SUBJECT:
Title
I-25 Erie Gateway Overview and Update
Body
DEPARTMENT: Planning and Development
Economic Development
Public Works
Department
PRESENTER(S): Sarah Nurmela, Planning and Development Director
Julian Jacquin, Director of Economic Development & TOEURA
David Pasic, Public Works Director
First Name Last Name, Title
TIME ESTIMATE: 60 minutes
only required for non-consent items
FISCAL SUMMARY: N/A
POLICY ISSUES:
This is an informational item to provide background information and current status on the I-25 Erie Gateway project to help the new Council become familiar with this major project. No policy decisions will be made.
STAFF RECOMMENDATION:
Recommendation
Informational item only. Staff anticipate bringing the completed PD for consideration by the Planning Commission and Town Council in Q2 2025.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Erie Gateway area is located at the east end of Erie along I-25. The area encompasses approximately 1,250 acres and extends two miles along the highway. This key location and presence along I-25, coupled with the Erie Parkway interchange, makes this area an important visual marker and economic opportunity for the Town.
In recognition of the area’s value and opportunity, the Town proactively acquired 253 acres on the southeastern edge of the Gateway area in December 2018, from Erie Ventures LLC and Colson & Colson Construction Co. The Town purchased this key property at the I-25/Erie Parkway interchange to catalyze development of a walkable, mixed-use employment and commercial center. Also in 2018, the Town engaged Design Workshop to develop the Erie Gateway Developer Book, establishing an initial vision and land use plan based on community engagement. The visioning efforts extended beyond the Town’s property to include the broader Erie Gateway area bounded by Weld County Road 12 on the north, I-25 on the east, Erie Parkway on the south, and Weld County Road 10 to the west, representing approximately 1,250 acres of property in the Town of Erie and unincorporated Weld County.
In July 2022, Town staff initiated an intensive planning process for the I-25 Erie Gateway site to articulate the vision with a new Planned Development (PD) district, hiring Torti Gallas + Partners, Inc. to prepare the PD document. The planning area covered by the PD includes the 640-acre footprint of “Erie Gateway - South”, between Weld County Road 10 and Erie Parkway to the north and south, and Weld County Road 7 and I-25 to the west and east, the southern half of the “I-25 Erie Gateway” site studied by Design Workshop, excluding the 600-acre property to the north, privately owned by Community Development Group of Erie (“CDG”).
The larger footprint of the planning area ensures the land uses, streets, parks, and open space connections are consistent with the Town’s vision, Elevate Erie Comprehensive Plan, Transportation and Mobility Plan, and Parks, Recreation, Open Space, and Trails Plan (PROST) among others. The continuity of these elements is essential to address at the larger scale to set the stage for holistic, connected development in the future. Once completed and approved, the PD district will govern the 253-acre Town-owned property. Other property owners within the full planning area may choose to annex into the Town and include their properties in the Town’s current entitlement process or may apply the PD at any time if they should choose to develop in the future.
In September 2022, the Town’s project team began meeting individually with property owners to confirm an overall vision, talk about future development opportunities, and discuss opportunities to participate in an Urban Renewal Plan Area (URA). Staff hosted an informational meeting with planning area property owners on Sept. 14, 2022, followed by outreach with individual owners by the project team. A second broader informational meeting was held on Oct. 5, 2023, to share the draft plan and land uses for the area. Following this meeting, a second round of individual meetings with property owners were conducted, along with follow-up communication. Town staff contacted every property owner within the study area, and nearly every owner engaged in discussions.
In addition to on-site property owners, staff are working with existing property owners in the surrounding area, including residents in unincorporated Carlson Estates to the west, and owners of larger properties including North Station/CDG to the north and North Westerly/Southern Land to the west. This outreach included community and individual conversations on Oct. 24, 2024 (the “Erie Gateway - South” Neighborhood Meeting), with a discussion of Weld County Roads 7 and 10. Community members weighed in on potential roadway design considerations, particularly for portions of the roads where the right-of-way is limited.
