Eagle council to consider incentive program to revive vacant commercial spaces
Idea is based on 'Vacant to Vibrant' effort in Lafayette
Chris Dillmann/Vail Daily
The Eagle Town Council will review a proposal for a new incentive program designed to encourage investment in vacant and underutilized commercial properties within the Downtown Development Authority district.
The request comes from the Eagle Downtown Development Authority board, which is recommending the town explore a permit fee and construction use tax rebate program modeled after the city of Lafayette’s “Vacant to Vibrant” initiative.
The Eagle town staff, on Tuesday, will seek direction from council on whether to further evaluate the concept and return at a later date with a detailed proposal for consideration.
According to a staff memorandum prepared by Economic Development and Housing Specialist Nikki Davis, the proposed incentive is intended to lower the upfront costs associated with commercial redevelopment and tenant improvements, making it easier for property owners and businesses to invest in vacant storefronts and other underutilized commercial spaces.
For years, critics have said that the Eagle Ranch development, with its own commercial core that started around 2000, bifurcated Eagle’s business community.
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Over the past several months, the DDA has discussed a variety of strategies to promote redevelopment within its district. While some communities have considered vacancy registration programs or taxes on vacant properties, the authority concluded that an incentive-based approach would be more effective and less burdensome.
Under the framework recommended by the DDA, qualifying projects could receive reimbursement for up to 50% of eligible town permit fees, plan review fees, inspection fees and construction use taxes, with a maximum rebate of $10,000 per project.
The authority is proposing a one-year pilot program funded with $25,000 from DDA tax increment financing revenues. Applications would be accepted on a first-come, first-served basis until funding is exhausted, and reimbursements would only be issued after projects are completed.
According to the staff memorandum, if the council directs staff to move forward, employees will “collaborate with the DDA, Finance, Community Development, and Legal to refine the proposed program before returning to Town Council for consideration.”
Council members will also be asked to decide how broad that evaluation should be. One option would direct staff to closely model the proposal after Lafayette’s existing program. Another would have staff examine additional commercial activation incentives before recommending an approach tailored specifically to Eagle.
Lafayette approved its “Vacant to Vibrant” program in September 2025 as a two-year pilot designed to reduce commercial vacancies by rebating up to half of eligible permit fees and construction use taxes for businesses opening, relocating or expanding into vacant commercial and industrial spaces.
The Lafayette program evaluates applications based on factors including potential sales tax generation, length of vacancy, highest and best use of the property and overall catalytic impact on the community. Rebates are awarded only after projects receive final inspections or certificates of occupancy.
Eagle’s DDA is recommending a somewhat simpler approach that would focus eligibility primarily on investment in commercial property within the DDA district rather than the specific type of business occupying the space.
Town staff noted the proposal aligns with Eagle’s 2026 Strategic Plan objective of investing in economic development by incentivizing commercial property activation.
If council directs staff to move forward, a formal pilot program would return to the Town Council for future review and possible approval.
