The Town desires to create a municipal development and tax increment financing district located within and along certain rights of way known as Shaker Road (Route 26), Main Street (Route 202), Portland Road (Route 100), Yarmouth Road (Route 115), West Gray Road (Route 15/202), and Lewiston Road (Route 202), as designated on Exhibit A-1, the District Plan, in order to improve the Town’s infrastructure and public utilities within said rights of way and to expand and diversify the Town’s tax base in order to improve its economy. This Development Program will provide the infrastructure and planning necessary for commercial development of property within the District, as well as certain public improvements within and outside the District that will enable additional commercial development within the Town, thereby expanding and diversifying the Town’s tax base.
What I Need to Know About TIF
- Tax Increment Finance District: A defined portion of a municipality that is anticipated to experience increase property values over the duration of the TIF.
- Tax Increment Financing (TIF): A State regulated property tax program that captures tax revenue from increased property values in a geographically-defined TIF District and directs this revenue towards authorized projects such as needed public infrastructure.
- Credit Enhancement Agreement (CEA): An agreement between the municipality and a property owner/developer in a TIF District whereby an agreed upon percentage of the TIF tax revenue is returned to the property owner in exchange for development expenses incurred by the owners/developers for their project.
Relevant Facts Regarding the Proposed Village Area Improvement TIF
- TIF’s have existed in Maine since 1977 when the initial enabling Statutory language was passed
- Town of Gray has two existing TIF Districts; this would be the third
- The current proposed Village Area Improvement TIF has a 30-year lifespan
- This TIF includes approximately 124 parcels totaling 543 +/-acres.
- The “Capture Area” for this TIF is principally the Village and immediately surrounding area (please see map showing proposed TIF District)
- The “Receiving Area” for this TIF District is all 5 major roadways radiating from the Village for Statutorily allowed projects
- An inclusive Public Facility improvement list maximizes flexibility of TIF revenue
Credit Enhancement Agreements
This TIF contains provisions to allow Credit Enhancement Agreements (CEA) at the discretion of the Town Council on a case-by-case basis. Although the present or future Town Councils are not obligated to enter into Credit Enhancement Agreements (CEA’s), this enabling language needs to be included for the Town Council to have the ability to consider CEA’s