CONCEPT DRAFT

SUMMARY

This bill is a concept draft pursuant to Joint Rule 208.

The bill would do the following.

1. It would apply to development projects that generate more than 100 passenger car equivalents at the peak hour that are located in:

A. An area designated as a growth management area in a local growth management plan that has been found by the State to be consistent with the growth management program;

B. The compact area of an urban compact municipality; or

C. A downtown as defined in the Maine Revised Statutes, Title 30-A, section 5222, subsection 8.

The Department of Transportation would be required to match each dollar a municipality raises through the assessment of taxes on the real and personal property value created by the project through tax increment financing if the proceeds of that assessment are expended to make transportation improvements that are eligible for Highway Fund participation and will improve the level of service or substandard conditions. No state funds may be used to relieve the developer of financial obligations under a traffic movement permit approved by the Department of Transportation. Fifty percent of the unallocated surplus in the Highway Fund at the end of each fiscal year must be set aside in a nonlapsing account to support this provision, but such account may not exceed $10,000,000. In addition, if the above circumstances are met, the Department of Administrative and Financial Services would also be required to match each dollar raised through municipal tax increment financing with the eligible expenditure of those funds being for transportation improvements or related utility and storm water improvements. The department's contribution would be financed and limited by a defined portion of the state tax increment of net new sales and income taxes generated by the development project.

2. It would provide that for such development projects, the Department of Transportation is authorized to use federal advance construction support with the up-front financing provided through private or municipal capital. The department would be authorized