SUBJECT:
Title
PUBLIC HEARING: A Resolution of the Town Council of the Town of Erie Approving the Erie Gateway Phase 1 Urban Renewal Plan, Finding that the Erie Gateway Phase 1 Urban Renewal Area is a Blighted Area, Designating Such Area as appropriate for an Urban Renewal Project pursuant to the Erie Gateway Phase 1 Urban Renewal Plan, and Finding that the Clearance, Rehabilitation, Conservation, Development, Redevelopment or a Combination thereof of Such Area is Necessary in the Interest of the Public Health, Safety, and Welfare of the residents of the Town
Body
DEPARTMENT: Economic Development/TOEURA
Department
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Malcolm Fleming, Town Manager/TOEURA Executive Director
First Name Last Name, Title
TIME ESTIMATE: 60 minutes
only required for non-consent items
FISCAL SUMMARY:
In total, based on the Phase 1 Plan and Impact Report, future development in this area could generate up to $180 million in property tax and sales tax increment (TIF) over 25 years which may be used to remediate blighting conditions and extend necessary infrastructure to support this area. This amount includes up to $23 million in property tax increment, and up to $19 million in sales tax increment, projected to be generated in the Phase 1 Plan Area and that would otherwise go to the Town during the 25-year period the URA is active. Sharing revenue with the URA in this manner anticipates that doing so to remediate blighting conditions will stimulate development to happen earlier than would otherwise occur and the new development will generate new property and sales tax revenue that eventually offsets the revenue shared with the URA.
POLICY ISSUES:
The policy issue is whether to formally approve the new Erie Gateway Phase 1 Urban Renewal Plan, designating this as a new Tax Increment Financing (TIF) area, providing property tax and sales tax increment we expect to be generated by future development in the proposed Phase 1 Plan Area boundary, to remediate blighting conditions and extend necessary infrastructure to facilitate the development of this key focus area in the I-25 Erie Gateway development corridor. We anticipate that remediating the blighting conditions (conditions created by historical mining activity in the area, lack of utilities, challenging topography and other conditions) will stimulate development, including employment, entertainment, and affordable housing opportunities, to happen earlier than would otherwise occur. This action makes sense on the premise that “but for” the sharing of TIF through the URA the new development will not happen as quickly as desired, and that the TIF will generate property and sales tax revenue to produce more positive economic activity than would otherwise occur.
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution Approving the Erie Gateway Phase 1 Urban Renewal Plan.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The proposed Phase 1 Plan Area encompasses 1,100 acres and 536 parcels within the Town of Erie, generally located south of Highway 52, north of WCR-10, west of I-25, and east of WCR-5. Included within the boundary is the new proposed Summerfield development (2,200 residential units and 28 acres of commercial uses, by CDG and Toll Brothers), the westernmost portion of the new proposed North Station development (by CDG), and remaining parcels north of WCR-12 generally referred to as the “Rieder” properties. In total, the Phase 1 Plan Document assumes that development of this area will include 3,003 new residential units and 682,439 sq. ft. of new commercial space, to be absorbed over 25 years. Staff has strategically drawn the Plan Area boundary to include parcels that need, or will attract, new investment, reinvestment, or development, along with public rights-of-way that may benefit from urban renewal treatment. If approved, Phase 1 will allow TOEURA to use tax increment financing (TIF) to remediate blighting conditions, and extend necessary infrastructure, to facilitate the development, including employment, entertainment, and affordable housing opportunities, of this key focus area along the I-25 Erie Gateway development corridor.
On Feb. 26, Town staff provided mailed notice to the impacted taxing entities within the proposed Phase 1 Urban Renewal Plan Area (URA) boundary, including the Town, Weld County, St. Vrain Valley School District, Mountain View Fire Protection District, Frederick-Firestone Fire District, High Plains Library District, Northern Colorado Water, the Summerfield Metropolitan Districts, and the North Station Metropolitan Districts. Per Colorado Urban Renewal Law, this mailed notice initiated a 120-day negotiation period for the Town of Erie Urban Renewal Authority (TOEURA) to agree upon tax increment revenue sharing with each entity, prior to holding public hearings and requesting the Town Council to adopt the new Plan Area.
