Commissioners mull update to county’s TIF

FARMINGTON – County commissioners are seeking a consultant to assist Franklin County in updating its tax increment financing district before the next round of project applications, in order to expand the district’s geographic area and uses for the revenue.

The 2008 TIF agreement was developed between the state, county and project developer TransCanada. As part of that agreement, 75 percent of tax revenues from the Kibby Wind Project were captured, with 60 percent of that amount returned to the company. The other 40 percent, or an estimated $4 million over a 20-year period, was taken by the county for the use of economic development in the unorganized territories.

Over the past few years, commissioners have approved TIF funding for dozens of projects in the U.T., ranging from trail improvements to scenic byway projects to marketing initiatives. The funds have also been used to pay for scholarships for U.T. residents seeking to take courses at Maine institutions. A committee of U.T. residents meet with Alison Hagerstrom, executive director of the Greater Franklin County Development Corp., and County Clerk Julie Magoon and review applications and scholarships before making recommendations to the commissioners.

The committee has recommended potentially expanding the geographical area the TIF covers, in order to allow for the funding of some trail improvements that would connect preexisting networks, some of which were either cut or upgraded with TIF money. Additionally, Magoon said Tuesday, the county would seek to expand the development program to cover some additional improvement categories. Finally, the update would look at the credit enhancement agreement with TransCanada, as the TIF has captured more tax revenue than initially anticipated.

The original TIF cost more than $60,000 to develop, although TransCanada provided a reimbursement to Franklin County. Currently, Magoon said, a little more than $60,000 was being held in the TIF’s administration fund, which could be used to pay for the update. Any changes would need to be approved by commissioners, as well as the state’s Department Economic & Community Development.

Commissioners asked that Magoon contact a number of consultants specializing in TIF development, all recommended by the DECD, to provide the county with options moving forward. Ideally, Magoon said, the TIF would be updated in time for the next round of applications, due in May 2015.