WATERVILLE — City councilors on Tuesday will consider a tax increment financing district and plan for a redevelopment project at the former Seton Hospital complex on Chase Avenue that would include creating more than 50 apartments in the building.

A public hearing to discuss the project will be held at 6:45 p.m. in the council chambers at The Center downtown. Councilors are scheduled to vote on the TIF during their 7 p.m. meeting.

The property at 30 Chase Ave. is owned by Kevin Mattson. The developer, Tom Siegel, of RME Property Consultants, told councilors April 18 when the council held a public hearing on the tax plan that 50 apartments are planned for the building’s tower portion, with the majority two-bedroom and the rest one-bedroom.

The first floor would be 23,000 square feet of office space and the lower level would be commercial storage space, Siegel said.

Councilors are required to take two votes on the order to approve a TIF district and development plan for the project.

As part of a TIF, a property owner pays taxes and receives some taxes back as reimbursement.

City Manager Michael Roy said Thursday that the city’s TIF Advisory Committee recommends approval of the TIF district and a specific plan for a 20-year reimbursement.

“The average rate of reimbursement over 20 years is approximately 50 percent return,” he said.

The TIF has three parts: the district, including the area of the property, the development plan and the plan for reimbursement. A credit enhancement agreement is optional, Roy said.

“Not every TIF has an associated credit enhancement agreement,” he said. “For example, our downtown TIF doesn’t have a credit enhancement agreement with anyone.”

The proposed plan says that as early as June the company would start redeveloping about 100,000 square feet of the building for the apartments, as well as commercial space and warehouse/storage space.

The developer is requesting a TIF district be created to capture the new value being invested in this property and make the project financially viable, according to the plan.

Councilors Tuesday also will consider a recommendation by the city’s TIF Advisory Committee to extend the downtown TIF by 10 years. The city is now in its 11th year of a 20-year TIF and extending it 10 years would give it 19 more years, Roy said.

The TIF extension is being requested because of efforts to revitalize the downtown with a new college dormitory, boutique hotel, retail concerns and offices.

Meetings with residents, downtown business owners and employees will be held Monday at 7 p.m. and Tuesday at 7:30 a.m. in the council chambers to get input on revitalization efforts. Previous meetings were held April 13 and 14.

Amy Calder — 861-9247

[email protected]

Twitter: @AmyCalder17