SUBJECT:
Title
An Ordinance of the Town Council of the Town of Erie Approving the Purchase of Real Property from TI Residential, LLC and Approving the Associated Purchase and Sale Agreement
Department
DEPARTMENT: Parks & Recreation
Presenter
PRESENTER(S): Luke Bolinger, Director of Parks & Recreation
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Time
TIME ESTIMATE: 0 Minutes
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Fiscal
FISCAL SUMMARY:
Cost as Recommended: $476,100
Balance Available: $7,431,020
Fund Trails & Natural Areas Fund
Line Item Number: 210-50-110-604500-000000
New Appropriation Required: Yes
Policy
POLICY ISSUES:
Consideration of the Town Council to appropriate and expend funds from the Trails, Natural Areas Fund (TNAF) to acquire this property and devote it to open space and trails.
Recommendation
STAFF RECOMMENDATION:
Approve the ordinance authorizing the purchase, authorize the Town Manager to execute the Purchase and Sale Agreement, and authorize staff to expend funds to acquire the property.
Body
SUMMARY/KEY POINTS
• This item is before Council to consider approval of a Purchase and Sale Agreement for 31.74 acres of priority open space identified by OSTAB.
• Upon Council approval, staff will initiate a 45-day due diligence period, including environmental review, ALTA survey, and title examination, funded through TNAF.
• The negotiated purchase price of $476,100 reflects a $473,900 reduction from the appraised value of $950,000, which the seller intends to treat as a charitable donation.
BACKGROUND OF SUBJECT MATTER:
Earlier this year, representatives of the property owner reached out to staff after receiving a courtesy open space inquiry letter sent annually by members of the Open Space & Trails Advisory Board (OSTAB). As part of OSTAB’s annual work plan, a letter is sent to property owners in Erie’s planning area indicating the Town’s interest in purchasing and preserving land for open space. This property has long been identified by OSTAB and staff as a priority parcel due to its adjacency to existing open space and its potential to provide trail connectivity between the Wildrose, Erie Village, Kenosha Farm, and Canyon Creek neighborhoods.
The Town proposes to acquire 31.74 acres that, while once intended for development, has remained vacant due to subsidence risks from historic mining activity, which would make construction prohibitively expensive. The Town obtained an independent appraisal in May 2025 establishing the fair market value at $950,000. The Town negotiated a purchase price of $476,100, resulting in a $473,900 reduction from appraised value. The Seller indicated its intent to treat that difference as a charitable donation to the Town. While this transaction generates significant financial benefit to the Town, staff have clarified that the Town will not provide tax advice or assume any responsibility for the Seller’s tax treatment. If requested, the Town may provide a simple written acknowledgment of receipt consistent with standard practice.
If Council approves the Purchase and Sale Agreement, staff will begin a 45-day due diligence investigation of the property. This investigation will include, but not be limited to, an independent Phase I Environmental Survey, an ALTA survey, and a review of any title exceptions.
The use of TNACC funds requires a supporting recommendation by OSTAB. The potential purchase of this property was presented to OSTAB in executive session on June 30, 2025, and OSTAB supports the purchase and property donation as proposed.
The TNACC Fund has an available balance of $7,431,020 to cover the appropriation of $476,100 required for this acquisition.
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. Ordinance
2. Purchase and Sale Agreement
3. Map