1. Authorized project costs. The commissioner shall review proposed project costs to ensure compliance with this subsection. Authorized project costs are:
A. Costs of improvements made within the tax increment financing district, including, but not limited to:

(1) Capital costs, including, but not limited to:

(a) The acquisition or construction of land, improvements, public ways, buildings, structures, fixtures and equipment for public, arts district, new or existing recreational trail, commercial or transit-oriented development district use.

(i) Eligible transit-oriented development district capital costs include but are not limited to: transit vehicles such as buses, ferries, vans, rail conveyances and related equipment; bus shelters and other transit-related structures; benches, signs and other transit-related infrastructure; bicycle lane construction and other bicycle-related improvements; pedestrian improvements such as crosswalks, crosswalk signals and warning systems and crosswalk curb treatments; and the nonresidential commercial portions of transit-oriented development projects.
(ii) Eligible recreational trail-related development district capital costs include but are not limited to new or existing trails, including bridges that are part of the trail corridor, used all or in part for all-terrain vehicles, snowmobiles, hiking, bicycling, cross-country skiing or other related multiple uses, signs, crosswalks, signals and warning systems and other related improvements.
(iii) Eligible development district capital costs for public ways include but are not limited to scenic turnouts, signs, railing and other related improvements;

(b) The demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures;
(c) Site preparation and finishing work; and
(d) All fees and expenses that are eligible to be included in the capital cost of such improvements, including, but not limited to, licensing and permitting expenses and planning, engineering, architectural, testing, legal and accounting expenses;

(2) Financing costs, including, but not limited to, closing costs, issuance costs and interest paid to holders of evidences of indebtedness issued to pay for project costs and any premium paid over the principal amount of that indebtedness because of the redemption of the obligations before maturity;
(3) Real property assembly costs;
(4) Professional service costs, including, but not limited to, licensing, architectural, planning, engineering and legal expenses;
(5) Administrative costs, including, but not limited to, reasonable charges for the time spent by municipal or plantation employees in connection with the implementation of a development program;
(6) Relocation costs, including, but not limited to, relocation payments made following condemnation;
(7) Organizational costs relating to the establishment of the district, including, but not limited to, the costs of conducting environmental impact and other studies and the costs of informing the public about the creation of development districts and the implementation of project plans;
(8) In the case of transit-oriented development districts, ongoing costs of adding to an existing transit system or creating a new transit service and limited strictly to transit operator salaries, transit vehicle fuel and transit vehicle parts replacements; and
(9) Costs associated with the development and operation of housing, including, but not limited to, authorized project costs for improvements as described in section 5249 even if such improvements are not made within an affordable housing development district as defined in section 5246, subsection 2; [PL 2021, c. 261, §§2-4 (AMD).]
B. Costs of improvements that are made outside the tax increment financing district but are directly related to or are made necessary by the establishment or operation of the district, including, but not limited to:

(1) Costs related to the construction, alteration or expansion of any facilities not located within the district that are required due to improvements or activities within the district, including, but not limited to, sewage treatment plants, water treatment plants or other environmental protection devices; storm or sanitary sewer lines; water lines; electrical lines; improvements to public safety facilities; and amenities on streets;
(2) Costs of public safety improvements related to the establishment of the district;
(3) Costs of funding to mitigate any adverse impact of the district upon the municipality or plantation and its constituents. This funding may be used for public facilities and improvements if:

(a) The public facilities or improvements are located in a downtown tax increment financing district; and
(b) The entire tax increment from the downtown tax increment financing district is committed to the development program of the tax increment financing district; and

(4) Authorized project costs for improvements as described in section 5249 in support of municipal economic development activities regardless of whether such costs are within an affordable housing development district as defined in section 5246, subsection 2; [PL 2021, c. 261, §5 (AMD).]
C. Costs related to economic development, environmental improvements, fisheries and wildlife or marine resources projects, recreational trails, broadband service development, expansion or improvement, including connecting to broadband service outside the tax increment financing district, employment training or the promotion of workforce development and retention within the municipality or plantation, including, but not limited to:

