SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Authority Approving a Second Amendment to the Tax Increment Revenue Agreement with the Town of Erie for the Erie Town Center Urban Renewal Plan
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Lockie Woods, URA Development & Accounting Analyst
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Time
TIME ESTIMATE: 0 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
No fiscal impact. The Second Amendment makes an administrative correction to definitions within the existing Tax Increment Revenue Agreement. The amendment clarifies that both property tax increment and sales tax increment are deposited into the Authority’s Special Fund and may be used to pay Eligible Costs, consistent with prior Council and Authority approvals
Policy
POLICY ISSUES:
The policy issue is whether to approve an administrative amendment correcting definitions within the existing Tax Increment Revenue Agreement. The original agreement and First Amendment contemplated the use of both property tax and sales tax increment to fund eligible urban renewal costs. The Second Amendment clarifies the definitions of “Eligible Costs” and “Special Fund” to ensure the agreement text reflects that intent and aligns with the Urban Renewal Law.
Recommendation
STAFF RECOMMENDATION:
Approve the Second Amendment.
Body
SUMMARY/KEY POINTS
• This is an administrative amendment correcting definitions in the existing TIF Agreement.
• Clarifies that both property tax increment and sales tax increment may be used to pay Eligible Costs.
• Confirms that both revenue sources are deposited into the URA Special Fund.
BACKGROUND OF SUBJECT MATTER:
On Feb. 25, 2025, the Town of Erie and the Urban Renewal Authority entered into a Tax Increment Revenue Agreement for the Erie Town Center Urban Renewal Plan. The Parties approved a First Amendment on July 8, 2025, adjusting the sales tax increment allocation.
During final document review, staff identified that certain definitions in the original agreement were not fully updated to reflect the intent of the First Amendment and prior approvals. Specifically, the definitions of “Eligible Costs” and “Special Fund” did not clearly reference both property tax increment and sales tax increment.
The proposed Second Amendment corrects these definitions so that Eligible Costs may be paid from both property tax increment and sales tax increment and clarifies that both revenue sources are deposited into the Authority’s Special Fund. This amendment is administrative in nature and does not change financial commitments, project scope, or previously approved policy direction
priorities
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attachments
ATTACHMENT(S):
1. Resolution
2. Second Amendment
3. Existing Agreement (as amended)