SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the Eleventh Amendment to the Disposition and Development Agreement with the Town of Erie and Evergreen-287 & Arapahoe, LLC
Body
DEPARTMENT: Economic Development/TOEURA
Department
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
First Name Last Name, Title
TIME ESTIMATE: N/A
only required for non-consent items
FISCAL SUMMARY:
Approving the 11th Amendment increases the maximum Tax Increment Cap established in the Disposition and Development Agreement (DDA) from $12.8 million to $13.2 million, an increase of $400,000, to reflect Evergreen’s unexpected cost overages for public stormwater improvements, above and beyond those available from the Nine Mile Metropolitan District (NMMD). The Amendment also includes a new 1% administrative fee to be collected by the Town of Erie Urban Renewal Authority (TOEURA) to cover TOEURA’s administrative costs in collecting and remitting funds to NMMD, and to repay TOEURA’s existing negative balance.
POLICY ISSUES:
This item has minimal policy implications.
STAFF RECOMMENDATION:
Recommendation
Approve the 11th Amendment to the Disposition and Development Agreement.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Town of Erie Urban Renewal Authority, the Town of Erie and Evergreen 287 & Arapahoe LLC entered into a Disposition and Development Agreement for the Nine Mile Corner development dated March 22, 2016. Since the inception there have been ten amendments, most recently on March 26, 2024. With the 8th amendment, the Tax Increment Cap defined in the 6th amendment was increased from $10.8 million to $12.8 million. The proposed 11th amendment would increase the cap, once again, from $12.8 million to $13.2 million, and include a new 1% administrative fee on the incremental property tax revenues received by TOEURA to pay administrative costs incurred with TOEURA’s obligations in the agreement and repay TOEURA’s existing negative fund balance against the Town’s general fund.
The increase in Tax Increment Cap was requested by Evergreen to offset their costs for an unexpected $1 million overage in costs for new storm water improvements, above and beyond those budgeted by the NMMD, or included in their District bonds. Town staff met with Evergreen to review the request. Noting the development is exceeding financial forecasts and will satisfy its debt payments ahead of schedule, staff proposed asking Council to approve half of Evergreen’s request. Evergreen agreed and thus this proposed amendment to the Tax Increment Cap would increase the Cap by $400,000 (to $13.2 million), half of Evergreen’s initial request for $800,000.
Town staff reviewed the financial information from Evergreen and verified the request is valid and supports the proposed 11th Amendment to the DDA.
COUNCIL PRIORITY(S) ADDRESSED:
ü Prosperous Economy
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution 25-051
2. 11th Amendment to Agreement
3. Financial Information from Evergreen
4. Existing DDA