(1) Costs of funding economic development programs or events developed by the municipality or plantation or funding the marketing of the municipality or plantation as a business or arts location;
(2) Costs of funding environmental improvement projects developed by the municipality or plantation for commercial or arts district use or related to such activities;
(3) Funding to establish permanent economic development revolving loan funds, investment funds and grants;
(4) Costs of services and equipment to provide skills development and training, including scholarships to in-state educational institutions or to online learning entities when in-state options are not available, for jobs created or retained in the municipality or plantation. These costs must be designated as training funds in the development program;
(5) Costs associated with quality child care facilities and adult care facilities, including finance costs and construction, staffing, training, certification and accreditation costs related to child care and adult care;
(6) Costs associated with new or existing recreational trails determined by the department to have significant potential to promote economic development, including, but not limited to, costs for multiple projects and project phases that may include planning, design, construction, maintenance, grooming and improvements with respect to new or existing recreational trails, which may include bridges that are part of the trail corridor, used all or in part for all-terrain vehicles, snowmobiles, hiking, bicycling, cross-country skiing or other related multiple uses;
(7) Costs associated with a new or expanded transit service, limited to:

(a) Transit service capital costs, including but not limited to: transit vehicles such as buses, ferries, vans, rail conveyances and related equipment; bus shelters and other transit-related structures; and benches, signs and other transit-related infrastructure; and
(b) In the case of transit-oriented development districts, ongoing costs of adding to an existing transit system or creating a new transit service and limited strictly to transit operator salaries, transit vehicle fuel and transit vehicle parts replacements;

(8) Costs associated with the development of fisheries and wildlife or marine resources projects;
(9) Costs related to the construction or operation of municipal or plantation public safety facilities, the need for which is related to general economic development within the municipality or plantation, not to exceed 15% of the captured assessed value of the development district;
(10) Costs associated with broadband and fiber optics expansion projects, including preparation, planning, engineering and other related costs in addition to the construction costs of those projects. If an area within a municipality or plantation is unserved with respect to broadband service, as defined by the ConnectMaine Authority as provided in Title 35?A, section 9204?A, subsection 1, broadband and fiber optics expansion projects may serve residential or other nonbusiness or noncommercial areas in addition to business or commercial areas within the municipality or plantation;
(11) Costs associated with the operation and financial support of:

(a) Affordable housing in the municipality or plantation to serve ongoing economic development efforts, including the further development of the downtown tax increment financing districts; and
(b) Housing programs and services to assist those who are experiencing homelessness in the municipality or plantation as defined in the municipality’s or plantation’s development program; and

(12) Up to 50% of the capital costs related to the construction or renovation of a municipality’s or plantation’s central administrative office, the need for which is related to general economic development within the municipality or plantation, not to exceed 15% of the captured assessed value of the development district; [PL 2023, c. 142, §§1-3 (AMD).]
D. Costs of constructing or improving facilities or buildings leased by State Government or a municipal or plantation government that are located in approved downtown tax increment financing districts; and [PL 2021, c. 261, §7 (AMD).]
E. Costs associated with the development and operation of affordable housing or housing services for persons who are experiencing homelessness as defined in the municipality’s or plantation’s development program. [PL 2021, c. 261, §8 (NEW).]

[PL 2023, c. 142, §§1-3 (AMD).]

