The Gorham Town Council approved a tax break Tuesday for Nappi Distributors, which is seeking approval to build a major new faciity on property on Main Street.
“We’re looking forward to becoming an active member of the Gorham community,” Frank Nappi Jr., owner of the Portland-based beer and wine distribution company, told the town council.
Nappi plans to build a $16 million warehouse and corporate headquarters on 22 acres on what is known as the John Merriman farm. The town rezoned the site this year, paving the way for Nappi to relocate.
Under a tax increment finance district known as a TIF, Gorham will return to Nappi 52 percent of the firm’s property taxes over the next 20 years. The plan still requires approval from the state, which underwrites the TIFs.
Nappi’s property taxes would be $150,000 a year, with or without the TIF. The company also pays in excess of $67,000 each year in excise taxes on its trucks.
Nappi had initially asked for 60 percent of its taxes to be returned for the first five years of the TIF, and some councilors were concerned the town would lose money under that proposal. But, pointed out Town Councilor Matt Robinson, “There’s nothing if they don’t come.”
With a TIF, a municipality can regain lost tax money from the state. It allows Gorham to shelter some of the town’s valuation, leading to an increase in money from state revenue sharing and an adjusted state education formula, plus provides a reduction in Gorham’s share of county taxes.
Town Planner Deborah Fossum said following the council meeting that a public hearing on the Nappi plan is scheduled for the planning board meeting at 7 p.m. on Monday, Sept. 11, in the high school.
Elmer Alcott, company vice president, said Nappi’s hopes to start building this fall.
The company employs 180 workers, and Nappi would add more with the move to Gorham. He said the company would be the third largest employer in Gorham and the fifth largest taxpayer.
Alcott said the company would use the returned tax money to pay for road improvements on Route 25 and for water and sewage pumps, along with solving ledge problems at the site.
Development rights proposal passes
The town council also approved an ordinance change aimed at preserving open space in Gorham.
The council vote was 4-3, with Mike Phinney, who is the council chairman, and councilors Phil Dugas and Calvin Hamblen opposing.
Under the development rights transfer plan, developers would pay a fee of $15,000 per lot to increase the density of house lots in new developments served by public water and sewer. The town would use the money to buy land or development rights on other parcels in town.
Town Clerk Christina Silberman said the measure would take effect in 30 days.
Rate increase, tax decrease
The town council unanimously approved a sewer rate increase.
The base sewer rate for the first 100 cubic feet of water will rise to $13.74 a month from $11.44, and each additional 100 cubic feet of water will go up to $6.29 from $4.44. The new rates will become effective Nov. 1.
The last sewer rate increase was in January of 1995. The sewer fund for the fiscal year that ended on June 30 had a deficit.
In other news, Cole said the town’s tax rate has been set at $19.40, a 10-cent reduction from last year. He also reported that a project to repave South Street is set to begin.
Public Works Director Bob Burns said grinding of the surface of South Street from the village to Running Springs would take place on three nights, beginning on Sept. 10. The work is being done at night because of traffic.
“It’s the best time to get the work done,” Cole said.
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