Erie getting creative with incentives

ERIE – The town of Erie is considering expanding the number of incentives it offers to new residents and to real estate brokers that help locate businesses in the community.

Erie’s board of trustees this week considered a proposal to offer incentives such as free membership to the community center and Colorado National Golf Club to people who buy new homes. Discounts on items sold by local businesses could also be included, Mayor Joe Wilson said.

The total value of the incentives could be $1,500 to $2,000, he said.

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The hope is the program would boost the number of new homes built in Erie. The town gets about $40,000 in building fees for each new home, Wilson said.

“We think it’s a budget positive move to add dollars to the overall economy,” Wilson said.

The proposal, tentatively called “It Pays to Be in Erie,” still has to be approved by Erie’s board of trustees. If it is enacted, it will be one of three programs Erie has created in the past two months to try to “prime the economic pump,” Wilson said.

“I don’t believe a town has ever put together a package like this before. These things are groundbreaking, innovative and bold,” Wilson said.

Last December the town approved an incentive program for commercial real estate brokers who could land new tenants for Erie. The Commercial Broker Incentive Program offers real estate brokers who refer tenants that move to the town a 0.5 percent commission, which is based on the purchase price or lease value of the property. The commission is available after the businesses have been open for a minimum of 90 days.

The town allocated $100,000 for the program in the 2011 budget.

“Brokers are very excited,” Wilson said.

Because the finder’s fee program went into effect Jan. 1, it is too early to know if it swayed anyone’s actions, and no one has stepped forward to claim a fee, said Fred Diehl, assistant to the town administrator.

Erie also is offering “Erie Bucks,” which Wilson characterized as a “buy local” campaign. Residents will be sent cards enclosed with their water bills that will let them receive a $5 discount on a single purchase from participating businesses. The city will reimburse businesses for the discount.

The cards will go to approximately 6,500 households. The money for the program will come from $50,000 the town set aside to support local businesses, Diehl said.