SUBJECT:
Title
An Ordinance of the Town Council of the Town of Erie Approving a Purchase and Sale Agreement with Tebo Partnership LLLP and Authorizing the Related Transfer of Property to Tebo Partnership LLLP
Department
DEPARTMENT: Administrative Operations
Presenter
PRESENTER(S): Patrick Hammer, Deputy Town Manager
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Time
TIME ESTIMATE: 0
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Fiscal
FISCAL SUMMARY:
Cost as Recommended: Revenue of $700,000
Balance Available: NA
Fund General Fund
Line Item Number:
New Appropriation Required: No, sale proceeds of $700,000 will be booked as revenue in the General Fund
Policy
POLICY ISSUES:
The Town Charter requires Town purchase or sale of real property to be approved by Town Council through an ordinance. Selling the Town’s 3.48 acre parcel to Tebo Partnership LLLP is consistent with the Town’s agreement in the 2019 Global Settlement with the City of Lafayette that the City and Town will “cooperate with each other to foster development of both the Lafayette Development Parcel and the Erie Development Parcel in a complementary pattern to achieve optimal economic and societal benefits for both Lafayette and Erie.” Facilitating development on this parcel will ultimately generate sales tax revenue for the Town through the revenue sharing provisions in the Global Settlement. Finally, other than facilitating development in this location, the Town has no other use for this property, it requires periodic maintenance, and consequently, it is surplus.
Recommendation
STAFF RECOMMENDATION:
Adopt the Ordinance authorizing the Purchase and Sale Agreement and subsequent transfer of property to Tebo Partnership LLLP.
Body
SUMMARY/KEY POINTS
• On May 27, 2025, the Council approved by resolution a prior version of the PSA with Tebo Partnership LLLP to sell a roughly 3.47-acre parcel of Town-owned land for $700,000 to be integrated into a future mixed-use development located at the southwest corner of Arapahoe Road and Highway 287.
• The Town and Tebo Partnership needed additional time to negotiate and agree to water rights, ditch rights, easements, and termination provisions not identified in the original May 27 PSA. The negotiations and new terms necessitated a new PSA for Council’s approval.
• Approving this PSA advances the terms outlined in the 2019 City of Lafayette - Town of Erie - Town of Erie Urban Renewal Authority IGA on Comprehensive Development Plan/Dispute Resolution (generally referred to as the Global Settlement Agreement).
BACKGROUND OF SUBJECT MATTER:
To facilitate the development within the City of Lafayette, the Town of Erie has agreed to sell a 3.48-acre parcel known as Prince Reservoir #2 (aka Little Prince Lake) to Tebo Partnership. This parcel, once a forebay to the Prince Reservoir, which was located where the Town’s Nine Mile development is now, no longer serves a functional purpose for the Town. The parcel sale enables the development to move forward, which once complete, will generate new sales tax revenue-50% of which the City of Lafayette will share with the Town of Erie under the terms of the Global Settlement and Revenue Sharing Agreement.
The sale of this parcel, and the related purchase of the property from the City of Lafayette is mutually beneficial for regional economic development and securing critical water infrastructure needs for the Town.
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