The Littleton City Council voted 4–3 to approve a public-private partnership for the First Street Farms development, a hospitality development linked to former Denver Broncos quarterback Peyton Manning.

The vote finalizes an agreement between the city and developer Gastamo Group to close a $5.5 funding gap for the River Park site near Mineral Avenue and Santa Fe Drive. 

Under the terms, the city will provide a $2 million performance-based loan, along with tax incentives and fee waivers. Mayor Kyle Schlachter and council members Merrill Stillwell and Robert Reichardt opposed the measure.

The development includes a 15,000-square-foot restaurant and a 13,000-square-foot indoor event venue, a multi-use turf field, trails and open space connected to the river corridor. 

The project also has backing from former Denver Broncos quarterback Peyton Manning. The restaurant will feature a storytelling element based on Manning, whose role is limited to promotional activities, according to developers.

Programming at the site is expected to include free concerts, festivals, farmers markets and partnerships with local organizations.

The total project cost is estimated at more than $28 million, with developers previously identifying a roughly $5.5 million funding gap. In April, the council held a study session on how the city could help address that shortfall. 

Developers said that without the partnership, they would likely pursue housing on the site instead.

In addition to the $2 million loan, the agreement allows developers to receive 100% of sales tax revenues generated by the project for up to five years, capped at $3 million. The city will provide an additional $531,000 in waived fees and use taxes. 

In return, the city is expected to begin collecting full sales tax revenues in year six, projected between $775,000 and more than $1 million annually.

The agreement also includes public access provisions. Residents will have access to the turf field, trails and open space during the loan period, while the city and nonprofit groups will receive free use of the event venue during the initial five-year tax-sharing period.

A third-party analysis estimates the development will generate more than $700 million in total economic activity over the next 30 years and support 324 ongoing jobs.

The project is projected to generate a net fiscal benefit of about $21.5 million to the city.

City officials said the incentive package will not impact the general fund, reserves or existing capital projects because it relies on designated use tax revenues, though it could influence future capital priorities.

Some council members raised concerns about financial risks and long-term commitments around the forgone tax revenue and guarantees tied to public amenities.

Explaining his no vote, Mayor Schlachter said he supported the project but questioned the structure of the deal and the level of city funding.

“I think the fact that we would be giving up sales tax for five years, we would be in the red on a $2 million loan for seven to probably closer to 8 or 9 years, is a burden to the taxpayers of Littleton,” Schlachter said. “We have needs now and in the next five years … and instead of delaying some of those projects or incurring more debt, that’s what we could use those funds for.”

During public comment, multiple residents spoke in support of the project, citing its public and economic benefits. Others opposed the partnership, with several saying they supported the concept but not the city’s subsidy package.