SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Approving the First Amendment to the Agreement with Rearview Mirror Concepts, LLC
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Stephanie Pitts-Nagus, Economic Development Manager
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Time
TIME ESTIMATE: 20 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $200,000
Balance Available: $0
Fund Urban Renewal Authority
Line Item Number: 800-90-872-576000-000000
New Appropriation Required: Yes, in a supplemental appropriation
Policy
POLICY ISSUES:
The URA must approve amendments to previously approved agreements.
Recommendation
STAFF RECOMMENDATION:
Approve the First Amendment to the Reimbursement Agreement with Rearview Mirror Concepts, LLC, increasing the maximum reimbursement amount and adding a lump sum payment provision to address unforeseen site remediation caused by bad soils. This will require a supplemental appropriation, which must be approved or the funds will not be available.
Body
SUMMARY/KEY POINTS
• The amendment increases the total TIF reimbursement cap for the Wells & Kattell redevelopment project from $1.9 million to $2.22 million due to unforeseen bad soils conditions impacting site development feasibility.
• The amendment includes a $200,000 upfront lumpsum payment to assist with immediate site remediation and preparation costs, with an additional $120,000 added to the back-end TIF reimbursement structure.
• Following repayment of the Town’s original land acquisition cost, the sales tax increment sharing structure will adjust from 60/40 to 50/50 to improve the likelihood of full reimbursement prior to URA sunset in 2038.
BACKGROUND OF SUBJECT MATTER:
On Dec. 9, 2025, the Town of Erie Urban Renewal Authority (TOEURA) entered into a Disposition, Development and Reimbursement Agreement with Rearview Mirror Concepts (RMC) for the development of 130 Wells Street and 570 Kattell Street in Historic Old Town Erie. The project includes a mixed-use commercial building featuring a restaurant, ice cream shop, bakery, and small-format retail spaces intended to activate a prominent gateway location within downtown Erie.
As the project advanced into pre-development and engineering, the developer completed additional geotechnical analysis of the site. The analysis identified unforeseen bad soils conditions requiring significant additional site preparation and remediation work in order to make the property developable and support the proposed structure. These costs were unknown at the time the original agreement and gap analysis were completed.
To address the increased site development costs and maintain project feasibility, TOEURA staff and the developer negotiated a First Amendment to the agreement. The amendment increases the overall TIF reimbursement cap from $1.9 million to $2.22 million, including a $200,000 upfront lump sum payment for soils mitigation work and an additional $120,000 added to the back end of the existing sales tax increment reimbursement structure. The amendment also modifies the post-payoff sales tax increment sharing structure from 60/40 to 50/50 following repayment of the Town’s original land acquisition cost in order to improve the likelihood of full reimbursement prior to URA sunset in 2038.
priorities
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attachments
ATTACHMENT(S):
1. Resolution
2. First Amendment
3. Original Agreement
4. Presentation