At public hearing on Tuesday, Mar. 28, residents will be given the chance to voice their opinion on a proposal to create a new Tax Incremental Financing (TIF) district in North Windham.
Called the “Roosevelt Promenade” TIF district, tax revenue from the new Home Depot and Lowe’s home improvement stores would be split between reducing the local tax burden and putting aside money for infrastructure improvements.
This amounts to roughly $534,000 in new tax revenues generated by the home improvement giants. Without the TIF district, roughly half that tax revenue would be lost due to a reduction in state subsidy.
The Town Council has discussed for several weeks the necessity of a new TIF district, the mechanics of how it would work and what infrastructure improvements might be paid for with money generated by the TIF district.
The function of a TIF district is to shelter commercial tax revenues from the state with the understanding that a portion of the sheltered revenues would be used to improve town infrastructure.
“Basically, the state wants to know why we are pulling out a half a million (in tax revenue),” says Keith Luke, Windham’s Economic Development Director.
Originally, Luke suggested that the council consider a TIF district that might encompass specific properties in North Windham from the end of River Road to the area of Lowe’s and Home Depot.
He proposed that 80 percent of the revenues be put toward infrastructure improvements while 20 percent be collected as general property tax revenue. This 80/20 ratio would change during the 29-year life of the TIF, his initial plan detailed.
In previous workshop sessions, councilors debated different ratios and argued for more or less money separated into the TIF account. The scope of the TIF district has since been reduced to only include the two home improvement giants.
With the matter set to go before the public next week, the council is now leaning toward a compromise on the matter: a $210,000 cap on the amount of TIF revenue put aside for infrastructure improvements each year. They have also outlined a number of projects that the TIF could be used for, such as an updated groundwater quality study, research into the possibility of a lateral road network to circumvent the Route 302 corridor and a study of public safety needs in Windham.
The council has also agreed to reduce the lifespan of the TIF district to five years instead of 29. If the current proposal is approved, that would leave $324,000 to apply to the town’s tax rate each year.
Hinging on the TIF’s approval is Windham’s Economic Development office that works to bring new and diverse businesses into town. The office, its non-profit partner – the Windham Economic Development Council – and support staff at the town manager’s office are all funded by a combined $250,000 from money reserved by the Pipeline TIF district (established in 2000) and the old North Windham TIF district (now expired).
In two years, the Economic Development office will lose funding as the expired North Windham TIF district runs out of cash.
Council Chairman Robert Muir is reserving judgment on the TIF district until he has all the facts and hears what the public has to say.
Councilor Carol Waig wishes the council could have done more with the initial 80/20 split and is an advocate for the study to assess the needs of public safety in Windham and the lateral road study of Route 302.
“The fire trucks can’t even get out of North Windham station at times,” Waig said speaking of the traffic on Route 302 and the problems it causes for public safety.
Councilor David Tobin says any money put toward infrastructure improvements will save the town money in the future.
“It’s hard to convince people that it’s pay me now or pay me later,” Tobin said.
Councilor John MacKinnon is likewise in favor of the current TIF proposal on the table.
“I think it’s a good start and hopefully this council and other councils can build on it,” MacKinnon said.
A public hearing on the “Roosevelt Promenade” TIF proposal will be held next Tuesday, March 28, at 7 p.m. at the Windham Town Office.
Send questions/comments to the editors.
