WILTON — Would a tax-increment financing district in downtown Wilton be the right tool to help attract developers for empty properties or encourage existing owners to make improvements?

It's a topic about which three local towns are interested in learning more, said Alison Hagerstrom, executive director of the Greater Franklin Development Corp.

Following a presentation she gave this week to selectmen on economic development opportunities in Wilton, Hagerstrom agreed to help find someone who could educate selectmen, the Planning Board and residents about TIF districts.

“We want to do it right and make sure there's some good information out there so people can make an informed decision,” she said.

The board decided Tuesday to explore the idea of creating a TIF district downtown with the goal of presenting it to voters during the June town meeting.

Wilton, along with Farmington and Livermore Falls, is interested in exploring the potential, Hagerstrom said, suggesting that the three towns could collaborate to pay a consultant to help them learn about the districts.

TIF districts can be controversial, but they are a tool that can be overlooked, she said. It's something property owners and existing business owners might find advantageous.

For example, if a property owner made an investment on improvements according to TIF guidelines such as putting in all-new, energy-efficient windows and doors, the property tax assessed on the improvements could be sheltered by the town, Hagerstrom said.

If the improvements increased the property tax by $1,000, a credit enhancement agreement would allow the town to negotiate with the developer to determine how much of that tax money would go back to the developer and how much the town would keep for economic development. It could be negotiated at 70/30 or 50/50 for up to 30 years, she said.

When the TIF period ended, the town would receive the full tax value on the property, she said.

abryant@sunjournal.com