LIVERMORE FALLS — An informational meeting on a proposed tax-increment financing application will be held Monday, Jan. 13. The meeting will begin at 6:30 p.m. at the Town Office.
The TIF agreement would have the town capturing 90 percent of the new valuation of a $17 million CMP substation upgrade over 30 years
The Central Maine Power Co. would not gain from the municipal TIF, if passed. Among the possible projects are creating a business park, wastewater treatment plant upgrades, natural gas distribution systems, trail system improvements, training/scholarship funding, cultural/arts programing, downtown improvements, economic development dues and more.
Consultant John Cleveland met with selectmen Monday to discuss what they would like to see in the application and to show them a map of the proposed property that could be considered in the district for economic development.
A business or area not in the district could be considered for development as long as it is related to economic development, he said.
The map encompasses the part of the Otis Falls Mill that is in Livermore Falls, property near the ReEnergy biomass plant on Diamond Road, downtown and along Park Street/Route 133 and other places. The map will be reworked for Monday’s meeting to make it fall within the 2 percent cap of the town’s total acreage and not exceed the 5 percent cap of the town’s total valuation.
An initial look at the property district showed that it would include 238.84 acres, exceeding the 230.59-acre cap. But after review, a 21-acre parcel was to be removed because it was not supposed to have been included, Town Manager Kristal Flagg said.
The total valuation was at $7.19 million without removal of the 21 acres, which was below the $7.4 million valuation cap.
Cleveland reviewed different scenarios of new valuation capture, including not capturing any new value and a 90 percent capture with 10 percent going into the general fund.
If the town did nothing, in the first year of the new valuation for the substation in 2014-15, the town would have to pay $47,160 more for general purpose aid to education, lose $11,683 in state revenue sharing and pay $5,820 more in county taxes, according Cleveland’s chart. It would mean $64,663 in lost municipal funds, he said.
Over the 30 years, the town would lose $5.8 million in municipal funds and gain $5.5 million in net revenue to the general fund.
If the town went with a 90 percent capture of value, the town would lose $6,507 in the first year and by the end of the 30-year period lose $591,262, according to the data. The net revenue gain would be $544,481 in that scenario. It would retain 94.79 percent of revenue, Cleveland said.
He recommended the town go with the 90 percent capture of value because once the TIF is in place, the amount of capture cannot go up but could go down, he said. If the board chooses not to do 90 percent one year, they could do a lower amount.
“You can choose to do a lower amount. You cannot say we need more,” Cleveland said.
The town would also be able to save for major projects that qualify under the law for TIF funds, he said.
By creating this TIF, the town is going to create a revenue source that has to be used in economic development, he said.
The board also agreed to go with 100 percent credit-enhancement agreements to provide an incentive to developers interested in investments within the TIF district.
If you say 100 percent, you don’t have to give 100 percent; you could do less, Cleveland said. He recommended 100 percent to give the board flexibility over the next 30 years to help develop jobs and attract and retain businesses.
A public hearing on the application will be held at 6:30 p.m. Jan. 21 at the Town Office. Residents will vote on the application at 6:30 p.m. Feb. 10 at the Town Office.
Send questions/comments to the editors.
