Morning Sentinel
WATERVILLE Tax breaks for Gilman project on council agenda
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BY AMY CALDER
Staff Writer
Kennebec Journal & Morning Sentinel 11/03/2009

WATERVILLE -- A tax increment financing plan for the Gilman Place affordable housing project will be the focus of discussion at Wednesday's City Council meeting.

The meeting will be held at 7 p.m. in the council chambers at The Center downtown. Council meetings usually are held Tuesday nights but it was moved to Wednesday because of today's elections.

Councilors Oct. 20 voted 5-1 to approve a development plan for Gilman Place that would create a tax increment financing district for the project. That district would make the part of the project involving the gymnasium more affordable to the developers. Forty-five percent of taxes would go toward the cost of heating, lighting and maintaining the gym.

Two more votes are needed to approve the development plan.

Developers Collaborative and Coastal Enterprises Inc. want to develop 35 one-, two- and three-bedroom apartments in the former Gilman Street School for people whose annual incomes are between $28,000 and $35,000. The building would be renovated to historic standards as part of the project.

Councilor Mary-Anne Beal, D-Ward 2, was the only councilor to vote against approving the plan Oct. 20. Councilor Charles "Fred" Stubbert Jr., D-Ward 1, was absent from the meeting.

Beal questioned language in the plan that described the housing as "low-income." She said information provided previously to councilors referred to it as "median income." She said she also understood a staff person would be on the housing premises full-time, but the development plan calls for someone to be there only 6 1/2 hours a week.

Kevin Bunker of Developers Collaborative said that ideally, someone would live on premises who would do light maintenance in lieu of paying a portion of his or her rent.

City Manager Michael Roy said Monday that the income requirements are the same as they were when councilors initially considered the project.

He said he expects a lot of people to come to Wednesday's meeting to oppose the development because they believe some significant changes have been made to the original plan.

"The rumor is circulating quite a bit that what's being proposed now is different than what was proposed at the beginning -- or when the council approved it quite a few months ago," Roy said. "Fortunately, none of that is true but it seems some people are intent on trying to make the case that approval of the TIF somehow represents a big change. That's absolutely not true."

He said there also is no change in the number of apartments being proposed.

One or two votes may be taken Wednesday on the issue but Roy said he hopes councilors vote twice and finalize the plan.

"I'm hopeful there'd be two, so financing for this project can proceed -- so construction can begin before the start of the year," he said.

In other matters, councilors are expected to postpone voting on acceptance of an amended zoning ordinance.

"We're just not ready," Roy said.

Councilors also will consider awarding a $53,573 contract to buy a reconditioned sidewalk tractor; accepting donations for the police and fire departments; and abating personal property taxes that the city has deemed uncollectible. The city will, however, pursue collecting taxes from three taxpayers who owe more than $1,000 each.

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