CMP/Riverfront TIF District & Development Program

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CMP/Riverfront TIF District & Development Program3.03 MB
Public Hearing Power Point March 25, 20141.96 MB
Select Board Power Point Presentation_03-11-142.23 MB
Tax Increment Financing Powerpoint Presentation1.37 MB
Authorized Project Costs Handout241.37 KB

The new TIF District was adopted at Town Meeting on June 11, 2014.

The Town created a new TIF District, along part of CMP’s corridor along Browns Point Road.  As part of CMP’s Maine Relibility Project they will separating the two 345 transmission lines onto separate towers, therefore constructing a second set of towers (or poles).  CMP is planning on starting construction this winter and construction is expected to take a year. 

To assist the Town in creating this TIF District the Town has hired Midcoast Council of Governments.  Scott Benson, their Senior Program Director has been working with TIF Districts for over 20 years.  The proposed TIF District will be brought before voters at Town Meeting 2014.

So what is a TIF District?  A Tax Increment Financing (TIF) is a public economic development financing program, funded by the property taxes generated by the incremental new value from a development project, in this case CMP’s project.  The TIF only applies to the new value added as a result of the project, also known as the Increased Assessed Value.  The tax revenues from the TIF district can be used for: Town economic development programs, Town events, marketing, creating a revolving loan fund, and skills development and training.

Why create a TIF District?  Creating a TIF District provides funding that is dedicated to economic development.  The increased assessed value within the TIF District is “sheltered” from the Town’s overall valuation, which is how the Town’s share of county taxes, state revenue sharing and school budget are determined.  Creating a TIF District allows the Town to capture up to 100% of the tax revenue on the increased assessed value.  Whereas, if a TIF District wasn’t created the Town would loss about 40% of that tax revenue to higher county and school bills and lower state revenue sharing. 

The Town is NOT giving any monies to CMP as a credit enhancement agreement.  All tax funds from this d TIF district will be used by the municipality for economic development, as outlined in the development program.

For more information about this project, please contact Nicole Briand at 666-5531 or nbriand@bowdoinham.com.