SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a First Amendment to the Tax Increment Revenue Agreement with the Town of Erie Urban Renewal Authority for the Erie Town Center Urban Renewal Plan
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Malcolm Fleming, Town Manager/TOEURA Executive Director
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Time
TIME ESTIMATE: 0 minutes
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Fiscal
FISCAL SUMMARY:
Projections provided by the Town's development partner, Evergreen Devco, show that sharing 3.25% of the Town's 3.50% sales tax as tax increment will allow the Erie Town Center Urban Renewal Plan Area (URA) to capture approximately $22M in new sales tax increment by retail sales generated within this new development program. The existing TIF Agreement approved by the Erie Town Council on Feb. 25, 2025, and executed by TOEURA on Jun. 10, 2025, only authorizes the URA to capture 1.75% (50%) of the Town's sales tax rate, reducing the amount of sales tax increment captured by the URA to approx. $11.8M. Approving this First Amendment to the Town of Erie's TIF Agreement will allow the URA to capture an additional $10.2M in sales tax increment, to further reduce the demonstrated gap and help achieve financial feasibility for this key development in Erie.
Policy
POLICY ISSUES:
The policy issue is whether to support an amended TIF revenue sharing agreement from the Town of Erie, increasing the municipal sales tax pledge for tax increment to be generated by new development in the Erie Town Center Urban Renewal Plan Area (URA) from 1.75% (50%) to 3.25% (92.9%) of the Town's 3.50% sales tax rate. This, and other actions are necessary to reduce the financial gap demonstrated by the Town's development partner, Evergreen Devco, and facilitate the development the Town wants to see happen. It also still provides sufficient revenue with the remaining 0.25% municipal sales tax to c...
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