An Act To Clarify the Municipal Development District Law
Maine Legislature, Session 127, LD 0581
Committee: Environment and Natural Resources
Sponsors: SIROCKI, O'CONNOR
Amends: 30-A MRSA §5222, 30-A MRSA §5224-A, 30-A MRSA §5226

Legislative Document 
No. 581 
H.P. 405 
House of Representatives, February 26, 2015 
An Act To Clarify the Municipal Development District Law 
(EMERGENCY) 
Reference to the Committee on Environment and Natural Resources suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative SIROCKI of Scarborough. 
Cosponsored by Representative: O'CONNOR of Berwick. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, many municipalities in the State have areas within their corporate limits 
that can be classified as underutilized and have a significantly lower property value; and 
Whereas, this legislation proposes to assist businesses relocating to these areas 
through credit enhancement agreements, and to enable this economic viability restoration 
plan this legislation needs to take effect as soon as possible; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  30-A MRSA §5222, sub-§1-B is enacted to read: 
1-B.  Blighted area.  "Blighted area" means an area within the corporate limits of a 
municipality that has been designated by the municipality's comprehensive plan as being 
underutilized and within which property values on an equal acreage basis are at least 75% 
below the surrounding areas due to the condition of the properties located in that area. 
Sec. 2.  30-A MRSA §5222, sub-§3-A is enacted to read: 
3-A.  Credit enhancement agreement.  "Credit enhancement agreement" means an 
agreement to rebate a portion of a tax increment to a property owner within a 
development district. 
Sec. 3.  30-A MRSA §5224-A is enacted to read: 
§5224-A.  Use of credit enhancement agreements 
1.  Use of credit enhancement agreements.  Credit enhancement agreements may 
be used to assist businesses locating in blighted areas when the number of persons 
employed full-time in any such business increases by at least 50% and the increased 
employment results from positions that are created by the business in the State.  Rebates 
may not be paid pursuant to a credit enhancement agreement until the business certifies to 
the municipality that the 50% increase has occurred.  Rebates may not be paid 
retroactively. 
2.  Businesses without nonmanagement employees.  If a business locating in a 
blighted area has no nonmanagement employees, a rebate may not be paid pursuant to a 
credit enhancement agreement until the business creates at least 10 full-time positions per 
$1,000,000 of the increased assessed value.  The business may not count for the purposes 
of certification under subsection 1 any employees moved from another employment 
location of the same business that is located within 50 miles of the development district in 
order to qualify for a rebate. 
Sec. 4.  30-A MRSA §5226, sub-§1, as amended by PL 2011, c. 101, §16, is 
further amended to read: 
1.  Notice and hearing.  Before designating a development district or adopting a 
development program, the municipal or plantation legislative body or the municipal or 
plantation legislative body's designee must hold at least one public hearing.  Notice of the 
hearing must be published at least 10 20 days before the hearing in a newspaper of 
general circulation within the municipality or plantation.  Notice of the hearing must also 
be mailed by the municipality or plantation to all property owners whose outermost 
property lines are within 1,000 feet of any part of the proposed development district and 
to any other parties that the municipality or plantation knows or has reason to know will 
be directly or potentially affected by the proposed development district.  The same notice 
must be posted prominently on the home page of any publicly accessible website of the 
municipality or plantation. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill defines the terms "blighted area" and "credit enhancement agreement" in the 
municipal development district laws and provides a mechanism for the use of credit 
enhancement agreements in blighted areas.  It also requires greater advance notice of 
public hearings on development districts and broadens the range of parties entitled to 
receive direct notice of such hearings.