BIDDEFORD — When the city of Biddeford approved a joint development agreement with private industry to build a parking garage on the site of the former Maine Energy Recovery garbage incinerator several years ago, the city explored ways to cover any potential revenue shortfalls without the use of residential property tax dollars.

One way was to create a special assessment district, where only property owners within the district and therefore deemed to benefit from the garage being there, would contribute.

But the assessment district was never set up. City Manager Jim Bennett told the city council on Nov. 2 that a staff member assigned to go forward with that task did not get it done and that ultimately, he was responsible for the misstep.

The council, which at that portion of the evening did not have a quorum, discussed the matter in a Committee of the Whole.

“One thing should be made clear,” Bennett told the councilors. “Even if you go ahead and adopt the requirements for an assessment district, it doesn’t mean you actually have to charge anything … you can have it in the bullpen and ready to use if you need it.”

He asked the council to make a decision by the end of December, so that if council members decide to move forward a measure to create the district could adopted by April 1.

There has been a shortfall in parking fees. City leaders in August said a combination of longer than expected times for development projects to come to fruition and COVID-19’s impact meant fewer people than initially expected have been using Biddeford’s year-old parking garage.

That in turn has meant revenues are dipping below the threshold of 90 percent of expectations — the trigger at which the city is required, under the terms of the joint development agreement, to pay a stabilization fee. The stabilization fee payments have come from Tax Increment Financing revenues.

This spring, the city paid development partner Treadwell Franklin Infrastructure Capital a stabilization fee of $130,024. Biddeford Chief Operating Officer Brian Phinney told city councilors attending the August workshop that the last tab was about $137,000. He said the TIF account generates about $1.7 million to $2 million annually.

A report prepared by parking garage owner and joint development partner Amber Infrastructure Group discussed by the council at that August workshop, showed that parking by business users now exceeds forecasts and is growing, after falling, perhaps, they said, due to COVID-19.

As an alternative to setting up an assessment district, the city could use TIF funds to pay any shortfall — or parking rates could be adjusted, an option brought forth in August.

Council President Norman Belanger said the assessment district was part of the original proposal.
“When the parking garage passed it was clear that one thing (that) drove the positive vote was that we would have a special assessment district set up,” said Belanger, who noted establishing one doesn’t necessarily mean it would be used. “I feel that was the deal that was struck,” and said he was looking forward to advancing the proposal.

Mayor Alan Casavant and a couple of others suggested the garage operators might review the  “app” that people use to pay for parking as it doesn’t always seem to be working as intended.

Councilor Doris Ortiz said when she used the garage for the first time, she wasn’t clear on how the app worked, and when she was leaving, realized that she was supposed to have paid upon entry. She did make a payment, but wondered aloud if the city  is losing revenue because of difficulties with the parking garage app.

Casavant said he used the app but later realized he wasn’t charged, emailed the company, and got no response — but, he noted, a person who used the app successfully and paid for parking got a ticket.

Councilor Scott Whiting said there was no mechanism preventing those who don’t pay from leaving as there is no gate, and no attendant.

Votes are not taken during Committee of the Whole discussions.

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