Tax Increment Financing ("TIF") is one of the few techniques authorized under Maine state law to assist cities and towns in their promothion of economic development. TIF’s are used for projects which would not otherwise occur, which create or retain employment opportunities, which make substantial increases in the Town’s tax base, and which are in keeping with the quality and types of development sought by the Town, as outlined in the Zoning Ordinance, Comprehensive Plan, Economic Development Strategic Plan and in other policies enacted by the Town Council. Because of the potential of TIF agreements to defer potential gains in general fund revenues, they are entered into cautiously by the Town. The purpose of these guidelines is to outline standards that will be used by the Town Staff, the Freeport Economic Development Corporation ("FEDC") and the Town Council with respect to the Town’s involvement in TIF agreements.
Not withstanding these guidelines, the creation of a TIF District or enhancement agreement is based on a recommendation of the FEDC and a policy decision of the Freeport Town Council made on a case by case basis. The Council may override these guidelines if it determines that a project merits such treatment. A TIF is not a right under Maine law and these guidelines do not create a right or entitlement for any application, nor should they be interpreted to encourage any application.
For the complete text, please download Tax Increment Financing Guidelines. Click Here
