China TIF committee discusses third amendment to program

by Mary Grow

Three members of China’s Tax Increment Financing (TIF) Committee discussed the third amendment to the town’s TIF program, which they intend to ask the select board to present to voters at the Nov. 5 local election.

China’s TIF income is from taxes Central Maine Power Company pays on its transmission line through China and on its South China substation. The town’s 2024-25 tax rate will determine how much the TIF fund receives in the current fiscal year.

China select board members expect to have the information they need to set the tax rate at their Aug. 12 meeting. TIF committee members therefore scheduled an Aug. 19 meeting, expecting to have final figures for the revised plan.

The draft plan calls for TIF funding for one new project, seven on-going ones and matching funds for grants.

Town Manager Rebecca Hapgood explained that the new project, labeled “Causeway, Phase Two,” will follow up on changes made at the head of China Lake’s east basin with earlier TIF funding. Those included a new bridge with sidewalks, improved boat docks and more parking.

A second phase would include extending the sidewalk farther west and adding one or more docks where people can fish and swim away from the boat landing. Currently, committee members said, people fish from and swim around the boat docks, creating a potentially dangerous situation.

The projects scheduled to continue to receive TIF funding are: improvements at the South China boat landing, aimed at reducing erosion into China Lake; economic development programs; economic development events, like the just-completed China Community Days celebration; marketing China as a business location; environmental improvements; trails maintenance and improvements; and expanded broadband service.

Committee member Jamie Pitney, who drafted the revisions, said state rules allow TIF dollars to be used to match “certain grants.” Since China has not used this category, he is unsure what types of grants are included.

The revised plan deletes funding for two underused and unused projects, the revolving loan fund intended to assist small businesses and the job training program.

Resident Joann Austin attended the Aug. 5 meeting to ask about TIF-supported cultural events. Committee members could not immediately think of any such projects that would meet state TIF requirements.

Committee chairman Brent Chesley and member Lucas Adams thanked Pitney for drafting the 57-page plan. Assuming voters approve it in November, it will be forwarded to state officials in the Department of Economic and Community Development for their approval. If accepted, it will replace China’s current Second Amended TIF Program, approved in 2021.