Apartments and commercial use moved one step closer to the reality for East Bottom Village on Monday, Jan. 8, to transform the defunct Valleydale meat-packing property on Indiana and Eighth streets.

Salem City Council voted unanimously to loan up to $1 million to prepare the long-vacant plant in East Salem to be developed into a mixed use of residential, business, light industry and perhaps such community amenities as a concert area and/or recreation.

The 4-0 vote with Councilmember Jane Johnson absent came in open session after a 45-minute closed-door meeting between Indiana Street LLC partners Ed Walker and Brent Cochran and council.

The money will be available in $250,000 installments to be applied to work in the 160,000-square-foot plant and grounds. Walker, Cochran and associates agreed to repay the city in full within three years with an annual percent annual percentage rate of four percent on top of the loan.

The loan will go through the Economic Development Authority, and is secured not only by a second mortgage on the Valleydale property but also with Walker’s personal guarantee, Salem City Manager Kevin Boggess pointed out.

The EBA met about the loan agreement in December, Indiana Street LLC purchased the property in February 2017 for $1 million.

Walker, a visionary who has developed multiple buildings in downtown Roanoke, told councilmembers his contractors have removed and recycled hundreds of pounds of debris from inside Valleydale.

“We just want to do everything we can do to make it ready so they (future tenants) can say yes,” he explained. The next step is to demolish the roof in about four weeks, said Walker’s partner Cochran.

No specific light industry nor commercial entities have been mentioned. Salem City Councilmembers and other invited guests toured the Valleydale building in September. In November, Indiana Street LLC asked for and received an “Adaptive Reuse Project,” for uses not provided for under existing zoning.

“We’re obviously excited” about the progress, said City Manager Boggess.

Valleydale produced ham, bacon and other smoked meats at the plant until it closed in 2006 and operations were moved to North Carolina. East Bottom smelled delicious when meats were being smoked, area residents said, and hundreds of people worked at the plant over the years.

Council Vice Chairman Bill Jones thanked Cochran and Walker by saying, “Thanks for cleaning up part of the city that needs to be cleaned up,” referring not only to Valleydale, but also the former Peacock-Salem Dry Cleaners building Walker and Cochran also own and are preparing for possible apartments and commercial use, as well as the former West Main Street Body Shop.

“All the projects in the city, it’s fun to see,” added Councilman James Martin.

Cochran said the body shop building renovations should be finished in six weeks. There are already six people on the list who are interested in renting apartments in the building west of the Main Street and Broad Street intersection.

Councilman Jim Chisom asked about the two restaurant spaces on the ground floor of the building. They should be ready in six weeks also, Cochran said. Walker said one will open on Main Street, and the other on the courtyard in the back. Specific restaurants have not been announced.

In other matters at the Jan. 8 meeting:

• Salem Mayor Randy Foley announced he will run for re-election to Salem City Council in May. The 48-year-old has served on council since 2006. He has been elected mayor by fellow councilmembers each term since 2008. The second council seat that will be up for election in May is currently held by Jim Chisom, who was appointed to serve after the November 2016 resignation of John Givens. Chisom has said he will not run again.
• Council congratulated the Salem High School Football Team for winning the state championship.
• Council also expressed condolences for the family of Bruce Thomasson, a former member of the Salem Planning Commission, on his passing.

The meeting was adjourned at 7:36 p.m.