much for being here today. I also want to thank the Salem Rotary Club, City Club, and the Chamber of Commerce for sponsoring this forum every year. It brings a diverse group of interests together to hear the activities occurring in our community.

I also appreciate my husband, Duane Taylor, a very accomplished gentleman who never hesitates to provide me the support that makes it possible to serve as your Mayor.

As a community, we need to also thank the eight City Councilors who serve with me, and reflect the volunteer spirit that makes our community so successful.

Ward l – Councilor Chuck Bennett

Ward 2 – Councilor Laura Tesler

Ward 3 – Councilor Brad Nanke – current Council President

Ward 4 – Councilor T J Sullivan

Ward 5 – Councilor Kate Tarter

Ward 6 – Councilor Bruce Rogers

Ward 7 – Councilor Brent Dehart

Ward 8 – Councilor Dan Clem

These are the policy makers for the direction of our city, based on current and future revenue, growth, and residents’ input. They do a great job, and it is truly my pleasure to work with them.

Once those policies are in place it is up to our City Manager and staff to implement them, and craft the budget to support the actions.

We have had several retirements in the last year as the baby boomer challenge affects city hall just as it has the private sector. Fortunately we have capable and professional employees to take the reins while we go through a selection process.

I would like to introduce and thank the current management of our City – if you would stand and remaining standing please.

Linda Norris – Pro Tem City Manager

Randall Tosh – City Attorney

Greg Keller – Fire Chief

Gerry Moore – Police Chief

Vickie Hardin-Woods – Community Development Dir.

Rick Scott – Urban Development Director

Peter Fernandez – Interim Public Works Director

Ida Salazaar – Information Technology Director

Barbara Roberts – Community Services Director

Connie Munnell – Human Resources Director

Tony Mounts – Administrative Services Director

Gail Warner – Library Director

Municipal Judge – Jane Aiken

We appreciate your leadership and the dedication you give to your jobs that have helped us to keep Salem moving forward.

Our thanks also to the many City employees, who serve behind the scenes or work with the public, and are available day and night, rain or shine doing their jobs with little recognition. We could not function as a community without their dedication to their work. Thank you from all of us for what you do every day.

This is my sixth State of the City speech, and I must say, the years have gone by so fast. In addition to celebrating our successes I want to also share some thoughts about the future.

Salem is on the brink of greatness – as a place to live, work, and play, and we have a public and private employee base that keeps our community economically stable in both good and difficult times, with the State as our biggest employer.

However, unlike the past, a large percentage of the State employees commute from other cities to work in Salem – many from as far away as Portland. It’s not my cup of tea to spend all that time traveling when this is such a great place to live. Can we encourage them to move to the local area and reduce the impact of carbon emissions and freeway congestion? I suppose the bigger question is why don’t they move here?

What is the image that others have of our beautiful city of Salem, Oregon? We see it as beautiful, safe, and friendly, but we have challenges too.

I remember over four years ago when Anna Peterson started the No Meth Not in My Neighborhood effort and was joined shortly thereafter by Dick Withnell. I knew we had a drug problem in our community, but I was uncomfortable with publicizing it. Of course it didn’t take long to realize that bringing issues into the open was part of the solution. Engaging the community has dramatically reduced meth use in the area, and the program has spread throughout Oregon.

As you know, I recently agreed to the new site for the new State Hospital that is so badly needed for better patient care and safer working conditions. Our next steps are to work in partnership with the State to address neighborhood concerns regarding security, increased traffic, and preservation of historic structures.

State government has over 15,000 employees in Salem and ownership of 18% of the property inside our city limits. We are fortunate to have this stable employment base, and we have worked hard to be good partners, provide information when requested, help with parking issues, provide Police and Fire services, street construction and maintenance, and many other services. All with no property tax revenue to support these services. Other Oregon cities are having similar issues although not to the extent that Salem experiences.

Maybe it is time for the State to formulate a fee in lieu of property taxes that goes to each jurisdiction that includes State property.

Salem is prospering in spite of the challenges because of the high level of cooperation between diverse groups, developing partnerships that bring us success. We will not be discouraged by those who do not recognize or participate in the hard work and dedication it takes to making Salem a first class city.

Partnerships are a key component of success, and one of our important partners is Sedcor, the regional economic development group. Our thanks to Ray Burstedt, the President of Sedcor, and his very capable staff. In the two years Ray has been in Salem, he has taken strong steps to reach out to companies who would be a good fit for the region, bringing us family wage jobs, and diversifying our local economy. He has built relationships with the State of Oregon Economic and Community Development Dept., and the Portland Development Commission. Last October, Ray and I again attended the CoreNet Global Summit with these partners and found that Salem has finally risen to the top of choices for new, family wage jobs.

