July 23, 2014 at 2:10 p.m.

TIF funds to pay for engineering work

Portland Redevelopment Commission

By Rachelle [email protected]

Funds generated in Portland's tax increment financing (TIF) district will be used to pay engineers designing the district's next big project.

The Portland Redevelopment Commission voted Monday to use $51,352.18 in TIF construction funds to pay The Schneider Corporation for design work on the Lafayette Street extension project. The project will extend Lafayette Street west from Creagor Avenue to Industrial Park Drive.

Construction is scheduled to start in the spring of 2011, Portland Mayor Bruce Hosier told the commission. The most recent cost estimate for the project is $1.3 million.

The TIF construction fund has a total of $76,352.18, and has been accumulating since August of 2007. Randy Geesaman, city clerk-treasurer, told the commission that a state statute requires that the funds be spent in three years.

The remaining funds - $25,000 - will be used to reimburse the Portland Economic Development Income Tax fund. This amount - along with TIF funds - were used to fund the Downtown Portland Historic Façade Grant program. The program awarded matching grant funds to downtown property owners to improve the facades of their buildings.

The funds generated each year in the TIF district are divided among several accounts. The district captures property tax revenues resulting from increases in assessed valuation.

In other business Monday, commission members Lola Joy, Brooke Aker and Joe Johnston approved a resolution stating that the funds generated in the TIF district will be used solely for district projects. Geesaman said this resolution must be approved annually.

Commission member Mike Simons did not attend the meeting.

Also Monday, Hosier said he is working to find a replacement for Randy Wehrly, who resigned from the commission last month.[[In-content Ad]]
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