An Act To Promote Economic Development and Reduce Reliance on Automobiles through Transit-.11 oriented Tax Increment Financing Districts
Maine Legislature, Session 124, LD 1392
Committee Amendment CA_A_S295 (Senate)
Amends: 30-A MRSA §5222, 30-A MRSA §5223

COMMITTEE AMENDMENT" A" to S.P. 511, L.D. 1392, Bill, "An Act To 
Promote Economic Development and Reduce Reliance on Automobiles through Transit-
.11 
oriented Tax Increment Financing Districts" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 30-A MRS A §S221, sub-§2, ~rA, as amended by PL 2007, c. 413, §1, is 
fUliher amended to read: 
A. 
To provide impetus for industrial, commercial, transit-oriented or aJis district 
development, or any combination; 
Sec. 2. 30-A MRSA §S222, sub-§19 is enacted to read: 
19. Transit. "Transit" means transpOliation systems in which people are conveyed 
by means other than their own vehicles, including, but not limited to, bus systems, street 
cars; light rail and other rail systems. 
Sec. 3. 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, feflY landings, train stations, shuttle terminals and 
bus rapid transit stops. 
Sec. 4. 30-A MRS A §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 complementalY 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 transpOliation needs of residents, customers and occupants as 
demonstrated through such factors as transit facility proximity, mixed uses, off-street 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT" An to S.P, 511, L.D, 1392 
parking space ratio less than industry standards, architectural accommodation for transit 
and marketing that highlights transit. 
Sec. 5. 30-A MRSA §5222, 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 114 mile from 
an existing or planned transit facility. 
' 
Sec. 6. 30-A MRSA §5222, 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. 7. 30-A MRSA §5222, 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. 8. 30-A MRSA §5223, sub-§3, as amended by PL 2007, c. 693, §3 and 
affected by §37, is further amended to read: 
3. 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 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. 
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; 
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COMMITTEE AMENDMENT "A" to S.P. 511, L.D. 1392 
(3) The assessed value exceeds 10% of the total value 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 this paragraph, "contiguous propelty" 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 propelty 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. 
(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 indebtedness must 
be completed within 5 years of the commissioner's approval of the designation of 
the tax increment financing district. 
The conditions in paragraphs A to D do not apply to approved downtown tax increment 
financing districts, tax increment financing districts included within Pine Tree 
Development Zones designated and' approved under subchapter 3 ef~ tax increment 
financing districts that consist solely of one or more community wind power generation 
facilities owned by a community wind power generator that has been celiified by the 
Public Utilities Commission pursuant to Title 35-A, section 3403, subsection 3 or transit-
oriented development districts. 
Sec. 9. 30-A MRS A §S224, sub-§2, crrC, as amended by PL 2007, c. 413, §4, is 
fUIiher amended to read: 
C. 
A description of commercial facilities, alis districts, transit expansion, 
improvements or projects to be financed in whole or in paJi by the development 
program; 
Sec. 10. 30-A MRS A §5225, sub-§1, ~rA, as amended by PL 2007, c. 413, §5, is 
fUIiher amended to read: 
A. 
Costs of improvements made within the tax increment financing district, 
including, but not limited to: 
(l) Capital costs, including, but not limited to: 
(a) 
The acquisition or construction of land, improvements, buildings, 
structures, fixtures and equipment for public, alis district ef~ commercial or 
transit-oriented development district use; 
COMMITTEE AMENDMENT 
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COMMIlTEE AMENDMENT "A" to S.P. 511, L.D. 1392 
(i) Eligible transit-oriented development district capital costs include but 
are 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; pedestrian 
improvements such as crosswalks, crosswalk signals and warning 
systems and 
crosswalk curb treatments; and the nonresidential 
commercial portions of transit-oriented development proiects; 
(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 permitting 
expenses and planning, engineering, architectural, testing, legal and 
accounting expenses; 
(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; aOO 
(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; and 
(8) In the case of transit-oriented development districts, ongoing costs of adding 
to an existing transit system or creating a new transit service and limited strictly 
to transit operator salaries, transit vehicle fuel and transit vehicle parts 
replacements; 
Sec. 11. 30-A MRS A §5225, sub-§l, ~C, as amended by PL 2009, c. 85, § 1, is 
further amended to read: 
C. 
Costs related to economic development, environmental improvements or 
employment training within the municipality, including, but not limited to: 
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COMMITTEE AMENDMENT "A "to S.P. 511, L.D. 1392 
(1) Costs of funding economic development programs or events developed by 
the municipality or funding the marketing of the municipality as a business or 
alis location; 
(2) 
Costs of funding environmental improvement projects developed by the 
municipality for commercial or alis district use or related to 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 municip~lity. These costs may not exceed 20% of the total project costs and 
must be designated as training funds in the development program; 
(5) Quality child care costs, including finance costs and construction, staffing, 
training, celiification and accreditation costs related to child care;·£Hffi 
(6) Costs relating to planning, design, construction, maintenance, grooming and 
improvements to new or existing recreational trails determined by the depaJiment 
to have significant potential to promote economic development, including bridges 
that are paJi of the trail corridor, used all or in part for all-terrain vehicles, 
snowmobiles, hiking, bicycling, cross-country skiing or other related multiple 
uses; and 
(7) Costs associated with a new or expanded transit service, limited to: 
Ca) Transit service capital costs, including but not limited to: transit vehicles 
such as buses, ferries, vans, rail conveyances and related equipment; bus 
shelters and other transit-related structures; and benches, signs and other 
transit-related infrastructure; and 
(b) In the case of transit-oriented development districts, ongoing costs of 
adding to an existing transit system or creating a new transit service and 
limited strictly to transit operator salaries, transit vehicle fuel and transit 
vehicle parts replacements; and' 
SUMMARY 
This amendment is the majority repOli of the committee. The amendment makes 
changes to clarify and simplify the provisions of the bill. 
FISCAL :\OTE HE(!t;IRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/31/09 
;?..;pac:.. 
LD 1392 
LR 346(02) 
An Act To Promote Economic Development and Reduce Reliance on Automobiles through Transit-
oriented Tax Increment Financing Districts 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment 'i4 " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
This bill establishes a new category of transit-oriented development districts under the tax increment financing laws. 
Additional costs to the Department of Economic and Community Development and Maine Revenue Services 
associated with conducting the required review and other administrative duties can be absorbed within existing 
budgeted resources. 
LR0346(02) - Fiscal Note - Page 1 of 1 
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