When an underutilized public building won’t sell, creative financing can attract new owners.An innovative project in Erie, CO, has converted a vacant historic building into a public gathering space while also serving as a catalyst for a significant sales tax revenue increase, and garnering media buzz with a Governor’s Award for Downtown Excellence.
After failing to find a buyer for the former firehouse, Erie’s leaders passed an ordinance approving a Lease/Purchase Agreement with a nearby brewery. The agreement calls for transferring all costs of improvements, repairs, and maintenance from the town to the tenant, while the town retains ownership until execution of the option to purchase.
Having the capital to purchase a building and the equipment can be a struggle for start-ups, notes Paula Mehle, Erie’s economic development coordinator.
It was the town’s development of a successful funding mechanism that allowed a young company with a successful track record a means of bringing their business to Erie, she says.
“The Echo Brewing Company is a sales tax generator, but more importantly, we were able to convert an underutilized building into a community gathering space. And the town now benefits from the retail sales tax generated on this property for the first time in 46 years,” says Mehle.
The full article appeared in our print edition. To always get the full story, read Downtown Idea Exchange.