FARMINGTON – Commissioners decided that more time was needed when it comes to updating Franklin County’s tax increment financing district.
The panel is looking to expand the allowable uses of the TIF agreement’s funding within the unorganized territory that was developed in 2008 between the state, county and Kibby Wind Project developer TransCanada.
Potentially, the amended agreement could include a larger area for TIF funding qualification so, for example, existing recreational trail improvements can continue. Additional amendments may include new project categories now allowable under law and, possibly, update the credit enhancement agreement with TransCanada, as the TIF has captured more tax revenue than initially anticipated and is approaching the $4 million cap.
Under the current agreement, 75 percent of tax revenues from the Kibby Wind Project are captured, with 60 percent of that amount returned to TransCanada. The balance or 40 percent, for an estimated $4 million over a 20-year period, is kept by the county for use of economic development projects within the unorganized territories.
Commissioners have approved TIF funding for many projects in the UT, ranging from scenic byway improvement projects to marketing initiatives. The funds have also been used to pay for scholarships for UT residents enrolled in post-secondary courses in Maine.
Over the past four years, a committee consisting of UT residents have met with Alison Hagerstrom, executive director of the Greater Franklin County Development Corp., and Franklin County Clerk Julie Magoon to review applications and scholarships before making recommendations to the commissioners.
Two weeks ago, commissioners approved hiring low bidder Community Dynamics Corp., a company specializing in creating and modifying TIFs, at a total not to exceed $7,550. The county has a little more than $60,000 in the TIF’s administration fund, which could be used to pay for the update.
John Cleveland of Community Dynamics recommended slowing down the TIF amendment process to allow more time to explore all the options available under the law.
Initially, the idea was that the TIF would need to be updated in time for the next round of applications due in April 2015 by the state’s Department Economic & Community Development.
Instead, Cleveland noted that the state will be looking at 50 proposed TIF applications and was advised by the DECD they would need the county’s application to be in by the end of January for review to meet the April deadline. With a public hearing notification period required, time for thorough review by all interested parties, including the public, means the process would be “moving very fast. Not a lot of time for discussion,” Cleveland said. The perception would be “we’d be jamming it down people’s throats,” he added.
He suggested, “shoot to submit it in May. It will give some breathing room, do a better job” and still get the TIF’s changes in by the start of the county’s fiscal year on July 1.
“So move along at a snail’s pace and leave no stone unturned,” said Commissioner Gary McGrane of Jay.
On the recommendation of Hagerstrom, it was decided to start the process with a workshop-type meeting for commissioners to discuss project options now available to them. That session was set to follow their regular meeting at 10:30 a.m. on Tuesday, Jan. 6.
After the commissioners meet, a public information meeting will be scheduled to gather input from the public. Magoon said that several interested organizations that have ideas to propose have contacted her wanting to be included in discussing potential TIF projects.
A “big wish list” could be put together with the public’s help, Magoon said. Hagerstrom noted that neighboring Somerset County, with a similar TIF encompassing its UT, has interesting ideas worth a look.
Cleveland said after the public session, a draft of the TIF amendment would ideally be completed in February and then the required public hearing would be scheduled to follow for more public involvement.
“I’m excited about this project,” he said.
