Economic Development Committee

ECONOMIC DEVELOPMENT COMMITTEE DATE: September 4, 2018 (Tuesday) TIME: 5:30 – 7:30 p.m. LOCATION: Room 209 Portland City Hall 1. Review and accept Minutes of previous meeting held on July 17, 2018. 2. Review, discuss, and EDC direction on possible amendments to the following area- wide TIF Districts: a. Bayside TIF District to possibly fund workforce training, along with other possible public investment options; b. Downtown Transit Oriented Development TIF District to possibly increase capture rates and possibly fund workforce training, along with other possible public investment options; and, c. Waterfront TIF District to possibly expand the geographic area and fund workforce training, along with other possible public investment options. Note: See enclosed memo from Greg Mitchell 3. Review and vote to forward to the City Council as a communication item the FYE2018 TIF Report. a. See enclosed Annual Report 4. Executive Session: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee will go into executive session to provide staff guidance related to the following: a. Real estate negotiations related to possible sale of City-owned property adjacent to Maine Turnpike. Note: See enclosed confidential material from Greg Mitchell. Councilor Justin Costa/Chair NOTE: No public comment will be taken on non-action items. Next Meeting: September 18, 2018 CITY OF PORTLAND/ECONOMIC DEVELOPMENT DEPT./389 CONGRESS ST./PORTLAND, ME 04101/(207) 874-8683  Minutes Economic Development Committee July 17, 2018 NOTE: These meetings are now live-streamed, which can be viewed at this link: http://www.portlandmaine.gov/1695/Economic-Development-Committee These Minutes provide a record of those in attendance, general discussion taking place, and motions made. A meeting of the Economic Development Committee (EDC) of the Portland City Council was held on Tuesday, July 17, 2018 at 5:30 p.m. in Room 209 of Portland City Hall. Present from the Committee was its Chair Councilor Justin Costa and members Councilors Nicholas Mavodones and Spencer Thibodeau. Present from the City staff were Business Programs Manager Nelle Hanig, Economic Development Director Greg Mitchell, Office of Economic Opportunity Director Julia Trujillo, Senior Executive Assistant Lori Paulette, and Parking Manager John Peverada. Item #1: Review and accept Minutes of previous meeting held on June 19, 2018. On motion made by Councilor Mavodones, seconded by Councilor Thibodeau, the Committee voted unanimously to accept the Minutes as presented. Item #2: Presentation and Feedback on Amendments to Outdoor Dining Regulations Pursuant to Section 25-28 of the Code of Ordinance Allowing for Use of Non- Contiguous Areas – Jeff Levine Mr. Levine said that due to State law changes, outdoor dining now does not have to be contiguous to a food service establishment and an establishment could use a parking spot if it outweighs that use, and alcohol can be served. Mr. Levine then handed out updated proposed 1 regulations, which by Ordinance are promulgated by City Manager, copy attached. These proposed amendments are the result of various Departments meeting and discussing thoughts and concerns. Mr. Levine then went over the proposed amendments, noting that such use of parking spots would not be on high travel roads and would not be permitted within 15 feet of an intersection. The City would have a per day charge and insurance requirements, with a pilot program run for the first year. He also noted that restaurants cannot have both sidewalk dining and a parking spot dining. Mr. Peverada noted that it is intended at this time to exclude Congress Street and Forest Avenue for this use, and maybe Center Street. Councilor Mavodones said that, although he likes the concept, parking is an issue in the downtown and the Old Port, and he has concerns about taking away parking spots for this purpose. He would like there to be public input and also noted concerns of noise. Councilor Thibodeau thanked staff for bringing this forward for discussion, and it is broad enough to make practical sense, and a pilot program also make sense and should be done on the peninsula. The proposed $20 daily fee may be too low, which Mr. Levine noted that this came from Corporation Counsel; otherwise, it would require an ordinance amendment. Councilor Mavodones asked how many could take advantage of these new regulations, and Mr. Levine noted that to be approximately 20 who don’t use sidewalks. Councilor Mavodones said that he would be interested to see that list. Chair Costa agrees with what has been said, noting that this was tried at the Press Hotel and needs exploration. Mr. Mitchell noted that these regulations would be promulgated and managed administratively. 2  The Committee discussed this, particularly to have a public process, with consensus being that Portland Downtown and the City Manager could manage that public process – noting that a thorough outreach would be needed. Item #3: EDC Workshop related to Workforce Training System Programs and policy discussion, including Possible Organization Changes and City Funding. Chair Costa noted the Committee spent some time the past year with selling Public Works Bayside Properties, with the next subject to take on is work force development, determining what the public sector is doing and engaging the business community. Funding sources would then need to be identified. Mr. Mitchell said that representatives from Greater Portland Workforce Initiative (GPWI), Portland Adult Education (PAE), and the City’s Office of Economic Opportunity (OEO) will provide an update to the Committee on their work, and then he would follow-up on the funding side. Ms. Moore from GPWI said that it represents approximately 20 organizations which have growing sectors of employment, and GPWI focuses on breaking down barriers to employment and works with all populations. She then described GPWI’s goals and strategies, working with PAE, with all trying to leverage resources and identifying what employers need in hiring. Ms. Moore then handed out the attached listing of most of the organizations she works with, noting that many have funding restrictions; unrestricted funding is needed. Ms. Trujillo of OEO said that she has been part of GPWI for five years. She then described the grants landscape as competitive and needing to be approached in a coordinated fashion. A bigger challenge she has seen includes the under-employment rate. She noted that the immigrant population may have an Engineer’s background and credentials from their 3 country of origin, but transferring them here is an issue and costs a lot of money. Ms. Trujillo said that this is an issue in many cities across the states. Ms. St. Onge of PAE said that PAE has less than 2% of the school budget, and concentrates on workforce development and individual learning plans, and it too serves all populations and works with New Mainers Resource Center as well – see attached summary of NMRC. Ms. St. Onge said that English as a Second Language (ESL) takes a long time for individuals, which serves as an impediment to transferring credentials from a foreign country, noting as well the issue of under-employment. PAE offers an English learning lab if ESL classes are full. This can help with resume writing and job skills. She closing noting that more funding is needed. A discussion followed on the need for ESL and credentialing. Councilor Mavodones thanked all and asked what is needed and how can the City assist. Overall, the response was unrestricted funding, with Ms. Trujillo adding that a database is also needed so people do not fall through the cracks. Councilor Thibodeau asked what success would look like, and Ms. Moore said immediate assistance to individuals. Ms. Trujillo added that employers would find talented employees and vice versa. Ms. St. Onge said that additional classes for populations that need them, together with more case management/career advisors/translators. Regarding funding sources, Mr. Mitchell said that workforce training investment is an allowable use of Tax Increment Financing (TIF) funds. The City of Westbrook just included that use in one of their TIF districts. Mr. Mitchell recommended that he sit down the City Manager and Finance Director to craft recommendations to bring to this Committee. Chair Costa asked about statutory limits on TIFs, and Mr. Mitchell said that there are no 4 geographic restrictions for work force training investment. Limits would be based on the numbers of years left in a TIF District. He also noted that once a TIF District has expired, the City could re-establish it a new Original Assessed Value. Councilor Mavodones asked about a timeline for Council action on the proposed amendments to the area-wide TIF Districts to have workforce training an allowable use. Mr. Mitchell said that his plans are to present recommendations this Fall to the EDC and City Council, and then these would need to be forwarded to the ME Dept. of Economic and Community for final approval. Chair Costa said TIF revenue funds could provide for more flexibility for workforce training, particularly in that they can be used City-wide; Committee members concurred. Chair Costa wrapped up this item noting the need for the business community to be engaged with workforce training providers and future program changes. Item #4: Executive Session: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee will go into executive session to provide staff guidance related to the following: a. Real estate negotiations related to a possible sale in the Portland Technology Park. A motion was made by Councilor Thibodeau, seconded by Councilor Mavodones, to go into executive session pursuant to 1 M.R.S.A. 405(6)(C) to provide staff guidance related to real estate negotiations for a possible sale in the Portland Technology Park. Chair Costa asked for a vote on the motion and it passed unanimously at 7:30 p.m. At approximately 8:00 p.m., the Committee came out of executive session and the meeting was then adjourned. Respectfully, Lori Paulette 5 Jeff Levine handout at 7/17/2018 EDC Meeting Jeff Levine handout at 7/17/2018 EDC Meeting NMRC Handout at 7/17/2018 EDC Meeting  Economic Development Department Gregory A. Mitchell, Director MEMORANDUM TO: Economic Development Committee FROM: Greg Mitchell DATE: August 29, 2018 SUBJECT: Proposed Amendments to City Area-wide Tax Increment Financing Districts This memo outlines the rationale and public benefits associated with the three existing large approved Area-wide Tax Increment Financing (TIF) Districts (Bayside, Downtown Transit, and Waterfront), along with City staff recommended amendments. The goal of the proposed amendments is to maximize utilization of the TIF revenue by adding more investment options for use of TIF revenue, increasing the capture rate of the Downtown Transit TIF District, and expanding the Waterfront TIF District. EXISTING AREA-WIDE TAX INCREMENT FINANCING (TIF) DISTRICTS There are three area-wide existing City of Portland and State approved TIF Districts. See attached map. The three area-wide TIF Districts include: Bayside (Existing and Proposed Amendments) Geography. 