SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Authorizing the Town Manager to Issue a Consent for the Nine Mile Metropolitan District to Issue a Special Revenue Refunding and Improvement Loan, Series 2025
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Malcolm Fleming, Town Manager/TOEURA Executive Director
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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:
Approving Resolution 25-163 provides the Town Council’s consent to the Nine Mile Metropolitan District (NMMD) refinancing their 2020 District bonds with a new “2025 Loan” to access $400,000 in additional property tax and sales tax revenues from the Highway 287 URA Plan Area, approved by the 11th Amendment to the Nine Mile DDA. The terms of this pledge by TOEURA to the NMMD are outlined in the First Amendment to the Pledge Agreement and Omnibus Certificate, being considered for approvals by the TOEURA Board on Oct. 14. TOEURA and the Town Council approved the 11th Amendment to the Nine Mile DDA on April 22, 2025, increasing the maximum TIF cap from $12.8M to $13.2M. The NMMD must now amend their pledge agreement to refinance their bonds to access the additional $400,000 in the project fund to pay for eligible public improvements. There is no fiscal impact to the Town or the URA from the refinancing; this refinancing allows the Metro District to access the $400K today to repay Evergreen for their public improvement costs. This does not change the amount of TIF the Metro District is entitled to nor the timeline for paying the Metro District the full amount of TIF.
Policy
POLICY ISSUES:
The policy issue is whether to support the NMMD’s request to refinance their bonds to access additional funds to pay for necessary public improvements at the Nine Mile Corner retail center, as approved by the 11th Amendment to the Nine Mile DDA.
Recommendation
STAFF RECOMMENDATION:
Approve Resolution 25-163.
Body
SUMMARY/KEY POINTS
• Provides the Town Council’s consent to the issuance of the 2025 Loan, refinancing the NMMD’s 2020 bonds for public improvements at the Nine Mile Corner retail area.
BACKGROUND OF SUBJECT MATTER:
The Nine Mile Metropolitan District (NMMD) is refinancing its 2020 Special Revenue Bonds that funded public improvements at the Nine Mile Corner retail center within the Highway 287 Urban Renewal Plan Area. In April 2025, the Town, the Town of Erie Urban Renewal Authority (TOEURA), and the developer approved the Eleventh Amendment to the Nine Mile Disposition and Development Agreement (DDA), increasing the maximum tax increment financing (TIF) cap from $12.8 million to $13.2 million. This added $400,000 for remaining public infrastructure costs.
To use the additional TIF capacity, NMMD will issue a 2025 Special Revenue Refunding and Improvement Loan. The Loan is secured by the same pledged property and sales tax increment revenues that flow from the Town and TOEURA under the DDA.
On Oct. 14, TOEURA is considering two related actions to support this refinancing:
• First Amendment to Pledge Agreement: Updates the 2020 pledge between TOEURA and NMMD to reflect the increased TIF cap and administrative fee and clarify revenue flow for future refundings.
• Omnibus Certificate: Confirms TOEURA’s legal authority and revenue pledge so the lender can rely on the TIF structure for repayment.
Town Council approval of the Consent Letter, via Resolution 25-163, is required by the Nine Mile Metropolitan District Service Plan and signals the Town’s consent to the NMMD’s issuance of the 2025 Loan under the updated financing terms.
priorities
TOWN COUNCIL PRIORITY(S) ADDRESSED:
☒ Attractive Community Amenities
☐ Engaged and Diverse Community
☒ Prosperous Economy
☐ Well-Maintained Transportation Infrastructure
☐ Small Town Feel
☐ Safe and Healthy Community
☒ Effective Governance
☐ Environmentally Sustainable
☒ Fiscally Responsible
attachments
ATTACHMENT(S):
1. Resolution 25-163
2. Town Consent Letter
3. First Amendment to Pledge Agreement (to be considered by TOEURA on Oct. 14)
4. Omnibus Certificate (to be considered by TOEURA on Oct. 14)
5. Nine Mile DDA - Compiled