Opinion ID: 2259172
Heading Depth: 1
Heading Rank: 3

Heading: statutory authority to grant a credit enhancement tif

Text: [¶ 19] The structure of the TIF at issue in this case differs from the traditional TIF structure. Oftentimes a municipality provides the up-front financing for projects that it solicits, through bonds for example. The municipality then uses the increase in property taxes assessed as a result of the improvements (tax increment) to repay the financing. In this case, the City of Bath structured a so-called, credit enhancement TIF. BIW will make the improvements and BIW will receive, by way of refund, a portion of the tax increment that the municipality collects from increased valuation of the improvements. [¶ 20] The plaintiffs argue that the trial court erred by finding that the TIF enabling legislation, 30-A M.R.S.A. §§ 5251-5261 (1996 & Supp.1997), authorizes the use of a credit enhancement TIF. [¶ 21] The Department of Economic and Community Development (DECD) has interpreted the TIF enabling legislation to allow the credit enhancement TIF. The DECD is the agency responsible for the administration of the TIF statute. 30 M.R.S.A. § 5253 (1996). This Court gives deference to construction of a statute by the agency responsible for its administration absent an indication of legislative intent to the contrary. Berube v. Rust Eng'g, 668 A.2d 875, 877 (Me.1995); Porter v. Maine State Retirement Sys., 609 A.2d 1146, 1149 (Me.1992). [¶ 22] The record before us includes other examples of TIF plans that include direct repayments to developers, rather than bond repayments to implement the program. [¶ 23] Within TIF districts, section 5253, subsection 3 authorizes municipalities to maintain or promote development intended to meet the objectives of the development program. 30-A M.R.S.A. § 5253(3) (1996). Nothing mandates the specific type of financing to be provided to accomplish the program objectives. Section 5254, subsection 3 addresses bond repayment financing if a municipality has elected to retain all or a percentage of the retained captured assessed value.... 30-A M.R.S.A. § 5254(3) (1996). The necessary implication of if is that the municipality has a choice to retain funds to repay bonds or, as here, directly pay out the funds to reimburse the taxpayer for its investment. [¶ 24] The Superior Court correctly determined that the TIF enabling legislation of 30-A M.R.S.A. §§ 5251-5261 permits the use of the credit enhancement TIF at issue in this case. The entry is: Judgment affirmed.