129.18 acres bounded by Franklin Street, Cumberland Street, Forest Avenue and I-295. TIF Term. Fiscal Years 2004-2033 Capture Rate. 100% Overview of TIF District Expenditures FY2016 to Date: Bayside TIF Expenditures From FY2016 thru FY2018 Uses Expenditures Public Infrastructure $541,950 Credit Enhancement Agreements $1,376,957 Debt Service $1,208,616 Total Invested: $3,127,524 1 1 of 13 Existing and Proposed Amendments to Uses of Revenue. See attached excerpt of the Bayside TIF District Program which shows existing and proposed amendments to allowable uses of TIF District revenue in a strike through and underline format. Adding additional uses of TIF revenue creates the maximum flexibility to use TIF revenue. There are no proposed amendments to the capture rate or geography. Downtown Transit (Existing and Proposed Amendments) Geography. 421.52 acres generally bounded by State Street, Bayside TIF District and I-295, Washington Avenue, and the Waterfront TIF District. TIF Term. Fiscal Years 2016-2045 Overview of TIF District Expenditures to Date. Downtown TOD TIF Expenditures from FY2016 thru FY2018 Uses Expenditures Public Infrastructure $346,595 Creative Portland $300,000 Staff $20,000 Total Invested: $666,595 Existing and Proposed Amendments to Uses of Revenue. See attached excerpt of the Downtown Transit TIF District Program which shows existing and proposed amendments to allowable uses of TIF District revenue in a strike through and underline format. Capture Rates >Existing. 22% >Proposed. 100%. City staff’s recommendation is to increase the “allowable” capture to enable maximum use of TIF revenue. It is noted that increasing the “allowable” capture rate does not require the City to annually capture the full amount. Final decisions related to use of TIF revenue are made annually through the City budget process. There are no proposed changes to the geography of the Downtown Transit TIF District. Waterfront (Existing and Proposed Amendments) Geography. 6.62 acres. This District includes seven non-contiguous properties. It is noted the Waterfront Capital Improvement and Economic Redevelopment Zone (WREZ) and Ordinance establishes the area on Portland’s waterfront which is “reserved” for future expansion of the Waterfront TIF District. TIF Term. Fiscal Years 2003-2032. Capture Rate. 100% 2 2 of 13 Overview of TIF District Expenditures to Date: Waterfront TIF Expenditures from FY2016 thru FY2018 Uses Revenue Public Infrastructure $46,100 Credit Enhancement Agreement $574,646 Debt Service $549,650 Staff $319,467 Total Invested: $1,489,863 Existing and Proposed Amendments to Uses of Revenue. See attached excerpt of the Waterfront TIF District Program which shows existing and proposed amendments to allowable uses of TIF District revenue in a strike through and underline format. Proposed Amendments - New Geography. See attached map for discussion and EDC direction. Adding more properties to the Waterfront TIF District will increase the amount of TIF funds to support waterfront public infrastructure needs. If there is support to add properties to the Waterfront TIF District, City staff will complete research to include property size, municipal assessed property values, timing, and estimated increased value of new private sector investment, along with estimated property tax revenue for the remaining TIF District term. This information will be available at your next EDC meeting. No change is proposed to the capture rate. PUBLIC BENEFITS Private Sector Investment and Job Creation. The city of Portland has utilized TIF districts to prioritize attention to areas requiring area wide public infrastructure investment to attract private sector investment and associated job creation. Planned Public Infrastructure Investment. Each Area-wide TIF District includes a list of allowable uses of TIF District revenue to prioritize and plan public investment. Tax Shelter (Financial Benefits). Probably the most important, but least understood public benefit associated with TIF districts, is the tax shelter or local financial benefits. Municipalities realize “savings” from the tax sheltering effect of TIF Districts. The following direct financial impacts occur when municipal valuation increases: A. State Education Aid is reduced, B. State Municipal Revenue Sharing is reduced, and C. A municipality pays a higher percentage of the County budget. This amount of “savings” is significant and one of the most important benefits of establishing TIF Districts. 3 3 of 13 For Portland, tax shelter savings is conservatively estimated at 30%, meaning that for every new tax dollar, Portland saves 30 cents which would otherwise be lost for property tax value not included in a TIF District. Portland’s estimated total tax shelter savings for all active TIF Districts is just over $1.2 Million for FYE2018. Attachments: - TIF Map - Bayside TIF Excerpt – Redlines for Uses - Downtown TOD TIF Excerpt – Redlines for Uses - Waterfront TIF Excerpt – Redlines for Uses - Map of Proposed Waterfront TIF Amendment 4 4 of 13  Tax Increment Financing PLO WMAN ST EA S TE RN P RO R M EN NO AD E Districts on Peninsula TH ST E 5 I - 29 AN D ST R SO May 2018 L TR EA N ST ST N E ST M O N T UR NU EL T W BO DS W IL AL UL LI EM M ST GO S ER ST NE M R SO O CU T R R S N NI TT VE TU M ST N HA M O ER EC G CO VE ST ST ST O ND Legend T MARGINA A NS M ER ST ST IT M HO WH L WAY R EC IL W UE L AR E ST B SH D VE ST Q S Deering Place AH RID YE PE FA R AN LA ST ST TT BE ST C 58 Boyd St AH ST R KE E NO DY N ST EXIT 7 T IO T O TH O AR ST IN M W M ST M O 17 Carleton St AH TH R NI RO CT N R G DI A ST M NE N ST P M UN M G S ST ST Bramhall/Holt Hall SU ES ST JO O E RD RE ND T Y R ST N ET ST D E G SO NL ER EL ST N NT ST M CO W EV ST IL RO ST RF AF 409 Cumberland Ave Affordable Housing I D NU LN X E ME R FO N DE ST RO C NS E O E FO AS EN IS O D N D MO HA AD AD 'B R RE O EA G AN PL E NS R O M E E S M RE 134 Washington Ave Affordable Housing O IO M ER CT NO LN T R NC M BE DE N AV ST L M N E PR E ST ST R E RA LE O RO TH SO AV ER S RE LN RD AF E T N BO N RN S O O LA G Baxter Library RT AT D CA XF ST ST W M N S TE W L YD PREBLE ST EXT N AN LA RK O AT BE LA EA T ST E IN E SC TI D FR ST S PA BE SH RV C LN E R R M WA G KL HA IL Y IL ST ST IC Bayside TIF AN D RA LE K M NE ING ST CU TS RD ST W IN N LA FE CL E HO KE O N ST YS GT Y W XF BA EV KE RE ST O ON L Downtown TOD IDE E S ES LO NC E K GG VD R AVE BA R DE ST PO SH ST BL N TE AN E RI ST R NC TE D Pearl Place DU X SO E AN BA SM ST ST RH N AM S ST IT ST M AD A M H ST O Power Pay ST N TG M OU O NTF O M AY O M RT ST ST ER Riverwalk T Y PE A ST SE S T ER RL FR BO M ST SO Waterfront KL YD FR AN ST ST IN KL LO E RD AN C ST ST Waterfront Capital Improment D FO EXIT 6A IN US RA L BE T DE ST FE ST EXIT 6B ST WIL ER IN M Waterfront Capital Impro T D O AS IA T E C ST E ST O RR AY N AV HA NC SU LA T W D N FO E AL LA HA CK RE ND IN R S AV E G CH BE M AR PS ST AP M N IN CU LA 5 M CT HI ST ST 29 E L R R I- L E RY BE L ST FR ST BU HA A O AM ST NK W CH AV E L IN NE N ST ST E N FR UR S ST ST A CH NK HB EC ST T ES L IN E KE NNEB R DL ES AS ST G ST W N ID N D CO M ST M C UT R E YR IN O XF D D ES ST A IA TL O R ST AM E S ST S RE TE R T TH ST FO C AS ALD LAN M W ST VE ER EL ST TA G V A NO AL CH R RE ST ST W D FR HA ER UR ST ST E AN FO R D PA CH N FE RY AL KL PR LN S BU ST IN RC TL RIS ER LE I AT EB W ST BR M NE ME ST AR T ST EX K CO TE ET E C ST ES M STAT ND ST M PL HA ST E RT LA N DL T PO E G ID ST E M ST E ST PE ST XT E A PA R K AV IL K RL CU M ST ST CH SI O LN LV M BR ME R E HO O E R W ST Y ST US AN I AL N S CA CA O E CR ST ST E X C N ST ST AV CO LA FO LD D T SS AN O S ST TT G L R EY ST N PA BE PL IO ST M O E UN ON M MA N CU AK SH ST OU SH E R NA TE RE CT ST STA N O ST FO CT DA LT T AN ST NT S D E GRA E T TO N PO FR R TA ST ST DE T L S U L LM PL RT RF T FO S CO ST M " CT AN G A ST D AN RE IN WH Y TO WE ST R N PL S ON SP R PI T N T BO YN MO AV E ER NT ST BO E HI E L CE D AV O UT AV ON ST N PL CR O ER LA AV ON AK R B H ST CU M ST ST SS SO G RIN S UT ST DE E G ST DE ERIN H T ST ST LS CR E IN G PL S C EN RT HI RC G HE NR Y T SBTR AV E H H IA DE ER AM ST O ES SW ME W HA AV ON ST L ST EL ST CO L HI L CO T VE RNON MELLEN ST M L PL AN S ST ST TT L AS D O S CO NG RE S S TT AK AN E RT PL M DE ERIN ST H L R AP EL ST DOUG CO PL DA L SS N E ILL NF GR PL ST CH RU ESS O MA B R ID ST SP R CM GE GS LN LAS LN AR IN ST LE PA G T ET O R K ST M S ST PL AP N LS ST TR O L E W NE A ST CA R WALKER ST PL T BR A L R TO N S CK E S HO DOW LL HA T T ST CT ST M YO RK A ST BR T ST H IN MARSHALL ST G HI G SP HI R G HOULTO H ST W ST IN TE E N ST R PI WESTERN PROMENA DE N ST ST PL PL JO CTNY N WEST ST Y O E T AT T LS ON ST R CT RC TS RD IA ³ ST FO ME E ST ST GU YO PA CO M LE IL R K RT RK W BR H ST IS A ST ST CK DA AT S E NF E T TT GR AY O ST