Sedcor is also an important component of the City of Salem partnership with the State of Oregon Department of Administrative Services to make the 560 acre Mill Creek Corporate Center available for industrial jobs. After nearly 14 years of transitioning this property from State ownership to private investment, there is some progress with eight acres just breaking ground for a Federal Express distribution facility.

In addition, nearly a year ago, the State selected Capstone Partners as the potential master developer for the next 150 acres and negotiations continue on land price, takedown strategies, and a development agreement. If the agreement between Capstone and the State can finally be accomplished, Capstone will begin construction on a 600,000 square foot industrial flex space with several possible tenants interested in the site.

Another partner is our local Salem Area Chamber of Commerce led by an outstanding Executive Director, Mike McLaran, and his talented staff. They have provided support and advocacy for both small and large businesses. To help develop an educated workforce for employers, the Chamber has partnered with the Education for Employment and Salem-Keizer School District on the Ready to Learn Ready to Work program. Students are exposed to good jobs that need employees, but that do not necessarily require a college education. There are jobs looking for workers such as wind turbine technicians with pay of $25 per hour, opportunities our young people don’t realize exist.

The Chamber was instrumental in putting together the large travel bank from the business community that was the critical piece in bringing commercial air service to Salem last June, for the first time since 1994. The economic benefits of this service have already been apparent, and next month Mike and Ray will travel with me to Atlanta to meet with Delta regarding an expansion of service from Salem to Los Angeles.

These will be success stories added to the very long list of what we have accomplished in Salem over the last five years. It has taken a major turnaround in attitude, focus, and partnerships to make this happen, or as Bob Wells, our former City Manger, liked to say “we needed a real kick in the pants” for the City to start using our resources to encourage the private sector to invest in Salem.

What have we accomplished? Where do we go from here? Is there the political will and community support to take the next big steps?

The City is constantly faced with providing more or expanded services, such as more neighborhood association support and park maintenance. Even as we develop more parks with the SDC money paid by builders and developers, we have no funds that can be used for maintenance after they are built. It’s like landscaping your yard and then never watering or mowing.

Unfortunately, we are headed into a challenging General Fund budget cycle. As the national economy stalls, Salem has remained stable, but inflation in the costs of materials, supplies, and wages added to a decline in revenue sources affects both businesses and governments.

Some additional costs have been as a result of shifting towards operating as a “green city”, but these have been important moves to reduce our carbon footprint and do our share regarding global warming. Our City diesel fleet has been using 5% bio-diesel for over a year, and we buy a percentage of our power from sustainable sources. When you add those choices to the campaign to convert at least 5% of our residential users to sustainable power, Salem became the first State Capital in the nation to receive the Environmental Protection Agency “Green Power” award. Then you factor in our desire to protect children by discontinuing the use of pesticides in City parks even though it makes weed control more expensive, and free trees from the City for riparian areas, we are doing what is right even when there is a cost associated with those actions.

Since August, city management has reduced many of their department expenditures and been involved in training for the Lean Six Sigma approach to reduce costs by improving the quality and speed of processes. Vacant positions that are in non-critical areas are on hold until we determine the extent of our budget challenges.

As we review where we might make cuts to match general fund revenues to expenses, we must take into consideration the basic responsibilities of local government - Police, Fire, 9-1-1, streets, parks and libraries that use general fund dollars, with water and sewer supported by rate payers. Can we consider looking at different ways to provide some of our general fund programs?

It is time to take a realistic look at the services we provide and identify potential partners from the non-profit organizations to the private sector. We can make many changes without major impact on our employees or our programs, but could reduce costs, and bring benefits to our new partners. An example would be to partner with the Boys and Girls Club or YMCA for recreational programs.

Over the last five years we have captured opportunities that we only dreamed of before, like our very successful Conference Center, the Kroc Community Center, and the upcoming redevelopment of our waterfront on the Boise Cascade site. There is less drug use, new fire equipment and stations to be built, new buildings on underused properties, better jobs, and more support for neighborhoods.

The cooperation and collaboration that has occurred in 2007 sets the bar high for 2008. What has been accomplished in Salem is truly unprecedented and it is the result of setting aside our differences and concentrating on how much we are alike. Every one of you can feel pride in the part you played in this success.

