LEWISTON – The big question for councilors Tuesday night was whether new tax revenues generated from Lisbon Street development around Oxford Networks would be greater than taxes lost to the project.

“I think it’s clear that any tax revenues we lose we’ll make up in new investment,” Councilor Renee Bernier said.

A majority of councilors agreed, creating a new Tax Increment Financing district for Oxford Networks’ proposed building at 433 Lisbon St., Northeast Bank’s proposed building at 476 Canal St. and the parking lot across from the Oxford Networks building.

That district will return all new real estate property taxes on those buildings to property owners Franklin Property Trust for the next 20 years – about $2 million through 2023.

City Administrator Jim Bennett said the city will continue to collect real estate property taxes on those buildings at their current levels – about $10,000 annually – and would collect new personal property taxes on office equipment and supplies for the new buildings.

“The assessed values on those buildings have been going down for the last few years, which means we’ve actually been collecting less and less in taxes,” Bennett said. “This reverses it. We continue to get the real estate taxes at the current level and we get the new personal property taxes.”

But Councilors Norm Rousseau and Marc Mason disagreed with the majority. Rousseau said the city plans to purchase three other properties surrounding the Lisbon Street development, losing tax revenues from those properties as well. Rousseau estimated revenues from those properties, including FHP Engines and an apartment building on Canal Street, at about $14,000 annually.

“There will be tax revenues coming in, sure, but I think we are losing more than we gain,” Rousseau said. “I don’t think it’s going to meet up at all.”

The city unveiled the plans for the project in May. According to plans, the city would join developers Stanley Sklar of the Franklin Property Trust and businesses Oxford Networks and Northeast Bank in redeveloping the block of buildings surrounded by Lisbon, Maple and Canal streets.

Plans call for three new office buildings, new sidewalks, buried utilities and a parking garage on the block. The deal would bring between 200-300 jobs to the area and could be complete within three years.

Lincoln Jeffers, city economic and community development deputy director, said he has already had inquiries from businesses interested in moving in near the Oxford Networks project.

“I think this project really was the catalyst,” Jeffers said. “We’ve had several inquiries in that area now because of this.”

staylor@sunjournal.com