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Newport council approves strategy for pursuing outside funding to support potential TIF district application
Summary
The council authorized Newport Downtown Development to pursue technical assistance and grant funding (NCIC/NH Community Loan Fund and a USDA RBDG proposal) to cover much of the cost of contracts related to a possible tax increment financing (TIF) district application; the council emphasized feasibility study phases and the need to return for approvals on later steps.
Newport City Council on Monday approved a two-part funding strategy to help underwrite consultant and study costs tied to a potential tax increment financing (TIF) district application.
Council members authorized Newport Downtown Development (NDD) to pursue technical assistance through NCIC (now operating as New Hampshire Community Loan Fund) and to prepare a U.S. Department of Agriculture Rural Business Development Grant (RBDG) proposal to fund up to 74% of costs associated with the TIF application process. The council also directed that a 26% local match would come from the city’s designated “Walmart funds,” with other costs expected to be covered by previously authorized bonds and remediation work where applicable.
The council’s vote covers two related approvals: (1) authorization for NDD to apply for Small Business Professional Assistance funding from NCIC/NHCLF to support the initial phases of White and Burke’s consultant contract (feasibility and early study work); and (2) authorization for NDD to prepare and submit a USDA RBDG proposal by the end of February to cover up to 74% of remaining application-related costs. Speaker 9, speaking in their role describing the funding approach, told the council that the NCIC assistance would help with early feasibility and that, “the USDA might then approve our proposal sometime mid- to late summer,” noting the city would have to return to council for approvals of follow-on phases.
Council members repeatedly stressed that the funding approvals do not themselves create a TIF district. White and Burke’s work is structured in phases; the first phase is a feasibility study (one $50,000 phase), followed by subsequent application and implementation phases if feasibility is established. Speaker 9 explained that additional costs (brownfields mitigation, engineering studies and similar expenses) are likely and that the $100,000 in consultant contract fees is not the total program cost.
Resident Lauren Graham asked whether the city was getting “the cart before the horse,” and council members responded the immediate goal is discovery — to establish whether the city qualifies for a TIF and to prepare a complete application with at least one development project identified. The council voted to approve the funding strategy and the authorization for NDD to pursue the USDA RBDG proposal.
What happens next: White and Burke will proceed with feasibility work as contracted, NDD will pursue the identified grant opportunities, and the council will review any further contract approvals or funding commitments before the city proceeds to an actual TIF application or legislative approvals.
