SUBJECT:
Title
A Resolution of the Board of Commissioners of the Town of Erie Urban Renewal Authority Approving a First Amendment to the Reimbursement Agreement with SpenALu LLC
Department
DEPARTMENT: Economic Development
Presenter
PRESENTER(S): Jack Hill, Business Development Specialist
end
Time
TIME ESTIMATE: 30 minutes
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Fiscal
FISCAL SUMMARY:
Cost as Recommended: $200,000
Balance Available: $80,000
Fund Urban Renewal Authority
Line Item Number: 800-90-872-576000-000000
New Appropriation Required: Yes, in supplemental appropriation.
Policy
POLICY ISSUES:
Supports Urban Renewal Authority goals to incentivize commercial development, remediating blighted real estate and increasing long-term sales tax revenue.
Recommendation
STAFF RECOMMENDATION:
Approve the First Amendment to the Reimbursement Agreement with SpenALu LLC, increasing the maximum reimbursement amount and adding a lump sum payment provision. This will require a supplemental appropriation, which must be approved or the funds will not be available.
Body
SUMMARY/KEY POINTS
* This agreement increases the reimbursement cap from $566,000 to $725,000 and adds a $200,000 lump sum payment.
* Approving the agreement extends project deadlines and clarifies repayment obligations if milestones are not met.
* This agreement maintains sales tax increment reimbursement structure with updated cap and termination date.
BACKGROUND OF SUBJECT MATTER:
The Town of Erie Urban Renewal Authority (TOEURA) originally entered into a Reimbursement Agreement with SpenALu LLC on Jan. 14, 2025, to support the development and construction of a new restaurant project within the urban renewal area. The original agreement provided for reimbursement of certain eligible costs through sales tax increment, with a maximum reimbursement amount of $566,000.
Since the execution of the original agreement, the developer has encountered increased project c...
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