PINE ST ST ST AN CT THOMAS ST M CHADWICK ST SH VAUGHAN ST OT NEAL ST CU DE RM TY N G ST CL ST E A RK UC TA CT R ST TE SP ST N LI HA CARROLL ST ST M G R IN ST SP EM DA NF Y SA ST ST MA L O RT ER OR BR H YL ST M TA IG PL SU G M O S HO ST ST SC RD FO LS BOWDOIN ST ST IF ST CL ND T ST O BO CH AN OR ST RE BE EM A 5 of 13 R L SA ST GE EM ST ER Y ST CA SC ST ST FLET O RD IA L E RC CH BAY HA O MM ER ST B  8/22/2018 PROPOSED BAYSIDE TIF DISTRICT CITY INVESTMENT OPTIONS AMENDMENTS D. The Projects The projects/public benefits associated with an amended Bayside TIF District include: - Provide support for Portland’s continued economic development; - Help increase the vibrancy and stability of the Bayside neighborhood; - Create employment opportunities for area residents; - Produce tax shift benefits averaging an estimated savings to the City of $680,307 annually; - Improve the general economy of Portland and the State of Maine; - Improved public transportation infrastructure investment; - Clean up contaminated property to support commercial development; - Planning for environmental sea level adaptation, and public infrastructure to support commercial development. The City of Portland seeks authorization to utilize the revenues generated from the Amended Bayside TIF District to support economic development in Bayside, all as more detailed in Table 1 below: See Table 1 Below for Municipal Use of TIF Revenues, Statutory Citation, and Cost Estimates – Citations all refer to Title 30-A, Chapter 206, Section 5225. Table 1 Municipal Use of TIF Revenues Statutory Citation Cost Estimate In District: Create Additional Parking (1)(A) $10,000,000 Structures In District: Existing Credit Enhancement (1)(A) $6,000,000 over life Agreements; others as negotiated, of TIF District for executed with public process per City of existing CEAs Portland TIF Policy as may be amended from time to timeSection II A In District: Relocate one remaining scrap (1)(A) T/B/D metal recycling facility and acquisition of scrap metal yard site In District: Infrastructure and financing (1)(A) T/B/D costs (roadway, sidewalk, and transportation improvement projects) located in District In District: Pledging TIF revenue as a (1)(A) $6,000,000 over life repayment source to HUD or any other of TIF District agency or entity that finances public Bayside investment In District: Public infrastructure (1)(A) T/B/D improvements for both pedestrians and transit, lighting, and open space/trails 1 of 10 6 of 13  8/22/2018 PROPOSED BAYSIDE TIF DISTRICT CITY INVESTMENT OPTIONS AMENDMENTS In District: Funding the Economic (1)(A) $500,000 Development Department, including salaries, to market and prepare for Bayside Redevelopment and professional service costs In and out of District: a.) Cover the City’s Economic (1)(A) and (1)(C)(1) $250,000/annual or Development Department costs, $4,500,000 over life including pro-rated salaries of City of TIF District Manager, Finance Director, and Planning and Urban Development Director and Planning staff*; b.) Environmental site assessment and (1)(C)(2) $150,000 remediation to support commercial development; c.) Environmental sea level adaptation (1)(C)(2) T/B/D planning and public infrastructure to support commercial development; c.)d.) Workforce training funds. Costs of services and equipment to (1)(C)(4) T/B/D provide skills development and training, including scholarships to in-state educational institutions or to online learning entities when in- state options are not available, for jobs created or retained. Total: $27,150,000 *This item is not unique to this TIF District; it is also included in the Riverwalk TIF District and the Waterfront TIF District. E. Operational Components 1. Public Facilities The City will invest in projects to further goals of the Bayside Vision, as outlined in Table 1 above. 2. Uses of Private Property The Amended Bayside Economic Redevelopment Program and TIF District includes both public and private property. The funds generated from this district will be used to support commercial investment on both public and private land, the latter through the use of CEA as noted II.(D) above. 3. Plans for relocation of persons displaced by development activities. 2 of 10 7 of 13  8/22/2018 PROPOSED DOWNTOWN/TRANSIT TIF CITY INVESTMENT OPTIONS AMENDMENTS B. The Projects Development within the District will provide a revenue source for the City’s economic development projects. The City intends to use TIF Revenues to further its overall plan to attract and retain businesses that want to take advantage of Portland’s business-friendly location, while offering their employees a rich, dynamic, and high quality of life. This includes funding of Creative Portland Corporation, of which the City of Portland is the Corporator, of up to $100,000 annually, as well as City plans to invest in its public infrastructure in these investment focus areas: - Sidewalk and Other Pedestrian Enhancements - Streetscape - Lighting - Street Alignment - Utilities - Bicycle Improvements - Public Transit - Wayfinding - Economic Development Department administrative costs and staff salaries, and prorated salaries of the City Manager and Planning and Urban Development Director The District projects at this time are highlighted in Table 1 below: TABLE 1 NOTE 1: All Citations refer to Title 30-A, Chapter 206, Section 5225 NOTE 2: While this Development Program lists particular projects, the Development Program shall not serve as an appropriation of TIF Revenues for any of these specific purposes, nor shall it commit the City to completing any particular project. The projects will only be undertaken following proper appropriation through the annual budget process and any other applicable required approvals. Project Downtown Statutory Estimated Cost Revitalization Citation Plan Reference by page no. In District: Capital Infrastructure Investments, including Financing Costs, for example: - Multi-modal surface and 8, 19 $1,000,000 structured parking - Sidewalk and Other Pedestrian 19, 205, 6, 7, 9, (1)(A) $200K annually; Enhancements 34,35 - Roadway Realignments/Paving 19-205, 6, 34,35 (1)(A) 1 8 of 13  8/22/2018 PROPOSED DOWNTOWN/TRANSIT TIF CITY INVESTMENT OPTIONS AMENDMENTS - Crosswalks - Traffic Signals - Intersection Redesigns 19,20,34,355, 6 (1)(A) $6 Million over - Bicycle Infrastructure 195, 9, 1134 (1)(A) life of District - Stormwater Management, 195, 334 (1)(A) including water and sewer upgrades - Communications Infrastructure 195, 363 (1)(A) improvements/enhancements - Wayfinding (signage) 195, 9, 353,47 (1)(A) - Public plaza intersection 228, 324 (1)(A) improvements In and out of District: New and Enhanced Transit Services, including operational costs, for example (see Exhibit K – Transit Map): - Creation of high frequency bus 317, 20, 21, 6, (1)(A) and $110K annually; service on Congress Street at 32, 33 (1)(C)(7) $3.3 Million over 15-minute intervals between the life of District Portland Transportation Center (PTC) and Washington Avenue; - Enhancing Stevens Avenue- 20 Allen Avenue- Congress Street bus service areas; - Corresponding costs for these 20 enhancements, including transit operator salaries; transit vehicle fuel, and transit vehicle parts replacements. - Transit capital costs including 20 transit vehicles and related equipment; bus shelters and other related structures; benches; signs, and other transit-related infrastructure. - Shuttle service to downtown 8, 17, 20 businesses. In and out of District: City Marketing and Promotion through Creative Portland Corporation (CPC), for example (see Exhibit M Arts Up to $100K District Map within Downtown 20, 21,477 (1)(C)(1) annually; $3 TOD TIF District): 2 9 of 13  8/22/2018 PROPOSED DOWNTOWN/TRANSIT TIF CITY INVESTMENT OPTIONS AMENDMENTS - In District: Center for the Arts, Million over life including rental residential space; of District - In District: capital, financing, real property assembly and professional service costs; - In and out of District: CPC 20, 21,47 staffing, administrative and marketing expenses; revolving loan or investment fund. In and out of District: 217 (1)(A)(5) and $250K annually; - Economic Dev. Dept. (1)(C)(1) $7.5 Million over administrative costs and staff life of District salaries at 100%, and prorated salaries of City Manager, Finance Director, and Planning Urban Development Director, and Planning staff *;, including 30, 31 (1)(C)(4) T/B/D - Pprofessional services costs; - Workforce training funds. Costs of services and equipment to provide skills development and training, including scholarships to in-state educational institutions or to online learning entities when in-state options are not available, for jobs created or retained. In District: Small Public $100K Capital Infrastructure and Equipment, for example (Downtown Plan pp. 6 and 7) - Parking meters 197 (1)(A)(1)(a) - Vehicles for Public Services 21, 36 to 44 Dept. (formerly Public Works Dept.), and Fire Dept., including ambulances In District: Relocation of (see TIF 1(A)(6) Not budgeted/not Displaced Persons (TIF application, p. anticipated at time Application, p. 6) 6) of TIF application In District: CEAs as Approved (see TIF (1)(A) Unknown at time by City Council (TIF application p. 2) of TIF application application p. 2) Total Estimate of TIF Revenue $2019,900,000 Expenditure over 30 year term: *This item is not unique to this TIF District, it is also included in the Bayside TIF District, Waterfront TIF District, and Riverwalk TIF District. 