By AMY CALDER

Staff Writer

WATERVILLE — City councilors Tuesday will consider dissolving a tax district for Mid-State Machine, since the company recently removed six machines from the former Wyandotte mill on West River Road and no longer operates in that building.

The tax increment financing project for Mid-State was created in 2007. As part of that TIF, the company paid taxes to the city for its machines and the city returned a percentage of taxes to the company, City Manager Michael Roy said Friday.

Roy said Friday that the TIF was created specifically for the machines Mid-State placed inside the building, not for the building itself.

“The actual TIF district was the footprint of the machines inside the building,” he said. “People might think the TIF is for the entire building, but no — the TIF was for the footprint of the machines, the same as we have at Huhtamaki.”

The city made the final TIF payment to Mid-State in 2015 as required by a credit enhancement agreement, according to Roy. As part of Tuesday’s vote, the council would authorize Roy to notify the state Department of Economic Development of the TIF’s dissolution.

“They paid the taxes; we returned a percentage,” Roy said. “Without the payment of taxes, there’s no revenue collected and no reason to pay anything back. By pulling the machines out, there’s no purpose in having the TIF.”

Tuesday’s meeting is scheduled for 7 p.m. in the council chambers at The Center downtown.

In other TIF-related matters, the council will consider amending the city’s TIF policy to make housing-related TIF projects eligible. The policy now does not include housing-related TIF projects.

Roy said officials planning a project to redevelop the former Seton Hospital on Chase Avenue into housing and offices have asked city officials whether a TIF could be considered for the project. A change in the TIF policy would give the city the ability to consider that, Roy said.

“It’s very early on in the review stages, but we can’t do much review if the policy says they’re not even eligible,” he said.

In other matters Tuesday, the council will consider changing the zoning ordinance to reduce building setbacks to allow College Quik Stop at 288 West River Road to build a canopy with gasoline pumps.

The proposed change would require buildings to be set back a minimum of 18 feet from the front property line and 30 feet from side property lines. The rear property setback would remain at 50 feet.

The council also will consider authorizing Roy to renew a contract with Springbrook Ice & Fuel Co. for heating oil for the 2016-17 year. The city has contracted with Springbrook for both city and school buildings for five years.

Mayor Nick Isgro will recognize Waterville police Detective Sgt. Bill Bonney for receiving the 2015 Officer of the Year Award in January at the Maine Association of Police banquet in Portland.

Amy Calder — 861-9247

[email protected]

Twitter: @AmyCalder17