SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the First 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): Malcolm Fleming, Town Manager
Sarah Nurmela, Planning & Development Director
First Name Last Name, Title
FISCAL SUMMARY: N/A
POLICY ISSUES:
Whether the Town Council supports extending the Inspection Period and Approvals Period with Evergreen to allow an additional 90 days for due diligence, geotechnical investigation, and securing a signed letter of intent (LOI) from our anchor grocer for the development.
STAFF RECOMMENDATION:
Recommendation
Approve the First 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, containing the following requirements:
• 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
Evergreen has been completing required due diligence for the site following execution of the DDA in October, including geotechnical investigations, construction cost estimates, and lease negotiations with our anchor grocer to secure a signed letter of intent (LOI) by the February deadline. Evergreen has now requested additional time to complete due diligence and secure a signed LOI from our grocer.
The Town and Evergreen prepared the First Amendment to the DDA to extend the Inspection Period to May 16, 2025, and Approvals Period to May 18, 2026, both 90 days after the original deadlines, for consideration by the Town Council.
COUNCIL PRIORITY(S) ADDRESSED:
ü Prosperous Economy
ü Small Town Feel
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Resolution 25-024
2. First Amendment to DDA