At their September 6 meeting, North Yarmouth Select Board agreed to initiate review of the town’s Tax Increment Financing District (TIF). Town Manager Diane Barnes gave a timeline to accomplish the process. Amendments would need to be sent to the Maine Department of Economic and Community Development (DECD) by February 1 to take effect for the next tax commitment.
North Yarmouth’s TIF has been a source of contention since its creation. Longtime resident, Bill Young, has been a vocal critic of the TIF and how it has been implemented. He frequently posts on the community Facebook page that something needs to be done.
Although originally opposed to having a TIF, Young now concedes North Yarmouth needs the district to balance impact to state school subsidy. “We’re in an SAD. Cumberland has TIFs, so North Yarmouth needs one, too” to shelter valuation.
“The problem with North Yarmouth’s TIF is, it was supposed to be for commercial growth. But we got all residential development. And because of that, we are limited where we can spend the money.”
After more than a year of pressure, it appears North Yarmouth is officially taking up the issue.
At the August 16 goals workshop, Barnes asked the Board, “Is the current TIF working, and do we want to make some changes?”
Barnes is “working with Rene [Lachapelle] the assessor to implement some technical changes, don't have to go through a process. But we're going to do it all at once.”
North Yarmouth will be considering all possibilities for amending, said Barnes. Proposed revisions could incorporate two state statute changes since North Yarmouth’s TIF went into effect. One of which would expand the town’s ability to use TIF funds for a new fire station.
An expedited process will be needed to receive state approval of any revisions by an April 1 deadline.
During the September 6 meeting, Barnes shared, “I think tonight, somebody might be proposing that we have a TIF workshop on 9/20.”
Referencing previous meetings, Selectperson Perrin expressed support for a workshop, “Diane, it's just, you know, because we have talked about like, ‘Okay, how are we going to change the TIF? And if we make this change? What does that kind of mean to the financial performance or the allotment of the TIF.’ Like, so I think that's like my area of interest.”
By consensus, an initial TIF workshop was set for 6 pm on September 20.
Selectperson Hodgetts asked, “Who’s gonna be at this TIF workshop?” Brian Sites (Chair) quipped, “You are.” Then further added, “All of us.”
Hodgetts pushed for further clarification, “Well, I thought you said someone else was coming?”
Barnes confirmed the town’s attorney had been contacted but was awaiting confirmation whether they were available September 20.
A public hearing and special town meeting are being considered for January.
“I don't think we can do it any sooner than that. I just don't think we have the capacity to get it [done]. There's a lot of work that goes into this,” said Barnes.