TIF district may provide funds for housing project infrastructure

Fri, 12/16/2022 - 8:45am

    Expanding the Route 27 Tax Increment Financing district by 155,000 square feet may help bring water and sewer to a proposed Boothbay affordable housing project. On Dec. 15,  selectmen voted 3-0 to place two May town meeting warrant articles regarding Boothbay Region Development Corp.’s proposed housing project.  In September, BRDC unveiled its proposal to all four Boothbay region select boards to construct 162 housing units on a 38.5-acre Butler Road lot.

    Dec. 15, Vice President Erin Copperrider presented a plan to bring sewer and water to the housing complex. She and President Steve Malcom requested expanding the TIF to accommodate a plan for financing the project. The proposal’s estimated water and sewer expansion cost is $3,405,862. Cooperrider reported the property was bought for $400,000, so the remaining balance is around $3 million. By expanding the TIF district up Butler Road, the corporation’s project would qualify for local funding.

    The TIF district was established in 2012 for a 30-year term; A TIF allows local governments to invest in public infrastructure and other improvements by using increased property valuation revenues derived from development. BRDC requested two warrant articles for May. One is for expanding the district. The second seeks $1.25 million in TIF funds for BRDC’s infrastructure project.

    Selectman Steve Lewis compared the request to how Boothbay funded a past private-public project. “It would work a lot like the roundabout,” he said. Town Manager Dan Bryer reported theTIF district had accrued about $5 million. If voters approved the measure, Boothbay would seek a bond and use TIF dollars for payment. Bryer will check with the Department of Economic and Community Development to see if the water and sewer project is eligible for TIF financing. 

    Lewis credited BRDC, which has an all-volunteer staff, in working so diligently on workforce housing. “What all of you have done is amazing. No one is taking a salary, my hat’s off to you,” he said. 

    Cooperrider reported the project’s first phase has expanded from eight complexes to 24. She discussed construction beginning shortly after the May vote.  “The community has identified affordable housing as a priority. The town  has committed $50,000 of ARPA (American Rescue Plan Act) funds and we’re seeking a county grant. So on the strength of the checks we’ve received, and since this doesn’t impact the mil rate, we’ve gone ahead and hired engineers to get started,” she said.

    In other action, selectmen approved endorsing Fidium Fiber’s plan to expand high-speed broadband to the region. Fidium Fiber, a subsidiary of Consolidated Communications, has approached Boothbay, Boothbay Harbor, Southport and Edgecomb town officials about a combined effort to seek grants for creating a fiber network. Under the proposal, Fidium would invest $3.8 million to connect all four towns to a high-speed, 100% fiber network. Senior Manager of Governmental Affairs Simon Thorne has told municipal representatives all four towns would have 100% access to fiber broadband with no network installation cost, no contract or obligation for residents to use their service. 

    Fidium’s only request is for member towns to send a letter of support in the firm’s quest for state and federal grants. Fidium is preparing a Lincoln County grant application for the Boothbay region expansion. Lewis has attended Fidium meetings along with Southport resident Nancy Prisk. He told selectmen Fidium is required “to bring $700 per drop” to qualify for federal and state grants. “We’d be a fool not to send a letter,” Lewis said. “They are paying for this and we have no financial commitment. Most of this is paid with federal dollars.”

    Lewis reported a federal audit three years ago showed Boothbay was 91% served. “But that might be fiber, coaxial or dial-up. This would all be fiber and cover all of the town,” he said. 

    Selectmen voted 4-0 to approve a wharf and wier application for Benjamin and Kimberly Harding of Kingfield. The Hardings received approval to improve a pier on their Long Ledge Road property. The improvement consists of replacing a 40-foot by 3.5-foot runway with a 20-foot by 12-foot float along with adding a 20-foot by 12-float at the end. The property is in a shoreland overlay zone and coastal residential district. 

    Selectmen meet next at 6 p.m. Wednesday, Dec. 28 in the conference room.