The Town of Erie Urban Renewal Authority approved an agreement with developer Rearview Mirror Concepts for a new 10,000-square-foot mixed-use building at Wells and Kattell streets, part of the town’s broader effort to increase activity in Historic Old Town.
The development would mark the first new commercial project in the Historic Old Town area since 2021, according to a town announcement.
The proposed 1.5-story building could include a full-service restaurant, a local ice cream shop, a bakery and two small retail spaces. Town officials said the design would make the area more welcoming and walkable, connecting Briggs Street to Coal Creek Park. The developer plans to prioritize local businesses, and recruitment has already gotten underway for a bakery and boutique retailers, according to the town.
In Erie, the Town Council serves as the officers of the Town of Erie Urban Renewal Authority, which was established in 2011. The authority’s board also includes other representation, including from Weld County and the St. Vrain Valley School District.
Title 31 in Colorado state law gives cities and towns the right to form urban renewal authorities, which can use tools including tax increment financing to encourage economic vitality in defined areas.
A TIF is a tool used by local governments to fund improvements in an area without raising tax rates. Instead, as an area’s property and sales tax revenues increase, that value is captured and reinvested to fund improvements.
The town’s urban renewal authority purchased the property in May 2025 for $500,000 to help redevelop what officials described as an “underused” part of downtown Erie, according to town officials. Rearview Mirror Concepts was selected in September, and a development agreement was approved at Dec. 9 meeting.
To help finance the project, the urban renewal authority agreed to provide the developer with up to $1.9 million in new incremental tax revenue generated by the development. The town will only begin covering costs once the project is built, open and generating that new revenue, according to the announcement.
Under the agreement, the developer must repay the town’s original property purchase price using regular, non-increment sales tax revenue. If the purchase price is not repaid by Dec. 31, 2032, all incremental tax revenue will go to the urban renewal authority until the balance is paid in full.
If the project does not generate enough tax revenue, the developer would be required to reimburse the urban renewal authority directly.
The development agreement estimates that total design and construction costs could be $5.2 million.
Construction is required to begin by Dec. 31, 2027, according to the agreement, and be completed by Dec. 31, 2028. Rearview Mirror Concepts will need to go through the town’s permitting and review process. Construction could start around the end of 2026, according to a town spokesperson, who said town staff anticipates the developer will be working with the Planning & Development Department on all necessary approvals throughout the year.
The last commercial project completed in Historic Old Town was a mixed-use building at the opposite corner of Wells and Kattell streets, according to the spokesperson. That building is home to the Erie Social Club and other small businesses and was developed by local developer Rich Hiegel.