By Zack Anchors

Staff Writer

    Last weekend South Portland city leaders gathered at
the corporate headquarters of Fairchild Semiconductor to consider
whether creating a new tax increment financing district is a feasible
and practical way to revitalize the downtown environment of the
Knightville Mill Creek.

    The idea of a new TIF began with the
Knightville-Mill Creek Master Plan Steering Committee, which produced a
plan for the downtown area that was incorporated into the city’s
comprehensive plan in 2005.

    A key recommendation of the committee was to
consider funding various improvements to infrastructure in the
neighborhood with a new TIF. This summer the City Council approved a
contract with the local consulting firm Planning Decisions to work with
a new TIF subcommittee to explore the viability of the TIF. Planning
Decision’s Mark Eyerman and Chuck Lawton, as well as Planning Director
Tex Haeuser moderated Saturday’s “Conference on South Portland’s
Economic Future” at Fairchild. The event, which was attended by elected
officials, business owners, city staff and other residents, served to
educate attendees about TIFs in South Portland and stimulate ideas
about what projects a TIF might help the city fund.

    “Where we go from here will be up to the committee members, who will be meeting next week,” said Haeuser.

    The five percent of South Portland that is currently
located in TIFs have provided roughly $60 million for the city over the
last twelve years. TIFs are an economic tool that municipalities can
use to funnel some of the property taxes from a development that would
otherwise go to the state into local projects. A defined district is
first established that meets certain state qualifications, and then a
certain amount of property taxes coming out of that district are
directed to a fund that can only be used for certain purposes, such as
improving the area’s road infrastructure.

    For example, in 1997 a TIF was established for an
office buildings and light industrial development on Cumming Roads.
Since then $1.2 million has been used in road improvements in the
surrounding area. Likewise, a TIF established for National
Semiconductor has helped pay for the West End Fire Station, the
construction of the Jetport Plaza Road, an emergency vehicle and a
number of other projects, totaling more than $39 million in
expenditures.

    Most recently, the first TIF in the state that is
intended to fund affordable housing was established in South Portland
for the Brick Hill Housing development.

    No conclusions or policy descisions were agreed upon
at the conference, which was intended as one step in a longer process.
Suggestions and ideas discussed at the conference will be incorporated
into future meetings of the TIF subcommittee.