An Act To Authorize a General Fund Hond Issue To Fund the Communities for Maine's Future Program
Maine Legislature, Session 124, LD 0775
Committee: Appropliations and Financial Affairs
Sponsors: MITCHELL, ROTUNDO, BARTLETT, BOWMAN, MARRACHE, MILLS, RA YE, SULLIVAN, BEAUDETTE, BERRY, FOSSEL, MILLETT, PINGREE, PIOTTI, SMITH
Amends: 5 MRSA §13056-D, 5 MRSA §13056-E, 5 MRSA §13056-F

MAINE STATE LEGISLATURE 
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124th MAl E LEGISLATURE 
Legislative Document 
No. 775 
S.P.302 
In Senate, February 26, 2009 
An Act To Authorize a General Fund Hond Issue To Fund the 
Communities for Maine's Future Program 
Reference to the Committee on Appropliations and Financial Affairs suggested and ordered 
printed. 
Presented by President MITCHELL of Kennebec. 
Cosponsored by Representative ROTUNDO of Lewiston and 
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JOY J. O'BRIEN 
Secretary of the Senate 
Senators: BARTLETT of Cumberland, BOWMAN of York, MARRACHE of Kennebec, 
MILLS of Somerset, RA YE of Washington, SULLIVAN of Y Ol'k, Representatives: 
BEAUDETTE of Biddeford, BERRY of Bowdoinham, FOSSEL of Alna, MILLETT of 
Watelford, Speaker PINGREE of North Haven, PIOTTI of Unity, SMITH of Monmouth. 
Printed tHl rl!l:ydcJ pap!.:f 
Preamble. Two thirds of both Houses of the Legislature deeming it necessary in 
accordance with the Constitution of Maine, Article IX, Section 14 to authorize the 
issuance. of bonds on behalf of the State of Maine to provide funds as described in this 
Act, 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. Authorization of bonds. The Treasurer of State is authorized, under 
the direction of the Governor, to issue bonds in the name and on behalf of the State in an 
. amount not exceeding $27,000,000 for the purposes described in sections 5, 6 and 7 of 
this Part and to access at least $25,000,000 in matching contributions from public and 
private sources. The bonds are a pledge of the full faith and credit of the State. The 
bonds may not run for a period longer than 10 years from the date of the original issue of 
the bonds. At the discretion of the Treasurer of State, with the approyal of the Governor, 
any issuance o,f bonds may contain a call feature. 
Sec. A-2. 
Records of bonds issued kept by Treasurer of State. The 
Treasurer of State shall keep an account of each bond showing the number of the bond, 
the name of the successful bidder to whom sold, the amount received for the bond, the 
date of sale and the date when payable. 
Sec. A-3. Sale; how negotiated; proceeds appropriated. The Treasurer of 
State may negotiate the sale of the bonds by direction of the Governor, but no bond may 
be loaned, pledged or hypothecated on behalf of the State. The proceeds of the sale of the 
bonds, which must be held by the Treasurer of State and paid by the Treasurer of State 
upon warrants drawn by the State Controller; are appropriated solely for the purposes set 
forth inthis Part. Any unencumbered bal8Jlces remaining at the completion of the project 
in this Part lapse to the debt service account established for the retirement of these bonds. 
Sec. A-4. Interest and debt retirement. The Treasurer of State shall pay 
interest due Or accruing on any bonds issued under this Part and all sums coming due for 
payment of bonds at maturity. 
. 
Sec. A-5. Disbursement of bond proceeds. The proceeds of the bonds must be 
expended as set out in this Part under the direction and supervision of the Department of 
Economic-and Community Development and must be deposited into the Communities for 
Maine's Future Fund and expended as set out in this Part for 3 purposes: 
1. Twenty-five million dollars of the bonds must be expended as determined by the 
Communities for Maine's Future Review Panel to make strategic investments in cities and 
towns in the State, inCluding but not limited to infrastructure such as streetscape 
improvements, parks, walkways and building improvements; and 
372. Two million dollars of the bonds must be administered by the Maine Historic 
Preservation Commission for acquisition and resale subject to preservation easements or 
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covenants of significant endangered historic buildings by qualified nonprofit historic 
preservation organizations in the State, 
Sec. A-6. Conditions and requirements., Use of the proceeds of these bonds is 
subject to the following conditions and requirements: 
1. As determined by the Communities for Maine's Future Review Panel under the 
administration of the Department of Economic and Community Development, the bond 
funds must be expended for downtown or village center community infrastructure, 
including but not limited to streetscape' improvements, parks, walkways and 
improvements to public-owned and nonprofit-owned buildings 'and must be matched with 
at least $25,000,000 in public and private contributions. Seventy percent of that amount 
must be in the fonn of cash or other tangible assets. The remaining 30% may be matching 
contributions and may include the value of project-related, in-kind contributions of goods 
and services. 
