SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Authority Approving a First Amendment to the Pledge Agreement with the Nine Mile Metropolitan District and the Associated Omnibus Certificate
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Malcolm Fleming, Town Manager/TOEURA Executive Director
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Time
TIME ESTIMATE: 0 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
Approval of Resolution 25-037 allows the Nine Mile Metropolitan District (NMMD) to refinance its 2020 bonds for public improvements at Nine Mile Corner in the Highway 287 URA Plan Area, in alignment with the Nine Mile DDA. TOEURA and the Town Council approved the 11th Amendment to the Nine Mile DDA on April 22, 2025, increasing the maximum TIF cap from $12.8M to $13.2M. The NMMD must now amend their pledge agreement to refinance their bonds to access the additional $400,000 in the project fund to pay for eligible public improvements. There is no fiscal impact to the Town or the URA from the refinancing; this refinancing allows the Metro District to access the $400K today to repay Evergreen for their public improvement costs. This does not change the amount of TIF the Metro District is entitled to nor the timeline for paying the Metro District the full amount of TIF.
Policy
POLICY ISSUES:
The policy issue is whether to support the NMMD’s request to refinance their bonds to access additional funds to pay for necessary public improvements at the Nine Mile Corner retail center, as approved by the 11th Amendment to the Nine Mile DDA.
Recommendation
STAFF RECOMMENDATION:
Approve Resolution 25-037.
Body
SUMMARY/KEY POINTS
• Amends the Pledge Agreement between TOEURA and the NMMD to raise the TIF cap to $13.2M and sets a 1% administrative fee to TOEURA.
• Allows TOEURA to provide more TIF revenues to NMMD, in accordance with the Nine Mile DDA. Allows the NMMD to refinance their District bonds, accessing an additional $400,000 in the project fund to pay for eligible public improvements.
• Provides the lender refinancing the District bonds with legal and financial assurances about TOEURA’s pledge and the updated DDA terms.
BACKGROUND OF SUBJECT MATTER:
In 2015, the Town of Erie adopted the Highway 287 Urban Renewal Plan to support redevelopment of the Nine Mile Corner area. In 2016, the Town of Erie Urban Renewal Authority (TOEURA), the Town, and Evergreen Devco executed a Disposition and Development Agreement (DDA), now amended 11 times, most recently on April 22, 2025, to update cost caps, revenue pledges, and administrative provisions.
To finance public infrastructure, the Nine Mile Metropolitan District (the “NMMD”) issued Special Revenue Bonds in 2020 backed by tax increment revenues (property and sales tax growth within the URA Plan Area) pledged by TOEURA. Nine Mile Corner is now complete, and NMMD has used its $12.8M project fund for public improvements. On April 22, 2025, TOEURA, the Town, and Evergreen Devco amended the DDA to increase the maximum TIF cap to $13.2M, adding $400,000 to support remaining costs.
The NMMD now plans to refinance its 2020 bonds through a 2025 Special Revenue Refunding and Improvement Loan to access the additional $400,000 funding.
Two actions are needed for closing:
• First Amendment to Pledge Agreement: Updates the 2020 pledge to reflect new DDA terms, including the increased $13.2M TIF cap and TOEURA administrative fee, and clarifies definitions and revenue flow so future refundings are secure.
• Omnibus Certificate: Confirms TOEURA’s legal standing, approvals, and revenue pledge so the lender refinancing the District bonds can rely on the updated TIF structure for repayment.
Approval of these items keeps the financing aligned with updated agreements, supports repayment of public improvement costs, and maintains clear and enforceable revenue pledges for the Nine Mile project.
priorities
TOWN COUNCIL PRIORITY(S) ADDRESSED:
☒ Attractive Community Amenities
☐ Engaged and Diverse Community
☒ Prosperous Economy
☐ Well-Maintained Transportation Infrastructure
☐ Small Town Feel
☐ Safe and Healthy Community
☒ Effective Governance
☐ Environmentally Sustainable
☒ Fiscally Responsible
attachments
ATTACHMENT(S):
1. Resolution 25-037
2. First Amendment to the Pledge Agreement
3. Omnibus Certificate
4. Town Consent Letter (to be considered by Town Council)
5. Nine Mile DDA - Compiled