HomeMy WebLinkAbout1985-03-25 85-152 RESOLVE85-152
Introduced by Councilor Willey, Match 25, 1985
fi'�na,�^11`,CITY OF BANGOR
(TITLE) Newhltt 6 pp t 11 ing L 1. egislative Do on t No. 525 -
Amendments to the Municipal Development District Law
By as Cay Causeil OHM City afBaspr:
RR LVRD. THAT the Bangor City Council, Municipal Officers of
the City of Bangor, do hereby formally acknowledge their support
for the adoption by the State Legislature of Legislative Document
No. 525, entitled "An Act to Amend the Municipal Development
District Law"; and be it further
RESOLVED, THAT the City Manager, members of the staff, and
individual members of the City Council are hereby authorized
to appear before the Taxation Committee at a scheduled hearing
on April 3, 1985, and indicate the City of Bangor's support
for such legislation.
'IN CITY COUNCIL
Naich 25, 1985 0
Suspsnaion f the Rules passed.
'R olve passed.
De ty City Clerk
a5-152
R esoi VE
AJ
Supporting legislative MOnmert6 )No. 25
Areadrents to the Municipal Development
District lex
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FIRST REGULAR SESSION
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"
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ONE NUNOREO AND TWELFTH LEGISLATURE
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LSgiehkive pxument No. 525
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H.P. 370 Bourg of ReprvrnmOves, Febuary 12, 1985
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Speaker laid before the Hoare and on Maine Of Repreexurive Wages
of PaeWd, x1orM Is the C Mftx on Load ell CpMty Oovwment.
g
sea up fee neafreMx and ordered willed
w
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EDWIN H. PERT, Clerk
Presented by Representative Murray Of Banger.
Cosparsoad by Representylro Steres of Bangor, Repewassaive
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Mumrean of MOO and Seed Belched of Panama.
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STATE OF MINE
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IN THE YEAR OF OOR LOM
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- NINETEEN MEDRED AND EIGHTY-FIVE
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AN ACT to MUtl the Municipal Dava lopment
is
18.
District Lex.
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Be it enacted by the People of the State of Maine as .I
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follows;
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Sec. 1. 30 MRSA 54862 suds -51, as enacted by PL
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1977, c 397, is amended to rad f
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1. Captured assessed value flea "Captured sed
ec
25
value" means the Valuation a unt by which the u r
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some as a fled Value of she development a tax re-
27
meat £Artapcine district exceeds the original as aetl
svalue
28
value of the district. If the current 'assessed
29
is equal to or less than the original there is no
30
captured assessed value.
L
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Sec_ 2. 30 MRSA 44862, sub -g4, as enacted by IT,
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1977, c 397, is amended to reed:
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4. Financial plan "Financial plan" means
34
statement of the costa and sources of revenue re.
1
quired to accomplish the development program. The
2
statement shall contain cost estimates for the level-
. 3
opment program, the ee£metee of Imported accessed
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ralueaa the pestfen of the tortured ted values
a
5
to be epp3}ad to the development program and result -
sult-6
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fnq tax interstate fn seek year of the �t the
]
mount of handed indebtedness t0 be incurred, ether
8
rnof anticipated r and theduration of
u
9
the program. The statement ale, sante£^ For a
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development Program for a tax increment financing
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diatr]et tTe statement Wall also contain estimates
12
of caoturetl a amassedvaluta of the diatrict, the nor
-13
tion of the captured a setl value, to be applied to
14
the develowneat o and [ suiting tax increments
m
"
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in each year of the program and a statement of the
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estimated impact of tax inurement financing on all
" St
taxing jurisdictions in which the district is Io-
la
cause.
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Sec. 3. 30 Mal 94862, ",ub-512 is enacted to
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tend:
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12. Tax increment financing district "Tax i
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fromant £inenclnO tli,trlct" a type of develop-
' 23
apt diatrict. or tion ofa such a district which
24
utili sea tax i ant fi nencing under section 4864.
