Edgecomb selectmen approved the transfer of funds Monday from the town cost account for the Tax Increment Financing (TIF) District and money Edgecomb LLC owes to the town’s general fund.
Together the transfers total $49,860.
Edgecomb LLC which Roger Bintliff heads, owes the town $27,423 in taxes, which the town will transfer as received from the company’s cost account. Edgecomb LLC owns 17 properties in town.
There were three property owners in the TIF that had not previously paid their taxes but have since paid them, according to selectmen.
In the meantime, $22,437 from the town cost account will go immediately into the general fund as a result of the decision during the board’s regular weekly meeting.
The only way the town could spend money from the funds that go into the general fund would be by vote of the people at a special town meeting, but selectmen consider it a way to build up funds to reduce taxes.
Last week the board held a special session on the TIF, including a description of how the TIF law generally works from Atty. Eric Stempful, who was one of the drafters of the TIF agreement with Edgecomb Development Corp.
Stempful explained Edgecomb’s TIF agreement has a variety of nuances making it unique. He said the TIF was formed to give Bintliff a chance to recover his financing costs for laying a sewer line under the Sheepscot River from Wiscasset to his property on Davis Island.
The costs could be recovered before the 30-year time period of the TIF. At completion of the 30-year term, the contract ends.
At last week’s meeting, Stempful said the town should calculate the amount of taxes owed by Bintliff each year. The agreed upon amounts were $1.46 million for the original assessed value, $1.42 million for the increased assessed value and $2.88 million for the captured assessed value.
The TIF agreement stipulates taxes paid each year on the $2.88 million go to the town’s general fund, and any tax revenue generated for assessed value above that amount has to be split, Stempful said. Of the total, 45 percent goes to the town’s special TIF account and 55 percent goes back to Bintliff’s Edgecomb Development Corp.
The board discovered the increased assessed value portion of the revenues had been erroneously treated and not placed in the general fund but had become a part of the 55/45 split.
Following Stempful’s advice last week, town clerk Claudia Coffin calculated the amount owed to the town and handed the board the resulting figures they approved Monday.
Gravel pit stop order
Residents of Mt. Hunger Rd. complained about the operation of the gravel pit there until the code enforcement officer issued a stop permit July 31 because of non-compliance with conditions of the planning board approval for operation of the pit early this year.
Charles Colby said trucks go by daily, shaking his house as they travel on a right of way located only about 10 feet away.
The board agreed to allow the operator to take out his equipment but did not agree to his request to take 400-500 yards of gravel he had prepared for use elsewhere unless the neighbors agreed to that happening.
Selectmen Chairman John Johnston opposed taking the gravel out when he found out it would take 7-10 days.
The operator had 10 days from issuance of the stop order to comply with the conditions.
Snowplow contract
At the Monday session, the board also approved a $148,720 snowplow contract with road commissioner Greg Griffin following a discussion of putting it out to bid in the future. The terms include a reimbursement for diesel fuel over and above $3.50 per gallon.
The board took last year’s figure and added a cost of living increase for the new contract.
