Erie council approves conditional TIF pledge to advance Town Center development

Erie —6 Feb. 25, 2025 —6 The Erie Town Council approved a conditional tax-increment revenue-sharing agreement that clears the way for a new Town Center urban renewal area (URA) on a 20-acre town-owned parcel at Erie Parkway and County Line Road. The vote authorizes the town to pledge the unrestricted general fund portion of its mill levy (roughly 7.25 mills of the town's 13.3 mills) and half of the town sales tax (1.75 percentage points of the town's 3.5%) to a URA that staff and the developer say is necessary to make the project financially feasible.

Economic development director Julian Jackman told council that the parcel's historical underground mine workings and other extraordinary site conditions make traditional development cost-prohibitive. "This project just is not feasible" without targeted public financing, Jackman said, describing the URA/TIF as a "but for" tool to close a financing gap created by remediation and infrastructure needs. Staff noted geotechnical work showing ventilation shafts, access shafts and stacked mine chambers under portions of the site that will increase the cost of constructing larger buildings such as a grocery anchor and structured parking.

Under the development program used for the URA impact analysis, staff estimated the property-tax increment available to the URA at about $1.5 million over 25 years and projected roughly $11 million in captured sales tax over the same period if the site is built as modeled. Jackman said the town has reached agreements in principle with some taxing entities (Northern Water, High Plains Library, Mile High Flood) and is negotiating with others; state law requires written agreements with all underlying taxing districts before a new URA can be created.

The town and its development partner, Evergreen, have a disposition and development agreement that includes performance milestones. Jackman said Evergreen must have a signed letter of intent from an anchor grocer by May 16 and commitments for a hotel and construction permits for the first phase by May 2026. "We have a verbal commitment from our anchor grocer," Jackman said; Evergreen's lead told the council the retailer and other potential tenants remain engaged. "We have an anchor tenant who very much wants to be here," Tyler Carlson said during discussion.

Council members questioned trade-offs: whether sharing a portion of town sales tax and future property-tax increment would reduce funds available for other priorities, including parks that residents have requested in public comment. Jackman and Evergreen's team said TIF revenue would apply only to new revenue generated by this project and that the URA pledge is conditional and limited to revenues produced at the site. Council discussion also focused on project quality, affordability and how much subsidy will be required to keep rents reasonable for local businesses.

Several council members praised the prospect of a local grocery in town center. Staff emphasized the URA is intended as a targeted, temporary tool: if the URA is created and the development proceeds, TIF capture can last up to 25 years; when the TIF expires all taxing districts receive the full tax base.

The resolution approving the conditional revenue-sharing agreement (resolution 25044) passed on voice vote.

What happens next: staff will continue the required negotiations with underlying taxing districts under the Colorado Urban Renewal Law; if agreements are reached the URA plan will be published for public hearing, reviewed by the planning commission and may be considered for final adoption in May. Evergreen and town staff will continue due diligence, geotechnical work and grocer negotiations to firm up the project's financing and schedule.