An Act To Promote Economic Development and ReduceR~liance on . Automobiles through Transit-oriented TaxJncrement Financillg Districts
Maine Legislature, Session 124, LD 1392
Committee: Taxation
Sponsors: BLISS, EBERLE, PERRY, RECTOR, CHASE, CROCKETT, DILL, FLEMINGS
Amends: 30-A MRSA §5224, 30-A MRSA §5225

FIRST PJ:GULAR SESSIO~~-2009 
Legislative Document 
No. 1392 
S.P.511 
In Senate, April 2, 2009 . 
An Act To Promote Economic Development and ReduceR~liance on 
. Automobiles through Transit-oriented TaxJncrement Financillg 
Districts 
Reference to the Committee on Taxation suggested and ordered printed. 
r:;)rf){J~ 
Presented by Senator BLISS of Cumberland. 
Cosponsored by Representative EBERLE of South Portland and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senatoi"s: DAMON ofH~mcock, PERRY of Penobscot, RECTOR of Knox, Representatives: 
CHASE of Wells, CROCKETT of Augusta, DILL of Cape Elizabeth, FLAHERTY of ' 
Scarborough, FLEMINGS of Bar Harbor. 
Prinh!U on rccydcd, paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §S221, sub-§l,,~A-l is enacted to read: 
A-I. Expand opportunities for transit and alternative modes oftransportation; 
Sec. 2. 30-A MRS A §5221, sUb-§2, ~A, as amended by PL 2007, c. 413, §1, is 
further amended to read: 
A. 
To provide impetus for industrial, commercial, transit-oriented or arts district 
development, or any combination; 
Sec. 3. 30-A MRS A §S222, sub.,.§l-B is enacted to read: 
I-Eo Alternative mode of transportation. "Alternative mode of transportation" 
means a type of transportation other than private automobiles, such as transit, bicycling or 
walking. 
' 
'Sec. 4. 30-A MRSA §S222, sub-§l-C is enacted to read: 
I-C. Capital improvement program. "Capital improvement program" means a 
timetable or schedule of all future capital improvements to be carried out during a 
specific period, together with cost estimates and. the anticipated sources of financing for 
each project.' 
, 
31. 
Sec. 5. 30-A MRS A §S222, sub-§10-A is' en~cted to read: 
,10-A. Floor area ratio. "Floor area ratio" means the gross floor area of all buildings 
or structures on a lot divided by the total lot area. 
Sec. 6. 30-A MRSA §S222, sub-§12-A is enacted to read: 
I2-A. Mixed-use zoning district. 
"Mixed-use zoning district" means a zomng 
district that allows by right or special exception nonresidential uses as well as residential 
uses. 
Sec. 7. 30-A MRSA §S222,sub-§12-B is enacted to read: 
p_._", 
I2-Eo Net residential acre. "Net residential acre" means an acre of land in a lot 
after subtracting all features or areas that a development ordinance requires to be 
excluded from the calculations, including streams, wetlands" steep slopes and other 
unbuildable areas: 
Sec. 8. 30-A MRSA §S222, sub-§12-C is enacted to read: 
I2-C. Nonresidential use. "Nonresidential use" means a type of land use other than 
residential. "Nonresidential use" includes without limitation office, retail, commercial, 
entertainment, light manufacturing and industrial uses. 
Sec. 9. 30-A MRSA §S222, sub-§14-A is enacted t6 read: 
) 
) 
) 
n 
r 
i'l 
L) 
14-A. Residential use. "Residential use" means a type of land use consisting of 
residential dwelling units of all types, including, without limitation, single-family, 
multifamily, attached, detached or condominium dwelling units. 
,Sec. 10. 30-A MRSA §S222, sub-§19 is enacted to read: 
19. Transit.' "Transit" means transportation systems in which people travel by 
means other than their own vehicles, including, but not limited to, bus systems, street 
cars, light rail and other rail systems. 
