SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Conditional Tax Increment Revenue Agreement for the Erie Gateway Phase 1 Urban Renewal Plan
Body
DEPARTMENT: Economic Development/TOEURA
Department
PRESENTER(S): Julian Jacquin, Economic Development Director
Malcolm Fleming, Town Manager, TOEURA Executive Director
First Name Last Name, Title
TIME ESTIMATE: 20 minutes
only required for non-consent items
FISCAL SUMMARY: N/A
POLICY ISSUES:
The policy issue is whether to share a portion of the Town's property tax and sales tax increment (TIF) we expect to be generated by future development in the proposed Phase 1 Plan Area boundary. The TIF will be used to remediate blighting conditions and extend necessary infrastructure to facilitate the development of this key focus area in the I-25 Erie Gateway development corridor. Sharing revenue for this purpose will reduce the future revenue available to the Town for other purposes during the 25-year period the URA is active. We anticipate that remediating the blighting conditions (conditions created by historical mining activity in the area, lack of utilities, challenging topography and other conditions) will stimulate development to happen earlier than would otherwise occur. This action makes sense on the premise that "but for" the sharing of TIF through the URA the new development will not happen as quickly as desired, and that sharing TIF will generate property and sales tax revenue that eventually offsets the TIF revenue shared with the URA and after that if will generate more positive economic activity than would otherwise occur.
STAFF RECOMMENDATION:
Recommendation
Approve the Tax Increment Revenue Agreement.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On Feb. 26, Town staff provided mailed notice to the impacted taxing entities within the proposed Phase 1 Urban Renewal Plan Area (URA) boundary, including the Town, Weld County, St. Vrain Valley School District, Mou...
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