SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Authority Approving Intergovernmental Agreements for Tax Increment Revenue Sharing Between the Town of Erie Urban Renewal Authority and Various Taxing Jurisdictions
Body
DEPARTMENT: Economic Development/TOEURA
Department
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Malcolm Fleming, Town Manager, TOEURA Executive Director
First Name Last Name, Title
TIME ESTIMATE: 15 minutes
only required for non-consent items
FISCAL SUMMARY:
TOEURA’s approval of these agreements accepts a conditional pledge from the seven underlying taxing districts providing incremental property tax and sales tax towards the proposed Erie Town Center URA. The planned development program and projections contained in the Erie Town Center Impact Report show that these six agreements could provide up to $22.9 million in tax increment financing (TIF) revenue to remediate blighting conditions to facilitate in the development of this key focus area in the Erie Town Center PD.
POLICY ISSUES:
The policy issue is whether to accept the terms for tax increment revenue sharing adopted by the governing boards for the seven impacted taxing jurisdictions in the proposed Erie Town Center Plan Area boundary, to allow TOEURA to capture property tax and sales tax increment (TIF) generated by future development in this area to remediate blighting conditions and support eligible development costs for the Town-owned property at Erie Town Center. Approval will allow TOEURA to fully execute the Intergovernmental Agreements, so the Town Council can then hold public hearing(s) and consider adoption of the new Plan Area.
STAFF RECOMMENDATION:
Recommendation
Approve the Intergovernmental Agreements for tax increment revenue sharing with the various taxing jurisdictions.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
On Dec. 5, 2024, Town staff provided mailed notice to the impacted taxing entities within the proposed Erie Town Center Urban Renewal Plan Area (URA) boundary, including the Town of Erie, Boulder County, St. Vrain Valley School District, Mountain View Fire Protection District, High Plains Library District, Northern Colorado Water, and the Mile High Flood District. Per Colorado Urban Renewal Law, this notice initiated a 120-day negotiation period for the Town of Erie Urban Renewal Authority (TOEURA) to agree upon tax increment revenue sharing with each entity, prior to holding public hearings and requesting Town Council adopt the new Plan Area.
Town staff then presented three draft planning documents for the Erie Town Center Plan Area to the TOEURA Board of Commissioners on Dec. 10, 2024, including a Conditions Survey, Plan Document, and Impact Report. TOEURA supported staff’s recommended boundary and strategy and began negotiating with each taxing entity thereafter. All entities have been responsive and open to negotiation for certain revenue sharing to support the Plan Area.
The proposed Erie Town Center Plan Area includes one 19.41-acre parcel within the Town of Erie, located at the northwest corner of Erie Parkway and E. County Line Road. In total, the Plan Document assumes that development of this area will include 117 multi-family residential units, and 100,000 sq. ft. of commercial space (consisting of a 23,000 sq. ft. specialty grocer, 42,000 sq. ft. of retail/restaurant space, and a 34,500 sq. ft. hotel). These uses will support and stimulate development for the entire Town Center and serve the broader Erie community at the center of Town. Approval of the Erie Town Center Plan will allow TOEURA to use tax increment financing (TIF) to remediate blighting conditions to facilitate in the development of this key focus area in the Erie Town Center PD.
The intergovernmental agreements include two primary components:
• Agreement to share a portion of each taxing entity’s property tax mill levy (and sales tax rate for the Town of Erie) with TOEURA for the new Plan Area.
• Consent for inclusion of agricultural land within the Plan Area, required by state statute.
Included below is a summary of the terms approved by each taxing entity:
|
Taxing Entity |
Estimated Tax Increment |
Retained by TOEURA |
|
|
|
|
|
Town of Erie General Fund (Property Tax) |
$3,000,000 |
$1,500,000 |
|
Town of Erie Municipal Sales Tax |
$22,000,000 |
$11,000,000 |
|
Boulder County |
$4,500,000 |
$0 |
|
St. Vrain Valley Schools General Fund |
$12,000,000 |
$6,000,000 |
|
Mountain View Fire Protection District |
$3,500,000 |
$3,500,000 |
|
High Plains Library District |
$700,000 |
$700,000 |
|
Northern Colorado Water (NWC) |
$200,000 |
$0 |
|
Mile High Flood District |
$200,000 |
$200,000 |
|
|
|
|
|
Total Revenues |
$46,100,000 |
$22,900,000 |
Additional information will be discussed by Town staff at the June 10 TOEURA meeting.
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. Resolution 25-027
2. Exhibit A-1 - TIF Agreement_St. Vrain Valley School District
3. Exhibit A-2 - TIF Agreement_Mountain View Fire Protection District
4. Exhibit A-3 - TIF Agreement_Town of Erie
5. Exhibit A-4 - TIF Agreement_Boulder County
6. Exhibit A-5 - TIF Agreement_High Plains Library District
7. Exhibit A-6 - TIF Agreement_Northern Colorado Water Conservancy District
8. Exhibit A-7 - TIF Agreement_Mile High Flood District
9. Staff Presentation