TOWN OF BRADFORD
PUBLIC HEARING
TIF-SIDEWALKS
AUGUST 11, 2009
6:00PM
Present: Charles Meany, Selectmen Chair, Peter Fenton, Selectmen, Jack Meaney, Selectmen, Cheryl Behr, Administrator, Steven Heavener, CRDC and Marge Cilley, Secretary
Charles Meany, Chair Selectmen opened the Public Hearing at 6:00pm with 50 plus people in attendance, and advised this is an informational meeting. Questions are encouraged.
This will be the only open meeting prior to the Special Town Meeting scheduled for September 1, 2009. Charles Meany advised that if anyone did not understand or has additional questions or concerns prior to the next meeting to contact any of the Selectmen or Cheryl Behr, Administrator.
Cheryl Behr, Administrator introduced Steven Heavener, CRDC who has prepared the TIF handouts that everyone received. Cheryl Behr also advised she has prepared a short power point presentation to lay the ground work for the project.
Cheryl Behr, Administrator advised that Article 1, the second portion of the Special Town Meeting on September 1, 2009 will be on Tax Incremental Financing (TIF) which is a long term planning and financing for the Bradford Downtown District. This is the district as presented, and does have to be approved at Town Meeting. This can be adjusted, but cannot exceed RSA provision for 8% of the town assessment and 5% of the town acreage. At this time, the power point presentation was done by Cheryl Behr, Administrator. It was suggested that questions be held off until after the presentation and Mr. Heavener will assist.
Projects under consideration would include: sidewalks including maintenance equipment to maintain sidewalks, lighting, construction, renovations, repair of municipal buildings in the district, roadways, drainage improvement, expanded community facilities at the Community Center or Transfer Station.
Warrant Article 2, which is an alternative to a TIF program is adding $5.00 to each registration which would be earmarked for only transportation, sidewalks, drainage or road repair. Bradford has 2,780 registrations per year according to last years town report and with a $5.00 increase collected on each of these registrations, $4.50 would be placed in transportation improvement fund, which would result in an annual amount of approximately $12,510.00 per year.
At this time Steven Heavener gave an overview of how TIF works.
The fundamental purpose of the TIF District is to create a fund to pay for improvements that the town would be otherwise unable to pay for. There are two ways to pay for a TIF District. One is a pay as you go, which is what is being proposed, or a bonding process.
At every town meeting, the plan that is before the town can be amended. The legislative body has the right every year to revise and amend the plan.
There are three major steps in this process.
1. Adopt the enabling legislation that lets the town do the TIF District, which is Article 1: To see if the town will vote to adopt the provisions of RSA 162-K.
2. To establish an actual district, with the exact district noted in the plan, listing 117 properties within the district and listed on the plan as exhibit D.
3. Adopt the plan as presented this evening.
Mr. Heavener, CRDC advised this does not impact taxes at all, but just splits off the stream of where the money goes. If the TIF District is approved, the tax assessor is responsible for establishing the value of every property in 2009 as of April 1 when taxes are set. The TIF District duration will be 20 years.
The intent of most TIF Districts is intended to attract businesses, new investments, jobs etc. A TIF District can be terminated if not bonded.
Andrew Pinard questioned if TIF District can be revoked at Town Meeting, what happens to the funds that have been accumulated? Mr. Heavener advised that money raised in a TIF District, must be spent as the plan dictates, and cannot go back into the general fund.
If the TIF District established for non bonding for seven years, then you establish a 20 year bond, if the TIF District is established for a 20 year district, does that then extend the District was questioned by Andrew Pinard. Mr. Heavener advised that at that Town Meeting, there would be a Warrant Article for the bond which would extend the district. It would limit the bond which could be for 23 years instead of 30, having already used 7 years.
Chris Frey questioned who the bond is issued to, the TIF District or the Town of Bradford. Mr. Heavener advised it is a standard town general obligation. The town is the legislative body as determined by statute.
Can the legislature cap the TIF district 8% taxable evaluation? Mr. Heavener suggested the town should keep a managed project, and not town wide.
Chris Frey questioned requesting the town to raise and appropriate approximately 3 times the 1988 appropriated amount, and holding 8% out seems like a lot. Mr. Heavener replied that it is not pulled out, it is only new value that would be used, not 8% of the existing going away, the base line stays. Tax Rate will continue to go up as voted each town meeting.
Marcia Keller questioned the five phases, being used as municipal improvements. Mr. Heavener advised that what is in the plan is what can only be done. However, the plan can be amended at town meeting, if something other than what the original plan states wants to be accomplished. What is being adopted theoretically at the Special Town Meeting on September 1, 2009 is only what this plan outlines.
Everett Kittredge questioned the evaluation in the TIF District and what happens with each new evaluation. Mr. Heavener advised it will not change, only if something new is done to your property, and the assessment goes up, you’d pay more taxes anyway. It does not make any difference if you are in the district or not.
The Tax Assessor would have to calculate if property comes out of Current Use.
