July 23,  2010 

Home
Subscribe
Links
Classifieds
Contact
 
 

 

 

 

 

Wind farm TIF funds creating economic development for UT
 by Lora Whelan

 

     Funding opportunities for businesses and nonprofits in Washington County's Unorganized Territories (UT) will be growing by approximately $450,000 per year for the next 30 years.
     The Washington County UT Tax Increment Financing District (TIF) was created by the legislature to capture tax monies generated by the Stetson I and II wind farms located near Danforth. The difference between the assessed value from before and after the wind farms' development has been designated to fund specific types of economic development projects within the county. Once First Wind pays its assessed tax bill to the state, the state then returns the TIF portion of the tax bill to the county. Of the tax monies generated, 60% is returned to First Wind with the remaining 40% used exclusively for the UT. The project is administered by the Washington County Council of Governments with the assistance of Sunrise County Economic Council (SCEC).
     The actual dollar amounts available in the UT grant and revolving loan program will vary according to assessed value of the wind farms, but for this year the TIF program has $25,000 allocated for economic development projects; $25,000 for nature‑based tourism; $35,000 for the commercial revolving loan fund; and $287,147 for capital improvements. In addition the TIF program has $60,000 allocated for economic development director/commercial revolving loan fund administrator; $25,000 for a county match for economic development grant programs; and $2,000 for TIF administration costs.
     Diane Smith‑Halkett is the TIF program administrator. "The process so far has been going pretty smoothly," she says. The grant committee meets monthly to review applications and make its recommendation to the county commissioners. Applications are accepted on a rolling basis. So far five grants have been awarded for a range of UT projects including: $9,760 from the capital improvement fund to Sunrise County Solar for equipment purchase; $33,333 for three years totaling $100,000 from the capital improvement fund to the Cobscook Community Learning Center for the construction of a lodging and educational facility at its Trescott campus; $15,000 from the nature‑based tourism fund to Eagle Mountain Guide Service to be used towards the purchase of the Wilderness Lodge; $10,000 from the economic development planning fund to the Forest Society of Maine for a study of the Baskahegan watershed; and $10,000 from the economic development planning fund to Tidewalker Engineering for a feasibility study and regulatory/technical analysis for tidal power development in Carrying Place Cove.
     Applications are accepted from anyone who is interested in creating an economic development opportunity within the UT. Smith‑Halkett says, "We welcome any and all submissions. Call to float an idea." She notes that two of the applicants who were successful in this past round called her first to discuss their ideas and that so far no application has received a point blank "no" to their query. "You don't have to go through the whole application process to talk about an idea."
     The grant program administrator is keenly interested in economic development in the county. Her parents were from Deer Island and Campobello and moved to Maine when she was a young child. "My mother came over on a lobster boat to give birth to me in Eastport .... Being from the county, I can really relate to the difficulty of starting a business and keeping it going. I've been a small business owner myself." She notes that a grant can act as a catalyst to leverage additional funding from more traditional sources.
     SCEC Executive Director Harold Clossey agrees. "TIF funds can act as a linchpin for other funding sources." He sees the program of benefit to small business owners and possibly for larger businesses. "I see this as another card in the deck. When businesses look at the area, this could be an incentive for them to locate here." However, he adds, "We stand more of a chance of creating and sustaining businesses with five to 20 employees than we do with one with thousands of employees." The risk to the county of one large employer is not lost on him, as he explains that many small businesses reduce the risk of sudden and severe unemployment should a business close its doors.
     Of the five successful applicants, Clossey says, "Varied and diverse uses have already been started with indirect jobs and economic activity that can be generated .... Every one of these economic activities is valuable."
The Washington County UT is comprised of Big Lake, Berry, Brookton, Cathance, Centerville, Day Block, Devereaux, Dyer, Edmunds, Forest, Forest City, Fowler, Greenlaw Chopping, Kossuth, Lambert Lake, Marion and Trescott townships. Diane Smith‑Halkett can be reached at the offices of SCEC at 853‑0983.

July 23  2010     (Home)     

.

Google
www The Quoddy Tides article search