3 10 of 13  8/22/2018 PROPOSED WATERFRONT TIF DISTRICT CITY INVESTMENT OPTIONS AMENDMENTS B. The Projects The projects to be undertaken are derived from the recommendations of the Task Force II Report which are: 1. Encourage private and public waterfront investments; 2. Provide support to maintain a working waterfront; 3. Support clean, working harbor. Generally, the activities to be undertaken and the approximate cost associated with each activity are described in Table 1 below. TABLE 1 Note 1: All citations refer to Title 30-A, chapter 206, Section 5225 Project Statutory Estimated Cost Citation In District: Capital Infrastructure Investments and financing costs, for example: Pier and Wharf Structural Repair (1)(A) $3,200,000 Local Match for Ocean Gateway Project (1)(A) $1,000,000 Street Studies and Improvements (Remedy Traffic (1)(A) $5,000,000 Congestion) (1)(A) Pedestrian and Multi-Modal Circulation and Amenity (1)(A) $750,000 Improvements Dredging $10,000,000 New Publicly Owned Pier (1)(A) $4,000,000 Multi-Modal Surface and Structured Parking Credit Enhancement Agreements (1)(A) Per Each Individual CEA In and out of District: Project (a) Funding the (1)(A) and (C)(1) a) City Economic Development Department, including prorated $50,000 Annually salaries of City Manager, Finance, and Planning Urban effective 7/1/2010 Development Director and Planning staff;Staff for 22 years, or b) (b) Workforce training funds. Costs of services and (1)(C)(4) $1,100,000 total. equipment to provide skills development and training, including scholarships to in-state educational institutions or to online learning entities when in-state options are not available, for jobs created or retained, of value to marine industry; c) (c) Costs of funding economic development programs or (1)(C)(1) T/B/D events; and, d) (d) Costs of funding environmental improvements projects (1)(C)(2) T/B/D 11 of 13  8/22/2018 PROPOSED WATERFRONT TIF DISTRICT CITY INVESTMENT OPTIONS AMENDMENTS for commercial use, including sea level adaptation studies and infrastructure improvements; and T/B/D e) (e) Professional services costs.. (f) Dredging sediment disposal T/B/D Total Estimate of TIF Revenue Expenditure over 30-year $212,050,000 – term: excluding CEA Projects The City recognizes that the full scope of the needs of the Waterfront Economic Redevelopment Program is beyond the funds anticipated to be generated through the five Original TIF Districts described in the Original Development Program and the three Added TIF District Properties of 2018. Since the Original Development Program, this Amended Development Program, and the three Added TIF District Properties of 2018 will serve as the template for future TIF District applications, however, the City again seeks authorization for the full “menu” of economic development activities described above. This is necessary to maintain flexibility and adaptability as the needs of the waterfront are prioritized throughout the life of this Amended Development Program. Pier and Wharf Structural Repair The waterfront infrastructure needs are considerable. The Task Force II Report estimates the need for $1.4 million in repairs to 14 wharves within three years, with an additional $1.8 million needed over the next 20 years. Local Match for Ocean Gateway Project The voters of the State of Maine approved an allocation of roughly $15 million for the construction of a marine passenger facility, requiring a local match of nearly $1 million. Street Improvements (Remedy Traffic Congestion) With the development of the Ocean Gateway facility, significant transportation improvements will be required to accommodate the increased traffic on the street network along and around the waterfront, with particular emphasis on Franklin Arterial, Commercial Street and India Street. Pedestrian Circulation and Amenity Improvements Invest in pedestrian and multi-modal infrastructure to support the working waterfront and improve public access to the waterfront. Dredging This recommendation recognizes the environmental and financial burdens caused by combined sewer overflows and storm water pipes that discharge into the harbor. The cost associated with disposing the contaminated dredge material jumps to more than 2 12 of 13  Parcel Address Legend Map ID Common Name 400 West Commercial, 1 Portland Yacht Services Potential Expansion of Growth Area 2 IMT Cold Storage Site Current TIF Districts and Growth Areas 3 "Angelo's Acre" Dasco Development, 4 Rufus Deering Site Potential Property for TIF District Inclusion 5 Portland Fish Pier Lot #1 6 60 Portland Pier 7 Shipyard Brewery Pier Infrastructure 100 Fore St 8 Hamilton Marine Site 58 Fore St, Portland 9 Foreside Public Roadway 10 Thames St Lot, Phase II Ocean Gateway Land, 11 Parking and Queuing Portland Ocean Terminal 12 and the Maine State Pier 13 New Pier 14 Ocean Gateway Pier West Commercial St Commericial St #7 15 Thames St Corridor #8 #10 #15 #15 #15 #4 #9 #3 #11 #5 #1 #6 #13 #14 #2 #12 Portland Waterfront TIF Program F T Potential Expansion RA D Map produced by the City of Portland Economic Development Department. Intended for discussion purposes only. Boundaries and area calculations are estemates and require validation prior to implementation. Do not use for valuation. August 2018 2,500 1,250 0 2,500 Feet ¯ 13 of 13  FY19 Budget Challenges (January 2018 B. O'Connell Handout at 9/4/2018 EDC Meeting Workshop Presentation Revisited) ◦ State of Maine Valuation – City of Portland ◦ $8.50B for 2017, rose to over $9.0B in 2018 (6.45% increase) ◦ State of Maine Valuation has several impacts on City budget ◦ Impact #1 – Cumberland County Tax Assessment will increase ◦ Portland’s share of county tax increasing from 20.17% to 20.55% ◦ Cumberland County Total FY19 Tax rising to $30.6M (4.5% increase) ◦ Portland’s overall estimated increase is $381k (6.5% increase) ◦ Equates to an 5 cent increase in FY19 tax levy (0.23%) 1 of 6  FY19 Budget Challenges (January 2018 B. O'Connell Handout at 9/4/2018 EDC Meeting Workshop Presentation Revisited) ◦ State of Maine Valuation – City of Portland ◦ $8.50B for 2017, rising to $9.05B in 2018 (6.45% increase) ◦ State of Maine Valuation has several impacts on City budget ◦ Impact #2 – School Educational Subsidy ◦ Impact / EPS estimates typically calculated by PPS staff ◦ Assuming everything else remained constant, decrease in PPS educational subsidy estimated to be $4M due to valuation only ◦ Actual change in FY19 funding still unknown – many factors to be considered including formula changes and additional State funds 2 of 6  FY19 Budget Challenges (January 2018 B. O'Connell Handout at 9/4/2018 EDC Meeting Workshop Presentation Revisited) ◦State of Maine Valuation – City of Portland ◦$8.50B for 2017, rising to $9.05B in 2018 (6.45% increase) ◦State of Maine Valuation has several impacts on City budget ◦Impact #3 – State Revenue Sharing Formula ◦Impact #4 – Portland Water District Assessment 3 of 6  Illustrative Example: Impact of $500M of TIF B. O'Connell Handout at 9/4/2018 EDC Meeting Sheltering on Budget Items – County Tax No TIF TIF Beginning Assessed Value (A) $9,049,500,000 $9,049,500,000 Increases in TIF Assessed Value (B) $500,000,000 $500,000,000 TIF Capture Rate 0% 100% Sheltered Property Value (C) $0 $500,000,000 New City Taxable Valuation (A+B-C) $9,549,500,000 $9,049,500,000 Total Cumberland County Tax (2018) 30,612,625 Portland % of Cumberland County Tax* 21.68% 20.54% Portland Share of Cumberland County Tax* $ 6,636,389 $ 6,288,916 Total TIF Sheltering Savings - County Tax* 347,473 Total TIF Sheltering Savings to Mil Rate $ 0.04 *Note: Examples above assumes a $500M increase in Portland valuation only to isolate the impact from a non-sheltered increase in valuation. There are many other variables which would impact each of these example. Most notably, they each would be impacted by changes in the valuations within other municipalities. The Revenue Sharing and State Educational Subsidy examples are each subject to formulas which have many variables outside of valuation (although valuation is the Maine driver of each). These examples are for illustrative purposes only in an attempt to illustrate the impact of sheltering and are not to be used for budgeting purposes. 4 of 6  B. O'Connell Handout at 9/4/2018 EDC Meeting Illustrative Example: Impact of $500M of TIF Sheltering on Budget Items – Revenue Sharing No TIF TIF Beginning Assessed Value (A) $9,049,500,000 $9,049,500,000 Increases in TIF Assessed Value (B) $500,000,000 $500,000,000 TIF Capture Rate 0% 100% Sheltered Property Value (C) $0 $500,000,000 New City Taxable Valuation (A+B-C) $9,549,500,000 $9,049,500,000 Revenue Sharing* $ 3,852,071 $ 4,064,904 Total TIF Sheltering Savings - Revenue Sharing * 212,833 Total TIF Sheltering Savings - Impact to Mil Rate $ 0.03 *Note: Examples above assumes a $500M increase in Portland valuation only to isolate the impact from a non-sheltered increase in valuation. There are many other variables which would impact each of these example. Most notably, they each would be impacted by changes in the valuations within other municipalities. The Revenue Sharing and State Educational Subsidy examples are each subject to formulas which have many variables outside of valuation (although valuation is the Maine driver of each). These examples are for illustrative purposes only in an attempt to illustrate the impact of sheltering and are not to be used for budgeting purposes. 5 of 6  B. O'Connell Handout at 9/4/2018 EDC Meeting Illustrative Example: Impact of $500M of TIF Sheltering on Budget Items – School EPS Subsidy No TIF TIF Beginning Assessed Value (A) $9,049,500,000 $9,049,500,000 Increases in TIF Assessed Value (B) $500,000,000 $500,000,000 TIF Capture Rate 0% 100% Sheltered Property Value (C) $0 $500,000,000 New City Taxable Valuation (A+B-C) $9,549,500,000 $9,049,500,000 State Educational Subsidy* $ 16,091,694 $ 16,980,788 Total Estimated Revenue Sharing Savings* 889,093 Total TIF Sheltering Savings - Impact to Mil Rate $ 0.11 *Note: Examples above assumes a $500M increase in Portland valuation only to isolate the impact from a non-sheltered increase in valuation. There are many other variables which would impact each of these example. Most notably, they each would be impacted by changes in the valuations within other municipalities. The Revenue Sharing and State Educational Subsidy examples are each subject to formulas which have many variables outside of valuation (although valuation is the Maine driver of each). These examples are for illustrative purposes only in an attempt to illustrate the impact of sheltering and are not to be used for budgeting purposes. 