An Act To Enable the Creation of Tax Increment Financing Districts for Arts Districts
Maine Legislature, Session 123, LD 1182
Committee: Taxation
Sponsors: ADAMS
Amends: 30-A MRSA §5221, 30-A MRSA §5222, 30-A MRSA §5223, 30-A MRSA §5224, 30-A MRSA §5225

Legislative Document 
No. 1182 
H.P.863 
House of Representati ves, March 7, 2007 
An Act To Enable the Creation of Tax Increment Financing 
Districts for Arts Districts 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative ADAMS of Portland. 
Printed on recyclell paper 
17/~ 
1J?1J?tU:~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §5221, sub-§2, ~A, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
A. 
To provide impetus for industrial Of, commercial or arts district development, or 
betlt any combination; 
Sec. 2. 30-A MRSA §5222, sub-§l-A is enacted to read: 
I-A. Arts district. "Arts district" means a specified area within the corporate limits 
of a municipality that has been designated by the municipality for the purpose of 
providing employment and cultural opportunities through the development of arts 
opportunities, including, but not limited to, museums, galleries, arts education, art 
studios, perfonning arts venues and associated businesses. 
Sec. 3. 30-A MRSA §5223, sub-§3, ~A, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
A. 
At least 25%, by area, of the real property within a development district must 
meet at least one of the following criteria: 
(1) Must be a blighted area; 
(2) Must be in need of rehabilitation, redevelopment or conservation work; or 
(3) Must be suitable for commercial or arts district uses. 
Sec. 4. 30-A MRSA §5224, sub-§2, ~C, as enacted by PL 2001, c. 669, § 1, is 
amended to read: 
C. 
A description of commercial facilities, arts districts, improvements or projects to 
be financed in whole or in part by the development program; 
Sec. 5. 30-A MRSA §5225, sub-§l, ~A, as enacted by PL 2001, c. 669, § 1, is 
amended to read: 
A. 
Costs of improvements made within the tax increment financing district, 
including, but not limited to: 
(1) Capital costs, including, but not limited to: 
(a) 
The acquisition or construction of land, improvements, buildings, 
structures, fixtures and equipment for public, arts district or commercial use; 
(b) 
The demolition, alteration, remodeling, repair or reconstruction of 
existing buildings, structures and fixtures; 
(c) Site preparation and finishing work; and 
(d) All fees and expenses that are eligible to be included in the capital cost 
of such improvements, including, but not limited to, licensing and pennitting 
expenses and planning, engineering, architectural, testing, legal and 
accounting expenses; 
Page I - 123LR2287(OI)-1 
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(2) Financing costs, including, but not limited to, closing costs, issuance costs 
and interest paid to holders of evidences of indebtedness issued to pay for project 
costs and any premium paid over the principal amount of that indebtedness 
because of the redemption of the obligations before maturity; 
(3) Real property assembly costs; 
(4) 
Professional service costs, including, but not limited to, licensing, 
architectural, planning, engineering and legal expenses; 
(5) Administrative costs, including, but not limited to, reasonable charges for 
the time spent by municipal employees in connection with the implementation of 
a development program; 
(6) Relocation costs, including, but not limited to, relocation payments made 
following condemnation; and 
(7) Organizational costs relating to the establishment of the district, including, 
but not limited to, the costs of conducting environmental impact and other studies 
and the costs of informing the public about the creation of development districts 
and the implementation of project plans; 
Sec. 6. 30-A MRSA §5225, sub-§l, ,C, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
c. 
Costs related to economic development, environmental improvements or 
employment training within the municipality, including, but not limited to: 
(1) Costs of funding economic development programs or events developed by 
the municipality or funding the marketing of the municipality as a business or 
arts location; 
(2) Costs of funding environmental improvement projects developed by the 
municipality for commercial or arts district use or related to commercial such 
activities; 
(3) Funding to establish permanent economic development revolving loan funds 
or investment funds; 
(4) Costs of services to provide skills development and training for residents of 
the municipality. These costs may not exceed 20% of the total project costs and 
must be designated as training funds in the development program; and 
(5) Quality child care costs, including finance costs and construction, staffing, 
training, certification and accreditation costs related to child care; and 
SUMMARY 
This bill amends the tax increment financing laws to permit their application to the 
development of municipal arts districts.