BIDDEFORD — With little comment, the Biddeford City Council on Jan. 19 took another vote on a Tax Increment Financing proposal for the Saco Lowell property at 59 Elm St., approving the document and its accompanying credit enhancement agreement in a 5-4 vote.
The new vote reverses a Jan. 7 decision rejecting a new Tax Increment Financing district and Credit Enhancement Agreement, all part of a Joint Development Agreement with the city that outlined a tax program and further development initiatives beyond the initial Saco Lowell project.
Port Property Management purchased the so-called Saco Lowell property on Dec. 23. The company proposes creating 100 market rate apartments on the upper four floors of the structure, which was built in 1900. The lower two floors, which have limited height and are unsuitable for dwellings, would be converted into self-storage facilities.
The Credit Enhancement Agreement calls for the city to retain 15 percent of the property tax assessed on the new value of the property for the first five years of the agreement, 25 percent in years six through 10; and 50 percent in years 11 to 20. The developer would retain the rest. The building is currently assessed by the city at $534,700. The reconstruction of the property is proposed to increase the present assessed value of the structure to $14 million, creating $13.4 million of new captured assessed value.
The JDA, approved by the council 5-4 on Nov. 10, includes a requirement for construction commitments by the developer for adjacent properties at 20 and 30 Gooch St., easements for the city to expand RiverWalk at its own expense, reserves space for the city to connect the new Pearl Street parking garage to the Saco Lowell property with a pedestrian passageway over the existing railroad tracks, and more.
Until the Jan. 7 rejection of the TIF agreement, the City Council had, in narrow 5-4 votes, favored the proposal at various steps along the way. At that session however, Councilor Marc Lessard had voted nay, which meant the proposal was rejected 5-4.
Mayor Alan Casavant, pointing to the signed JDA, said following the rejection that he expected the matter would be resolved, and it was.
“After reviewing the document for a third time, I found what I was needing to be able to support this, so I will be in favor,” said Lessard at the online council meeting.
No other councilors spoke.
Voting in favor were Councilors Lessard, William Emhiser, Amy Clearwater, Norman Belanger and Stephen St. Cyr.
Opposed were Councilors John McCurry, Michael Ready, Doris Ortiz and Robert Quattrone. Each of those opposed have articulated either dismay that the council was considering a credit enhancement agreement for the market rate apartments proposed for the structure, or that there was no affordable housing component included.
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