Sec. 11. 30-A MRSA §S222, sub-§20 is enacted to read: 
" ,20. Transit facility. "Transit facility" means a place providing access to transit 
services, including, but not limited to, bus stops, bus stations, interchanges on a highway 
used by one or more transit providers, ferry landings, train stations, shuttle terminals and 
bus rapid transit stops. 
Sec. 12. 30-A MRSA §S222, sub-§21 is enacted to read: 
21. Transit.:.oriented development. "Transit-oriented development" means a type 
of development that links land use with transit facilities to support and be supported by a 
transit system. It combines housing with complementary public uses such as jobs, retail 
or services establishments that are located in transit-served nodes or corridors. Transit-
oriented development is intended through ,location and design to rely on transit as one of 
the means of meeting the transportation needs of residents, customers, and occupants as 
demonstrated through such factors as transit facility proximity, mixed uses, off-street 
parking space ratio less than industry standards, architectural accommodation for transit 
and marketing that highlights transit. 
Sec. 13. 30-A MRSA §S222, sub-§22 is enacted to read: 
22. 
Transit-oriented development area. 
"Transit-oriented development area" 
means an area of any shape such that no part of the perimeter is more than 1/4 mile from 
an existing or planned transit facility. 
' 
Sec. 14. 30-A MRS A §S222, sub-§23 is enacted to read: 
23. 
Transit-oriented development corridor. 
"Transit-oriented development 
corridor" means a strip of land of any length and up to 500 feet on either side of a 
roadway serving as a principal transit route. 
' 
Sec. 15. 30-A MRSA §~222, sub-§24 is enacted to read: 
24. Transit-oriented development district. "Transit-oriented development district" 
, means a tax increment financing district consisting of a transit-oriented development area 
or a transit-oriented development corridor. 
Sec. 16. 30-A MRSA §S223, sub: .. §3, as amended by PL 2007, c. 693, §3 and 
affected by §37,is further amended to read:, 
.. Conditions for approval:· Designation of a development district is subject to the 
following conditions. 
. 
A. At least 25%, by area, of the real property within a development district must 
. meet ~t 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. 
B. The total area of a single development district may not exceed 2% of the total 
acreage of the municipality. The total area of all development districts may not 
exceed 5% of the total acreage of the municipality. 
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 1 st 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 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 val.ue 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 tlus paragraph, "contiguous property" includes a parcel or parcels 
of land divided by a road, power line or right-of~way. 
D. The aggregate value of municipal general obligation indebtedness financed by the 
proceeds from tax increment financing districts within any county may not exceed 
$50,000,000 adjusted by a factor equal to the percentage change in the United States 
Bureau of Labor Statistics Consumer Price Index, United States City Average from 
January 1, 1996 to the date of calculation. 
(1) The commissioner may adopt rules necessary to allocate or apportion the 
designation of captured assessed value of property within proposed tax increment 
financing districts to permit compliance with the condition in this paragraph. 
Rules. adopted pursuant to this paragraph are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A. 
) 
) 
') 
n 
( 
L)· 
.8 
n 
21· 
(2) The acquisition; construction and installment of all real and personal property 
improvements, buildings, structures, fixtures and equipment included within the 
development program and financed through municipal bonded iridebtedness must 
be completed within 5 years of the cOlmnissioner's approval of the designation of 
the tax increment finan9ing di.strict 
E. 
A transit-oriented development district is subject to the following conditions 
unless a condition is waived pursuant to a detennination by the Commissioner of 
Transportation that a proposed transit-oriented development district substantially 
meets the policy objectives of rules adopted pursuant to the Sensible Transportation 
Policy Act: 
. 
(1) The district: 
(a) Must be served by an existing transit service of any type; 
(b) 
Will be served by a new public transit service that has a funding 
commitment; or 
(c) Will be served by a new private transit service for which there is, in the 
department's detennination, a viable business plan; 
(2) The land use regulation requirements in the.district allow for a mix of uses, 
including' those associated with where people live, work, shop and' obtain 
services. This requirement may be achieved through a single mixed-use zoning 
district or through multiple zones that together inClude the required land uses. If 
accomplished through multiple zones, the zones can be interspersed throughout 
the' district, or, in the case of transit-oriented development corridors, by section. 
