SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Authority Approving the Disposition and Development Agreement for 130 Wells St. and 570 Kattell St.
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Stephanie Pitts-Nagus, Economic Development Manager
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Time
TIME ESTIMATE: 15 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
The project is expected to generate new taxable activity in Old Town, strengthening the area’s commercial base and producing long-term fiscal benefits for the Town. TOEURA will convey the property at no cost and reimburse up to $1.9 million in eligible project costs using 100% of the Property Tax Increment and 40% of the Sales Tax Increment, while the developer repays the Town’s original $500,000 purchase price using non-increment Sales Tax Revenue. If any balance remains after December 31, 2032, increment sharing is suspended and TOEURA retains 100% of all Sales and Property Tax Increment until the purchase price is fully recovered.
If the $500,000 is still unpaid after December 31, 2032, or if the project generates no Sales Tax for three consecutive months following construction, the developer must directly remit the remaining balance. Failure to do so authorizes TOEURA to record a lien on the property for the unpaid amount.
Policy
POLICY ISSUES:
The proposed DDA advances key goals of the Historic Old Town Urban Renewal Plan by redeveloping a well-located vacant site into an active, street-oriented commercial destination. The project brings new locally focused retail and food uses that strengthen Old Town’s business mix, enhance the eastern gateway to downtown, and support a more vibrant and walkable community. The agreement also aligns with TOEURA’s policy objectives to stimulate private reinvestment, eliminate blight, and expand the long-term tax base through targeted, performance-based incentives.
Recommendation
STAFF RECOMMENDATION:
Approve Resolution 25-041.
Body
SUMMARY/KEY POINTS
• Approving the Disposition and Development Agreement allows the Wells & Kattell project to move from negotiated terms to formal approval and execution.
• The DDA includes firm performance deadlines-such as securing all approvals and commencing construction by Dec. 31, 2027 and completing construction by June 30, 2028-and will be recorded prior to closing.
BACKGROUND OF SUBJECT MATTER:
In 2025, the Town of Erie Urban Renewal Authority (TOEURA) acquired the two undeveloped commercial parcels at 130 Wells Street and 570 Kattell Street, totaling approximately 15,000 square feet, to catalyze redevelopment at the prominent southwest corner of Wells and Kattell streets within the Historic Old Town Urban Renewal Plan Area. Following a competitive RFQ process released in June 2025, Rearview Mirror Concepts (RMC), led by local developer and restaurateur Scott Skiba, was identified as the most qualified development partner based on project readiness, alignment with the Town’s adopted plans, and the proposal’s ability to activate this key Old Town gateway.
RMC’s concept includes a 1.5-story mixed-use building featuring a full-service restaurant, ice cream shop, bakery, and two small-format storefronts, all designed to support pedestrian activity between Briggs Street and Coal Creek Park. Throughout summer and fall 2025, Town staff, legal counsel, and the developer collaborated to validate the project’s financial gap and negotiate the terms necessary to advance the project, including land conveyance, construction timelines, permitted uses, and a Tax Increment Financing (TIF) reimbursement structure.
Town staff contracted with Pioneer Development Company to evaluate the Wells & Kattell development and prepare the attached Gap Funding Analysis. The analysis determined that the project requires approximately $1,000,000 in gap funding, in present-value terms, to achieve market feasibility. Because the project is expected to generate sufficient TIF revenue, TOEURA and the developer agreed to a revenue-sharing structure capped at $1.9 million in gross increment-an amount that over the anticipated reimbursement period equals the $1,000,000 present-value feasibility gap. This approach is consistent with other Historic Old Town URA partnerships, including Park West (105 Wells Street), Coal Park (615 Briggs Street), Legacy (700 Briggs Street), Birdhouse (526 Briggs Street), and Johnny Bechamel’s (656 Kattell Street).
These negotiations resulted in the Disposition and Development Agreement (DDA) now before the TOEURA Board of Commissioners. The DDA outlines the conveyance of the property, establishes performance milestones, and defines the tax increment-sharing and repayment terms required to make the project financially feasible and consistent with the goals of the Historic Old Town Urban Renewal Plan.
priorities
attachments
ATTACHMENT(S):
1. URA Resolution 25-041
2. Disposition and Development Agreement
3. Presentation
4. Gap Funding Analysis