6 of 6  Tax Increment Financing Fiscal Year End (FYE) 2018 Annual Report (July 1, 2017 through June 30, 2018) Prepared by the Economic Development Department (Report prepared 8/2018) 1 1 of 30  Table of Contents 1. Introduction ................................................................................................................... 3 2. Definitions ..................................................................................................................... 3 3. Revised TIF Policy Adopted by City Council on November 20, 2017……………….. 4 4. Tax Increment Financing Overview and Value ............................................................ 4 5. TIF District Approval Process ..................................................................................... 5 6. City Council Action During FY2018 ............................................................................ 6 7. Statutory Limitations for TIF Districts ......................................................................... 6 8. Tax Sheltering Benefits ................................................................................................. 7 9. TIF Districts in Portland ............................................................................................... 7 10. TIF District Financial Overview for Fiscal Year End 2018 .......................................... 9 11. Example of a Performing TIF ..................................................................................... 11 12. Strategies and Recommendations to Optimize use of TIF Districts ........................... 12 13. Summary ..................................................................................................................... 12 Appendix: a. TIF Policy Adopted November 20, 2017 b. Summary of All Approved TIF Districts c. Map Highlighting Current TIF Districts d. Spreadsheet Showing Individual TIF Districts and Area Wide Amounts 2 2 of 30 1. Introduction City TIF Policy requires an annual report, to the City Council Committee and full City Council, regarding TIF District activity. This Report provides an overview of the TIF District Program, Portland’s utilization of TIF Districts to date, and TIF District financial value impacts. 2. Definitions Commonly used terms, included in this Report, include: “Captured Assessed Value” means increased assessed value retained in a TIF District each year during its term. “Credit Enhancement Agreement (CEA)” means the agreement between the City and the site specific TIF District Developer whereby it includes the terms under which the City will provide a portion of the Retained Tax Increment Revenue back to the Developer. “Current Assessed Value” means the then current assessed value of the property located in the TIF District to be determined by the City Assessor as of April 1 of each year during the term of the District. “District” means that portion of property depicted on a map to apply to the TIF. “Increased Assessed Value (IAV) ” means the valuation amount by which the Current Assessed Value exceeds the Original Assessed Value (OAV). If the Current Assessed Value is less than or equal to the OAV, there is no Increased Assessed Value in that year. “Infrastructure” is defined, but not limited to: traffic upgrades, public parking facilities, roadway improvements, lighting, sidewalks, water and sewer utilities, storm water management improvements, and placing above ground overhead electric and telecommunications lines underground. “Non-Captured Value (NCV)” means the value over and above the OAV (defined below) that is not captured by TIF percentage capture rates, with associated taxes from NCV returned to the General Fund. “Original Assessed Value (OAV)” means the assessed value of the property in the TIF District as of March 31 of the year that it was created. For instance, if a TIF District was approved as of the date of this report, or November 2017, the OAV would be the assessed value of the property on March 31, 2017. All taxes from the OAV go into the City’s General Fund for any City use. “Property Taxes” means any and all ad valorem property taxes levied, charged or assessed against the property by the City or on its behalf and actually paid to the City, but excluding any county, state, or special District taxes that are separately levied, charged, or assessed against the property. 3 3 of 30  “Retained Tax Increment Revenues” means that portion of the Property Taxes paid with respect to the Captured Assessed Value. “Tax Year” means April 1 to March 31. 3. Revised TIF Policy Adopted by City Council on November 20, 2017 Pursuant to City Council Order 61 passed September 19, 2016, the City Council referred to the Economic Development Committee (EDC) consideration of amendments to the current TIF policy, including, but not limited to provisions for: A. Local Hire; B. Ethnic and Gender Diversity; C. Economically Disadvantaged Participation; D. Veteran Preference; E. Adherence to State or Federal Prevailing Wages; and, F. Participation in a Job Training or Apprenticeship Program. The Order further requested the EDC report their findings and recommendation on amending the current TIF Policy to the City Council. The EDC began its review for possible amendments to the TIF policy in April 2017. On November 20, 2017, the City Council reviewed the EDC’s recommendation and adopted revised City Tax Increment Financing (TIF) Policy (Item A in Appendix) in support of both private development projects and public investment in municipal economic development programs and infrastructure investment. Revised City Policy includes: A. Addition of State prevailing wage requirements in the construction phase of a TIF CEA; B. Equal employment opportunities and nondiscrimination; C. Increasing the capture rate and the term for affordable housing projects; and, D. Housekeeping amendments. The EDC also recommended that the City look into establishing and sponsoring a Workforce Job Training program to be funded by area-wide TIF Districts, as well as having the City Manager and/or his/her designee undertake an analysis of the costs associated with the City undertaking an Employment Disparity Study. 4. Tax Increment Financing Overview and Value Tax Increment Financing (TIF) is the most flexible economic development program available to municipalities. TIFs support municipal investment, as well as can be associated with private sector or affordable housing investment. TIFs are flexible municipal financing tools to fund the following types of activities to support public and private sector investment: 4 4 of 30   public infrastructure projects;  economic development programs, including municipal marketing and staff; and,  support of individual private commercial and affordable housing project financing needs. The three property tax components associated with TIF Districts include: A. New Property Taxes. TIF revenue is generated from new increased municipal assessed value and associated new property taxes. TIFs can be established for up to thirty (30) years and new or “captured assessed value” in the TIF District can range from 1% to 100% of the amount of new property taxes. B. Original Assessed Property Value (OAV). The taxes from property base or “Original Assessed Value” reverts to the municipal general fund and is not captured in a TIF District. C. Flow of TIF CEA Funds: The flow of taxes to return to the developer through a CEA is as follows. i. The City sends its yearly tax bills for payments due in September and March of each fiscal year; ii. Developer pays the taxes; iii. In April and May of each year, for each CEA, a check is made to be sure the Developer’s taxes are current. If current, the Economic Development Department proceeds to process that fiscal year TIF payment to return a portion of the taxes to the developer according to the CEA. If not current, the Economic Development Department will not move forward with the payment until current. 5. TIF District Approval Process There is a three step process to approve establishment of a TIF District. The three steps include: A. Economic Development Committee recommendation for approval to the City Council for commercial TIFs, or Housing Committee for affordable housing TIFs; B. City Council approval; and, C. State of Maine Department of Economic Development Department approval for commercial TIF districts or Maine State Housing Authority approval for affordable housing TIF Districts. 5 5 of 30 6. City Council Actions During FY2018: The City Council passed five items relating to TIFs, specifically: A. As noted in Section 2, the City Council adopted a revised TIF Policy, which is attached hereto as Appendix A. B. The Downtown Transit Oriented Development (TOD) and TIF District was amended to take out a property from the District, 58 Boyd Street, so that that property could then be its own freestanding Affordable Housing TIF District. C. Approved an Affordable Housing TIF District for 58 Boyd Street for a term of 30 years (FY2019 through FY2048), with 50% capture to the Developer and 50% into the City’s General Fund. This District supports the development of a 55 unit, mixed income, multi-family rental apartment building. TIF revenues will be used by Developer to pay for operating costs for the project. D. Approved an Affordable Housing TIF District for Deering Place, located at 61 Deering Street and 510 Cumberland Avenue, for a term of 30 years (FY2019 through FY2048), with 75% capture to the Developer and 25% into the City’s General Fund. This Affordable Housing TIF District supports the development of 75 units of residential rental housing. TIF revenues will be used by Developer to pay for operating costs for the project. E. Approved adding parcels to the Waterfront TIF District as there are two projects under construction in the District that would provide additional TIF revenue, approximately $490,000 annually, as well as additional tax sheltering savings at approximately $145,000 annually. Those projects are the WEX office construction project at Hancock and Thames Streets, and the mixed use development at Union Wharf which includes office, restaurants, food court, and open market. 