TIF agreement close between town, Gateway developers
TIF agreement close between town, Gateway developers
By Lucas Knowles
Editor
Developers of the new Gateway at Scarborough project, which is proposed to include a Cabela’s store, are close to coming to an agreement with the town where a TIF (tax increment financing) district would reimburse the developers for infrastructure or traffic improvements that they make.
The 70 acre project, which will be located in the Haigis Parkway business development district, is proposed to include retail stores, a hotel, restaurants and office buildings in addition to a 130,000 square foot Cabela’s store. New England Expedition, a partnership based out of Connecticut, is the company that is developing the property.
Cabela’s is a national chain of retail stores based in the Midwest that sells outdoors gear and equipment.
Developers of the Gateway at Scarborough project have been in negotiations with the town regarding an expansion of the existing TIF for the Haigis Parkway district. What is being proposed is a change to the ordinance that would allow the Haigis Parkway TIF to capture an additional $74 million, which is the estimated cost of the Gateway at Scarborough project. The new taxes generated by the increased value of the property would be returned to the developer to help defray the costs they incurred to construct infrastructure and traffic improvements.
A TIF is a mechanism used by municipalities to help pay for improvements by using money generated by the growth in property tax revenues of a particular development.
Harvey Rosenfeld, president of the Scarborough Economic Development Corporation (SEDCO), said the TIF for the New England Expedition project is similar to the one that was drawn up for the Enterprise Business Park. He said before the developers begins to receive compensation as a result of the TIF agreement, the project will have to be “substantially” finished.
“The project will need to hit a certain level of valuation before they get their money back,” Rosenfeld said. “What the town wants to insure is that the project is substantially done before they start collecting that money.”
Rosenfeld said similar agreements may be drawn up for other developments that are built in the Haigis Parkway district.
According to Town Manager Ron Owens, the developers of the Gateway at Scarborough will receive $8,250,000 in shared tax revenue. To start receiving part of that money each year, the development will have to be worth at least $55 million in value.
Owens said the agreement is “win/win” for the town and the developers.
“What this represents is a substantial investment in the Haigis Parkwway, which is what we need in order to see the Parkway develop,” Owens said. “The reason we are interested in this project is because it is so large…by investing $70 to 80 million in the Parkway, we will get a substantial start in the goals we need to meet in the next 10 years.”
Owens said the Gateway at Scarborough will also spur additional development along Haigis Parkway and will bring more people to Scarborough, which he said could help spur development in other areas of town as well.
The Gateway at Scarborough project’s contract zoning agreement, along with the changes to the Haigis Parkway TIF, were both the subjects of public hearings at this week’s Town Council meeting.
By Lucas Knowles
Editor
Developers of the new Gateway at Scarborough project, which is proposed to include a Cabela’s store, are close to coming to an agreement with the town where a TIF (tax increment financing) district would reimburse the developers for infrastructure or traffic improvements that they make.
The 70 acre project, which will be located in the Haigis Parkway business development district, is proposed to include retail stores, a hotel, restaurants and office buildings in addition to a 130,000 square foot Cabela’s store. New England Expedition, a partnership based out of Connecticut, is the company that is developing the property.
Cabela’s is a national chain of retail stores based in the Midwest that sells outdoors gear and equipment.
Developers of the Gateway at Scarborough project have been in negotiations with the town regarding an expansion of the existing TIF for the Haigis Parkway district. What is being proposed is a change to the ordinance that would allow the Haigis Parkway TIF to capture an additional $74 million, which is the estimated cost of the Gateway at Scarborough project. The new taxes generated by the increased value of the property would be returned to the developer to help defray the costs they incurred to construct infrastructure and traffic improvements.
A TIF is a mechanism used by municipalities to help pay for improvements by using money generated by the growth in property tax revenues of a particular development.
Harvey Rosenfeld, president of the Scarborough Economic Development Corporation (SEDCO), said the TIF for the New England Expedition project is similar to the one that was drawn up for the Enterprise Business Park. He said before the developers begins to receive compensation as a result of the TIF agreement, the project will have to be “substantially” finished.
“The project will need to hit a certain level of valuation before they get their money back,” Rosenfeld said. “What the town wants to insure is that the project is substantially done before they start collecting that money.”
Rosenfeld said similar agreements may be drawn up for other developments that are built in the Haigis Parkway district.
According to Town Manager Ron Owens, the developers of the Gateway at Scarborough will receive $8,250,000 in shared tax revenue. To start receiving part of that money each year, the development will have to be worth at least $55 million in value.
Owens said the agreement is “win/win” for the town and the developers.
“What this represents is a substantial investment in the Haigis Parkwway, which is what we need in order to see the Parkway develop,” Owens said. “The reason we are interested in this project is because it is so large…by investing $70 to 80 million in the Parkway, we will get a substantial start in the goals we need to meet in the next 10 years.”
Owens said the Gateway at Scarborough will also spur additional development along Haigis Parkway and will bring more people to Scarborough, which he said could help spur development in other areas of town as well.
The Gateway at Scarborough project’s contract zoning agreement, along with the changes to the Haigis Parkway TIF, were both the subjects of public hearings at this week’s Town Council meeting.
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