South Berwick council approves TIF credit‑enhancement program and adopts transit‑district amendment

At its Feb. 25 meeting the South Berwick Town Council approved a TIF (tax‑increment financing) credit enhancement agreement program and adopted the first amendment to the town’s transit‑oriented TIF district development program, voting 5‑0 on both measures.

The council and outside presenter described the credit enhancement agreement (CEA) as a contract tool that allows the town to reimburse a portion of taxes tied to new improvements inside a TIF district to help attract development. DeCarlo Brown, a presenter the council asked to explain the program, summarized its mechanics: "Credit enhancement agreement is...an agreement that you can do within your TIF districts. And what it does, it gives a reimbursement to anyone who's looking to develop in your town, be it a business, or...dwelling units or affordable housing units," he said.

Brown and staff described key features: the draft program in the council packet sets a guideline cap of $50,000 over five years for a single agreement, examples in the presentation showed typical reimbursements around 50% of the…