25 aec. 4. 30 MRSA 64863, sub -{1, as
repealed and
26 replaced by PL 1983, c. 859, at. N, 41, is emended to
2] read:
28 1. Districts. The governing body o£unici-
29 polity may designate development districts within the
30 boundaries of the monicipality. Prior to designating
31 a district, the governing body shall consult with the
32 municipal planning agency or department and with a
33 advisory board, if established under section 4870^
34 and shall also hold at least one public hearing, n -
35 clue of which shall be published at least 10 days
36 prior to the hearing in a newspaper of general circu-
37 lation within the municipality.
38 A. Not less than 25M, by area, of the real prop -
39 erty within &mena
nt W
development district all
40 meet at least one ofthe following criteria:
Pap 2-L.D. 525
Page 3-L.D. 535
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(S) Is a blighted area;
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(2) Is in need of rehabilitation or cancer-
3
untied work; or
s
(3) Is suitable for industrial' sites.
C
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B. She totalareaof a single development dis-
h
trict shall not xc
exceed 2% Of the total acreage of
the municipality and all development districts
B
shall not exceed 5% of the total acreage of the
9
municipality. £ke aggregate value of equalized
30
Vandals property of she dtatr}et plus a??oia6-
_
11
fug stateless does nenet,exceed 6p, of the total
12
value of equallewd tamable property mfth4s the
13a
y. fefpaiitShe boundaries Of a district may
19
be altered only after meeting the requirements
15
for adaption under this subsection.
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8-1. Shegate value of ecualised taxable
17
prooerty atria tax increment financing district
le
plus ind rodent financing
d exceed
, shallnote exceed SX or the total value o£
a of
20
20
tax
equalized taxable property within the municioeli-
equalized
21
If
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- of captured assessed value of
designationwthijean
23
pr eUsert
property within a increment
24
shall
shall be subject tothe fol-
� subject
25
limitations:
lowing limitaticnm
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(1) Mbe actual increase in captured
27sed
value of property within development
23
rex increment financing districts not
29
exceed ,000,000 in any county; and
!
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(2) Me annual captured a
3l
sed value property within development
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can increment financing districts dust not
33bad
j ;15,000,000 stateside. The Director
36
of the State Development Office shall
-
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promulgate any rules necessary to allocate
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or apportion the designation of captured as-
37
sessed value of property within development
39
ent financing districts in accord-
tax increment
39
once w£the limitations.
Page 3-L.D. 535
uf:
I
D. Before final designation of a tax Increment
2
f� district, the Director of the Etan
OnIopmen-
Office shall review the proposal to -
4
that it i th
compliance win statutory r
5
quiraments and shall identify tax Shifts within
6
the county where the district will exist. A des-
" ]8
IgnatiOn under this subsection shall be effective
Upon approval by the governing body of them unic-
9
- ipality Ed, for tax increment fine d'
10
[riot¢, the Drr of the StD
ate evelopment Of -
11
fice. If the municipality has a charter, the
12
designation shall be done in accordance with the
13
provisions of the charter.
14
Sec. 5. 30 MRSA §4864, sub-¢, as enacted by pL
15
1977, c. 397. Is emended to read
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1.. Caotured assts setl valve The municipality may
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retain all Or partof the tax increment of
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demelepnemt tax 'ncKam6nt financing district for the
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Purpose SL financing the deelopment program. Me
30
amount or x increment to be retained sh811 Is de -
21
tetmined by designating theunt of capture as -
22
a
se setl value to be retained. At the time of adoption
23
of s development program for a tax increment finmc-
24
far district, the governing body shall adopt a etate-
25
mant of the percentage Of captured assessed value to
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be retained in accordance with the development pro -
27
gram. Once adopted, the percentage may only be de -
creased in subsequent years, unless a new development
29
Grogram is adopted, Or the present plan i¢ amended
need O r
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altered under section 4863. The municipal
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shall certify the amount of the captured assessed
-
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value to the municipality each year.
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- Bec. % 30 MRSA $4864 sub -42, As enacted In pL
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1977, c 399, is amended to read:
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2. Original gssesaOd calls. Upon or after forma -
36
tion of daee3epmaae tax increment finmcin di¢ -
3]
tract, thesassessor Of them acipality in which it
38
located hall, o request of the governing body,.
