By Scott Taylor,Staff Writer

AUBURN – Voices clamoring for retail development proved to be more powerful than doubts about a tax deal for councilors Monday.

All but two councilors voted to approve a $5 million bond issue to purchase rights-of-way, relocate utilities and redesign and widen the roads around the Mt. Auburn Avenue and Turner Street retail developments.

“I’ve talked to a lot of people who tell me they want places to shop right here,” said Councilor Donna Lyons Rowell. “But I know it is going to cost us, as a city. They know it, too, but they still want it. I’m worried about it, but I want to see it happen.”

Councilors will take up the matter a second time at their next regular meeting.

National retailer Best Buy has already announced plans to build a store just south of Mt. Auburn Avenue. It would join Longhorn Steakhouse, Ruby Tuesday and TGI Friday’s as part of a development called Auburn Plaza. The development is across Mt. Auburn Avenue from the Auburn Mall, across Turner Street from Wal-Mart and Lowe’s as well as the Kohl’s Department store, which is under construction.

The traffic changes are necessary to allow retail growth, according to backers. Retail growth is necessary for the city.

“This would be an opportunity for us to begin importing dollars back into our community,” said Bruce Rioux of 85 Mary Carroll St. Retail dollars now flow out of the city, to Augusta, Bangor and especially South Portland.

Rioux is a Sun Journal employee.

That argument swayed councilors.

“I’ve heard that from a lot of my co-workers,” said Councilor Eric Samson. “They want the opportunity to stay in this community when they go shopping.”

Debt doubts

The work would be paid for with a $5 million bond. Debt on the bond would be repaid over 20 years with revenues from a tax increment finance district on the mall area – but not right away. The city would need to budget $51,000 in other revenue to pay the bond the first year, $163,000 to pay it for the second year, $83,000 the third year and $16,000 for the fourth year. By the fifth year, the retail developments would be generating enough new revenue to pay the debt service.

Those first three years were a problem for Auburn resident Jonathan LaBonte, of 40 Reginald St. He also pointed to several discrepancies in the legal descriptions of tax increment finance deal.

For example, different parts of the document say the TIF district includes 105 acres while others say it covers 289 acres. The TIF is also projected to last through 2021. The city’s financials for the development call for money from the district through 2027.

“In other words, the taxpayers will be on the hook for six years worth of debt payments from their general fund,” LaBonte said. He urged councilors to table the plan on Monday and fix the inconsistencies with the TIF district before proceeding.

“I am pro-development, but I want what’s best for the taxpayers,” LaBonte said.

Councilors said they were sure any problems with the TIF district could be fixed later.

“None of those would cause me to turn down this application tonight,” said Councilor Kelly Matzen. “They can be amended if there really are inconsistencies.”

Councilor Belinda Gerry said the problems stopped her. She and Bob Mennealy were the only councilors to vote against the package.

“I agree it’s the best way to pay for these road improvements, but I just want to see all of the inconsistencies cleaned up,” she said.

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