Subject:
Title
A Resolution of the Board of Trustees of the Town of Erie Approving the First Amendment to Cooperation Agreement with the Town of Erie Urban Renewal Authority
Body
Department: Economic Development
Presenter(s): Julian Jacquin, Economic Development Director
Stefanie Furman, Finance Director
STAFF RECOMMENDATION:
Recommendation
Approve the Amendment to the Cooperation Agreement between the Town of Erie and the Town of Erie Urban Renewal Authority.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The current Cooperation Agreement was adopted on March 10, 2020, and formalizes the fiduciary obligations of the Town of Erie Urban Renewal Authority (TOEURA) to the Town of Erie for any advances of funding or loans to TOEURA.
The Historic Old Town URA (HOTURA) Plan Area, adopted by the Board of Trustees on Nov. 10, 2013, explicitly instructs TOEURA to capture both property tax increment and municipal sales tax increment revenue (TIF) within the Tax Increment Area. The Tax Increment Area was established in Appendix II of the URA Plan. It includes the commercial and residential parcels within the Plan area (see Figure 2, below).
Within the Plan Area, the "base level" is that portion of the municipal sales tax revenue, and the property tax revenue produced by the levy for each public body (Town, County, School District, Special District) on the taxable property valuation in the Tax Increment Area last certified prior to the effective date of the URA Plan. That base level of tax revenue continues to go to each taxing body. TIF is the incremental tax revenue above that base level that occurs after the effective date of the URA Plan. The URA plan directs TOEURA to allocate TIF to "the tax increment revenue fund to pay the principal of, the interest on, and any other premiums due in connection with the bonds of, loans or advances to indebtedness incurred by, whether funded, refunded, assumed, or otherwise, [TOEURA] for financing or...
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