According to the article,
Salem Mayor Janet Taylor said the city is interested in buying portions of the 13-acre riverfront site in downtown for a park. The city's urban renewal agency is currently gathering information about the property and doing other due diligence, Taylor said.
In 2007, Salem developers Dan Berrey and Larry Tokarski teamed up to buy the Boise Cascade property at Commercial and Trade streets for $7.25 million. Mixed-use development has been proposed for the site.
Developers say they are making progress, but it's been slow going because of the troubled economy.
Taylor said "more than one parcel" has been offered for sale by the site's private developers. She declined to say how many acres were being considered for purchase
The decision to close State Street was based on a particular configuration with the development. As this configuration looks increasingly less likely, it would seem wiser to plan traffic circulation - including transit, foot-traffic, bicycle-traffic, and other active transportation - around the new development and not seek to impose an awkward street and circulation plan on a new development footprint. Moreover, once the bridge to Minto gains traction, its sight-lines and natural traffic flow would be along State Street.
(Background and more here, here, here, and here.)