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Erie council approves Town Center urban renewal plan after staff says higher TIF pledge needed to close gap
Summary
The Erie Town Council approved the Town Center Urban Renewal Plan and an amended revenue‑sharing pledge after staff said further town sales‑tax support was needed to narrow a development financing gap. Staff said the amended pledge increases the town’s share to about 3.25% of 3.5% sales tax (roughly 92.9% of the municipal share).
Erie’s Town Council voted to adopt the Erie Town Center Urban Renewal Plan and approve an amendment to the town’s tax‑increment financing (TIF) revenue‑sharing terms after staff said additional municipal sales‑tax support was necessary to make a proposed Town Center development financially feasible.
Julian Jacqueline, the town’s economic development director, told the council the parcel is about 20 acres at the northwest corner of Erie Parkway and County Line Road and is designated for mixed‑use village uses, including a small format grocer and commercial space. A third‑party feasibility and pro‑forma from the development partner Evergreen, Jacqueline said, revealed a larger-than-expected financing gap compared with the initial 50% pledge the town had approved earlier.
“Further due diligence … highlighted the additional gap,” Jacqueline said, describing the consultant’s recommendation to increase the town’s municipal sales‑tax pledge to roughly 3.25% of 3.5% (described in testimony as about a 92.9% pledge of the municipal share). Staff cautioned that the increase would not fully close the shortfall and that final numbers remain subject to ongoing negotiations with taxing districts and the developer.
Staff also noted the URA had negotiated revenue‑sharing agreements with seven taxing districts; prior agreements allowed the URA to capture about $22.9 million in increment and the town amendment increases the URA’s ability to capture sales‑tax increment to support the development program. Council members pressed staff on the project’s primary cost challenges — remediation of historical undermining, off‑site utilities and relocation of an irrigation ditch — and heard an estimated remediation cost of about $5 million for undermining mitigation.
The council opened the public hearing and heard a small number of public comments; staff kept the hearing open until the vote. Council Member Hoback moved and the motion carried by voice vote to adopt the plan and approve the related resolution.
The plan sets a 25‑year TIF term and staff said the revenue‑sharing agreements and plan documents have been through the required notices and the Planning Commission review. Council members asked how fixed the TIF terms are after approval; staff said any change thereafter would be a “major modification” requiring the taxing districts to renegotiate and agree.
Next steps: the URA and town will continue negotiations with Evergreen and other taxing districts to finalize financial terms and implementation details.
