TIF proposed for Bessey project
TIF proposed for Bessey project
By Zack Anchors
Staff writer
A new senior housing project planned for the site of the former Bessey School may soon be among the first housing projects in the state to benefit from a newly developed form of economic assistance.
The town is considering establishing an affordable housing tax increment financing district (TIF) for the Bessey Commons Senior Housing, a strategy that would funnel property taxes generated within the TIF back into the development. The funds generated by the TIF would be used for capital improvements to the site and directed toward operating costs, with the intent of keeping senior housing affordable. The first affordable housing TIF in Maine was established in South Portland two years ago for the Brickhill Housing Development. The Scarborough Town Council held a first reading on the Bessey School affordable housing TIF at its Oct. 18 meeting and, after unanimous approval, scheduled a second reading and public hearing for its next meeting.
The Bessey Commons Senior Housing project, located in the Oak Hill neighborhood, will include 54 one-bedroom apartments for seniors with varying levels of low incomes. There will be 33 units intended for individuals whose income is 50 percent of the area’s median income and 21 apartments targeted at individuals whose income is 60 percent of the median income. The Bessey School building will be renovated and transformed into a 14-apartment site, and another building that will be constructed will hold the remaining units. The property will be leased from the town at one dollar a year for a 99-year term.
The project is seen by town officials as an important step in meeting several goals laid out in the Scarborough’s comprehensive plan. Besides providing affordable housing, the project is hoped to further the goal of creating a walkable, intergenerational town center that contains mixed uses and prevents urban sprawl.
Bessey Commons will also help implement the recommendation in a 2005 study by the Scarborough Housing Alliance for Scarborough to provide more senior housing. According to a town report, among the 18 largest municipalities in Maine, Scarborough ranks last in the number of assisted rental units for seniors as a percentage of households for ages 65 and over.
TIFs have been used in Scarborough and throughout the country for many years, typically to support business development, but the affordable housing approach was developed by the Maine State Housing Authority in 2004. A TIF is an agreement between the state and a municipality that allows for property taxes produced from within a designated area to be used for specified projects within that area instead of being sent to the state. The Bessey School TIF is estimated to produce around $1.6 million over its 30-year life span. Cindy Taylor of Bessey School LP said the funds would fulfill two needs.
“$700,000 of that will be used for capital improvements,” she said. “The remaining revenue will be used for operating costs in order to keep it affordable.”
Construction on the site is expected to begin in 2007 and to be substantially complete by 2008.
By Zack Anchors
Staff writer
A new senior housing project planned for the site of the former Bessey School may soon be among the first housing projects in the state to benefit from a newly developed form of economic assistance.
The town is considering establishing an affordable housing tax increment financing district (TIF) for the Bessey Commons Senior Housing, a strategy that would funnel property taxes generated within the TIF back into the development. The funds generated by the TIF would be used for capital improvements to the site and directed toward operating costs, with the intent of keeping senior housing affordable. The first affordable housing TIF in Maine was established in South Portland two years ago for the Brickhill Housing Development. The Scarborough Town Council held a first reading on the Bessey School affordable housing TIF at its Oct. 18 meeting and, after unanimous approval, scheduled a second reading and public hearing for its next meeting.
The Bessey Commons Senior Housing project, located in the Oak Hill neighborhood, will include 54 one-bedroom apartments for seniors with varying levels of low incomes. There will be 33 units intended for individuals whose income is 50 percent of the area’s median income and 21 apartments targeted at individuals whose income is 60 percent of the median income. The Bessey School building will be renovated and transformed into a 14-apartment site, and another building that will be constructed will hold the remaining units. The property will be leased from the town at one dollar a year for a 99-year term.
The project is seen by town officials as an important step in meeting several goals laid out in the Scarborough’s comprehensive plan. Besides providing affordable housing, the project is hoped to further the goal of creating a walkable, intergenerational town center that contains mixed uses and prevents urban sprawl.
Bessey Commons will also help implement the recommendation in a 2005 study by the Scarborough Housing Alliance for Scarborough to provide more senior housing. According to a town report, among the 18 largest municipalities in Maine, Scarborough ranks last in the number of assisted rental units for seniors as a percentage of households for ages 65 and over.
TIFs have been used in Scarborough and throughout the country for many years, typically to support business development, but the affordable housing approach was developed by the Maine State Housing Authority in 2004. A TIF is an agreement between the state and a municipality that allows for property taxes produced from within a designated area to be used for specified projects within that area instead of being sent to the state. The Bessey School TIF is estimated to produce around $1.6 million over its 30-year life span. Cindy Taylor of Bessey School LP said the funds would fulfill two needs.
“$700,000 of that will be used for capital improvements,” she said. “The remaining revenue will be used for operating costs in order to keep it affordable.”
Construction on the site is expected to begin in 2007 and to be substantially complete by 2008.
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