2. Of the bond proceeds, $2,000,000 mustbe allocated to the Other Special Revenue 
Funds account within the Maine Historic Preservation Commission. Payment from bond 
proceeds may be made by the Maine Historic Preservation Commission to qualified 
nonprofit historic preservation organizations in the State for the pur-pose of acquisitions of 
significant endangered historic buildings ,of local, state .or national significance, as 
determined by the commission, inclu~ing all costs associated with such acquisitions. 
These properties may then be resold subject to preservation easements or covenants held 
by the qualified preservation organization to ensure their protection for the purposes of 
this Part. Part of the acquisition cost for all acquired properties may be a conditions study 
completed by the cooperating organization and approved by the commission and may 
include a fee for maintaining a preservation easement. Net proceeds from the resale of 
properties will be returned to the Other Special Revenue Funds account within the Maine 
Historic Preservation Commission to be used exclusively for the acquisition of additional 
historic properties, except that no more than 5% of the fund balance may be used by the 
commission to fund administration of the program by cooperating organizations. 
To the extent the purposes are consistent with the disbursement provisions in this, 
Part, 100% of the bond proceeds may be considered as state match for any federal 
funding to made available to the State. 
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Sec. A-7. Allocations from General Fund bond issue. The proceeds of the 
sale of the bonds authorized under this Part must be expended as designated in the 
, following schedule. 
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DEPARTMENT OF ECONOMIC AND 
'COMMUNITY DEVELOPMENT 
Provides funds to make investments under 
the Communities for Maine's Future 
Program in competitive community and 
economic revitalization projects, which' 
must be matched with at least $25,000,000. 
$25,000,000 
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MAINE mS'foruc PRESERVATION 
COMMISSION 
. Establishes a revolving fund for the 
purpose of acquiring significant historic 
properties. 
$2,000,000 
Sec. A-S. Contingent upon ratification of bond issue. Sections 1 to 7 do not 
become effective unless the people of the State ratify the issuance of the bonds as set 
forth in this Part. 
Sec. A-9. Appropriation balances at year-end. At the end of each fiscal year, 
all unencumbered appropriation balances representing state money carry forward. Bond 
proceeds that have not been expended within 10 years after the date of the sale of the 
bonds lapse to General Fund debt service. 
Sec. A-lO. Bonds authorized but not issued. Any bonds authorized but not 
issued, or for which bond anticipation notes are not issued within 5 years of ratification of . 
this Part, are deauthorized and may not be issued, except that the Legislature may, within 
years after the expiration of that 5-year period, extend the period for issuing any 
remaining unissued bonds or bond anticipation notes for an additional amount of time not 
to exceed 5 years. 
Sec. A-l1. Referendum for ratifi.cati~n; submission at election; form of 
questiollll; effective date. This Part must be submitted to .the legal voters of the State at 
a statewide election held in the month of November following passage of this Act. The 
municipal officers of this State shall notify the inhabitants of their respective cities, towns 
and plantations to meet, in the manner prescribed by law for holding a statewide election, 
to vote on the acceptance or rejection of this Part by voting on the following question: 
"Do you favor a $27,000,000 bond issue to provide capital investment to 
stimulate local economic de,elopment, revitalize downtowns and village 
centers and preserve and rehabilitate historic properties to be matched by 
at least $25,000,000 in public and private contributions?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within a corresponding square 
below the word "Yes" or "No." The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature. The Governor shall 
review the returns. If a majority of the legal votes are cast in favor of this Part, the 
Governor shall proclaim the result without delay and this Part becomes effective 30 days 
after.the date of the proclamation. 
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The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Part necessary to carry out the purposes of this 
referendum. 
