LEWISTON — A $12.8 million big-box retail development at the Maine Turnpike Exit 80 is one step closer to reality after city councilors approved a tax incentive deal Wednesday night.

Attorney Shawn Bell said Wednesday that the agreement lets developer Dave Gendron’s GRE LLC continue negotiations with the unnamed national retailer. Bell declined to identify the retailer.

“We get to keep negotiating with the tenant now,” Bell said. “They get to decide when we make any announcement. It’s a pretty sensitive thing for them and they control the process. When they tell us they are ready to be publicized, they will let us know.”

With two councilors absent and Mayor Robert Macdonald voting in favor, councilors approved the deal by a 6-0 vote. The decision did two things: create a 30-year, 425.81-acre tax increment finance district for all future development at the site; and approve a development agreement for one part of that overall district, a 56-acre retail development.

First, city councilors Wednesday approved the omnibus tax increment finance district covering 425.81 acres surrounding Lewiston’s turnpike interchange. That would set aside up to 80 percent of new property tax revenues from those developments to pay for city utility work there and repay Gendron for money he spends on site development.

Over 30 years, the various parcels at the interchange could be developed for commercial, office, restaurant or retail space worth up to $150 million in new investment, generating more than $4 million in annual property taxes at the 2015 tax rate.

Councilors on Wednesday also approved the first piece of the retail development there, 168,600 square feet of new retail on one of three retail lots. If completed, it would become the first development under that omnibus TIF.

Councilors approved the development agreement with Gendron’s GRE LLC, clearing the way for a three-building development centered around a 155,600-square-foot big-box store at the center, an anchor retail development.

For comparison, Wal-Mart’s Auburn Supercenter is 220,000 square feet. Lewiston’s East Avenue Shaw’s Supermarket is 66,540 square feet.

The project, anchored by the unnamed big-box retailer, would add $12.8 million in property value and $341,000 in new property taxes each year. Between $69,000 and $122,000 of those new taxes would go into the general fund, and the rest would either be paid back to Gendron or pay the city’s utility improvement costs, according to the TIF agreement.

Lincoln Jeffers, Lewiston’s director of Economic and Community Development Department, said the project is difficult enough that it needs the money from a TIF agreement to be feasible.

“There are 300,000 cubic yards of granite ledge that need to be removed, there is a major oil pipeline that needs to be relocated, a tall retaining wall that needs to be built and there are wetland impacts,” Jeffers said. “So the off-site costs and on-site costs would far exceed what the retailer is willing to pay.”

Once the first development is finished, however, it would clear the way for future development in the area. City Administrator Ed Barrett agreed.

“We are trying to create a market that does not yet exist,” Barrett said. “Here, this is kind of a catalyst and the city anticipates that if it goes forward it would spur additional redevelopment in that area and particularly in the outer Lisbon Street area.”

Councilors had continued their review of the proposal until Wednesday to give residents another chance to speak. Three residents attended Tuesday’s meeting and about 15 showed Wednesday, although few spoke.

Jared Lussier of 24 Wood St. questioned staff and attorney Bell about the plan, saying the need for city help might prove it is not a feasible project.

“If the extraordinary site preparation costs render it unaffordable, might that indicate this site is just not feasible for development?” he asked.

Jack Tetreault of 55 Read St. said he lives near the site and was worried about protections for his house and his neighbors during construction, and especially when crews are blasting the granite ledge with dynamite.

Public Works Director Dave Jones said those questions would be addressed if a construction plan is presented to the Planning Board.

Linda Scott of 45 Pettingill St. was more optimistic.

“I would just like to state that I support this 100 percent,” Scott said. “After all the years and things we have tried there, it’s about time we get something at Exit 80. I think it can open up our city and start bringing people down the road and into Lisbon Street.”

staylor@sunjournal.com