Applicants are encouraged to develop applications in consultation with
the Town. Members of the Board of Selectmen, Planning Board or Code Enforcement
Office may be involved in these preliminary discussions, even when they may
be involved in a subsequent review of the application. All TIF applications
must:
A. Provide enough detail to clearly describe the scope of
the project, beneficiaries and costs;
B. Include a detailed description of any public improvements
to be financed using captured funds, and information regarding how the funds
will be spent;
C. Compare the impact of the proposed activities on the
SAD No. 59 and county assessment and on state revenue sharing that is based
on tax valuation, both with and without a TIF District;
D. Clearly describe the benefits of the TIF to the applicant;
E. Provide a statement explaining the impact of proposed
project upon the general community;
F. Present all data required by the state, 30-A M.R.S.A.
§§ 5222 through 5224; and
G. Provide any additional information the Board of Selectmen
deems necessary to review and evaluate the application.
The following criteria shall be used to determine the public benefit of the application and whether or not the proposal should be placed before the voters for consideration. It is not mandatory that all criteria be met. The Board may negotiate with the applicant regarding specific elements of the application in an effort to create an amended proposal. (In addition to the provisions contained in this section, the Board of Selectmen shall use §
729-9, Performance standards, below to determine the recommended percentage of financial benefit associated with the captured value to be utilized for the benefit of the applicant.)
A. Does the application meet the "basic provisions" outlined
above?
B. Does the project create or retain long-term permanent employment with wages equal to or higher than the local average? (See §
729-9, Performance standards, below.)
C. Will any new jobs created be advertised and promoted within Madison? (See §
729-9, Performance standards, below.)
D. Does the proposal improve the general economy of the
community?
E. Will the improvements have a net positive impact on Madison's
business community after considering all factors, including effects on established
businesses?
F. Does the project minimize traffic impacts and is it designed
in a manner that does not contribute to commercial sprawl?
G. Are the structures to be built, if any, which are visible
from a public road, compatible with the surroundings with regard to style
and setting and in compliance with the Comprehensive Plan as well as state
and local ordinance?
H. Does the project create public infrastructure facilities that have applications beyond the particular development such as traffic upgrades, public parking facilities, etc.? (See §
729-9, Performance standards, below.)
I. Does the project improve and/or broaden the tax base?
J. Does the proposal improve blighted buildings or areas
in need of redevelopment?
K. Does the proposed district support community projects
or create public benefits such as granting access to open spaces, creating
student internships, providing job training, supporting local contractors
and suppliers?
L. Will this project encourage other businesses to invest
in their buildings, purchase equipment or create jobs?
This section shall utilized to evaluate the appropriate percentage of
financial benefit associated with the captured value to be utilized for the
benefit of the applicant.
A. If the infrastructure improvements proposed under the
TIF are likely to directly encourage additional businesses to relocate or
expand within Madison: or, if the TIF proposal will create new public service
or training endeavors (i.e., higher education facilities such as a University
of Maine satellite site), the Board should consider awarding additional credit
enhancement percentage points to the proposed agreement. General speculation
regarding possible future development due to the proposed upgrade will not
hold as much weight as professional opinions from KVCOG, Community Development
Director or other knowledgeable sources.
B. For proposed TIF applications retaining or creating quality jobs, which are paid equal to or higher than the local average, the Board may consider providing the applicant with a value of $4,000 annually per job retained or created. This amount may be made in addition to any amounts or percentages awarded pursuant to Subsections
A and
C of this section.
C. To obtain an incentive for retained jobs the applicant
must provide clear and convincing documentation that the TIF approval will
provide the financial incentive which will make the difference between relocating
or going out of business. A pro forma or business plan will be required to
show that the applicant is seriously considering a viable alternative location.
D. Both the retained jobs and newly created jobs shall be
monitored by the Town on a monthly, quarterly, semiannually or annual schedule
as determined appropriate by the Town. In the event that any approved TIF
District does not meet its job creation/retention obligations under these
standards, the Board of Selectmen reserves the right to renegotiate the CEA
to reduce the tax benefit to the applicant accordingly.