Town staff then presented three draft planning documents for the Phase 1 Plan Area to the TOEURA Board of Commissioners on March 12, including a Conditions Survey, Plan Document and Financial Impact Report. TOEURA supported staff’s recommended boundary and strategy and began negotiating with each taxing entity thereafter.
TOEURA has now approved and fully executed tax increment revenue sharing agreements with all nine impacted taxing entities who impose a mill levy on real property within the proposed Phase 1 Plan Area, approving seven of the nine agreements at its meeting on June 25, and with the remaining two taxing entities on July 23. Copies of all nine agreements are attached to this agenda item for review at the August 13 Town Council meeting. In total, based on the Phase 1 Plan and Impact Report, future development in this area could generate up to $180 million in property tax and sales tax increment (TIF) over 25 years which may be used to remediate blighting conditions and extend necessary infrastructure to support this area.
The intergovernmental agreements each include three primary components:
• Agreement to share a portion of each taxing entity’s property tax mill levy (and sales tax rate for the Town of Erie) with TOEURA for the Phase 1 Plan Area.
• Consent, required by state statute, for inclusion of agricultural land within the Phase 1 Plan.
• Agreement that any property tax increment to be generated by new oil and gas well sites developed within the Phase 1 Plan Area boundary after the adoption of the Plan will not be captured as TIF increment and will instead be remitted back to the taxing districts.
As required by Colorado Urban Renewal Law, Town staff completed the following actions:
• Mailed Notice of Public Hearing to impacted property owners, tenants and business owners within the Phase 1 Plan Area boundary on July 1, 2024.
• Submitted the Phase 1 Plan and Impact Report to the Weld County Board of County Commissioners (by mail and email) on July 1, 2024.
• Published Notice of Public Hearing for the August 13 Town Council meeting in the Colorado Hometown Weekly on July 3, 2024. A copy of the Notice is attached to this agenda item.
• Submitted the Phase 1 Plan to the Erie Planning Commission (by mail and email) on July 1, 2024, requesting review and written recommendations for conformance to Erie Comprehensive Plan within 30 days. The Erie Planning Commission adopted Resolution P24-10 on July 17, 2024, finding the Phase 1 Plan conforms to the Erie Comprehensive Plan. A copy of Resolution P24-10 is attached to this agenda item.
Additional information is included in the Staff Presentation and will be reviewed at the August 13 Town Council meeting. Following the Public Hearing, Town staff respectfully request the Town Council adopt Resolution 24-114, formally approving the Phase 1 Plan, finding the new Phase 1 Plan Area is a blighted area, and designating the Phase 1 Plan Area as appropriate for an Urban Renewal Project, the first new URA approved in Erie since 2015.
COUNCIL PRIORITY(S) ADDRESSED:
ü Attractive Community Amenities
ü Prosperous Economy
ü Well-Maintained Transportation Infrastructure
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution 24-114
2. Erie Gateway Phase 1 Conditions Survey 1.1.2024
3. Erie Gateway Phase 1 Urban Renewal Plan 1.1.2024
4. Erie Gateway Phase 1 Impact Report 1.28.2024
5. Notice of Public Hearing - Colorado Hometown Weekly 7.3.2024
6. Erie Planning Commission Resolution 7.17.2024
7. TIF Agreement - Town of Erie
8. TIF Agreement - Weld County
9. TIF Agreement - St. Vrain Valley School District
10. TIF Agreement - Mountain-View Fire Protection District
11. TIF Agreement - Frederick-Firestone Fire Protection District
12. TIF Agreement - High Plains Library District
13. TIF Agreement - Northern Colorado Water Conservancy District
14. TIF Agreement - Summerfield Metropolitan Districts, No. 1-3
15. TIF Agreement - North Station Metropolitan District No. 2
16. Staff Presentation