SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Disposition and Development Agreement with Evergreen-County Line & Erie Parkway, L.L.C. for the Erie Town Center
Body
DEPARTMENT: Economic Development
Planning & Development
Parks & Recreation
Public Works
Department
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Sarah Nurmela, Director of Planning & Development
Luke Bolinger, Director of Parks & Recreation
David Pasic, Interim Director of Public Works
Malcolm Fleming, Town Manager
Melissa Wiley, Deputy Town Manager
Patrick Hammer, Deputy Town Manager
First Name Last Name, Title
FISCAL SUMMARY:
Staff have not determined the fiscal impact at this time, other than to conclude it will be positive for the Town, with revenue generated by selling the Town’s property to the Developer and from the increase in economic activity resulting from developing the site as a retail/commercial center. The agreement provides for conveying the Town’s property to the Developer in phases at a purchase price to be determine by the Parties through negotiation prior to the expiration of the Inspection Period. The negotiated price will be contingent on Council approval.
POLICY ISSUES:
Whether the Town Council supports contracting with Evergreen Devco to buy the Town-owned site with contingencies to develop a new anchor grocer, hotel, civic use, other retail and commercial uses (preferably local, regional, and small business owners), and affordable housing at this well-located site in Erie Town Center.
STAFF RECOMMENDATION:
Recommendation
Approve the Disposition and Development Agreement with Evergreen-County Line & Erie Parkway, L.L.C., for Erie Town Center.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Erie Town Center includes approximately 145 acres and five key sites generally located around the intersection of Erie Parkway and E. County Line Rd. The Town hired DPZ CoDesign in 2019/2020 to facilitate a community engage process leading to a new coordinated and connected Town Center plan for this area. The resulting plan reflects New Urbanism principles of walkability, connectivity, and building community by integrating recreation, shopping, dining, work, and community activities; all of which were identified and sought after by Erie’s younger generation, senior population, and families. The plan created a unique and marketable destination to serve Erie residents while also attracting regional customers. The Erie Town Center Plan and Planned Development (PD) Guide responds to the market demand for commercial uses and housing, includes a medium-sized grocery store, while also provides for future growth as the popularity and demand in Town Center increases over time.
To speed realization of this vision, on May 31, 2022, the Town purchased the 19.41-acre parcel on the NW corner of Erie Parkway and County Line Road within the Town Center site from Regency Realty Group, with the intent to recruit a new developer and jump start development. Regency purchased this site in 2007 and participated in the Town Center charrette process. However, due to other priorities, they were not actively pursuing developing this parcel. The Town Center PD specifically identifies a small-format grocery store, a hotel, and civic uses as anchors on this parcel, with other mixed-use and commercial uses throughout. These uses will support and stimulate development for the entire Town Center. Anticipating this development, other property owners in Town Center either have begun construction on their sites (Erie Four Corners and Erie Commons) or have approved development plans and are about to begin construction (Ranchwood).
On Aug. 2, 2022, Town staff issued a Request for Proposals (RFP) seeking competitive bids from development groups who support the Town Center vision and have the experience and resources to complete the intended development program. From among those responding to the RFP, the Town selected Evergreen Devco (“Evergreen”) as its preferred development partner and on March 14, 2023, signed a Letter of Intent (“LOI”) establishing general terms and conditions under which the Town would sell this property to Evergreen, contingent on satisfying requirements for the grocer anchor, civic use, hotel use, and new affordable housing.
Since that time, the Town and Evergreen have worked to refine an updated concept plan for the overall site, secured a verbal commitment from the preferred anchor grocer (to be named later), drafted a proposed land contract, and presented a draft structure for our negotiations to the Town Council in Executive Session.
On Oct. 8, 2024, Town staff will present the Disposition and Development Agreement (DDA) with Evergreen-County Line & Erie Parkway, L.L.C., for the Town-owned site at Erie Town Center, for consideration by the Town Council. The DDA formalizes the terms and conditions of the sale of this property from the Town to Evergreen and gives Evergreen contract to the land so they can begin due diligence, including geotechnical and environmental investigations, site planning and development review through the Town’s processes. This binding contract also allows Evergreen to then secure a binding lease with the Anchor Grocer for this site, with announcements to follow thereafter. Some of the key components in the DDA include:
• Prior to Feb. 15, 2025 (the “Inspections Period”):
o Evergreen shall secure commitment from the Anchor Grocer, as evidenced by an executed LOI. The LOI shall be provided to the Town, who has 30 days to object to the Anchor Grocer, if desired.
o The Town and Evergreen will determine the purchase price for the Commercial Property and Residential Property after Evergreen has conducted due diligence, estimated their own construction costs, and identified the purchase price needed to facilitate the type/pace of development desired by Evergreen and the Town.
o Evergreen shall incorporate affordable housing options into the Residential Property, which shall include a minimum of 12% of the residential dwelling units to be affordable to households earning 80% AMI or less.
• Prior to Feb. 15, 2026 (the “Approvals Period”):
o Evergreen shall secure binding commitment from the Anchor Grocer, with a construction schedule indicating when the Anchor Grocer will open for business.
o Evergreen shall secure commitment from a hotel operator, as evidenced by LOI, subject to the Town’s approval or objection within 30 days of receipt.
o Evergreen shall obtain all necessarily entitlements for the development, including final plat(s), site plan(s) and building permits.
o The Town and Evergreen shall determine the size and location of the Civic use, and who will be responsible for constructing those improvements, including the structured parking garage. The Town and Evergreen will consider a separate agreement to memorialize these terms and conditions after the DDA is approved.
• Evergreen shall prioritize the marketing and solicitation of commercial space and pad sites to local and regional tenants and small business owners. National chains and brands are discouraged (except for the Anchor Grocer). 30% or more of the leasable space in the first phase shall be leased/sold to food and beverage tenants, and no more than 30% of the first phase shall be leased/sold to retail office professional tenants.
COUNCIL PRIORITY(S) ADDRESSED:
ü Attractive Community Amenities
ü Engaged and Diverse Community
ü Prosperous Economy
ü Well-Maintained Transportation Infrastructure
ü Small Town Feel
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution 24-137
2. Disposition and Development Agreement