Let’s take a quick mental walk around Salem to recap what 2007 brought us, and then envision what 2008 will bring. Most visible is the activity in, and around, our urban center where within a ½ mile radius we have 33,000 employees (nearly 20,000 are city, county and state government), and 21,000 residents.

Salem Hospital continues the $275 million dollar expansion of their highly rated facility under the leadership of Norm Gruber. City code amendments made it possible for them to remain in our city center rather than relocate to a less central location. Did you know that their emergency room is the busiest in the State? In addition to physical emergencies, they also handle mental crises, as the State Mental Hospital no longer accepts civil commitments.

Willamette University President, Lee Pelton, has led the expansion that will change the university interaction with the downtown by opening the campus towards the West, with fundraising beginning for a $50 million dollar performing arts center.

This arts center will require massive fund raising, but tremendous benefits to our community. This is the time to reach out to those special contacts you have in the corporate world or as individuals. We need to make this happen.

The assembled site for this performing arts center was made possible by the City sale of our Information Technology Center, street vacations, and the sale of other city surplus property. Information Technology is not visible to the community, but it is the nerve center of city operations, touching every department.

Across the street at Church and Trade, construction has begun on the very complicated partnership involving the new Information Technology Center, CCTV facilities, some retail, and 27 condominium units. Our very special thanks to the developer, Cascadia Corporation, for staying the course, along with both Marion County and the Cable Regulatory Commission.

Down the street, the State of Oregon is in the planning and design stages for two new office towers on the red and yellow parking lots, which can have a major impact on the urban center. These will bring new jobs to Salem, but create some additional parking challenges, and displace the Saturday Market.

General Growth, who owns most of Salem Center, has filled the vacated Mervyn’s space with Kohls – a wonderful addition to Salem’s shopping choices. Last May I met with General Growth West Coast managers in Las Vegas to discuss potential additions to this central mall, which we hope to announce this coming May.

Across the street from Salem Center is the plan by the Colson family to remove the old Wells Fargo Bank building, which has been vacant for many years. It will be replaced with a mixed-use project including offices, retail, a grocery store, 61 housing units, 290 parking spaces, and roof terrace gardens. Now talk about upscale and exciting – just what that corner, and downtown needs!!!

Just North of Salem Center is the new Business Development Center that Chemeketa Community College will be building to continue their support of business growth. The relocation of Sedcor to this space will give both entities improved opportunities for working together on retaining and attracting good jobs.

Down the street at Broadway and Market, the three sites sold by the Urban Renwal Agency are becoming a reality. The new YWCA offices, 55 affordable housing units, and retail have now opened with the ribbon cutting planned for May 8th. The second site will contain an expanded Salem Art Cinema, retail, offices, and townhouses now under construction. Thank you to Dave Glennie and Telos Development for investing in Salem.

Across the street Salem Alliance Church will be constructing a complex containing retail, offices, and a public auditorium that will seat 400 people. Talk about a rejuvenated neighborhood!!! Local jobs created, new housing, recreational opportunities – it will have it all.

And of course, to go from this area to West Salem you will be able to walk or bike across the Union Street Railroad Bridge, with renovation to begin next month. We hope to have it finished by October and by next spring have it lined with flower baskets to celebrate our gorgeous city and climate.

West Salem is booming too with new housing, new retail on Wallace Road, and plans for new projects on Edgewater St. Can’t you just see the nice shops and attractive walking atmosphere that can be created in this special area? The Boys and Girls Club and Family Building Blocks have both located branches in West Salem to continue the work of their outstanding organizations.

The City and the Oregon Dept. of Transportation remain committed to the lengthy and complicated effort to determine the site and future funding for a third auto bridge across the Willamette River with a target date of 2015. This is a regional issue supported by the cities and counties that would benefit economically.

Back across the bridge you can take Front St. or Commercial Street to go south. On Commercial St. you can finally now see the beauty of some of the historic buildings. Trees that were inappropriate species had grown unruly and covered up the historic features of these special buildings. With new, better types of trees planted we can now show off how amazing our historic buildings look – without trying to build something new that only looks historic – we have the real thing!

As you drive by the Conference Center and Phoenix Grand Hotel, you realize how this complex was the catalyst for downtown revitalization. Special thanks goes to Bob Smith and Steve Johnson, our local investors, for seeing what Salem could be, not what it was. I look forward to the next Mayor’s Art Invitational on July 12th to continue the acquisition of art for our Conference Center. We need sponsors for this event too!!!

