BATH

A public hearing for a Tax Increment Financing request made by The Szanton Company, a development firm in Portland, was met with no debate on Wednesday night.

The company presented the TIF request to Bath City Council members in support of the Huse School project, which proposes the renovation and redevelopment of the historic school to create a housing unit of 58 apartments.

Company president Nathan Szanton said the TIF would be significant for funding the project, which costs approximately $10.3 million.

“It will be enormously helpful for the biggest piece of financing that we have, which is the Maine State Housing Authority financing,” he said.

In addition to historic tax credits and grants, the company hopes that affordable housing tax credits, subsidy and commercial mortgage from MaineHousing will contribute to about 75 percent of all financing.

The affordable housing tax credit in particular will be awarded through an annual competition that the company will apply for in October, which could contribute to 54 percent of funding.

The TIF would enhance the company’s chances of being awarded the financing, as MaineHousing scores projects based on several components and would award an additional three points to the project if the municipality approved a TIF.

Szanton expects that the Huse School project will be able to score 52 points without the TIF funding, though this would not be enough to win.

Last year, winners scored about 54 points.

According to Szanton, the TIF is “a crucial three points that could easily make the difference between falling short and coming in above the line.”

If the city supported the TIF, 50 percent of property taxes — about $30,000 — would go toward the project for the first 15 years. The other 50 percent would be retained by the city.

After 15 years, 100 percent of property taxes, about $60,000, will return to the city annually.

TIF districts also prevent extra assessed value from contributing to decreases in state aid to education and revenue sharing or increases in county taxes, according to Szanton.

During public comment, Lorena Coffin, director of Sagadahoc Preservation Institution, spoke in favor of the program: “The proposed project by Szanton Company protects and saves this historical building from further non-use and deterioration by adapting it and will provide property tax revenue for the city,” she said.

While no action was required from the council, the item will be revisited and voted on at an Aug. 5 meeting.

The council also unanimously approved two ordinance amendments that would permit contract zoning applications for the C-2 district and allow the Szanton Company in particular to apply for a contract zone to facilitate the Huse School project and increase the allowable density for the site.

In exchange for the contract zone, the company has offered a public benefit to the Huse School area, which includes an improved playground on the Donnie Small Athletic Complex, a resurfaced basketball court, new fences, bicycle racks and a walking path to improve passage for pedestrians and bicyclists.

After reviewing the plan with city staff and Parks and Recreation director Steve Baloboni, the company said projected costs are $110,000, which is expected to match the value of the contract zone.

TIF numbers for Bath

IF BATH SUPPORTED THE TIF, 50 percent of property taxes — about $30,000 — would go toward the project for the first 15 years. The other 50 percent would be retained by the city. After 15 years, 100 percent of property taxes, about $60,000, will return to the city annually.