A proposed tax increment finance district proved of interest to owners and employees of six different businesses that gathered for a public hearing in Frenchville on Monday, the St. John Valley Times reported.
A municipality can designate a TIF district within its borders, and taxes paid on new property valuations in the district can be used for specific public and/or private economic development projects. Municipalities decide how to spend TIF revenues as long as such expenditures meet the state TIF law’s definition of economic development.
As part of a TIF district, municipalities have the option to refund a portion of property taxes paid on a business’ new developments through a credit enhancement agreement. Businesses request the agreements to close a gap in project funding and/or to convince other investors the development can succeed.
Suzie Paradis, Frenchville’s director of community and economic development, told the group that a town is limited to capturing a maximum of 5% of its total valuation. Frenchville’s valuation is approximately $39 million, according to Town Manager Ryan E. Pelletier.
“You have nothing to lose,” said Danny Pelletier, owner of Edwin G. Pelletier and Sons. “But you need to know where you are going to put the improvements.”
Frenchville’s board of selectmen is expected to vote on a TIF formula at its Feb. 16 meeting.
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