Cumberland council sets June 2 public hearing to consider 20-year extension of TIF District 1

Town Manager Matt Sturgis briefed the Town Council on Tuesday evening on a proposed fourth amendment to the Town of Cumberland Municipal Development Tax Increment Financing District No. 1 and asked the council to set a public hearing date of June 2.

The amendment would extend TIF District No. 1 for 20 years under the authorization in chapter 206 of Title 30‑A of the Maine Revised Statutes, and it would require that 75% of captured tax revenue be used for affordable housing or transit-related projects. "So we want to have that wording in there," Sturgis said, describing both the extension and the qualifying standards.

Sturgis told the council the town's packet estimates roughly $15 million in captured value over 20 years, an annual average of about $692,000, and that the 75% share would total about $9.8 million for housing or transit. He also described projected tax-shift benefits to the town: roughly $5.9 million on the education shift, about $561,000 in additional revenue-sharing over the 20‑year period, and roughly $770,000 in county-tax avoidance, which he said would decrease annual tax burdens on local property owners.

Councilors asked procedural and policy questions. Councilor Eads asked whether scheduling the hearing and an associated workshop on the same night would be appropriate; Sturgis and Chair Brenda Bridal confirmed the meeting could include both. Councilor Andrew asked about flexibility in capture levels; Sturgis said the amendment would let the town "throttle it up or down" year-to-year so the council could capture more or less value depending on needs while still maintaining the 75/25 split on any amount captured. Councilor Magoon raised the idea of using a portion of captured funds to hire an economic-development staff person to actively pursue commercial investment in West Cumberland; several councilors said the topic is suited for further discussion at the workshop and in subcommittee work on economic development.

By motion, the council set a public hearing for June 2 to consider the proposed amendment. The chair announced the motion passed unanimously.

The public hearing will give residents an opportunity to ask questions and comment before the council considers adoption of the amendment; the council indicated the June 2 meeting will include a workshop with the town attorney and extra time for discussion if needed.