SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the Second Amendment to Disposition and Development Agreement with Evergreen-County Line & Erie Parkway, L.L.C. for the Erie Town Center
Body
DEPARTMENT: Economic Development
Department
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
First Name Last Name, Title
TIME ESTIMATE: 10 minutes
FISCAL SUMMARY: N/A
POLICY ISSUES:
Whether the Town Council supports extending the Inspection Period and Approvals Period with Evergreen for an additional 90 days.
STAFF RECOMMENDATION:
Recommendation
Approve the Second Amendment to the Disposition and Development Agreement.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On Oct. 8, 2024, the Town of Erie and Evergreen-County Line & Erie Parkway, L.L.C. entered into a Disposition and Development Agreement (DDA) for development of the Town-owned site at Erie Town Center. On Feb. 11, 2025, the Town and Evergreen amended the DDA to extend the Inspections Period and Approvals Period to May 16, 2025, and May 18, 2026, respectively, to allow an additional 90 days for due diligence, geotechnical investigation, and securing a signed letter of intent (LOI) from our anchor grocer.
As amended, the Town Center DDA contains the following requirements:
• The “Inspections Period” (now expiring on May 16, 2025):
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. •
• The “Approvals Period” (now expiring on May 18, 2026):
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
Evergreen has been completing required due diligence for the site, including geotechnical investigations, construction cost estimates, and lease negotiations with our anchor grocer to secure a signed letter of intent (LOI). Evergreen has requested additional time to complete due diligence and secure a signed LOI from our grocer.
The Town and Evergreen prepared the Second Amendment to the DDA to extend the Inspection Period to Aug. 14, 2025, and Approvals Period to Aug. 14, 2026.
COUNCIL PRIORITY(S) ADDRESSED:
ü Prosperous Economy
ü Small Town Feel
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution 25-071
2. Second Amendment to the DDA
3. Existing DDA