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PARl'B 
Sec. B-1. 5 MRSA §13056-D is enacted to read: 
§13056-D. Communities for Maine's Future Program 
1. Program established; administration. The Communities for Maine's Future 
Program, referred to in this section as "the program," is established within the department 
to assist and encourage corrimunities .. to revitalize and to promote community 
development and enhance projects. The department shall administer the program to 
provide funding for the rehabilitation, revitalization and enhancement of downtowns and 
village centers and main streets in the State. All funds received for this program must be 
deposited into Communities for Maine's Future Fund established in subsection 7. 
2. Review' panel. The Community for Maine's Future Review Panel, referred to iIi 
this section as "the panel," is established to evaluate proposals and determine funding 
. under the program. The panel consists of: 
A. The commissioner; 
B. The Director of the Maine Historic Preservation Commission; 
C. The Director of the State Planning Office within the Executive Department; and 
D. Four members of the public, one with experience in economic and community 
development, one with experience in historic preservation, one with experience in 
downtown revitalization and one with experience in tourism development and 
promotion. The first 2 of these members are appointed by the President of the Senate 
and the remaining 2 by the Speaker of the House. 
3. Review process. The panel shall review proposals for funding under the program 
in accordance with this subsection. 
A. The panel shall establish the deadline by which proposals must be postmarked 
and received. 
B. Department staff shall undertake the initial review and preliminary scoring of 
proposals. 
C. 
A subcommittee appointed by the panel to score proposals shall review and. 
determine the final score for the proposals. 
D. A subcommittee appointed by the panel to nominate fmalists shall review all of 
the . proposals, identify issues' for full review and discussion by the panel and 
recommended project finalists to the full panel for detailed review and consideration. 
E. The panel shall review all the proposals submitted, select the finalists and allocate 
funding. 
In reviewing proposals, the panel shall use the scoring system established in subsection 5. 
4. Applicant requirements. An applicant for funding under this section must: 
A. Be a city or town; and 
B.. Demonstrate the capacity to undertake the project with a reasonable prospect of 
bringing it to a successful conclusion. In assessing an applicant's ability to meet the 
requirements ofthis paragraph, the panel may consider all relevant factors, including 
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but not limited to the applicant's level of debt; fund-raising ability; past economic and 
community 'development activities; grants from federal, state or local sources;' 
previous historic preservation, rehabilitation or enhancement activity; organizational 
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history; scope of economic or revitalization vision; and evidence of success in 
previous efforts. 
5. Scorin!! system. The department and the panel shall develop a scoring system for 
use by the panel in evaluating proposals under this section. The scoring system must be 
designed to identify those proj ects that are most aligned with the State's economic arid 
community development and historic preservation and enhancement priorities. The 
scoring system must assign points according to the relative value of: 
A. The economic significance of the proposed proj ect to the immediate vicinity and 
to the State asa whole; 
B. The level of compatibility with the historic community character; 
c. 
The value of the proposed project with respect to historic preservation and 
rehabilitation; 
D. The value of the proposed project with respect to downtown revitalization; 
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E. The value of the proposed project to encourage or accomplish sustainable, mixed-
use, pedestrian-oriented or transit-oriented development; 
F. The extent to which the proposed.project· meets or exceeds minimum energy 
efficiency standards, uses green building practices or materials, or both; 
G. 
The value of the proposed project with respect to tourism promotion and 
development; 
H. The degree of community support forthe proposed investment; 
I. 
The extent to which the proposed project involves with other preservation 
partnerships and meets multiple criteria within this section; 
J;-The match provided by the applicant; and 
K. Related public funding sources supporting the project. 
6. Additional criteria. In addition to evaluating the proposals using the scoring 
. system established in subsection 5, the panel shall also consider criteria in reviewing a 
proposal: 
A. The level to which a proposal supports the open space or recreation objectives, or 
both, of a local comprehensive plan; 
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B. The extent to which a project is consistent with an adopted comprehensive plan 
that meets the standards of the laws governing growth management pursuant to Title 
30-A, chapter 187; 
C. The extent to which a project is consistent with an existing strategic plan for 
downtown or village center revitalization; 
D. The current and anticipated demand for use and diversity of uses of this site; 
E. The extent to which the project is consistent with any relevant regional economic 
development plan or other relevant regional plan; and 
F. Any additional benefits that contribute to the character of the town or region in 
which the project is situated, including the rehabilitation or renovation of mills and 
other buildings in the community. 