Of course, if you take Front St. off the bridge, you pass by the beautiful Riverfront Park that has seen more use in 2007 than ever before. Everything from the World Beat Festival to the 60,000 people who attended Riverfest, it is a highly regarded park. The Mayor’s Free Music in the Park, although a much smaller venue, was an instant success with our local, budding musicians, and now Salem Audubon is interested in locating an interpretive center overlooking the piece of Minto Island they own.

Going south you drive past what will be one of the most exciting projects since the Conference Center, another destination to put Salem on the map. We are pleased to be able to collaborate with the local buyers of the Boise Cascade property, Larry Tokarski and Dan Berrey, for a mixed-use project that will open up Pringle Creek and provide a connection to the river. Following the guiding principles of the Urban Land Institute study we could see housing, offices, retail, a restaurant, and many other uses – truly an exciting opportunity.

Just down the street from Boise Cascade at the corner of Mission and Commercial is the Meridian project. This $54 million dollar, first class addition to this area will have 89 condominium units, offices, and some retail – all on riverfront property. Our thanks to Dan Berrey and his investors for recognizing that Salem was truly an up and coming city, a good place to invest your time and money.

Other changes in the urban center will involve the new condominiums on Front St. known as the Rivers being built by Kevin and Ida Lafky, the redevelopment of the former McMahans store by Trademark, and the Tudor Rose and Capital Motel redevelopment by Garth Brandaw.

You can easily see how busy our Urban Development Dept., Community Development Dept., and Legal Department have been the last five years.

But do you see an interesting trend in all of this positive activity? It is no coincidence that local people are the ones who invested in Salem. With local elected officials and City staff who have long-term relationships in the community, the investors trusted that there would be fair treatment along with respect for the financial risks they were taking on these complicated projects. The City streamlined processes, became customer service oriented, and where appropriate, provided urban renewal dollars.

All of this activity in our urban center brought us to the realization that it was imperative to develop a plan that engaged all of these projects and took it to the next level. The result was Vision 2020, which is not a land use effort, instead it takes into account the existing land use zoning and overlays, the projects that were already occurring, and the new projects that were being proposed. We wanted to engage the broader community for direction on the other amenities that really bring that vibrant and exciting atmosphere.

The response has been unbelievable with over 2,000 surveys completed, 300 people at our first forum, great attendance at the neighborhood and civic organization presentations, and the best partners you could ask for to make the ideas a reality. These partners, which include the City of Salem, Marion County, the State of Oregon, Willamette University, Salem Transit, Salem Hospital, West Salem, General Growth, Go Downtown Salem, Salem Keizer School District, and Salem Chamber of Commerce will be the leaders in making the goals a reality. It will provide a blueprint for the future of our urban center with community support for the actions.

Some of the goals rising to the top are, a circulator trolley system to engage the large employee base in the urban retail and dining choices, a public plaza or gathering place where attractive kiosks could be placed for information on local activities, trails and bike paths connecting the city from 12th Street to the river, and Market St. to Mission. There is massive support for more downtown housing, restaurants, unique shops, and more art and culture.

Our next big forum is March 11th from 5:00 to 7:30 here in the Conference Center. This exciting event will include Chemeketa College students’ art depicting different aspects of our urban core plus the local Architects Association will have an interactive building of a replica of what you want downtown to look like by 2020. Thank you to both organizations to make this one of the most interesting and productive visioning this city has ever seen.

For the first time in years, downtown is starting to unify and pull together for their mutual benefit. A new organization called Go Downtown Salem has been formed with a 13 member board led by Roger Yost and Doug Van de Griend with Executive Director, Suzi Bicknell. They are leading the effort to implement an Economic Improvement District with a three year tax on property to fund marketing, event development, more flowers baskets, benches and more – all the elements that draw customers and increase property values and lease rates. Be sure to mark Aug. 9th and 10th on your calendar for the new Summer in the City Music and Wine festival. There will even be dancing in the streets!!!

In May, a new magazine called “Downtown Salem Today” will makes it debut. This venture of Salem Business Journal, and its’ publisher, Bruce Taylor, will bring a supportive voice to downtown businesses along with exciting, new advertising opportunities. We wish you the best of luck!

