By Zack Anchors
Staff Writer
    Last weekend South Portland city leaders gathered at the corporate headquarters of Fairchild Semiconductor to consider whether creating a new tax increment financing district is a feasible and practical way to revitalize the downtown environment of the Knightville Mill Creek.
    The idea of a new TIF began with the Knightville-Mill Creek Master Plan Steering Committee, which produced a plan for the downtown area that was incorporated into the city’s comprehensive plan in 2005.
    A key recommendation of the committee was to consider funding various improvements to infrastructure in the neighborhood with a new TIF. This summer the City Council approved a contract with the local consulting firm Planning Decisions to work with a new TIF subcommittee to explore the viability of the TIF. Planning Decision’s Mark Eyerman and Chuck Lawton, as well as Planning Director Tex Haeuser moderated Saturday’s “Conference on South Portland’s Economic Future” at Fairchild. The event, which was attended by elected officials, business owners, city staff and other residents, served to educate attendees about TIFs in South Portland and stimulate ideas about what projects a TIF might help the city fund.
    “Where we go from here will be up to the committee members, who will be meeting next week,” said Haeuser.
    The five percent of South Portland that is currently located in TIFs have provided roughly $60 million for the city over the last twelve years. TIFs are an economic tool that municipalities can use to funnel some of the property taxes from a development that would otherwise go to the state into local projects. A defined district is first established that meets certain state qualifications, and then a certain amount of property taxes coming out of that district are directed to a fund that can only be used for certain purposes, such as improving the area’s road infrastructure.
    For example, in 1997 a TIF was established for an office buildings and light industrial development on Cumming Roads. Since then $1.2 million has been used in road improvements in the surrounding area. Likewise, a TIF established for National Semiconductor has helped pay for the West End Fire Station, the construction of the Jetport Plaza Road, an emergency vehicle and a number of other projects, totaling more than $39 million in expenditures.
    Most recently, the first TIF in the state that is intended to fund affordable housing was established in South Portland for the Brick Hill Housing development.
    No conclusions or policy descisions were agreed upon at the conference, which was intended as one step in a longer process. Suggestions and ideas discussed at the conference will be incorporated into future meetings of the TIF subcommittee.