FARMINGTON – A Franklin County tax increment financing consultant reviewed a proposed amendment to a 2008 TIF agreement Tuesday that he said would maximize the benefit to county residents, inside and outside of the unorganized territory.

It was the first of two informational meetings with the second planned for 5:30 p.m. on Sept. 7, at the Carrabassett Valley Public Library. A public hearing is scheduled for Oct. 4 at the county courthouse where Tuesday’s meeting was held.

The county uses TIF revenues for economic development in the unorganized territory and some TIF related expenses.

To date, TransCanada Wind Development Inc.’s investment is $314 million. The company will pay $3.9 million in taxes through the end of 2016, said consultant John Cleveland, president of Community Dynamics Corp. in Auburn. He is working with the county to amend the TIF.

The total value of property in the entire county is nearly $4.53 billion, including the $348 million value of the unorganized territory. The current value of the property in the TIF district in the unorganized territory is $169 million, according to Cleveland’s information.

The existing 20-year TIF agreement the county has with TransCanada Wind Development Inc. would be expanded to 30 years in the proposed amendment. The county could capture 100 percent of the new tax revenue from TransCanada’s initial 44-wind turbine energy facility on Kibby Ridge in northern Franklin County.

Under the existing agreement, the county captures 75 percent of new tax revenue in the first 10 years of the agreement and 50 percent in the past 10 years. The remaining tax dollars are sent to the state of Maine entity that oversees the unorganized territory.

Of the 75 percent captured, TransCanada is given back 60 percent and the county retains 40 percent. That split would remain the same under the proposed amendment.

In years 2029 through 2038, all TIF revenue would go to the county.

The proposal also expands the categories the county could spend the TIF revenue on. It increases the amount the county would keep from $4 million to approximately an additional $12.4 million, Cleveland said. The existing agreement is once the county reaches the $4 million cap, which is expected to occur by the end of the year, it no longer receives TIF funds and tax revenues will go to the state unorganized territory account, he said.

The tax rate is $1.17 per $1,000 of value. A tax bill for a home valued at $100,000 is $117.

In 2019, without an amendment to the TIF, and with everything staying the same including county spending and county valuation, the tax rate is projected to be $1.15 per $1,000 of value. A tax bill for a $100,000 home would be $115.91, a decrease of $1.09, Cleveland said. With the amendment, the tax rate is projected to be $1.18 per $1,000 of value. A tax bill for a $100,000 home would increase to $118.09, which is $1.09 more a year, he said.

Among the new activities proposed in the amendment in the development program that the revenue could be spent on is a telecommunications infrastructure for the unorganized territory, which includes cellphone towers, high-speed internet and costs for necessary planning for installation.

TIF revenue could also be spent on expanded tourism, recreation and marketing; environmental improvements; recreational trail construction, grooming and maintenance, and acquisition of property, or easements, for trails. In the public safety category, funds could be used for emergency communications such as cellphones, and public safety equipment including a sheriff’s deputy cruiser and firetrucks that would serve the unorganized territory, Cleveland said.

TransCanada has also agreed to an economic enhancement agreement, which is separate from the TIF. The company has agreed to make voluntary payments to the county for economic purposes beyond what comes from the TIF, Cleveland said.

It is estimated that it would be about $3 million total over 12 years with the funds being able to be used throughout the county.

dperry@sunmediagroup.net

Copy the Story Link