SUBJECT:
Title
Update on I-25 Erie Gateway Phase 1 URA
Body
DEPARTMENT: Economic Development
Department
PRESENTER(S): Julian Jacquin, Economic Development Director
Andrew Arnold, Pioneer Development Company
First Name Last Name, Title
TIME ESTIMATE: 45 minutes
only required for non-consent items
POLICY ISSUES:
The key policy decision is whether to support Town staff’s strategy for an updated Phase 1 Plan Area boundary and timeline for potential adoption.
STAFF RECOMMENDATION:
Recommendation
Presentation and discussion of strategy for forming new urban renewal plan area for Phase 1 of the I-25 Erie Gateway development site.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On May 9, 2023, the Town’s hired consultant (Pioneer Development Company) presented three draft documents required to create a new urban renewal plan area(s) for the I-25 Erie Gateway development site. The study area examined for these documents consisted of 92 parcels on 2,271 acres, representing most of the Town’s I-25 frontage and the I-25 Erie Gateway project area. Inclusion in a new urban renewal plan area (URA) provides a public financing mechanism to eliminate and prevent conditions of blight, extend necessary infrastructure services, attract private investment, and use underdeveloped land to support the development and redevelopment of this primary focus area in Erie.
At that meeting, the TOEURA Board of Commissioners directed Town staff to separate this larger project area into multiple smaller URA plan areas, intentionally to maximize the 25-year TIF clock provided by the Colorado Urban Renewal Law, and only activate new URA plan areas for those portions of I-25 Erie Gateway that may develop the soonest. Reflecting this direction, Pioneer Development Company has updated the three planning documents for a new, smaller, Phase 1 plan area boundary, representing the northernmost portion of I-25 Erie Gateway, and consisting of 536 parcels and 1,100 acres (roughly half the original boundary). Staff and the consultant will present these documents at the March 12 TOEURA meeting for information purposes only.
Additionally, Town staff has since mailed notices to the taxing entities impacted by this Phase 1 plan area boundary, triggering the 120-day negotiation period established in the Colorado Urban Renewal Law (C.R.S. 31-25-103) to reach agreement with the impacted taxing entities for tax revenue sharing. Please note that the figures provided in the “Erie Gateway Phase 1 Impact Report” for total tax increment financing (TIF) revenue available to be generated over 25 years is an estimated total calculated using approximate density and floor area ratio (FAR) assumptions prepared internally by Town staff, and do not reflect any reductions in revenue resulting from required tax revenue sharing with the impacted taxing entities. This reflects a total number which may be available to be generated by TIF but does not reflect how much TIF revenue may be captured by the new urban renewal plan area (URA). Revenue sharing required by impacted taxing entities will be negotiated and approved via an Intergovernmental Agreement (IGA) with each taxing entity prior to approving the new URA.
On March 12, Town staff are requesting support from the TOEURA Board to proceed with the updated Phase 1 plan area boundary and continue negotiations with the impacted taxing entities to advance towards public hearing(s) and potential adoption by the Town Council. Included below is a draft proposed timeline of required actions to complete this process:
|
February 2024 |
Mail notice to taxing entities for new Phase 1 URA plan area |
|
March 2024 |
Presentation of draft planning documents to TOEURA Board |
|
June 2024 |
120-day deadline for negotiation of revenue sharing with taxing entities |
|
July 2024 |
Publish notice of public hearing and submit plan to Planning Commission |
|
August 2024 |
Public Hearing and potential adoption of URA plan by Town Council |
COUNCIL PRIORITY(S) ADDRESSED:
ü Attractive Community Amenities
ü Prosperous Economy
ü Well-Maintained Transportation Infrastructure
ü Effective Governance
ü Fiscally Responsible
ATTACHMENT(S):
1. Presentation
2. Erie Gateway Phase 1 Conditions Survey 1.1.2024
3. Erie Gateway Phase 1 Urban Renewal Plan 1.1.2024
4. Erie Gateway Phase 1 Impact Report 1.28.2024