SUBJECT: Consent Agenda
Title
A Resolution of the Board of Trustees of the Town of Erie Approving the Sixth Amendment to the Disposition and Development Agreement for the Nine Mile Project
Body
DEPARTMENT: Administration
PRESENTER: Malcolm Fleming, Town Administration
STAFF RECOMMENDATION:
Recommendation
Approval of resolution
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The 6th Amendment of the Development Agreement is with Evergreen Development and the TOEURA for the 287 -Arapahoe “Nine Mile” site. The key provisions in this 6th Amendment include:
• Providing for the retail property to be developed in two phases, reflecting the current commitment from Lowe’s to the site and reserving a second anchor location on the site.
• Clarifying the value of the TOEURA/Town contribution to facilitate implementation of the Urban Renewal Plan.
• Providing for reimbursement of actual reimbursable project costs from 50% percent of the incremental sales tax revenue and 100% of the incremental annual property tax
• Setting a cap on the total reimbursement of projects costs from tax.
• Clarifying closing provisions.
• Clarifying provisions relating to the 2nd anchor parcel, which is retained by the TOEURA
• Providing an updated Exhibit to clarify the Developer’s vision and concept for development on the property, as requested by the Board of Trustees on September 24.
These provisions are based on the Developer’s request for financial assistance to make the project feasible and the Town’s analysis of that request. To complete the analysis, the Town commissioned EPS to conduct an independent review of the Developer’s request. EPS determined the Developer’s request is reasonable, and that without Town/TOEURA assistance, the project would not be feasible and the site would continue to remain blighted (as defined by Colorado Urban Renewal Law). Further, the Town’s analysis concludes that the project will provide significant tax revenue to the Town that, over time, will far outweigh the cost of the assistance required to address the blighting conditions on the site.
During the TOEURA/Board of Trustees September 24, 2019 meeting, the TOEURA/Board asked staff to add provisions to the proposed Amendment that clarifies the Developer’s continuing commitment to the vision and level of quality in design and architecture that influenced the Town to select the Developer through the RFP process. The Developer has prepared Exhibit A-2 to reflect the vision and concepts for the Property, and staff has incorporated language into the agreement providing that the Agreement anticipates the Developer submitting detailed project plans and specifications that fully reflect this vision and concepts, and that the Developer’s submittal is subject to the Town Board of Trustees’ approval and determination as to whether the submittal is consistent with the vision and concepts and applicable development requirements.
Evergreen initially presented to the Board of Trustees regarding Nine Mile on October 20, 2015. The meeting video from October 20, 2015 can be view at: <https://erie.granicus.com/player/clip/1424?view_id=18>
ATTACHMENTS:
1. Resolution
2. Sixth Amendment to the Disposition and Development Agreement