7. Communities for Maine's Future Fund created. A COmInunities for Maine's 
Future Fund, !mown as "the fund," is established to provide funding for the rehabilitation, 
revitalization and enhancement of downtowns and village centers and main streets in the 
State. The fund is dediCated, nonlapsing fund, and all revenues deposited in the fund 
remain in the fund and must be disbursed in accordance with this section. 
8. Rules. The department may adopt rules to implement this section. Rules adopted 
pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
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PART C 
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Sec. C-l. 5 MRSA §13056-E is enacted to read: 
§13056-E. Assistance from Communities for Maine's Future Fund 
1. . Application for downtown improvement or asset grants. In addition to· the 
other forms of [mancial assistance available, an eligible municipality or group of 
municipalities may apply for a downtown and community development grant from the 
Communities for Maine's Future Fund established in section 13056-D, subsection 7 and 
referred to in this section "the fund,"· the proceeds of which must be used to acquire, 
design, plan, construct, enlarge, repair, protect or enhance downtown improvements or 
assets. The department may prescribe an application form or procedure for an eligible 
municipality or group of municipalities to apply for a grant under this section. The 
application must include an information necessary for the purpose of implementing thls 
section. 
2. Eligibility certification. In addition to criteria established in section 13056-D: 
A. The applicant must certify that it has secured all permits, licenses and approvals 
. necessary to construct the improvements to be [manced by the grant; 
B. The department must affIrm that the applicant has met the conditions of this 
paragraph. 
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(1) A municipality is eligible to receive a grant if that municipality has adopted a 
growth management program certified under Title 30-A, section 4347-A that 
includes a capital improvement program composed of: 
(a) An assessment of all public facilities and services, including, but not 
limited to, roads and other transportation facilities, sewers, schools, parks and 
open space, fire departments and police departments; 
(b) An annually reviewed 5-year plan for the replacement and expansion of 
existing public facilities or the construction of such new facilities as are 
required to meet expected growth and economic development. The plan must 
include projections of when and where those facilities will be required; and 
(c) An assessment of the anticipated costs for replacement, expansion or 
'construction of public facilities, an identification of revenue sources available 
to meet these costs "and recommendations for meeting costs required to 
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Subject to the limitations of this subsection, 2 or more municipalities that each meet 
the requirerrients of divisions (a), (b) or (cY may jointly apply for assistance under this 
section; and 
c. The department must affirm that the applicant has met the conditions of this 
paragraph. A municipality is eligible to receive a downtown improvement grant if 
that municipality has: 
(1) Shown broad-based support for downtown revitalization; 
(2) Established a"comprehensive downtown revitalization work plan, inCluding a 
definition and a map of the affected area; 
(3) Developed measurable goals and objectives; 
(4) Demonstrated a historic preservation ethic; 
(5) Developed the capacity to report on the progress of the downtown program; 
and 
(6)" Established the ability and willingness to support integrated marketing efforts 
for retailers, services, activities and events. 
3. Criteria; conditions for downtown village center grants. The department shall 
"develop criteria and conditions for the award of downtown and village center grants to 
eligible municipalities subject to the requirements of this section, including: 
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A. Basic criteria for redevelopment or revitalization of a downtown, growth area as 
defined under Title 30-A, section 4301, subsection 6-C or village; 
B. A preference for capital investment projects that provide substantial regional 
benefits; " 
C. The adoption of other criteria as the department determines necessary to ensure 
that grants made" under this section maximize the ability of municipalities to 
accommodate planned growth and economic development; 
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D. 
Consistency with the municipality's comprehensive plan or local growth 
management program; 
E. Leveraging of other private, federal or local dollars; and 
F. Economic gain to the community, including tax income and jobs created. 
4. 
Coordination. The department shalf coordinate the grants made under' this 
section with community assistance loans and grants administered by the department and 
with other state assistance programs designed to accomplish similar objectives, including 
those administered by the Department of Education, the Department of Transportation, 
the Executive Department, State Planning Office, the Finance Authority of Maine, the 
Maine State Housing Authority, the Maine Historic Preservation Commission, the 
Department of Administrative and Financial Services, the Department of Conservation 
and the Department of Environmental Protection. 
5, Report to the Legislature. The department shall report to the joint· standing 
committee of the Legislature having jurisdiction over economic development matters no 
later than January 1st of each odd-numbered year on the grants program. The department 
may make any recommendations it finds necessary to more effectively achieve the 
purposes of this section, including the appropriation of any necessary additional funds. 
