York Town News
TIF proposal goes to the voters
By Larry Favinger
YORK - Voters will make the final decision on whether or not to establish a Tax Incremental Finance District (TIF) in York Beach at the November election.The selectmen voted unanimously Monday night, Sept. 11, to send the proposal forward to the ballot.
A TIF is a way to procure funding for capital improvements in a specified area without relying on the general tax base, according to Town Manager Rob Yandow.
TIFs are limited to 30 years, with bonding for improvements therein limited to 20 years. The boundaries of the TIF can be changed after its initial approval if the same process is used to make changes as was used in the initial establishment of the district.
The original proposal covered about 101 acres and 90 buildings, 36 of those considered commercial. About 9.6 acres of the York Wild Kingdom was included.
The proposal that was approved Monday eliminated the majority of the residential properties at the beach and removed all of the York Wild Kingdom property. Yandow said he has been in touch with the state, which has to approve the district, and the state is fine with the revised borders.
A TIF takes the added tax revenue from improvements on structures within the district and keeps it in a special fund to be used for capital improvements. Yandow said the general tax revenue from the area would remain the same, with accommodations made for the general increase in valuation each year, thus not penalizing the larger tax base.
Yandow said the town would take a "pay-as-you-go" approach to the district, not seeking bonding for three or four years as smaller projects would be completed.
Since the town is the applicant for this district, it would be the town making the decisions on what work is done, and when and where the money would be spent.
Yandow said this proposal is unique in that the town is the applicant, adding the state is very interested in the proposal.
