TIF a 30-year investment
By Elizabeth Prata

New Gloucester-At their regular meeting on January 12, Selectmen voted to transfer $200,000 from the Tax increment Financing District (TIF) into the Fire Station Capital Reserve Account.

The TIF district was set up to capture the additional tax revenue generated by the district for a period of 30 years and shelter it from the school funding formula,thus dedicating that revenue to TIF projects and not decreasing the amount of money the townis eligible to receive from the State toward education. The TIF district is deignated as Pineland and nearby environs. Pineland was a former state-run mental health facility constructed at the turn of the century and closed by the state in late 1990's. The October Corporation, the real estate arm of the Libra Foundation, purchased the property and converted it into a multi-use business park. The valuation at the start of the TIF project was practically zero, since the buildings had been abandoned and unused for several years.

The money is to be spent dedicated projects, set up prior to the start of the TIF project, which must be approved by the state. The money generated through increasing valuations will be on planning studies and infrastructure improvements that are needed because of the new development and its effects on the community as a whole for example, the need for more public services, the effects on growth, as the campus becomes fully occupied.
After the 30 years of defined time for the TIF project has elapsed, the tax generated by the TIF district will go directly to the general fund for use town-wide. For the 30-year period, TIF revenue must be accounted for separately and used according to the approved development activities.

In the TIF account right now is $600,286.61 (before the $200,000 for the fire station capital reserve is transferred.) To date, less than $9,000 of TIF funds have been expended.

New Gloucester TIF Schedule
Investment Schedule
First year, 2001: new valuation $3,135,039 and new tax revenues of $54,550.
This year, 2004: new valuation $8,626,438 and new tax revenues of $150,100.
Final year, 2030: new valuation $29,612,902 and new tax revenue of $515,264.
Cumulative new tax revenues over thirty year period total $12,010,274.
The balance as of 11/7/03 was $313,079.
Costs of Development Activity over 30 years
Environmental Improvement Fund, $1,650,000
Traffic Flow Improvements, $3,500,000
Telecommunications and Utility Improvements, $1,950,000
Economic Development Planning, $580,000
Regional Economic Development, $350,000
Municipal Facilities/Equipment, $2,285,000, ($1,700,000 fire protection, and $585,000 transfer station)
Business Improvements/Loans, $1,000,000
Professional Services/Planning & Engineering, $370,000
Administrative Costs, $325,000
Total, $12,010,000