7. Statutory Limits for TIF Districts There are two State statutory limitations which include: A. Acreage: No single TIF District, including Affordable Housing Districts, can be larger than 2% of a municipality’s total acreage, or in the case of Portland, 2% of Portland’s 12,386 acres is 247 acres. Also, all active TIF Districts have to be less than 5% of a municipality’s total acreage, or in the case of Portland, 5% is 619 acres. Based upon active TIF Districts, including Affordable Housing TIF Districts, as of FYE2018, Portland has the ability to include 466 additional acres in TIF Districts. B. Value: i. Commercial/Area Wide TIF Districts: The OAV of all these TIF Districts in a municipality cannot be more than 5% of its total aggregate value (FY18 aggregate value: $9,049,500,000), or in the case of Portland, 5% is 6 6 of 30  $452,475,000. Based upon active TIF Districts as of FYE2018, Portland has the ability to include an additional $318.5 Million of property value in TIF Districts. ii. Affordable Housing TIF Districts: The OAV of all Affordable Housing TIF Districts cannot be more than 5% of the total aggregate value (FY18 aggregate value: $9,049,500,000), or in the case of Portland, 5% is $452,475,000. Based upon active Affordable Housing Districts as of FYE2018, Portland has the ability to include an additional $450.6 Million of property value in Affordable Housing TIF Districts. It is noted that the amount of acreage and value to include in TIF Districts fluctuates as TIF districts are created, expired, and/or terminated. There are exemptions from State limitations for Transit Oriented Development (TOD) and Downtown TIF Districts, for which Portland now has two: Thompson’s Point TOD TIF, and the Downtown TOD and Omnibus TIF. 8. Tax Sheltering Benefits Municipalities realize “savings” from the tax sheltering effect of TIF Districts. The following direct financial impacts occur when municipal valuation increases: A. State Education Aid is reduced, B. State Municipal Revenue Sharing is reduced, and C. A municipality pays a higher percentage of the County budget. This amount of “savings” is significant and one of the most important benefits of establishing TIF Districts. For Portland, tax shelter savings is conservatively estimated at 30%, meaning that for every new tax dollar, Portland saves 30 cents which would otherwise be lost for property tax value not included in a TIF district. Portland’s estimated total tax shelter savings for all active TIF Districts is just over $1.2 Million for FYE2018. 9. TIF Districts in Portland A listing of all approved TIF Districts as of FYE2018 is provided as Item B in the Report Appendix. This listing includes four expired TIF Districts – Auto Europe, Shipyard Brewery, Nichols Portland, and UNUM. It is noted that FYE2018 also ends the Credit Enhancement Agreement for the Bayside Student Housing project, with FY2018 being the last year of TIF payments. This listing also includes two TIF Districts which were terminated by the City Council during FY15 – those being the Village at Oceangate (Bay House), and the Fore India Middle LLC TIF District. It is noted that after expiration and termination of the above TIF Districts, 100% of their property tax revenue reverts to the City’s General Fund. 7 7 of 30 Also, this listing provides the following information for each TIF District: A. TIF District duration; B. percentages of taxes allocated to the Recipient/Developer, City, and General Fund; C. TIF District location; and D. brief description. Item C in the Appendix provides a map showing the location for each active TIF District. A listing of approved active individual site specific TIF Districts, area-wide TIF Districts, Downtown TOD TIF, Thompson’s Point TOD TIF, non-active TIF Districts, and terminated TIF Districts by name are provided below. Active Approved Individual Site Specific TIF Districts As of FYE2018, the City has twelve, single site active TIF Districts with associated CEAs, namely:  Holt Hall  Riverwalk/Ocean Gateway  PowerPay/Portland Public Market  Baxter Library  McAuley Place  ImmuCell  Avesta/Pearl Place Affordable Housing TIF  409 Cumberland Avenue Affordable Housing TIF  134 Washington Avenue Affordable Housing TIF  17 Carleton Street Affordable Housing TIF  Deering Place Affordable Housing TIF  58 Boyd Street Affordable Housing TIF Active Approved Area Wide TIF Districts and Associated CEAs The City has two active area wide TIF Districts, for which the City retains a portion of the TIF funds for public infrastructure projects, with a portion of the TIF funds targeted to CEAs within those Districts, namely:  Bayside o Capital LLC CEA o Bayside Student Housing CEA (expires FY2018)  Waterfront o Waterfront Maine CEA 8 8 of 30  Approved Downtown and/or Transit-Oriented Development (TOD) TIF Districts  Downtown TOD TIF The City retains a portion of the TIF funds for public infrastructure, Creative Portland, and transit projects for the Downtown TOD TIF. This Downtown TOD TIF was approved during FY2015 and was activated with FY2016. There is no CEA associated with it at this time.  Thompson’s Point TOD TIF and CEA For the Thompson’s Point TOD TIF, the City retains a portion of TIF Funds for transit projects. This TOD TIF also has an associated CEA with Thompson’s Point Development Company, Inc. for development of Thompson’s Point. Terminated TIF Districts The City Council has terminated two TIF Districts, namely:  Fore India Middle LLC – This TIF project had not come to fruition and, therefore, was terminated by the City Council in November 2014; and,  The Village at Oceangate, LLC (Bay House) – This TIF District was also terminated by the City Council in November 2014 due to this District’s use being converted into residential condominiums which is not an allowable TIF District use. Three TIF Credit Enhancement Agreements to Expire at the end of FY2019 It is noted that three TIF CEAs will expire at the end of FY2019, namely:  Holt Hall  Baxter Library  Riverwalk/Ocean Gateway 10. TIF District Financial Overview for FYE2018, including FY2014, FY15, FY16, and FY17: See below for financial comparison of FYE2017, FYE2016, FYE2015, FYE2014, and FY2013 for then active TIF Districts: 9 9 of 30  FYE2014 FYE2015 FYE2016 FYE2017 FYE2018 City General Fund-Taxes $22.8 $23.38 $23.98 from OAV $6.1 Million $6.3 Million Million Million Million City General Fund-Taxes from Non-Captured Value $341,000 $720,000 $2.4 Million $2.2 Million $3.6 Million Total TIF Taxes From $1.8 Million $2.09 Captured Value $3.5 Million $3.2 Million Million $2.7 Million $1 Million $1.08 $1.187 - TIF Taxes to CEAs $2.0 Million $2.0 Million Million Million - TIF Taxes to Public $.8 Million $1.01 $1.54 Infrastructure/Arts/Staff $1.5 Million $1.2 Million Million Million $87 Million $99.6 Total Tax Sheltering Value $180 Million $160 Million Million $126 Million Estimated Annual Average $.7 Million $.831 Tax Sheltering Savings $1.6 Million $1.3 Million Million $1.2 Million Table Explanations: City General Fund-Taxes from OAV - The above table shows a yearly increase in taxes from the OAV into the General Fund. For FYE 2014 and FYE2015, this is based on increases in tax rates. FYE2016’s higher increase is due to the Downtown TOD TIF Activation, where the OAV is just under $1 Billion, and associated taxes with that OAV at $20 Million. As noted earlier in the definition section, all taxes from the OAVs go to the General Fund. City General Fund-Taxes from Non-Captured Value – The number fluctuates based on each CEA, as well as the City’s budget needs for public infrastructure/Economic Development Department staff salaries/debt service. The captured value percentages for the area wide TIF Districts - Bayside and Waterfront - are adjusted yearly based on those needs. The captured value percentage for the Downtown TOD TIF was set at 12% for the first year (FY2016) and then set at 22% for years 2 through 30. The decrease in this table for FYE2017 is due to capturing 22% from the Downtown TOD TIF and having the remaining non-captured 78% go into the General Fund. The increase for FYE2018 of $1.4 Million is due to an IAV in the Downtown TOD TIF and area wide TIF Districts increasing by over $52 Million over FYE2017, and the Ocean Gateway/Riverwalk IAV increasing by over $9 Million and associated capture percentages for each district. Non-captured increased assessed value taxes flow into the General Fund. 10 10 of 30  Total TIF Taxes From Captured Value – The percentage of captured value varies yearly based on CEAs and the City’s financial needs. This TIF Revenue is then allotted to the various CEAs, and then to the City public infrastructure projects/arts/staff investments. Total Tax Sheltering Value – This number represents the total percentage of the increased assessed of value (IAV) all TIF Districts that has been captured. It is noted that the captured value percentage for area TIFs is adjusted yearly based on City use of TIF funds needed for public infrastructure projects, staff, as well as debt service for payment of the Bayside HUD loan and for Ocean Gateway associated debt expenses. Estimated Tax Sheltering Savings – This number increased by just over $37K from FYE2017. This is due to the IAVs and associated capture percentages. Appendix D is a spreadsheet showing the FYE 2018 TIF Districts funding allocation and individual CEA annual payments. 