Sec. C-2. Contingent effective date. This Part takes effect orily if the General 
Fund bond issue proposed in Part A is approved by the voters of the State. 
PARTD 
Sec. D-l. 5 MRSA §13056-F is enacted to read: 
§13056-F. Historic Preservation Revolving Fund 
1. Fund established; administration. The Historic Preservation Revolving Fund, 
referred to in this section as "the revolving fund," is established within the Maine Historic 
Preservation Commission, referred to in this section as "the commission," in order to 
provide funds to qualified nonprofit historic preservation organizations in the State for the 
purpose of acquisition of endangered historic properties of local, state or national 
significance, as determined by the commission, for resale to new. owners who agree to 
preserve, rehabilitate or restore the properties as necessary, subject to preservation 
easements or covenants held by the qualified organization. The commission may provide 
funds to the qualified organization for purposes outlined in subsection 4. 
All funds received must be deposited into the revolving fund. 
2. Review process. The COlllIll1SSlOn shall review proposals for acquisition of 
historic properties by qualified organizations with funds from the revolving fund in 
accordance with this subsection. 
3. Applicant requirements. An' applicant for funding under this section must be a 
qualified nonprofit historic preservation organization. For purposes of this section, 
"qualified nonprofit historic preservation organization" or "qualified organization" means 
a nonprofit preservation or historical organization whose purposes include preservation of 
historic property ora governmental body. A qualified organization must also demonstrate 
previous historic preservation, rehabilitation or acquisition activity; availability of staff 
with' demonstrated professional training and experience in administration of historic" 
preservation programs; and familiarity with preservation standards and with acquisition 
arid resale of historic property. 
' The qualified 'organization must also demonstrate the capacity to undertake the project 
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with a reasonable prospect of bringing it to a successful conclusion. In assessing an 
applicant's ability to, meet the requirements of this subsection, the .commission may 
consider all relevant factors, including but not limited to the applicant's organizational 
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purpose; organizational history; previous historic preservation, rehabilitation or 
acquisition activity; scope of economic or revitalization vision; and evidence of success 
in previous efforts. 
4. Revolving fund expenditu:res. Payment from the revolving fund is made by the 
commission to qualified nonprofit historic preservation organizations for the purpose of 
preservation of significant endangered historic properties through acquisition and resale. 
Payments may include all costs associated with such an acquisition and carrying costs, as 
well as stabilization, rehabilitation'and completion of a conditions study by the qualified 
organization for approval by the commission and may also include a fee for establishing a 
preservation easement or covenant to be held by the qualified organization. When 
possible, the qualified organization shall seek to secure the qualified property by option to 
be executed at closing to minimize carrying costs. The qualified organization shall seek to 
resell the property at fair market value to a new private, nonprofit or public owner who 
agrees to preserve, rehabilitate or restore the property as provided in the easement or 
covenant. Net proceeds from the resale of properties must be returned to the revolving 
fund within the conimission. FUnds returned to the revolving fund are to be used 
exclusively for the acquisition of additional historic properties, except that no more than 
5%bf the fund balance may be used by the commission to fund administration of the 
, program by cooperating organizations., 
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5. Evaluation criteria. The commission shall evaluate proposals under this' section. 
The commission shall seek to fund those proposals that best meet its historic preservation 
priorities for the State and region' and that support its economic and community 
development and enhancement priorities and shall evaluate properties in such proposals 
relative to: 
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A. The level of historic or architectural significance; 
B. The value with respect to historic preservation and rehabilitation; 
C. The degree to which the property is endangered; 
D. The economic significance to the immediate vicinity and to the State; 
E. The value with respect to dowritown revitalization, open space conservation or 
other public purposes; 
F. The availability at fair market value; 
G. The degree to which the property is available below fair market value; 
H. The potential marketability; , 
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I. The feasibility of rehabilitation or restoration and reuse; 
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The value of the proposed property with respect to tourism promotion and 
development; 
K. The degree of community support; and 
L. The extent to which the proposed project involves partnerships or meets multiple 
criteria. 
6. Rules. The commission may adopt iulesto implement this section. Rules adopted 
to implement this section are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
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SUMMARY 
Part A of this bill is a General Fund bond issue for $27,000,000 to fund the 
Communities for Maine's Future Fund, which is established in Part B. Part C of the bill 
enacts legislation to assist the communities in accessing the funds. Part D enacts the 
Historic Preservation Revolving Fund.