SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the Third Amendment to Disposition and Development Agreement with Evergreen-County Line & Erie Parkway, L.L.C. for the Erie Town Center
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
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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:
N/A
Policy
POLICY ISSUES:
Whether the Town Council supports extending the Inspection Period and Approvals Period with Evergreen for an additional 90 days.
Recommendation
STAFF RECOMMENDATION:
Approve the Third Amendment to the Disposition and Development Agreement.
Body
SUMMARY/KEY POINTS
• Extends the Inspection Period and Approvals Period another 90 days to Nov. 12, 2025, and Nov. 12, 2026, respectively.
• Extension is requested by Evergreen to allow additional time to secure letter of intent from anchor grocer.
• Fourth amendment in November will formalize Inspection Period requirements before deadline and establish terms of economic incentives to be considered.
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, and again on May 13, 2025, the Town and Evergreen amended the DDA to extend the Inspections Period and Approvals Period to Aug. 14, 2025, and Aug. 14, 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 Aug. 14, 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 Aug. 14, 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 necessary 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 Third Amendment to the DDA to extend the Inspection Period to Nov. 12, 2025, and Approvals Period to Nov. 12, 2026.
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 25-135
2. Third Amendment to the DDA
3. Existing DDA