39
¢
certify the original assessed value of the taxable
real
property within the boundaries of the
/
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eva3a ¢neat tax increment financing district. Each
hhgc 4L.D. 525
K I year thereafter them r amunicipal assessor shall certify
2 the amount by which a¢ a
axed value heincreasedor
3 decreased from the original value.
Pepe 5{.D. 525
4
5
Sec. 7. 30 MRSA 64864, sub -g5, 9A, as enacted by
PL 1977. c. 397, is amended to read:
(.
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7
e
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30
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A. Nothing in this section ehe3} allow allows o
sanction unequal apportionment or asa sment of
the taxes no be paid real propertyinthis
state, and all realproperty within the
development tax increment financin district
shall pay reel property taxes apportioned equ3Cly
with property taxes Paid elsewhere them 1-
pality.
14
is
Sec. S. 30MRSA 64865, -sub-§2-A is enacted to
read:
16 ...
_ 2-A.__A Di mendatlo
17icy
m setimate ad assess
is
U on a to art
Withinthedavelomnant district
19
anx
ansa ant The assessment shall be
'."
zo
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sed wall
we unifo m lv on all 1
fit. frm the davelowsento
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no ..... amante b rd
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vhichi n theanio f th
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mums Deli tv
25
UrD05es of
26plementmtion
assessmentsfor a district
27
shall nor .�-
eetl 30Y of the total of an
28
other assessment, under
this se ction for [he
tli¢dict Pa to eatimatin
29
and ssing n Imola
as
o
mu -
ni =pall tv shall
one hold a hearing am
31
piovr detl unlet
32
by imaleme nta tr�V�Ma=n�a
33
stall me In addition to
thos alre adv rontlucn d
34anality
at th
35
vetoeloome t 41s.1111
36
37
Seen 9. 30 MRSA 64865, sub -§3, as enacted by pL
1977, C. 397, is amended to read:
C38
39
3. Notice andhearin prier to estimating and
assessing
swing anassessment under subsection 1 off, 2 or
Pepe 5{.D. 525
1
2-A, the municipality sball give nitre and hold a
2
hearing. Notice of the hearing shall be published at
3
least 30 days prior to the hearing in a newspaper of
4
generalculation within the municipality. The no-
s
tics $halainclude!
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A. The date, time and place of hearing;
B. 1 e boundaries of the development district by
B
legal description;
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C. A statement that all interested persons use-
10
ing real estate or taxable property located with-
11
in the district will be given an opportunity to
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be heard at the hearing andaopportunity to
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file objections to the amount of the assessment;
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and
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D. The maximum rate mfants to be ex-
16
tended i any one year, andMayinclude a maximum
in
17
number years the assessments will be 1ev5ed.y
1e
and
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E. A proposed list of properties to bessed
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a;W the estimated assessments against those prop-
21
erties.
_
Pare 6L.D. 525
page 7-L.D. 525
1
STATEMENT OF FACT
2
This bill allows for the creation of "tax i cia-
3
ment financing districts" Which be defined as
('
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development districts in Which tax increment financ-
5
ing could be utilized. Tax increment f£nanc ing is
6
financing tool which local communities may presently
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utilize withinzCpal development districts in
a
fostering m
m development. This bill amends
9
several sections of the municipal development din -
10
tract law which pertain to tax increment financing,
11
by clarifying that these sections would refer only to
12
tax increment financing districts and not all level-
,
13
opmentdistricts in general, these sections include -
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1. The requirement that any financial plan in -
15
close estimates Of fee Captured assessed value;
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2. That the restriction on aggregate value of
17
equalised taxable property of any development dis-
18
tractbe. ainited.to 5% ,of the total value of equal -
19
iced taxable property within the municipality;
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3, The limitation on the annual increase i cap_
.1
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tared assessed value within any district. in each
22
county din all districts statewide; and
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4, The requirement that final designation of any
24
development district be approved by the Director of
25
the State Development Office,
26
This bill allows amnicipality to levy an imple-
27
entat ion assessment o all lots within a duly ap-
28
proved development district.- The implementation a
29
Sesmnt Would be used to fund activities which, in
30
the pinion of the governing body of the municipali-
31
te
y, are reasonably necessary to achieve the Purposes
32
o f the development program.
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15]8011]85
page 7-L.D. 525