A majority of residential properties in the district must be no farther than 1/4 mile 
from compatible nonresidential.uses or zones; 
(3) The land use regulation requirements in the district allow a minimum of 5 
dwelling units per' net residential acre for residential uses and, except in rural 
areas and residential neighborhoods, a minimum of 0.4 floor area ratio, or its 
equivalent, for nonresidential· uses. 
This condition may also be met by 
demonstrating that the existing development pattern meets these standards or that 
there are provisions in the municipality's comprehensive plan for achieving them; 
and 
. 
(4) Accommodations for safe bicycle and pedestrian transportation have been 
provided, or have been included in the municipality's capital improvement 
program, according to standards or guidelines established by the Commissioner 
of Transportation pursuant to the Sensible Transportation Policy Act. 
(5) The temporary or pennanent discontinuation of a transit service upon which 
a transit-oriented development district was created does not invalidate the transit~ 
oriented development district; however, the mumcipality must make a good faith 
effort to restore the service. 
(6) 
A transit-oriented development district may overlap another type of tax 
increment financing district, or be created within another tax increment financing 
district, and does not negate nor is it negated by the other district. 
The conditions in paragraphs A to D do not apply to approved downtown tax increment 
financing districts, tax incre~ent financing districts included within' Pine Tree 
Development Zones designated and approved under subchapter 3 ef~ tax increment 
firi:ancing districts that .consist solely. of one or more cOllmunity wind power generation 
facilities owned by a community wind power generator that h~s been certified by the 
Public Utilities Commission pursuant to Title 35-A, section 3403, subsection 3 or transit.:. 
oriented development districts. 
. 
Sec. 17. 30-A MRSA §5224, sub-§t, E[C, as amended by PL 2007, c. 413, §4, is 
. 
further amended to read: 
C. 
A description of commercial' facilities, arts districts, transit expansion, 
improvements or projects to be financed in whole or in part by the development 
program; 
Sec. 18. 30-A MRSA §5225, sub-§I, E[C, as amended by PL 2007, c. 413, §6, is 
. 
further 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 such activities; 
(3) Funding to establish p~rmanent economic development revolving loan funds 
or investment funds; 
(4) Costs of services to provide'skills development mid 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; iffiEi 
Sec. 19. 30-A MRS A §5.225, sub-§I,~, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
D. 
Costs of constructing or improving facilities or buildings used by State 
Gov<::rnment that are located in approved downtown tax increment financing 
districts.,.; and 
. .  
Sec. 20. 30-A MRSA §5225, sub-§I, EffE is enacted to read: 
E. Costs related to transit-oriented development districts, including but not limited 
to: 
(1) Costs, both within and outside of the transit-oriented development district, of 
adding to the municipality's existing transit system or creating a new transit 
. service, including but not limited to salaries, fuel and maintenance; 
) 
) 
) 
~/') 
(2) Costs of funding capital investments, including but not limited to: transit 
vehicles, such as 'buses, ferries, vans, rail conveyances and related equipment; 
bus shelters and other transit-related structures; benches, signs and other transit-
related' infrastructure; bicycle lane construction and other bicycle-related 
improvements; and such pedestrian improvements as crosswalks, crosswalk 
signals and warning systems and crosswalk curb treatments. Costs of vehicles 
are included whether wholly or partially operating within the transit-oriented 
development district. Costs relative to fixed improvements are included only if 
those improvements are located within the transit-oriented development district; 
and 
(3) Other costs as described in Qaragraphs A and B but only as applied to transit-
oriented development and public infrastructure related· to transit and alternative 
modes of transportation. 
. 
SUMMARY 
This bill establishes authority for creation of transit-oriented development districts 
under the tax increment financing laws to provide an impetus for transit-oriented 
development, provide new or additional transit services and provide facilities for transit 
and alternative modes of transportation for the purposes of promoting sustainable 
economic development, energy efficiency, transportation cost reduction, open space 
preservation and greenhouse gas reduction. 
.