Saturday, December 4, 2021
News for Retirees

Scarborough council appears to be like at offering tax break for senior reasonably priced housing

Share this…FacebookPinterestTwitterLinkedin SCARBOROUGH — The city of Scarborough might enter a credit score enhancement settlement with Avesta Housing for a…

By Staff , in Senior Living , at June 25, 2021

SCARBOROUGH — The city of Scarborough might enter a credit score enhancement settlement with Avesta Housing for a 31-unit reasonably priced senior dwelling advanced on the former public security constructing location.

Councilors spoke in favor of the settlement throughout the June 9 City Council assembly. Councilor Ken Johnson stated the settlement would solely embrace Avesta and never every other industrial growth taking place on the website, which is positioned at 246 US Route 1.

The 20-year CEA would see a 75 % reimbursement of the tax increment, stated City Supervisor Tom Corridor. Based on info within the City Council agenda, the estimated whole reimbursement of the CEA is $555,440 to the developer, $162,929 in property taxes to the city’s normal fund and $22,218 to Scarborough’s tax increment financing account.

A CEA, is a method to make use of Tax Increment Finance, or TIF, funds. TIF funds are tax cash created from new property worth that as a substitute of going to a neighborhood’s normal fund, may be put aside for infrastructure enhancements inside a specified TIF district, can go to a developer inside the district within the type of a CEA, and extra.

The city has included particular provisions within the proposed credit score enhancement settlement, stated Corridor. One in all which is that the challenge stay in step with the city’s definition of reasonably priced housing.

“And secondarily, that there be applied an area desire for people dwelling or working in Scarborough,” he stated. “That language has been negotiated with Avesta and is included and proposed for (council) consideration as effectively.”

Moreover the CEA, the City Council might want to approve an modification of the downtown TIF district to incorporate the land, which is .44 acres, stated Corridor. Everything of the district is about 1,000 acres.

“That is property, and I nonetheless haven’t discovered how we missed this boundary change, if you’ll,” he stated. “This was town-owned property and by all rights, I feel what we did is observe the zone boundary that was since modified versus a property boundary, however nonetheless, this can be a element that’s essential.”

Councilor John Cloutier stated he supported the addition of the parcel moderately than creating a brand new reasonably priced housing TIF district.

“By means of some dialogue with the city supervisor, I advocated for increasing the downtown district,” he stated. “An enormous a part of it’s we’re on the verge of being a minimal receiver … We most likely will probably be now not a minimal receiver within the coming months, and there’s a giant monetary profit that comes from having the ability to pool the expansion within the total downtown district to seize that worth to offset prices related to CEAs like this or different initiatives that we’d need to tackle. So pooling these lets you actually leverage or benefit from the incentives which can be given to us by the state to offset total prices to the city. In order that’s a part of the explanation why it’s coming ahead as a downtown modification versus a separate TIF district.”

Increasing the downtown TIF district will permit a bigger amount of cash to enter one account, stated Cloutier.

“Should you create an reasonably priced housing TIF district for this one parcel, the one {dollars} going into that fund are going to be the taxes which can be paid on this one parcel,” he stated. “Whenever you’re giving 75 % of these taxes again to the developer, there’s not a lot cash that’s going to be left there. I like that you need to use that for a better vary of challenge prices, but when there’s solely a pair thousand {dollars} within the account, it’s not well worth the administration to undergo to attempt to discover locations the place you may spend the small {dollars}. Whereas should you mix it with the downtown TIF, then you may have bigger initiatives that may assist seize extra of the worth.”

The City Council held a public listening to on the modification and CEA settlement on the June 16 assembly however there have been no feedback made.

Builders have mentioned intentions for the previous public security constructing with the City Council in earlier conferences this 12 months, saying that the intention is a village-like neighborhood, with a grocer, fitness center, financial institution and different forms of companies which can be in a walkable distance from the housing advanced.

Source link

Skip to content