Agenda Date: 09/15/2026
Subject:
Title
Resolution 62-2026: Approving the first amendment to the Economic Partnership Incentive Agreement Between the City of Littleton and RIG Mineral LLC for Retail Sales Tax Share Back
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Rachel King, Economic Development Director |
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Presentations: |
Rachel King, Economic Development Director |
PURPOSE:
To consider the approval of the first amendment to the Economic Partnership Incentive Agreement (“Agreement”) between the City of Littleton and RIG Mineral LLC
LONG-TERM OUTCOME(S) SERVED:
Robust and Resilient Economy
DISCUSSION:
Large scale projects like the Mineral Place development are complex undertakings that often take several years to move from the initial concept to opening day. The timeline can be affected by many areas within the development cycle including but not limited to planning, property negotiations, financing, permitting, infrastructure coordination, regulatory review, site conditions, weather, and construction delays for a variety of reasons. Because of this, a development timeline should be treated as an estimate and re-evaluated as the project progresses.
Within the Agreement, Section 3(a) states, “Certificate of Occupancy. RIG shall execute a Purchase and Sale Agreement with Costco Corporation which shall receive issuance of a certificate of occupancy for a business in the Project no later than two-years from the date of execution of the Agreement.” The Agreement was executed October 1, 2024 thereby requiring a Certificate of Occupancy by not later than October 1, 2026.
Due to unforeseen delays in construction, the anticipated opening date for Costco Corporation is delayed and now anticipated to open to the public in March of 2027. Staff proposes the First Amendment to allow the Costco Corporation to receive issuance of a certificate of occupancy within an additional year’s time. The First Amendment will extend the deadline for issuance of such certificate of occupancy from two years to three years from the date of execution of the Agreement thereby requiring a Certificate of Occupancy by October 1, 2027. If approved, Section 3(a) of the Agreement will be deleted in its entirety and replaced with the following: “Certificate of Occupancy. RIG shall execute a Purchase and Sale Agreement with Costco Corporation which shall receive issuance of a certificate of occupancy for a business in the Project no later than three (3) years from the date of execution of the Agreement.”
BACKGROUND:
In 2024, the city entered an Agreement with RIG Mineral LLC for the proposed redevelopment of the Lumen Technology site located at 700 West Mineral Avenue (“Project”). The Project, named Mineral Place, includes approximately 45 acres of commercial/retail development, extensive infrastructure and off-site infrastructure upgrades, and extensive landscaping. The development will consist of a Costco retail warehouse, a second anchor tenant and additional development lots.
The Agreement includes a maximum of $29,500,000 sales tax share back at a 50% rebate on collected sales tax up to 10 years. The term will expire with either the maximum rebate or ten-year term, whichever occurs first.
Prior Actions or Discussions
Resolution 103-2024: Approving an Economic Partnership Incentive Agreement with RIG Mineral LLC regarding Mineral Place.
FISCAL IMPACTS:
The first amendment to the agreement is a time extension only, with no change to the original estimated fiscal impact.
STAFF RECOMMENDATION:
Staff recommends approval of the First Amendment to the Economic Partnership Incentive Agreement between the City of Littleton and RIG Mineral LLC.
ALTERNATIVES:
Do not approve the First Amendment. If not approved, this will result in a default on the Agreement as currently written and will prevent the applicant’s ability to complete the project as proposed. Commercial development within Mineral Place will be delayed or will not result, thereby causing a delay in significant sales tax revenue generated for the city.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 62-2026 approving the first amendment to the Economic Partnership Incentive Agreement Between the City of Littleton and RIG Mineral LLC for Retail Sales Tax Share Back.