P
Patrick
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So So. Portland is considering a TIF for a TOD which may ultimately be used to fund a light rail system in a portion of the city, see article below.
SOUTH PORTLAND ? South Portland could become the first municipality in Maine to take advantage of a new kind of tax increment financing district - one in which a portion of new taxes generated from selected developments in the city would go to fund public transportation.
The City Council last week unanimously endorsed a plan to develop an application seeking approval for the transit tax district to send to the Maine Department of Economic and Community Development.
Under the plan, the district would initially include 15 development properties that sit along the city's already established bus routes. The council is expected to hold a public hearing on the application in February or early March.
If the tax district is approved, 25 percent of the new tax revenue generated from the district would go to help the city pay for such transit-related improvements as hiring more bus drivers and installing new bus shelters. The other 75 percent of the tax revenue would go into the city's general fund.
Funds derived from the new tax district for transportation are expected to be small at first - only about $1,100 in the first year. But over the 30-year life of the tax district, it's estimated that more than $1.8 million could be generated to help pay to improve public transportation in the city.
"Today, we're planting a small acorn that hopefully will grow into a large oak tree," Mayor Tom Coward at the council workshop on Dec. 15.
He said it's possible the new tax district arrangement could help pay for train transportation in the future. "Eventually," he said, "we may get light rail down Main Street."
Forming such a tax district also would benefit South Portland because the creation of a tax increment financing district shields new property values from the calculations the state makes to determine how much state aid municipalities receive each year.
Generally, the lower a city's or town's property values, the higher its share of state aid for school or municipal spending.
Because the transit tax district presentation took place at a workshop, the council took no formal vote on the issue. But each of the six councilors in attendance at the meeting voiced support for the proposal.
Councilor Linda Boudreau thanked the council for its positive response. She and Mayor Coward worked on the proposal along with Charles "Tex" Haeuser, the city's planning director.
"This is a TIF, something we are familiar with," Boudreau said. But she and Haeuser said this new type of tax district is different from other tax districts.
Tax revenues from traditional tax increment financing district agreement typically go for such projects as building roads or other infrastructure. The improvements often are very near the development properties in the district.
In this case, however, the funds would go for public transportation all over the city. And property owners in the district wouldn't get a tax rebate, as is common in other types of tax districts.
The state Legislature in June passed a new law allowing the creation of transit-oriented development tax increment financing districts. South Portland led the effort to get the law passed, according to City Manager James Gailey.
He said Haeuser came up with the idea after attending a conference, and worked with two Democratic Maine legislators who represent South Portland, Sen. Larry Bliss and Rep. Jane Eberle, to get the bill passed.
Gailey praised Haeuser's efforts. "We owe him a lot of gratitude and thanks for his work on this initiative and getting it on the state books," Gailey said.
Haeuser gave an overview of how transit tax districts work to the council at the workshop.
His presentation followed another one the council heard regarding the possibility of the city establishing some sort of environmentally-friendly "green" building ordinance.
Haeuser said that a public transport tax district is another type of green measure. Public transportation helps cuts down on the number of cars and encourages denser, smart growth in cities instead of the building of sprawling suburbs, he said. Businesses also flourish wherever public transportation is available, he said.
Haeuser said the proposed new district is "starting small." Only 25 percent of new taxes generated would go into a fund for improving transit, with the remainder going in the general fund, he said.
"Usually, TIF's capture 100 percent (of new tax revenues)," Haeuser said. But he said in that in this economic recession "now is not the time to be aggressive" with the tax district.
He said there would be a cap of $240,000 of total tax revenues that could be captured for transit funding from the district in the first five years. That cap would increase by 1 percent annually.
However, the transit tax district that is proposed is so small that the cap is not expected to be reached.
Being in the tax district would have no impact on property owners or their property, Haeuser said. It would simply mean that if the value of their property increases, the city would put 25 percent of the taxes they would pay on that increased value in a fund to help pay for transit and the other 75 percent in the general fund.
In a letter to owners whose properties would be in the designated district, Haeuser explained how the district would work. The letter was sent to notify owners of the Dec. 15 workshop.
The properties selected to be in the proposed transit tax district are located all over the city. Haeuser said they are simply parcels that seem to have some potential for development. They range from property on the eastern end of the city near Bug Light owned by developer John Cacoulidis - on which he has previously proposed building a hotel - to properties on the western end near the Maine Mall.
Vincent Maietta is the owner of one such property. He told the council at the workshop, "I think this is a fabulous opportunity for the city."
In fact, Maietta said he would like the city to include more of his properties and those of others in the district. That way, he said, the city could put more in the transit fund and also shield more property valuation from the state's revenue sharing formulas.
However, Haeuser said the city is starting small for a number of reasons. One is that such tax districts are time-consuming to administer and the city might have to hire another staff person to manage the district if it were larger.
Councilor Maxine Beecher noted that once the district is created, it could be enlarged at a later date.
According to Shana Cook Mueller, an attorney with the Portland firm of Bernstein Shur who is working as as a consultant with the city on the transit district proposal, the town of Orono is also considering such a transit tax district.