11. Example of a Performing TIF An example will be provided annually. Performing TIF District: Baxter Library LLC Duration: 9 year term (FY11 through FY19) Percentages: Lesser of annual 65% to return to Developer or amount necessary to service project debt; 35% to General Fund. Location: 621 Congress Street The City entered into the CEA in order to assist with the reuse, redevelopment, and preservation of a hallmark downtown building built in 1888, where adaptive reuse of this former library was challenging and expensive to support the relocation and retention of the The VIA Group. With over $4 Million invested by the Developer, this Project added $2.5 Million (which was estimated in new value when approved) in new municipal assessed commercial valuation and generates an average of $14,000 annually, in funds, for the City’s General Fund. The reuse of this building accommodated the relocation of The VIA Group, retaining its 64 employees to this upper Congress Street area of downtown Portland, with anticipated creation of an additional 30 jobs within the next 5 years. This CEA was originally in the Creative Portland Development and Arts (CPDA) TIF District from its inception in FY11. The CPDA TIF District was then reduced and renamed the Baxter Library TIF District by the Council in January 2015, and subsequently approved the MDECD June 2015. It is noted that the CPDA TIF District geography, minus the Baxter Library TIF, was included in the Downtown TOD TIF beginning with FY16. 11 11 of 30  The subsequent investment and increases in assessed value is as follows: Assessed Values Real Estate Total Value OAV 4/1/2007 $0 $0 4/1/2010 $1,240,800 $1,248,800 4/1/2012 $2,502,600 $2,502,600 4/1/2017 $2,502,600 $2,502,600 Through the life of this District, through FY19, the Developer will realize just over $273,000 in TIF revenue funds, and the City will realize approximately $155,500 in General Fund revenue from the project. With the expiration of this TIF District in FY19, beginning with FY20, the City will realize 100% of real estate taxes from this project into the General Fund, or approximately $55,000 in FY20. This TIF District provided economic stability in this area of the downtown, providing economic vitality which has resulted in an economic boost to that upper area of Congress Street. 12. Strategies and Recommendations to Optimize use of TIF Districts  Future public infrastructure investment and staff expenses. Align the City’s future Capital Improvement Program investments, including public utility and transportation investment, staff expenses; and,  Future Growth Areas. Decide where the City wants to direct investment by location and type (i.e. commercial and affordable housing). 13. Summary TIF CEAs are driven by development occurring and increasing the assessed value. With no development, the assessed value remains the same and no TIF dollars are returned to the developer. On the other hand, when the development moves forward and the assessed value increases, that is when TIF dollars can be returned to the Developer. It is performance based. 12 12 of 30  Appendix A PORTLAND TIF POLICY November 20, 2017 I. INTRODUCTION Tax Increment Financing (TIF) is an economic development program authorized under state law to support municipal projects. The TIF program allows municipalities to provide financial assistance to local economic development projects and programs – from infrastructure, municipal economic development programs and staff, to business expansions - by using new property taxes that result from new commercial or residential investment associated with the corresponding increase in property value. Portland TIF Policy supports investment in municipal economic development programs, infrastructure investment (which is generally through the establishment of area wide or neighborhood TIF districts) and individual project site specific TIF districts to support either infrastructure or individual private project financing needs. The City is committed to invest in infrastructure located within the public rights-of-way that encourage economic development. Use of TIF investment to invest in infrastructure recognizes the savings which occurs through the TIF Program tax sheltering benefits. “Infrastructure” is defined, but not limited to: traffic upgrades, public parking facilities, roadway improvements, lighting, sidewalks, water and sewer utilities, storm water management improvements and placing above ground overhead electric and telecommunications lines underground. II. STATE TIF LIMITATION There are acreage and value caps limitations for municipalities to establish TIF along with term limits. Term limits include bonds which may be issued for a maximum of 20 years (anticipation notes for three years). TIF districts may be designated for a maximum of 30 years. III. PURPOSE The primary purposes of the TIF Policy include: A. To support Portland Economic Development and Housing Plans and Policies; B. To stimulate expansion of the City’s commercial and industrial tax base; C. To stimulate new affordable and market rate housing investment; D. To retain and create quality employment; E. To support Portland’s Capital Improvement Plan; and, F. To establish standards upon which the City Council will authorize TIF. Page 1 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 13 of 30  IV. GENERAL PRINICPLES The three primary general principles for the City Council to establish TIF districts include: A. Investment Minimum Real Property Investment. A minimum of $1 million in new taxable investment property value for commercial and industrial development and $500,000 for affordable housing development is needed to qualify for a TIF. This is the minimum amount which makes practical sense to consider use of the TIF program due to the amount of new municipal property tax revenue generated from new private investment. B. Jobs Associated with Commercial and Industrial Development Applicants for TIF participation will be required to provide a plan outlining the number and quality of jobs retained or created associated with each TIF district. While there is not a specific formula for the numbers of jobs associated with the amount of TIF financial assistance, the number and quality of the jobs will be taken into consideration for each TIF district. It is recognized that housing projects do not create many permanent jobs. C. Maximize Tax Sheltering Benefits A municipality’s total equalized assessed value is used to calculate General Purpose Aid to Education (subsidy), State Revenue Sharing (subsidy) and County taxes (expense). When a municipality’s equalized assessed value increases, State Aid for Education decreases, municipal revenue sharing decreases, and the municipality pays a greater portion of County taxes. TIF allows municipalities to “shelter” new value resulting from private investment from the calculation of its State subsidies (education and revenue sharing) and County taxes. In other words, specific municipal shelter benefits, for the term of the TIF, include: 1) No reduction in State aid for education, 2) No reduction in municipal revenue sharing and 3) No increase in County taxes. Annually, the Council Committee with jurisdiction over housing and community development and City Council will evaluate available TIF district capacity related to State acreage and value limitations to determine whether existing TIF districts need amending and/or new TIF district establishment. Scheduled public infrastructure investments included in the City’s Capital Improvement Plan will inform decisions about adjustments to existing TIF districts or establishment of new TIF districts. Page 2 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 14 of 30 V. APPROACH, POLICY, and TERM REQUIREMENTS Must meet or exceed the below requirements. A. Approach There are three approaches to consider establishing TIF districts. They include: 1) Municipal Economic Development Programs funded directly through a pay-as- you-go approach. Examples of municipal economic development programs include paying for economic development staff, annual funding to Creative Portland for city marketing/branding, and other TIF law allowable activities. 2) Area wide TIF districts financed by City Bond/Debt Issuance Issuance of municipal general obligation bonds or limited obligation bonds is a mechanism that may be used to fund a TIF district program. Allowable uses are spelled out in state TIF law. Generally, municipalities will issue debt to cover the cost of infrastructure investment. 3) Individual Site Specific TIF districts utilizing Credit Enhancement Agreements (CEAs) A CEA is a contract between a municipality and developer to assist an individual development project by using a percentage or all of the tax revenue generated by the investment to pay certain authorized project costs which could include site specific infrastructure or private individual project financing needs. Allowable project costs are spelled out in state TIF law. B. Policy for the Three Approaches 1. Policy for Municipal Economic Development Programs. Requires annual review and City Council financial appropriations. 