Other areas in town are also seeing rejuvenation. To the North, on Portland Road a new Walgreens is under construction, the new Hollywood Senior Center is coming out of the ground along with 23 new townhouses and retail space, and of course, the Salvation Army Kroc Center which had a ground breaking last August. Excavation and fill has been completed with construction to begin in April on this aquatic, gymnasium, and arts center at a cost of $35 to $40 million with a matching endowment. This wouldn’t have happened without the financial support of this community to raise the $8 million dollars required for a partial match, and the untiring leadership of Gerry Frank. Thank you Gerry – you have been an inspiration to all of us.

But now we need to support the non-profits like the YWCA, the Boys and Girls Club, Salem Leadership Foundation, and the YMCA, who are fund raising to continue their programs and build replacement facilities. Frankly, when the YMCA put their expansion plans on hold and partnered with us for the Kroc Center presentation and application, it was the critical piece in our winning the grant.

The programs offered by these and other non-profits provide after school programs that prevent drug use and teen pregnancy, swim lessons, sports programs to fight obesity, plus many other programs that are an investment in our future.

We must continue to manage our growth to address all points of view by addressing the concerns of neighbors even while respecting private property rights. There are some in the community who believe we are still growing too fast, even as there is a major slowdown in home construction. Actual growth rate is under 2% per year, but it seems like more in West and South Salem where the only major land supply is located. Home building is slowing, a cycle that occurs every few years – build when there is demand for your product, slow down when demand slows down.

Many of the new housing choices are affordable units, downtown apartments and condos, and larger homes with yards – the type of mix that makes a healthy community. It is increasingly necessary to encourage the mixed-use we see being built downtown so that we relieve the pressure on our urban growth boundary. Much of this was encouraged through the Urban Renewal Agency loan programs, and this month City Council approved the $1.2 million in Federal “Home” funds to encourage affordable housing in downtown.

Great cities have great neighborhoods, and to keep Salem neighborhoods with their current quality of life, it is time to consider requiring the developers of large subdivisions to make presentations to neighborhood associations early in the proposed development to mitigate the issues surrounding traffic and zoning.

According to the nationally recognized publication, “Housing Predictor”, Salem is the fifth best place in the U.S. to invest. How were we able to reach this milestone? We did it by focusing on family wage jobs, public safety, revitalizing our downtown, and increasing the maintenance of what we already own - our infrastructure.

Last year, City Council accelerated maintenance of our assets and infrastructure. We are spending nearly $3 million in urban renewal dollars to repair and upgrade the free parking garages in downtown. A decision to return sidewalk responsibility back to the adjacent property owners after 18 years will take about five years to complete after some repairs are made. The City will continue to make repairs to sidewalks damaged by street trees.

Our next issue is our street maintenance and repair, and finding dollars for improving railroad crossings for a quiet zone. It is too easy to think roads are just for autos, but buses and freight vehicles also depend on this vital asset. The gas tax revenue is our main source of funds, and it has been diminishing every year as gas mileage per vehicle increases and people drive less due to fuel costs.

We have not passed a street and bridge bond measure since l995, and City Council will be making the decision next month on whether or not to place a measure on the November ballot. In the next three years our bonded debt will be paid in full except for the recently passed fire bond, so a street bond will only replace the current taxes you are paying.

And – thank you voters – for supporting the fire bond measure. Bids are coming in for building the new fire stations and 13 replacement fire engines are arriving, with ladder trucks on order. This upgrade to our system will help us to improve our response times to fires, and emergencies from car wrecks, to heart attacks, to drug problems. You have provided the tools these professional EMT/fire fighters require to do their job safely.

City Council has made the Police Dept. a major focus with the addition of 13 more officers over the last three years. An additional 4 officers will be added when the State approves all of our preferred photo red light installations in major intersections.

The best headlines we could hope to see were released earlier this month, showing crime dropping nearly across the board. Much of that success can be attributed to increased neighborhood watch participation led by a City Police officer who is now the County Sherrif, Russ Isham. Continued support for targeting graffiti has become a priority to discourage gang activity. Added to the No Meth effort is the Guido Caldarazzo Interagency Methamphetamine Drug Task Force with $450,000 funded by businesses and private citizens committed to fighting Meth in Marion County.

In addition, the new ordinance Council passed to create crime-free zones in north and north-central neighborhoods has provided an important tool to change the dynamics in these areas. Even with tight budgets, I have formed a Council sub-committee to work towards Police sub-stations in these areas. In the meantime, our Police Dept. does an outstanding job under some of the most difficult circumstances, dealing with all of the broad range of social and criminal issues. Kudos for the great work!!!

