SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the Restated Disposition and Development Agreement with the Town of Erie Urban Renewal Authority and Evergreen-County Line & Erie Parkway, L.L.C. for the Erie Town Center
Department
DEPARTMENT: Economic Development
Finance
Planning & Development
Presenter
PRESENTER(S): Julian Jacquin, Director of Economic Development & TOEURA
Lockie Woods, URA and Development Accounting Analyst
end
Sarah Nurmela, Planning & Development Director
Time
TIME ESTIMATE: 30 minutes
end
For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
Approving Resolution 25-181 and the Restated DDA commits the Town to three funding obligations and the Town of Erie Urban Renewal Authority (TOEURA) to one funding obligation.
The Town will fund $5.1M in mine mitigation using Certificates of Participation (COPs). The Town will provide a credit enhancement to support up to $16.1M in eligible public improvements through a Town moral obligation or Town issued COPs. The Town will contribute up to an additional $2.5M for eligible transportation improvements from the Transportation Impact Fund if URA revenues do not reach the $16.1M target. Town exposure ranges from $5.1M to $7.6M.
TOEURA will pledge 100% of the property tax increment and 3.25% of the Town's 3.5% sales tax rate captured by the new Town Center URA, and all Public Improvement Fee (PIF) revenue toward repayment of the project financing.
Total public reimbursements by the Town and TOEURA cannot exceed $21.3M.
With a 5% interest rate, the 50-year net present value of the revenues generated by this project and retained by the Town is approximately $8M. This exceeds the Town's maximum up front financial contribution to the project.
Policy
POLICY ISSUES:
The policy issue is whether to approve the restated DDA for Erie Town Center.
Recommendation
STAFF RECOMMENDATION:
Approve Resolution 25-181.
Body
SUMMARY/K...
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