http://www.pressherald.com/maine-voices-falmouth-route-1-improvement-plan-raises-fiscal-conceptual-issues_2013-06-07.html
--Posted: June 07. 2013 1:30AM
Maine Voices: Falmouth Route 1 improvement plan raises fiscal, conceptual issues
Funding for the ambitious, costly project isn’t guaranteed, and neither is support for the ‘village’ idea.
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2012 File Photo/Gabe SouzaBusinesses line Route 1 in Falmouth. On June 11, residents will be asked to vote on $14 million in improvements to Route 1 that are intended to create the feeling of a village center along the road.
ABOUT THE AUTHOR
M. Roberts Hunt is a resident of Falmouth and a member of Falmouth Citizens for Sound Choices.
FALMOUTH — On June 11, Falmouth voters will be asked to approve more than $14 million of improvements to Route 1 from the intersection of Route 88 to the Maine Turnpike entrance road.
The plan calls for burying power and utility lines, creating 10-foot-wide sidewalks and medians with “golden hue” dormant grass, modifying existing curb cuts and enhancing pedestrian lighting and traffic controls.
These improvements, coupled with zoning changes designed to encourage denser development with buildings in close proximity to the street, are intended to eventually create a “village” center where one has never existed in the 199-year history of the town. The new “village” will mirror tunnel-like Route 1 in Freeport, with multistory, multi-use buildings hugging the street.
The transformation would be shocking. Although traditional villages evolve gradually over time, not by the wave of a magic wand, supporters claim that there is a craving, by some, for a place where folks can come together to shop, stroll, gossip and mingle “as members of the community” that makes the drive to create a “village” worthwhile.
According to supporters, the town will purchase a 16-year general obligation bond to pay for the improvements. They hope it will be paid off by revenue from the Route One Tax Incrementing Financing district.
TIF revenue comes from a portion of TIF property taxes set aside for improvements to or for the benefit of the district. For the TIF to have enough revenue to pay off the bond, its taxable property values must appreciate 1.25 percent year over year, according to the town’s director of long-range planning. If they don’t, the bond will have to be paid with funds from some other source or sources – increased residential property taxes and/or reduced or eliminated municipal services.
No one can guarantee there will be enough TIF revenue to pay off the bond. The town treasurer can only say he “anticipates” TIF revenues will be sufficient. On the other hand, no one can guarantee TIF revenue will be inadequate. Actually, no one really knows what will happen during the next 16 years.
Supporters say that historical TIF revenue results, since its creation in 2000, augur well for the future. However, anyone who has invested in equities or mutual funds knows that past results are no guarantee of future performance.
In April, the Town Council admitted there is a risk that the TIF might come up short. Voters need to understand there is a risk that the Tax Incrementing Financing district might not be able to pay off the bond. Then property taxes will go up and/or municipal services will be reduced or eliminated.
Even if TIF revenue is adequate to pay off the bond, voters need to ask themselves whether the proposed improvement will make Falmouth a better place to live in any meaningful way. Is a “village” center with multistory, multi-use buildings hugging the street, creating a claustrophobic tunnel feeling, better than the open spaces that exist today?
Will anyone, especially those with children, want to live on a busy street above a fishmonger, butcher shop, hairdresser, music studio, cobbler, etc.? Will dormant-grass “golden hue” medians enhance or impend traffic flow by creating choke points during busy times of day – causing motorists to use Foreside Road and Middle Road as escape routes and forever altering the rural nature of those two roads?
How many existing businesses have expressed an interest in renovating or expanding (except Walmart)? How much vacant land exists for new development, necessary to drive a 1.25 percent year-over-year increase in TIF taxable property values? Have any market studies been done to evaluate the reasonableness of the “village” concept?
Last, but not least, would you use your own money to pay for these “improvements”?
This project raises many serious questions without solid, common-sense answers.
Voters, beware!
— Special to the Press Herald
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All that glitters may not be gold!!!
When experts/authorities make mistakes they don't have to live with them. It's the poor taxpayer who suffers.
Which commercial property owners are talking about "investment", where, what kind and when?
To paraphrase as soon to be ex-Councilor: The bottom line is, Falmouth needs a "village center" like a dog needs an infestation of ticks and fleas!
----- Original Message ----- From: <tpa...@maine.rr.com>
Cc: <Hart...@aol.com>
Sent: Friday, June 07, 2013 5:26 PM
Subject: Re: Falmouth Citizens for Sound Choices Route One Ballot Question
In my conversations with Bob as well as in his article, I'm not sure he concluded that taxpayers were going to be hit with paying more in taxes for the improvement. What we have talked about at length and the subject I have been clear about from the outset is that a general obligation bond is just that. If the TIF district funds are inadequate, then the options to satisfy the obligation are to raise taxes, postpone other projects, cut services or do some of all of it.
Now, as you all may have seen during the Chamber of Commerce forum, the rate of assessed value in the TIF district has been exponentially greater than than the modest 1.25% per year growth used for the income projections. The authority on TIF district financing who served on the panel discussion also said that current value of the district would be adequate to service the debt. The only scenario that would trigger any resident obligation would be a loss in taxable value within the district. If we see investment that is already being talked about by commercial property owners or simply maintain the rate of assessed value we've experienced in the last 13 years, I suspect the amount of revenue raised will be sufficient to satisfy the debt in about half the term of the bond.
