FARMINGTON — Franklin County commissioners will hold a public hearing Tuesday, Oct. 4, on proposed changes to the county’s 2008 tax-increment financing agreement with TransCanada Wind Development.
The hearing will begin at 5:30 p.m. in the Superior Court room at the county courthouse.
The TIF is related to the 44-wind turbine energy facility TransCanada built on Kibby Ridge in Kibby and Skinner townships. The facility was expanded after the approval of the 2008 TIF agreement, but the expansion is not part of the agreement.
Commissioners held two informational meetings on the proposed changes in September in Carrabassett Valley and Farmington.
The proposed changes include extending the 20-year TIF agreement to 30 years. The county would capture 100 percent of the new tax revenue from the facility in northern Franklin County.
Under the existing agreement, the county captures 75 percent of new tax revenue in the first 10 years 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 gets back 60 percent and the county retains 40 percent.
Under the amendment, in years 2029 through 2038, all TIF revenue would go to the county.
The TIF revenues are used for economic development in the unorganized territory and some TIF-related expenses. The proposal expands the categories on which the TIF revenue can be spent.
It also increases the amount of money the county would keep from $4 million an additional $12.4 million, according to consultant John Cleveland. He is president of Community Dynamics Corp. in Auburn, which was hired by commissioners to work on the amendment.
The existing agreement stipulates that 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’s unorganized territory account, 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 in September.
The amount is estimated to be about $3 million total over 12 years. The money could be used throughout the county.
dperry@sunmediagroup.net
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