Council is being asked to approve the creation of the TIF district and execution of a CEA. A public hearing is required. 99 Preble Street – Betsy Ross. Courtesy Photo/Mark Hulsey, Executive Director of the South Portland Housing Authority.
SOUTH PORTLAND — South Portland City Council held a workshop on Tuesday, Aug. 2 to discuss adopting Betsy Ross Affordable Housing Tax Increment Financing District Developing program.
“As this new development, Betsy Ross Crossing, has already receive city council approval for a zoning change and planning board approval for site plan, tonight’s meeting is for an affordable housing TIF,” said Executive Director of the South Portland Housing Authority, Mike Hulsey. “Which in vitally important for the financial feasibility for the project to be a success.”
The issue was previously postponed at the June 21 city council meeting.
The proposed Betsy Ross House TIF District would result in a new 1.35- acre district located at 99 Preble St. The project is part of a larger development consisting of 123 units.
The portion of the larger development consists of the Betsy Ross House project. The project would create a 52-unit senior affordable housing project, which would be located at 99 Preble St., South Portland.
The Betsy Ross development is a Low Income Housing Tax Credit project proposed by the South Portland Housing Development Corporation.
The TIF statute requires that the council hold a public hearing on the designation of a new TIF district and the adoption of a development program. Since the motion passed, the city will submit the application package to the Maine State Housing Authority for review and approval. The Maine State Housing Authority reviews the TIF district application to ensure the proposed district meets statutory requirements.
According to the memo that was sent out to the council by Shana Cook Mueller of the law office of Bernstein Shur, The TIF district proposal includes a 20-year term of years with a 15-year credit enhancement agreement.
“The TIF district proposal includes a capture of 100 percent of increased assessed value,” said Mueller in the memo. “Seventy-five percent of the TIF revenues generated on the captured assessed value would be obligated to be paid to the developer over time through a credit enhancement agreement (CEA). Twenty-five percent of the TIF revenues generated on the captured assessed value would be available to the city to be used for permanent housing development revolving loan funds or investment funds. With a projected increased assessed value of $5,500,000, the project is anticipated to generate a total of $80,850 in annual TIF revenue during the term of the CEA, $60,638 of which would be paid to the developer and $20,213 of which would be available to the city for housing development revolving loan funds or investment funds.”
The Betsy Ross House was completed in 1999. Its has 123 units, 23 of which are market rate with the remainder being affordable units. A three-course meal is served every day at lunch. Residents are 62 and older. Officials say the building is an active and vibrant community, with a active resident council.
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