The attached presentation includes graphics showing both the current draft of the regulating plan for the full planning area, and for just the Town’s property. Staff anticipate bringing the completed PD for consideration by the Planning Commission and Town Council in April and May 2025, respectively.
Development Update
In Aug. 2024, the Town executed a Letter of Intent (LOI) with Hines, a global real estate and development firm, as its preferred developer for the Town-owned property. The Erie Board of Trustees (now Town Council) selected Hines as its preferred development partner in February 2022 through a competitive Request for Qualifications (RFQ) and interview process and executed an Exclusive Negotiation Agreement (ENA with Hines in Jul. 22, and again in Dec. 2023. The LOI establishes general terms and conditions under which the Town may consider selling the Town-owned property to Hines, including a phased conveyance of the property as development occurs over time, commitments to the land use plan included in the draft PD, an approved purchase price matrix based on land use category, commitments to provide a minimum of 20% affordable housing units, and a new community/recreation use to be developed jointly with the Town. The project team intends to bring a Purchase and Sale Agreement to the Town Council in 2025, formalizing the LOI terms and placing the land under contract to Hines.
URA & Infrastructure Financing Update
On Aug. 13, 2024, the Town Council adopted the new Erie Gateway Phase 1 Urban Renewal Plan Area (URA) for the northernmost part of the I-25 Erie Gateway development area as well as several properties to the west and north. The Phase I URA encompasses 1,100 acres and 536 parcels within the Town of Erie, south of Highway 52 and north of WCR-10. The Phase 1 URA will allow TOEURA to use tax increment financing (TIF) to remediate existing blighting conditions and extend necessary infrastructure to facilitate the development of this area. The envisioned uses in the Phase I URA area include residential, employment, entertainment and affordable housing opportunities.
This work involved completing required planning documents with Pioneer Development Company (PDC), including a Conditions Survey, Plan Document, and Impact Report, and negotiating terms for tax increment revenue sharing with each of the underlying taxing districts. Based on the Phase 1 URA Plan and Impact Report, and per the executed agreements with each taxing district, future development in the Gateway area may include approximately 3,000 new residential units and 680,000 sq. ft. of new commercial space, generating up to $180 million in property tax and sales tax increment (TIF) to be captured by TOEURA over 25 years.
The Erie Gateway Phase 1 URA is the first phase in a likely series of phases along I-25 to continue efforts to remediate blight and extend infrastructure from WCR-7 east to I-25, and from I-25 south to Erie Parkway, providing necessary utilities to the full I-25 Erie Gateway corridor. Town staff presented initial documents to the TOEURA Board of Commissioners for a larger survey area in May 2023, but ultimately received direction and support for individual smaller phases (such as the approved Phase 1) to activate development over time and maximize the use of tax increment financing (TIF) available by TOEURA over 25 years.
In May 2024, staff completed preliminary work with its consultants, Burns & McDonnell, to provide updated construction cost estimates for the sanitary sewer transmission line to serve the I-25 Erie Gateway development area. This work is estimated to be completed in three phases, including Summerfield (under construction), WCR-7 to I-25, and I-25 to Erie Parkway, with a new lift station along I-25, for an estimated cost of $30.6 million (2024 dollars). The new Phase 1 URA, and future phases, may be available to help support these costs. More information regarding these infrastructure improvements is included in the staff presentation.
The purpose of this update is to provide an overview of the background and work to date for the Gateway/I-25 area. Next steps in the process will include Planning Commission and Town Council hearings for the PD to zone the Town-owned portion of the site as well as future considerations of annexations and zoning in and around the Gateway area.
COUNCIL PRIORITY(S) ADDRESSED:
ü Attractive Community Amenities
ü Engaged and Diverse Community
ü Prosperous Economy
ü Fiscally Responsible
ATTACHMENT(S):
1. Presentation