Terms Used In Maine Revised Statutes Title 30-A Sec. 5225

  • Adult: means a person who has attained the age of 18 years. See Maine Revised Statutes Title 1 Sec. 72
  • Adult care facilities: means facilities that are licensed by the Department of Health and Human Services and that offer programs for adults who need assistance or supervision and that are operated out of nonresidential commercial buildings. See Maine Revised Statutes Title 30-A Sec. 5222
  • Amenities: means items of street furniture, signs and landscaping, including, but not limited to, plantings, benches, trash receptacles, street signs, sidewalks and pedestrian malls. See Maine Revised Statutes Title 30-A Sec. 5222
  • Arts district: means a specified area within the corporate limits of a municipality or plantation that has been designated by the municipality or plantation for the purpose of providing employment and cultural opportunities through the development of arts opportunities, including, but not limited to, museums, galleries, arts education, art studios, performing arts venues and associated businesses. See Maine Revised Statutes Title 30-A Sec. 5222
  • Captured assessed value: means the amount, as a percentage or stated sum, of increased assessed value that is utilized from year to year to finance the project costs contained within the development program. See Maine Revised Statutes Title 30-A Sec. 5222
  • Child care facilities: means facilities that are licensed by the Department of Health and Human Services that provide care for at least 6 children who are less than 18 years of age by persons who are not family members, legal guardians or other custodians of the children and that are operated out of nonresidential commercial buildings. See Maine Revised Statutes Title 30-A Sec. 5222
  • Commissioner: means the Commissioner of Economic and Community Development. See Maine Revised Statutes Title 30-A Sec. 5222
  • Department: means the Department of Economic and Community Development. See Maine Revised Statutes Title 30-A Sec. 5222
  • Development district: means a specified area within the corporate limits of a municipality or plantation that has been designated as provided under sections 5223 and 5226 and that is to be developed under a development program. See Maine Revised Statutes Title 30-A Sec. 5222
  • Development program: means a statement of means and objectives designed to provide new employment opportunities, retain existing employment, improve or broaden the tax base, construct or improve the physical facilities and structures or improve the quality of pedestrian and vehicular transportation, as described in section 5224, subsection 2. See Maine Revised Statutes Title 30-A Sec. 5222
  • Downtown: means the traditional central business district of a community that has served as the center of socioeconomic interaction in the community, characterized by a cohesive core of commercial and mixed-use buildings, often interspersed with civic, religious and residential buildings and public spaces, that are typically arranged along a main street and intersecting side streets and served by public infrastructure. See Maine Revised Statutes Title 30-A Sec. 5222
  • Downtown tax increment financing district: means a tax increment financing district described in a downtown redevelopment plan that is consistent with the downtown criteria established pursuant to rules of the department. See Maine Revised Statutes Title 30-A Sec. 5222
  • Municipality: means a city or town, except as provided in chapter 225. See Maine Revised Statutes Title 30-A Sec. 2001
  • Project costs: means any expenditures or monetary obligations incurred or expected to be incurred that are authorized by section 5225, subsection 1 and included in a development program. See Maine Revised Statutes Title 30-A Sec. 5222
  • Sewage: means the water-carried wastes created in and carried or to be carried away from any structure together with any surface or ground water or household and industrial waste that is present. See Maine Revised Statutes Title 30-A Sec. 2001
  • Tax increment: means real and personal property taxes assessed by a municipality or plantation, in excess of any state, county or special district tax, upon the increased assessed value of property in the development district. See Maine Revised Statutes Title 30-A Sec. 5222
  • Tax increment financing district: means a type of development district, or portion of a district, that uses tax increment financing under section 5227. See Maine Revised Statutes Title 30-A Sec. 5222
  • Transit: means transportation systems in which people are conveyed by means other than their own vehicles, including, but not limited to, bus systems, street cars, light rail and other rail systems. See Maine Revised Statutes Title 30-A Sec. 5222
  • Transit-oriented development: means a type of development that links land use with transit facilities to support and be supported by a transit system. See Maine Revised Statutes Title 30-A Sec. 5222
2. Unauthorized project costs. Except as provided in subsection 1, paragraph C, subparagraphs (9) and (12) and subsection 1, paragraph D, the commissioner may not approve as a project cost the cost of facilities, buildings or portions of buildings used predominantly for the general conduct of government or for public recreational purposes, including, but not limited to, city halls and other headquarters of government where the governing body meets regularly, courthouses, jails and other state and local government office buildings, recreation centers, athletic fields and swimming pools.

[PL 2023, c. 142, §4 (AMD).]

3. Limitation. Tax increments received from any development program may not be used to circumvent other tax laws.

[PL 2001, c. 669, §1 (NEW).]

SECTION HISTORY

PL 2001, c. 669, §1 (NEW). PL 2007, c. 413, §§5, 6 (AMD). RR 2009, c. 1, §22 (COR). PL 2009, c. 85, §1 (AMD). PL 2009, c. 126, §1 (AMD). PL 2009, c. 314, §§10, 11 (AMD). PL 2011, c. 101, §§12-15 (AMD). PL 2011, c. 102, §1 (AMD). PL 2011, c. 675, §3 (AMD). PL 2013, c. 184, §4 (AMD). PL 2019, c. 148, §§2-4 (AMD). PL 2019, c. 260, §1 (AMD). PL 2019, c. 604, §3 (AMD). PL 2019, c. 625, §3 (AMD). PL 2021, c. 261, §§2-8 (AMD). PL 2021, c. 293, Pt. B, §6 (AMD). PL 2021, c. 676, Pt. A, §46 (AMD). PL 2023, c. 142, §§1-4 (AMD).
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