An Act To Promote Transportation Investments within Downtowns and Urban Compacts
Maine Legislature, Session 122, LD 1159
Committee: Transportation
Sponsors: FISHER, DAMON, BARSTOW, BROWN, COLLINS, GERZOFSKY, DIAMOND

Legislative Document 
No. 1159 
H.P.802 
House of Representatives, March 8, 2005 
An Act To Promote Transportation Investments within Downtowns 
and Urban Compacts 
Reference to the Committee on Transportation suggested and ordered printed. 
Presented by Representative FISHER of Brewer. 
Cosponsored by Senator DAMON of Hancock and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: BARSTOW of Gorham, BROWN of South Berwick, COLLINS of Wells, 
GERZOFSKY of Brunswick, Senators: DIAMOND of Cumberland, SA V AGE of Knox. 
Printed on rel:ycied paper 
Be it enacted by the People of the State of Maine as follows: 
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 
local growth management plan that has been found by 
State to be consistent with the growth management program; 
B. 
The compact area of an urban compact municipality; or 
a 
the 
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 
Page l-LR1660(1) 
to apply funds required to be expended by the developer as a 
condition of a traffic movement permit to match federal funds and 
finance debt to support advance construction as long as the 
department uses those funds to complete a project that includes 
the improvements the developer is required to make under the 
traffic movement permit. 
The department would also be authorized 
to apply the proceeds of tax increment financing derived from the 
development project to match federal funds or support debt to 
finance the cost of advance construction. 
3. 
It would provide a process for municipalities to build 
roads without federal or state financial participation that could 
be 
purchased 
by 
the 
State 
or 
assumed 
for 
maintenance 
responsibilities if the road meets state design standards and 
criteria for classification as a major collector or arterial 
highway. 
4. 
It would provide a new structure for assessing traffic 
impact fees on a regional basis that would be expended to address 
deficiencies inside growth management areas, urban compacts or 
downtowns caused in part by through traffic generated on a 
regional basis.