By Scott Taylor,Staff Writer

LEWISTON – Promises of tax revenues from the former St. Dominic’s Regional High School parcel helped sway councilors to support a tax benefit deal.

Work on a 30-unit senior citizen housing project could begin next spring, according to Dennis Lajoie, housing director Community Concepts.

Councilors approved a tax increment finance district for the project, proposed for 1.44 acres along Bates Street. According to the deal, the project will generate about $900,000 in property taxes over the next 20 years. The city will keep about $406,000, returning the rest to Community Concepts.

“Keep in mind that it is property the city has never collected a dime in property taxes from,” said City Administrator Jim Bennett. The property was tax-exempt, owned by the Roman Catholic Diocese of Portland.

Bennett said Tuesday’s deal was part of the city’s effort to get tax-exempt properties and those owned by nonprofits to help support the city.

The deal involved an affordable-housing TIF, something councilors said concerned them.

“We’re used to getting some economic development from TIFs,” said City Councilor Norm Rousseau. The promise of tax revenues convinced him, however.

“I would love to be able to take nonprofits and turn them to tax paying,” Rousseau said. “Plus, this is a rare opportunity where we are giving a tax benefit to 30 people that live in our community – a direct TIF benefit to people. That’s something very rare.”

The project will include about 25 one-bedroom apartments and five two-bedroom apartments specifically for low-income senior citizens. Community Concepts must keep rents affordable for the next 90 years, according to the deal. In 2005 dollars, that’s between $400 and $450 per month for a one-bedroom apartment.

The project is being paid for with state and federal money and $3.16 million from the New England Housing Investment Fund. Construction is expected to cost about $2.9 million.