Sec. 1. 30-A MRSA §5223, sub-§3, śC, as enacted by PL 2001, c. 669, §1, is amended to read:

C. The original assessed value of a proposed tax increment financing district plus the original assessed value of all existing tax increment financing districts within the municipality may not exceed 5% of the total value of taxable property within the municipality as of April 1st preceding the date of the commissioner's approval of the designation of the proposed tax increment financing district.

Excluded from the calculation in this paragraph is any district excluded from the calculation under former section 5253, subsection 1, paragraph C, any district included within a Pine Tree Development Zone designated and approved under subchapter 3 and any district designated on or after the effective date of this chapter that meets the following criteria:

(1) The development program contains project costs, authorized by section 5225, subsection 1, paragraph A, that exceed $10,000,000;

(2) The geographic area consists entirely of contiguous property owned by a single taxpayer;

(3) The assessed value exceeds 10% of the total value of taxable property within the municipality; and

(4) The development program does not contain project costs authorized by section 5225, subsection 1, paragraph C.

For the purpose of this paragraph, "contiguous property" includes a parcel or parcels of land divided by a road, power line or right-of-way.

Sec. 2. 30-A MRSA c. 206, sub-c. 3 is enacted to read:

SUBCHAPTER 3

PINE TREE DEVELOPMENT ZONES

§5245.__Findings and declaration of necessity

1.__Legislative finding.__The Legislature finds that there is a need to encourage development in economically distressed areas of the State in order to: