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Downtown TIF committee reviews guidance, treatment of unspent funds and application standards
Summary
The Downtown TIF Advisory Committee reviewed program guidance and administration, discussed whether to require business financials for applicants, agreed grant contracts are administered for 18 months, and heard that about $240,000 is available before the March tax transfer.
Amber Lambke, chair of the Downtown TIF Advisory Committee, opened the March 30 meeting and led members in a review of the program’s guidance and administrative practice for downtown tax-increment financing projects.
The committee focused on which program rules should guide awards during the district’s current term, which runs under the 2017 TIF district development program renewal and expires June 30, 2035. Members discussed the program’s origin in the town’s Comprehensive Redevelopment Plan (2005) and emphasized that the 2017 documents serve as the committee’s guidance for eligible projects and terms.
Committee members discussed administration of grants and treatment of unspent funds. The group noted that grant contracts are administered by the Somerset Economic Development Corporation director for an 18-month performance period and that applicants may request extensions when projects need more time. Members agreed that funds remaining at the end of an extension period would revert to the available fund balance if no extension is granted.
"There is approximately $240,000 available before the March tax payment transfer," said Bryan Belliveau, Skowhegan EDC, providing the committee’s current funding estimate.
Members debated whether the committee should require business financial statements from applicants. The discussion noted that requests for financials have been handled inconsistently in the past, that the TIF rubrics do not specify due diligence steps for reviewing business finances, and that competence to execute a project is already considered in the rubric. Several members said asking for personal financial statements is inappropriate since applicants are businesses.
The committee also discussed coordination with the town assessor. Members said they want awarded grants to be made known to the assessor for future property revaluations and requested that a Tax Assessor representative attend a future TIF meeting to explain the timing of municipal revaluations and any historical effects of TIF grants on downtown property assessments.
The group reviewed procurement expectations in the 2017 guidance and reiterated that a formal multiple-bid process is not required; instead, the submitted project budget must be deemed reasonable. Members noted local contractor use is not mandated and may not always match project needs.
The committee set its next meeting for April 13, 9:00–10:30 a.m. The March 30 meeting adjourned at 12:00 p.m.; minutes were submitted by Amber Lambke, chair.