In all instances, applicants requesting tax increment financing must
demonstrate:
A. The Town's participation is economically necessary and
involvement by the Town is needed in order to the project to be undertaken.
Justification for economic need and Town involvement must be demonstrated
by:
(1) A need to offset infrastructure costs unique to the site;
or
(2) A need to offset economic advantages available to the
corporate entity if it should build (or expand) outside of Madison; or
(3) The unavailability of sufficient private or other public
funding sources to meet the full capital investment needs of the corporate
entity seeking assistance.
B. The project creates a significant new tax value equal
to or greater than $2,000,000 or a significant employment impact.
C. Financial capability to undertake project must be evidenced
prior to review.
D. Compliance with all statutory and regulatory guidelines
of the Town and state.
All applicants must, at a minimum, comply with the following conditions:
A. For any employees employed in the state, the employer
may not discriminate, with respect to wages, benefits or terms and conditions
of employment between full-time employees and other employees, except that
benefits may be prorated based on the amount of time worked. This subsection
does not prohibit variations in the rate of pay based on a difference in employee
seniority.
B. The employer must offer health insurance coverage to
all employees employed in the state on the same financial terms, except that
employees who are not full-time permanent employees may be offered coverage
on a prorated basis based on the amount of time they work.
C. The employer must provide to all employees employed in
the state a pension plan that includes an employer contribution of at least
3% of gross pay.
D. The employer may not pay an employee an hourly wage that
is less than the prevailing wage for that occupation in the state as determined
by the Commissioner of Labor or a living wage, whichever is higher. For the
purposes of this subsection "living wage" means an income calculated on a
calendar year basis that is greater than the average annual per capita income
in the labor market area in which the employee is employed.
E. The employer must develop and implement a closing and
layoff policy, which must, at a minimum, require that the employer will not
close, relocate or eliminate jobs without providing at least six-months' notice
to the state and the unit of local government that provides the economic development
incentive, without engaging meetings with state and local government officials
and local unions to explore alternatives and without engaging locally in at
least one public hearing in the affected community.
F. If an employer sells a business that has qualified for
an economic development incentive, the purchaser is subject to this section
for five years beyond the termination of the economic development incentive
or for a length of time equal to the period during which the business received
the economic development incentive if that period was less than five years.
The purchaser must conform to the terms of any existing collective bargaining
agreement between the former employer and any of that employer's employees.
Although an applicant need not meet each of the following criteria,
they will be used to determine the level of participation by the Town.
A. The project assists an established business in the Town
of Madison, thus creating or retaining employment;
B. The project creates long-term, permanent employment;
C. The project improves a blighted area in need of redevelopment,
or an area identified as a priority by the Town;
D. The project creates public infrastructure facilities
which will have application beyond the particular development such as traffic
upgrades, public parking facilities, etc.
E. If not from the beginning on the district, then as soon
as is financially possible, the project will support community projects or
create public benefits such as granting access to open spaces, creating student
internships, providing job training, supporting local contractors and suppliers,
etc.
The Town will act as a clearinghouse and coordinate all activities regarding
tax increment financing proposals. Working with potential applicants, the
Town will:
A. Provide information on tax increment financing;
B. Discuss project proposals and accept preliminary applications
from applicants;
C. Review preliminary applications based on policy guidelines;
D. Advise applicants on findings of the Town staff's review;
E. Following a review and evaluation of an application,
the Town Manager will make a written determination whether to accept or reject
the application. The written decision approving an application and the application
will be sent to the Economic Development Committee of the Board of Selectmen
for review and a recommendation (Decisions rejecting an application will also
be sent.);
F. Provide assistance, if required, when the Economic Development
Committee makes its recommendation to the full Board of Selectmen;
G. Submit application to the state, based on the direction
of the Board of Selectmen;
H. Monitor ongoing public and private investment
in the development project.