Ultimately, the decision for every resident is whether or not they want to see these dedicated revenues used for this plan or if there are better uses presuming the TIF remains in place. If there are better uses, we haven't yet heard any alternatives during the months of public meetings, surveys and informational sessions.
I respect all the well reasoned debate around this issue and just hope the voters turn out and make an informed decision. Thanks for engaging in this discussion and don't hesitate to give me a shout if you have any questions. - Tony
---- Hart...@aol.com wrote:
Bob:
Your article was well documented, meaningful and a wake up call to those
who would be hurt by higher real estate taxes on their homes and business's.
Surely, if this passes, like sun rises in the East, residents and
business owners will eventually be taxed to pay off this "pink elephant"
monstrosity-- or as you say, we'll have to have a drastic cut of municipal services
(including school budget (?))!
Ron Hart
In a message dated 6/7/2013 7:14:35 A.M. Eastern Daylight Time,
lis...@ix.netcom.com writes:
http://www.pressherald.com/maine-voices-falmouth-route-1-improvement-plan-ra
ises-fiscal-conceptual-issues_2013-06-07.html
Posted: June 07. 2013 1:30AM
Maine Voices: Falmouth Route 1 improvement plan raises fiscal, conceptual
issues
Funding for the ambitious, costly project isn’t guaranteed, and neither is
support for the ‘village’ idea.
2012 File Photo/Gabe SouzaBusinesses line Route 1 in Falmouth. On June 11,
residents will be asked to vote on $14 million in improvements to Route 1
that are intended to create the feeling of a village center along the road.
ABOUT THE AUTHOR
M. Roberts Hunt is a resident of Falmouth and a member of Falmouth
Citizens for Sound Choices.
FALMOUTH — On June 11, Falmouth voters will be asked to approve more than
$14 million of improvements to Route 1 from the intersection of Route 88 to
the Maine Turnpike entrance road.
The plan calls for burying power and utility lines, creating 10-foot-wide
sidewalks and medians with “golden hue” dormant grass, modifying existing
curb cuts and enhancing pedestrian lighting and traffic controls.
These improvements, coupled with zoning changes designed to encourage
denser development with buildings in close proximity to the street, are
intended to eventually create a “village” center where one has never existed in
the 199-year history of the town. The new “village” will mirror tunnel-like
Route 1 in Freeport, with multistory, multi-use buildings hugging the
street.
The transformation would be shocking. Although traditional villages evolve
gradually over time, not by the wave of a magic wand, supporters claim
that there is a craving, by some, for a place where folks can come together to
shop, stroll, gossip and mingle “as members of the community” that makes
the drive to create a “village” worthwhile.
According to supporters, the town will purchase a 16-year general
obligation bond to pay for the improvements. They hope it will be paid off by
revenue from the Route One Tax Incrementing Financing district.
TIF revenue comes from a portion of TIF property taxes set aside for
improvements to or for the benefit of the district. For the TIF to have enough
revenue to pay off the bond, its taxable property values must appreciate
1.25 percent year over year, according to the town’s director of long-range
planning. If they don’t, the bond will have to be paid with funds from some
other source or sources – increased residential property taxes and/or
reduced or eliminated municipal services.
No one can guarantee there will be enough TIF revenue to pay off the bond.
The town treasurer can only say he “anticipates” TIF revenues will be
sufficient. On the other hand, no one can guarantee TIF revenue will be
inadequate. Actually, no one really knows what will happen during the next 16
years.
Supporters say that historical TIF revenue results, since its creation in
2000, augur well for the future. However, anyone who has invested in
equities or mutual funds knows that past results are no guarantee of future
performance.
In April, the Town Council admitted there is a risk that the TIF might
come up short. Voters need to understand there is a risk that the Tax
Incrementing Financing district might not be able to pay off the bond. Then
property taxes will go up and/or municipal services will be reduced or eliminated.
Even if TIF revenue is adequate to pay off the bond, voters need to ask
themselves whether the proposed improvement will make Falmouth a better place
to live in any meaningful way. Is a “village” center with multistory,
multi-use buildings hugging the street, creating a claustrophobic tunnel
feeling, better than the open spaces that exist today?
Will anyone, especially those with children, want to live on a busy street
above a fishmonger, butcher shop, hairdresser, music studio, cobbler,
etc.? Will dormant-grass “golden hue” medians enhance or impend traffic flow
by creating choke points during busy times of day – causing motorists to use
Foreside Road and Middle Road as escape routes and forever altering the
rural nature of those two roads?
How many existing businesses have expressed an interest in renovating or
expanding (except Walmart)? How much vacant land exists for new development,
necessary to drive a 1.25 percent year-over-year increase in TIF taxable
property values? Have any market studies been done to evaluate the
reasonableness of the “village” concept?
Last, but not least, would you use your own money to pay for these “
improvements”?
This project raises many serious questions without solid, common-sense
answers.
Voters, beware!
— Special to the Press Herald
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"Falmouth Citizens for Sound Choices" group.
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