LIVERMORE FALLS — Selectmen set several January meetings Monday night for the public’s consideration for an application for tax increment financing that could provide the town with funds to make several economic investments.
The action came following a presentation on the program by John Cleveland and Nate Libby of the Auburn consulting firm of Community Dynamics Corp. Tax increment financing is a state economic development program that allows municipalities to capture real estate property value and shelter the added valuation from new tax revenue so that school subsidies and revenue sharing won’t be affected.
The town is looking to the now-being-constructed $17 million dollar Central Maine Power Co. substation project. Just how much funding the town could realize is not yet known.
Cleveland said if the town decides against applying for a TIF, taxes will rise because the CMP project is due for completion by April 1, and the entire value of the project will be placed on the tax rolls which will reduce the amount of school subsidy and revenue sharing the town receives, and increase the amount of Androscoggin County taxes the town pays
But if the town decides to apply, the completed application must be submitted to the state Department of Economic and Community Development by Feb. 28.
Prior to then, the residents will have a chance to learn about the program and ask questions at a public informational session set for 6:30 p.m., Monday, Jan. 13. The official public hearing on entering into a TIF agreement was set for 6:30 p.m., Tuesday, Jan. 21. Cleveland and Libby will lead both sessions and answer any questions residents may have.
A special town meeting must also be held to garner public approval of seeking the agreement. That meeting was set for 6:30 p.m., Monday, Feb. 10.
Cleveland said funds captured from a TIF project could be used for a variety of economic development-related items, such as improving trail systems, building roads to business parks, help start up a commuter service, upgrade the town’s wastewater treatment facility, promote cultural and arts programs, provide business façade improvements, help fund economic development activities, and establish an economic development loan or grant program, among other projects.
Part of the application calls for setting areas that could benefit from the TIF funds. These include a portion of the former Otis Mill property, the downtown corridor from the Jay town line through the Bowen Brothers building, the town’s waste water facility, the Isaacson lumberyard, properties near the ReEnergy Biomass plant, and the new Central Maine Power substation footprint.
“There’s a full range of what could be,” said Cleveland.
All projects must be economically-oriented with the plan to improve current businesses and bring in new businesses.
Although the amount of funds the town could capture is not known right now, Cleveland said it would be “a fair amount.”
Cleveland will likely meet with Town Manager Kristal Flagg, and possibly selectmen to discuss any questions that may have arisen from the Monday night presentation.
“With state revenue sharing cut, school and county taxes going up, and a bare-boned budget, our only hope is to try to attract revenue,” said Flagg.
Community Dynamics Corp. consultants Nate Libby and John Cleveland, and Alison Hagerstrom of the Greater Franklin Development Corp., meet with the Livermore Falls Board of Selectmen to discuss a possible tax increment financing program Monday night.
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