Neighborhoods need another type of policing too, and the Community Development Dept. has started a new approach to addressing code enforcement. The new Compliance Services division combines zoning enforcement and building and housing issues so that each employee has the ability to deal with all complaints of this type without bringing in another inspector. This has reduced response times from two to three weeks down to two days. This makes a tremendous difference to our residents. Special thanks to Tom Phillips for putting this program together.

No matter what is occurring I always try to keep a focus on the future, and that includes our young people – they are our future employees, business owners, and elected officials. Their education is crucial to our future and it is challenging to provide that education in a changing society.

Seven years ago the minority population in the Salem area was around 6%. It is now 25% and growing. In our school system, 35% of the students are minority, and many do not speak English, a tremendous challenge for our teachers and school leaders.
An education can be a preventive measure to reduce the drop out rate, gang development, graffiti, teen pregnancy, and other negative behaviors that impact a community. If we ignore education, we suffer the consequences.

And just look at one of the success stories out of our school system. The music program is the best in the U.S., and the South Salem High School Band is one of only five U.S. groups to be asked to perform at the 2008 Olympics in China. What an exciting experience for these young people. They are fund raising to pay their way, and I hope this community can find it in their hearts to be sure they take this trip.

I admire and trust the leadership of the School Superintendent, Sandy Husk, and the school board. They are also faced with school infrastructure requiring major repairs and maintenance that was not addressed in the past due to difficult budgets, plus the need for more schools as a result of the growth of our community. When they determine the dollar amount of bonds they want to place on the November ballot, it is our responsibility to support that decision. I have no doubt the decision will be done in a thoughtful manner respecting voter financial constraints balanced with the needs of our children and grandchildren.

Additionally, Chemeketa Community College, and its’ new President, Cheryl Roberts, deserves our support for a bond measure that provides the classrooms and equipment that prepares individuals for the reality of the workplace, and retrains older workers displaced by plant closures or changing technology.

These educational institutions led by such competent leaders will ensure that our businesses have employees, that our juvenile crime rate does not increase, and that we have an educated community to carry on the work we have begun.

In addition to street bonds and school bonds, it is time to give some support to our transit system. Under the new leadership of Alan Pollock, many changes are occurring that give a more practical approach to bus service, and should reduce the empty bus syndrome that plagues community support for their system. We only need to look at cities that do not have good bus service to see that without it, streets become even more clogged with cars as the only choice for transportation. We need to be a city of choices – in jobs, transportation, and housing.

What do I see for 2008? Salem is at a tipping point. It is easy to rest on our laurels, after all, a lot has been accomplished. But – it is not enough.

As we continue to grow and change, we absolutely must not lose the quality of life of our neighborhoods. Protection of our precious historical neighborhoods will retain the character that makes our city so special. Some of the older neighborhoods are impacted with challenges of higher crime, lower income families, infrastructure issues such as bad sidewalks and streets, inappropriate use of some properties, and transients and pan handlers. Every city faces these as it ages and revenues are tight, but Salem has even less resources than most due to the over 30% of property in our city limits that does not pay property taxes.

Can we continue to develop a well-rounded community – opportunities for poor, middle class, and wealthy people – to reach our full potential?

Can we find a way to make the African American Museum a reality in Salem along with the Salem Museum? I am involved in both projects and see that as the older generation passes on we may lose an important part of our history unless we act soon.

Will the cohesiveness that is so important coalesce around the “Go Downtown Salem” group to approve the Economic Improvement District tax and provide the necessary amenities for success?

Can we expand our improvement and promotion of other important parts of our city like the Lancaster Drive area? Is there a way to thoughtfully annex some small pieces along that major arterial so that traffic and development can be better coordinated?

Will the community support the major redevelopment of the Wells Fargo Bank building for one of the most exciting opportunities in years for this long-term vacant building?

Can we influence the legislature and the Governor to understand that they have a large part to play in our mutual success? If Salem has a great image it reflects well on the entire State, but we face special challenges that only the State government can solve.

Will our voters support the street bonds, school bonds, and a transit levy? Can we help them understand that investing in our community can give a return on investment many times more than the original cost?

I remain very optimistic about Salem, even as we have a national economic downturn. We have some distinct advantages in our favor with good partnerships and leadership. We must be as effective as possible every day in our corner of the world to make Salem the best it can be.

We can lead by example, being respectful of each other, helping each other to be successful, step-by-step making a difference. You have proved that approach works in the last five years, and I know even more will occur in the future.

The future is bright because of you!!!!