SOUTH PORTLAND ? South Portland could become the first municipality in Maine to take advantage of a new kind of tax increment financing district - one in which a portion of new taxes generated from selected developments in the city would go to fund public transportation.
The City Council last week unanimously endorsed a plan to develop an application seeking approval for the transit tax district to send to the Maine Department of Economic and Community Development.
Under the plan, the district would initially include 15 development properties that sit along the city's already established bus routes. The council is expected to hold a public hearing on the application in February or early March.
If the tax district is approved, 25 percent of the new tax revenue generated from the district would go to help the city pay for such transit-related improvements as hiring more bus drivers and installing new bus shelters. The other 75 percent of the tax revenue would go into the city's general fund.
Funds derived from the new tax district for transportation are expected to be small at first - only about $1,100 in the first year. But over the 30-year life of the tax district, it's estimated that more than $1.8 million could be generated to help pay to improve public transportation in the city.
"Today, we're planting a small acorn that hopefully will grow into a large oak tree," Mayor Tom Coward at the council workshop on Dec. 15.
He said it's possible the new tax district arrangement could help pay for train transportation in the future. "Eventually," he said, "we may get light rail down Main Street."
Forming such a tax district also would benefit South Portland because the creation of a tax increment financing district shields new property values from the calculations the state makes to determine how much state aid municipalities receive each year.
Generally, the lower a city's or town's property values, the higher its share of state aid for school or municipal spending.
Because the transit tax district presentation took place at a workshop, the council took no formal vote on the issue. But each of the six councilors in attendance at the meeting voiced support for the proposal.
Councilor Linda Boudreau thanked the council for its positive response. She and Mayor Coward worked on the proposal along with Charles "Tex" Haeuser, the city's planning director.
"This is a TIF, something we are familiar with," Boudreau said. But she and Haeuser said this new type of tax district is different from other tax districts.
Tax revenues from traditional tax increment financing district agreement typically go for such projects as building roads or other infrastructure. The improvements often are very near the development properties in the district.
In this case, however, the funds would go for public transportation all over the city. And property owners in the district wouldn't get a tax rebate, as is common in other types of tax districts.
The state Legislature in June passed a new law allowing the creation of transit-oriented development tax increment financing districts. South Portland led the effort to get the law passed, according to City Manager James Gailey.
He said Haeuser came up with the idea after attending a conference, and worked with two Democratic Maine legislators who represent South Portland, Sen. Larry Bliss and Rep. Jane Eberle, to get the bill passed.
Gailey praised Haeuser's efforts. "We owe him a lot of gratitude and thanks for his work on this initiative and getting it on the state books," Gailey said.
Haeuser gave an overview of how transit tax districts work to the council at the workshop.
His presentation followed another one the council heard regarding the possibility of the city establishing some sort of environmentally-friendly "green" building ordinance.
Haeuser said that a public transport tax district is another type of green measure. Public transportation helps cuts down on the number of cars and encourages denser, smart growth in cities instead of the building of sprawling suburbs, he said. Businesses also flourish wherever public transportation is available, he said.
Haeuser said the proposed new district is "starting small." Only 25 percent of new taxes generated would go into a fund for improving transit, with the remainder going in the general fund, he said.
"Usually, TIF's capture 100 percent (of new tax revenues)," Haeuser said. But he said in that in this economic recession "now is not the time to be aggressive" with the tax district.
He said there would be a cap of $240,000 of total tax revenues that could be captured for transit funding from the district in the first five years. That cap would increase by 1 percent annually.
However, the transit tax district that is proposed is so small that the cap is not expected to be reached.
Being in the tax district would have no impact on property owners or their property, Haeuser said. It would simply mean that if the value of their property increases, the city would put 25 percent of the taxes they would pay on that increased value in a fund to help pay for transit and the other 75 percent in the general fund.
In a letter to owners whose properties would be in the designated district, Haeuser explained how the district would work. The letter was sent to notify owners of the Dec. 15 workshop.
The properties selected to be in the proposed transit tax district are located all over the city. Haeuser said they are simply parcels that seem to have some potential for development. They range from property on the eastern end of the city near Bug Light owned by developer John Cacoulidis - on which he has previously proposed building a hotel - to properties on the western end near the Maine Mall.
Vincent Maietta is the owner of one such property. He told the council at the workshop, "I think this is a fabulous opportunity for the city."
In fact, Maietta said he would like the city to include more of his properties and those of others in the district. That way, he said, the city could put more in the transit fund and also shield more property valuation from the state's revenue sharing formulas.
However, Haeuser said the city is starting small for a number of reasons. One is that such tax districts are time-consuming to administer and the city might have to hire another staff person to manage the district if it were larger.
Councilor Maxine Beecher noted that once the district is created, it could be enlarged at a later date.
According to Shana Cook Mueller, an attorney with the Portland firm of Bernstein Shur who is working as as a consultant with the city on the transit district proposal, the town of Orono is also considering such a transit tax district.