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Selectmen debate TIF spending after paying architects for stalled projects; oversight rubrics to be revisited
Summary
Board members questioned whether downtown TIF funds should cover architectural and preconstruction fees for projects that may not be completed, and agreed to revisit oversight rubrics and committee procedures to create stronger safeguards.
Concerns about downtown Tax Increment Financing (TIF) usage and oversight dominated a lengthy portion of the meeting, with at least one member saying the town has paid architectural fees without seeing final projects completed.
Unidentified Speaker 5 raised the issue citing previous projects where owners declined to complete work after design costs were paid with TIF money. “I have a major problem with that,” the speaker said, arguing that paying for design and engineering without assurances the project will be built does not clearly benefit the TIF zone.
Other members and staff pushed back that planning and engineering are eligible TIF expenses when they prepare a viable project for construction. Unidentified Speaker 4 pointed to existing rubrics and noted that the oversight committee and select board retain authority to change internal criteria, and that TIF applications submitted to the state included approved rubrics. Board members discussed options to tighten language, require plan transfer if an owner abandons a project, or include clawback/turnover provisions in award language.
Speakers also discussed leverage opportunities: state housing grants and the Land and Water Conservation Fund (LWCF) were cited as possible sources to match project costs. Unidentified Speaker 6 noted that past TIF awards correlated with property-value increases in the downtown TIF zone, citing an illustrative $800,000 increase in assessed value tied to prior TIF investments.
Next steps: Board members said they will revisit the downtown TIF rubrics and oversight procedures at a future meeting and asked staff to gather the oversight committee and historical documentation for review.
