Belfast officials unanimously approved a new 30-year tax increment financing district along Belmont Avenue on Tuesday night to support infrastructure, housing, and other public projects, including a 60-unit affordable housing development at 45 Belmont Ave. on land owned by Waldo Community Action Partners.
The newly approved City of Belfast Belmont Avenue Omnibus Municipal Development and TIF District will cover 229.25 acres, including 50 parcels and parts of 12 roads between Crocker Road and Cedar Street, with a total assessed value of $45.76 million.
As part of the plan, the city will enter into a credit enhancement agreement with Belmont Avenue Associates, LP, to help fund the WCAP-led project. That agreement will discount taxes on the new development by 50 percent for 30 years, at a total cost to the city of roughly $3 million. The TIF would direct the remaining new property taxes generated within the district toward funding projects there, such as road work and sewer upgrades.
The district includes parcels along Belmont Avenue/Main Street and portions or all of the Alto, Anderson, Cedar, Charles, Congress, Crocker, Fairgrounds, Goodwill, Hatley, Lincolnville, Starrett, and Route 1 rights-of-way.
David Pelton of LB Development, a partner with WCAP on the development of the project, stated his opinion that “it’s a great economic tool for potential development” and noted that the
low income housing tax credit program has an application deadline in 40 days, and is only once a year. That deadline is listed on the website as September 18.
“If we miss this opportunity, and something doesn’t get approved tonight, it delays any kind of project; the 60 units that we want to build, it delays it a whole year,” Pelton said. “I don’t think that would be the intent of the city of Belfast given all the interest around housing, especially affordable housing, around the community.”
Several residents of the area voiced concerns and opposition to the proposed plan.
“I’m a little bewildered by the fact that the area mushrooms into a very broad area, amounting to something like 230 acres,” said resident Eric Buch. “It’s not zeroed in on a particular project or projects at this stage, and it opens up a whole conversation about what our designs are for the city of Belfast. What kind of economic development do we want?”
Deb Derektor, another speaker, agreed with Buch’s comment.
“I don’t know anything about this, and I agree that it’s rushed,” Derektor said. “I don’t think a year’s that long to wait. This is a big decision, and hardly anybody’s here to speak to this. This is a big decision, and it seems like we need more time.”
Mary Mortier noted that TIF funds were not private nor closed to the public, and would have to go through the council, noting accountability in that way.
Another plan to rebuild and renovate the Belfast Birches, a 24-unit affordable senior housing complex on School Street, is moving forward four years later than it was planned after city officials reauthorized a tax increment financial agreement this week.
The Belfast City Council voted unanimously in favor Tuesday night to approve a tax increment financing agreement, or TIF, amended to help the developer, Realty Resources, secure low-income housing tax credits to help pay for the renovation.
Economic Development Director Thomas Kittredge told the City Council on Tuesday that the agreement would now go to 32 BB School St., LP, and that recent changes include extending the TIF district through the 2056–2057 tax year and reauthorizing a 30-year, 50 percent credit enhancement agreement under new state law.
The tax break would return half of the new property taxes from the site to the developer to help finance the project and strengthen its application for state funding.
Council member Neal Harkness, noting that many low-income housing arrangements have aged out of affordability in recent years nationally, leaving people without access to affordable homes.
“I’m glad to see this,” Harkness said. “I want to be supportive of it.”
