Chelsea selectmen are expected to vote at their meeting Wednesday to set a special town meeting later this month for buying a fire tanker and for creating a tax-increment financing district for nearly seven miles of natural gas pipeline.
The special town meeting would be scheduled for Wednesday, Jan. 21, with a public hearing on the natural gas finance district Wednesday, Jan. 14, according to Town Manager Scott Tilton.
The Board of Selectmen is meeting at 6:45 p.m. Wednesday at the Town Office.
Tax-increment financing districts — TIFs — provide a limited tax break for a developer, while captured tax value from the project goes to future development for specified projects.
In Chelsea, town officials are proposing to create a TIF district on the 6.5 miles of natural gas pipeline installed by Maine Natural Gas Company and Summit Natural Gas of Maine over the last two years. The $6.9 million estimated value of the pipelines will generate about $118,680 in additional tax revenue the first year and an estimated $2.5 million in 30 years, according to a draft of the TIF application.
The town anticipates using the money for a dozen economic development projects, including repairing and replacing roads damaged by the pipeline installation, the implementation of an economic development program and the development of recreation trails.
The plan also calls for TIF money to be used to cover 50 percent of the cost of a new tanker truck for the fire department.
A major reason for establishing the TIF district is to shield that increased taxable value from the state valuation. That increased value would otherwise lower the amount of aid the town receives from the state and increase the amount of taxes the town pays the county.
The special town meeting potentially scheduled for Jan. 21 would also ask residents if they want to authorize selectmen to enter into a lease or bond agreement to acquire a new fire tanker with the total not to exceed $275,000, Tilton said.
Paul Koenig — 621-5663
Twitter: @paul_koenig
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