Cumberland council approves 20-year tax deal to bring Lucas Tree to Route 1

The Cumberland Town Council on Nov. 24 unanimously approved a 20-year credit enhancement agreement with Addison Capital (doing business as Lucas Tree) to support the company's planned move to 275 US Route 1.

Town staff said the agreement will take effect at the start of the town’s extended TIF District on July 1, 2027, and run through June 30, 2047. Under the proposed formula, the town would reimburse Lucas Tree for up to 100% of the property taxes paid on the increased assessed value captured by the TIF, with a maximum annual reimbursement to the company of $50,000. Staff described the payment as a formula tied to excise-tax receipts rather than a straight rebate of excise taxes: “it is $5,000 for every $50,000 of excise tax that is paid,” a staff presenter said during the council presentation.

Town Manager Matt Sturgess and staff presented projections showing the company’s arrival could raise annual excise-tax revenue roughly from about $2.8 million to $3.35 million in a single year — a roughly 17% increase — and result in a substantial cumulative town benefit over the 20-year period. A town presenter noted the revenue forecasts are conservative and subject to change over two decades.

Arthur Batson Jr., who identified himself as representing Lucas Tree, said the move consolidates operations and will add office and distribution capacity: “This has given us an opportunity to bring both of those entities back together in one place,” he told the council, and added he expected the truck traffic impact to be minimal because new trucks are outfitted locally and then sent to operate elsewhere.

Councilors welcomed the company and emphasized jobs and new revenue. After public comment and council discussion, Councilor (speaker 7) moved to approve the CEA; the motion was seconded and carried unanimously.

The agreement authorizes the town to assign an existing credit enhancement agreement on the property and to enter a new agreement that begins when the extended TIF becomes active. Staff said the town already captures 100% of the increased assessed value within the district and that the extended district's terms require at least 75% of increment to be used for affordable housing and/or transit.

The next steps identified by staff are ministerial: finalize the agreement language with counsel, incorporate any editing fixes flagged in tonight’s discussion, and complete the administrative adoption steps. The council did not attach additional conditions beyond the terms summarized in the presentation.