Small crowd at meeting approves new TIF (Printed March 5, 2010)

By Suzanne Hodgson

Staff Writer

 

Less than 1 percent of Kennebunk’s voting population attended a special Town Meeting last Wednesday.

Five articles appeared on the town warrant for the meeting, but the hot button issue was approval of a Lower Village Tax Increment Financing district.

Many of the estimated 60 attendees spoke about the pros and cons of having another TIF district in addition to those downtown, in West Kennebunk and along Route 1.

In the end, the ayes carried the vote, and approved the district.

“Lower Village seems to be a stepchild. Nice to visit when summer’s here but when the cold weather comes in, we get lost,” Lower Village said resident Lou Costa. “Fair is fair.”

Town Manager Barry Tibbetts said the new TIF district was not expected to make much money over the next few  years, but it would allow the town to make improvements to Lower Village.

Like other TIF districts, tax revenue from improvements on properties in the district are set aside and reserved for specific projects.

“This TIF came about after discussions with the Lower Village Committee trying to find ways to make infrastructure improvements,” Tibbetts said. “It might be advantageous to see some changes in the Lower Village.”

Slightly more than 17 acres in Lower Village have been identified as part of the new new TIF district. The Lower Village committee picked parcels where they thought development would take place over the next couple years.

Tibbetts said TIF districts can help save the town money.

“When it comes to county tax, any TIF for that purpose means lower valuation,”  Tibbetts said.

Tibbetts said TIF districts affect revenue sharing in the county and act to give Kennebunk a rebate on sales tax revenue sharing from the year. The lower valuation also helps taxpayers save slightly on school taxes, he said.

The committee put forth a list of suggestions to use the Lower Village TIF money, including improvements to sidewalks, new parking lot and visitor center.

Budget board member John Costin said he was not in favor of the new TIF district.

“This sets aside future tax revenues. None of these on this list are high priority,” Costin said.

School Board member Gayle Spofford rebutted Costin’s comments saying TIF districts were part of long-term planning and priorities and sidewalk improvements had been discussed for years.

“Short-term thinking doesn’t necessarily benefit the town,” Spofford said.

Rachel Phipps, who is Costin’s wife, objected to voting on the TIF district due to low turnout.

“I find that really not in line with efforts in recent years to increase public participation,” Phipps said.

Not everyone agreed the vote should be delayed.

“If people are more concerned with staying at home and watching ‘American Idol’ instead of coming here and voting on this issue, then you’re the ones who should decide the issue,” said Selectman Robert Higgins.

Voters also approved the establishment of Henri Drive as a town way and an ordinance amending the town’s victualler and lodging license.

The amendments to the lodging license would allow a variety of changes, including changes to fees for the license and discontinuing the ability to sublet the license.

Voters also approved re-appropriating funds from the heating fuel assistance program to a new account based on a program to help improve winterization in homes.

The program will look at different ways to winterize homes at a discounted price, including building wooden frame windows with plastic covering at one of the schools in the district. It will work in tandem with the fuel assistance program.

Staff Writer Suzanne Hodgson can be reached at 282-4337, ext. 233.

 

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