John Madden questioned if anything that happens in this district, does not have any bearing on the rest of the town tax wise at all, to which Mr. Heavener advised that is correct until after the TIF District goes away, when the full value will go to the full budget. Mr. Heavener reminded everyone that the theme is not just the values, but the whole intent is to increase the value of the whole town, and to make it more attractive and safer.
Cheryl Behr, Administrator advised that every year we come to Town Meeting we ask for Capital Reserve. We have $20,000 Capital Reserve for sidewalks, which this year adds $ .04 to your tax rate. Hopefully, this TIF will present us with an income stream that we can rely on for improvements and submit for Grants. The town started the sidewalk Grant in 1974 and here we are many years later, and still have not been able to get over the hump of the expense.
Dick Keller questioned if the Survey amounts to $240,000 and the town decides to do something else what happens. Mr. Heavener advised the town can vote at town meeting to amend the original Article, or it can be revaluated and modified.
John Harris questioned what determined the area for the potential district. Cheryl Behr, Administrator advised that areas were included that had a potential for growth. Also Safe Routes to School were considered.
John Madden questioned why sidewalks were chosen first as apposed to water and sewer? Cheryl Behr, Administrator advised that Jane Johnsen had come to the town with the Bradford Improvement Association wanting to do something about sidewalks. There is a Transportation Enhancement (TE) Grant this year which allows us to apply for sidewalks. By putting in a TIF District, it shows the State that we have a projected source of revenue, and we are serious about putting these sidewalks in. Mr. Heavener advised there is a high leverage value here. He pointed out that the sidewalks would net more bang for the buck, and $17,000 of new assessment would not get much sewer line. An 80/20 match on a sidewalk program, 40 to 50 thousand dollars can accumulate pretty quickly, which can leverage another three or four hundred grand. Cheryl Behr, Administrator advised the Master Plan identifies the Transfer Station as being an industrial park area. Also there is a large subdivision area in the process within this district.
In reply to comments made regarding the need for water and sewer for new business to come into town, it was pointed out that the previous business’ that closed on Main Street did not close because of lack of existing water and sewer.
Mr. Heavener explained the CRDC Revolving Loan Fund is responsible for mostly business financing and economic development work and was created in 1995 for Bradford. We are basically a small business enhancement lender, meaning that if you go to a bank for an all commercial business proposition, and the bank determines they may only want to lend 60% of what you need, we come in and fill the gap with our loan program. At this time there are several outstanding loans, and not one of them is in Bradford.
Andrew Pinard responded to a question as to what is being done to entice business to come to town by suggesting this is a tool, which is a commitment from the town to develop a certain area, this is the first step.
Laura Hallahan, Real Estate Broker added that people living outside of town not feeling this has any impact on their property, this project does have a large impact on the whole town. When people come to town and do not see sidewalks, don’t see businesses thriving, they hesitate to buy anywhere in town.
John Harris reinforced that occasionally people who don’t live in the down town question why should they pay for taxes for something not in my part of town. This way, it is earmarked so that it is not putting a burden on people outside of the district.
Mr. Heavener advised he deals with this all the time, and businesses want to go where they think a town is ready for them, and is proactive in showing they’re business friendly.
Dick Keller advised that for a sewer to be available in Bradford, since you can no longer dump into the Warner River, a treatment plant would be required, it would have to be maintained, which would be a vast expense, there is no connection between the two.
Edythe Craig stated this is discriminatory, we pay taxes whether we have children in school or not, and the project should be encouraged if one lives in the district or not. Also, would the existing zoning code be continued to which the answer was yes, it would be considered as it is now.
Audrey Sylvester asked if people could write questions to have answered by the Selectmen or Cheryl Behr, Administrator to which the answer was in the affirmative.
Marcia Keller questioned the potential liability to the town to leave the sidewalks as they are?
Cheryl Behr, Administrator advised that prisoners will tear up the sidewalks on West Main Street on September 15, 2009.
Andrew Pinard will put up a direct link on the internet regarding the special town meeting 9/1/09 on Bradfordnh.org.
Also questioned by Andrew Pinard was is there a restriction as to the number of TIF districts within a town? Mr. Heavener advised you can have multiple districts, but you can only have a total of 16% in multiple districts.
The three Articles at the Special Town Meeting on September 1, 2009 regarding the Districts will be exactly as appeared on the insert in the August Bridge.
Andrew Pinard clarified the evacuation plan for the elementary school, requires them to walk down Old Warner Road to the Church, which is done at least once a year.
John Madden questioned the word intermodal in Article 3 to which he was advised it meant any two transportation modes, whether train, truck terminal, a dock.
Cheryl Behr, Administrator advised that anyone here for the Planning Board Meeting could go into the Selectmen’s office at this time.
Any money set aside for a specific purpose at town meeting must include the interest for that as well per Mr. Heavener.
Cheryl Behr, Administrator thanked everyone for coming to this meeting.
Meeting adjourned 7:05pm
Respectfully submitted
Marjorie R. Cilley
Secretary