2. Policy for Area wide TIF District Locations (for City Bond/Debt Issuance) a) Area wide TIF will be established for infrastructure investment which has applications beyond one individual project. b) City TIF emphasis will be placed upon the following general “Priority Revitalization Areas” to support commercial development, housing development, redevelopment, or to support buildings in need to redevelopment, address blight or historic preservation: Page 3 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 15 of 30  o Affordable housing projects off peninsula; o Riverside Street commercial and industrial zoned areas; o Forest Avenue corridor from I-295 to Woodfords Corner; o Washington Avenue corridor from Congress Street to I-295; o Portland Technology Park ; o Areas in which future significant wastewater and/or stormwater infrastructure investments are planned; o West Commercial Street vacant property; o Libbytown; o St. Johns Street Valley; o Other areas based upon scheduled public infrastructure investment included in the City’s Capital Improvement Plan. The above list of general priority revitalization areas serve as guides to establish specific boundaries for TIF districts at time of district establishment. c) Market Rate Housing. Market rate rental housing projects must be located in priority revitalization areas to stimulate housing investment for the purpose of attracting 24/7 pedestrian activity. Pursuant to State Law, TIF for condominium projects are not allowed. d) Affordable Housing. Affordable Housing TIF (AHTIF) may be designated on an area wide or site specific basis. The relevant City Council Committee will complete an annual assessment of housing needs and priorities. This assessment will include a determination regarding designation of an area wide AHTIF. Site specific AHTIF requests submitted by developers will be considered on a case-by- case basis. Area wide or site specific AHTIF designations must address an identified community need. State law requires that at least 25% of the district area must be suitable for residential use, development must be primarily residential, and at least 1/3 of the units must be for households at or below 120% of area median income which allows for individual mixed income projects or area wide affordable housing TIF districts. Allowable uses of AHTIF revenues are defined by State law. e) City preference is to invest in area wide public infrastructure TIF districts versus establishing individual private site specific TIF districts. Page 4 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 16 of 30  f) Area wide TIF districts also should seek to maximize the benefit of downtown and transit oriented development (TOD) districts which are exempt from State TIF law for acreage and value limitations. g) Terms for area wide TIF districts will be considered for up to 100% of new tax revenue and upwards of thirty (30) years, the maximum allowed by State law, due to the long-term need to invest in neighborhood infrastructure. NOTE 1: As of this Amended TIF Policy date, there are two existing area wide TIF Districts, i.e., Bayside and Waterfront TIF Districts. NOTE 2: As of this Amended TIF Policy date, there also exists two Transit Oriented Development (TOD) District, namely the Thompson Point TOD TIF District and the Downtown TOD TIF District to support new or expanded transit services and improved transit connections between the Portland Transportation Center, Jetport and Downtown. 3. Policy for Individual Site Specific TIF Districts Utilizing Credit Enhancement Agreements (CEAs) a) CEAs for individual site specific TIF districts will be considered for investment in infrastructure or project financing need and cannot be applied to any agreed upon public infrastructure improvements associated with a City Council approved conditional rezone agreement. Additional provisions related to CEAs include: i) City Green Building Code Compliance with the City’s Green Building Code is required when TIF assistance is provided to individual private project CEAs. ii) Affordable Housing Affordable Housing TIF (AHTIF) may be designated on an area wide or site specific basis. Developments are encouraged to promote economic diversity. The City Council Committee will complete an annual assessment of housing needs and priorities. This assessment will include a determination regarding designation of an area wide AHTIF. Site specific AHTIF requests submitted by developers will be considered on a case-by- case basis. Area wide or site specific AHTIF designations must address an identified community need. Page 5 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 17 of 30  State law requires that at least 25% of the district area must be suitable for residential use, development must be primarily residential, and at least 1/3 of the units must be for households at or below 120% of area median income which allows for individual mixed income projects or area wide AHTIF districts. Allowable uses of AHTIF revenues are defined by State law. (iii) State Prevailing Wage Requirement Any firms employed in the construction phase of a TIF-assisted project must compensate all employees the current wage rates and fringe benefits as required under applicable state prevailing wage law under 26 M.R.S.A. §1306, or Portland City Ordinance Ch. 33, §33-1 to 33-12, whichever is greater. City staff shall provide to the relevant City Council Committee an annual update on: a) the impact of this prevailing wage requirements on CEAs; b) feasibility of construction firms to pay prevailing wages and benefits; and c) compliance with this section. (iv) Equal Employment Opportunities and Nondiscrimination The developer and its contractors employed in the construction phase of a TIF-assisted project shall adhere to a policy of non-discrimination in all employment actions, practices, policies, procedures, phases, and conditions of employment. All employment-related decisions (including but not limited to hiring, discharge, transfers, promotions, discipline, training, job opportunities, and wage and salary levels) will be made without discrimination based on an individual’s race or color, religion, age, sex (including pregnancy), sexual orientation, gender identity or expression, ancestry or national origin, physical or mental disability, veteran status, genetic information, previous assertion of a claim or right under Maine’s Workers’ Compensation Act, previous actions taken protected under Maine’s Whistleblowers’ Protection Act, or any other protected group status as defined by applicable law. Provisions in applicable laws providing for bona fide occupational qualifications, business necessity, or age limitations will be adhered to by the developer and its contractors where appropriate. This policy shall not be construed to prohibit any employment action or policy which is required by federal law, rule or executive order. Page 6 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 18 of 30  b) Applicants for CEA participation must demonstrate and pay the following: i) Financial Necessity. The applicant must demonstrate the City’s participation is financially necessary in order for the project to proceed. ii) Financial Capacity. The applicant must demonstrate financial capacity to support their project. iii) Fees A financial underwriting analysis will be conducted by a third party on all projects requesting CEA participation. Applicants for CEA assistance will be responsible for reimbursing the City for all project third party legal and financial underwriting costs. C. Terms for CEA Projects 1) Maximum Percentages. A maximum average percentage of 65% for the entire term associated with individual project CEA’s. Notwithstanding the previous sentence, the maximum average percentage for the entire term associated with individual project CEAs for affordable housing shall be 75%. For the purposes of this policy, the term affordable housing shall be defined as in “V. Approach, Policy, and Term Requirements” Section B(2)(d) (Affordable Housing) of the Portland TIF Policy. 2) Maximum Number of Years. Up to twenty (20) years to match individual private sector commercial financing terms; for Affordable Housing projects, up to thirty (30) years. The term of a TIF may start upon agreed trigger event, such as an increased assessed value. This would be included in a CEA on that negotiated triggering event. 3) Use of Maine Services for CEA Projects Encouraged. Page 7 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 19 of 30 VI. TIF APPLICATION AND ADMINISTRATION PROCESS A. Application Information and Contact. The Economic Development Department and the Housing and Community Development Division (for affordable housing projects) handle all TIF inquires and processes requests for TIF. An applicant must submit a letter to either the Economic Development Department for commercial projects or the Housing and Community Development Division for affordable housing projects outlining the proposed project, including TIF project financial information, a plan outlining both the number of permanent and construction jobs associated with the proposed project, as well as a demonstrated ability to meet the requirements under Section B(3)(a) of this policy. B. Approval Process. There is a two step approval process which includes obtaining a recommendation from the City Council Committee and City Council approval. Two meetings (or readings) by the City Council are needed. The City Council vote on the TIF occurs at the second meeting. C. Post-Construction Report to City Council. The Economic Development Department and the Housing and Community Development Division shall provide a post-construction report to the City Council Committee and City Council regarding each TIF-assisted project which shall include, but not be limited to, an analysis of the adherence to Section (V)(B)(3)(a) of this policy. D. Annual Report to City Council. The Economic Development Department and the Housing and Community Development Division shall provide annual reports to the City Council Committee and City Council regarding TIF district activity. Page 8 of 8 TIF Policy as passed by Portland City Council on 11/20/2017 20 of 30  Appendix B SUMMARY OF ALL APPROVED TAX INCREMENT FINANCING (TIF) DISTRICTS IN THE CITY OF PORTLAND A/O FYE2018 (June 30, 2018) This provides an overview of tax increment financing districts (TIF’s) approved by the City of Portland. Please note that the City approved twenty-two TIF’s, with three of these TIFs having separate Credit Enhancement Agreements (CEA) for various projects included in the respective TIF Districts. These two TIF Districts are the Bayside TIF, Waterfront TIF, and Creative Portland Development and Arts TIF District. The separate CEAs are detailed in the listing below. 1. Nichols Portland (Economic Development TIF) (Expired FY14) Duration: 20 year term (FY95 through FY14) Percentages: Years 1 to 5, 90% to Recipient, 10% to City General Fund; years 6 to 10, 75% to Recipient, 25% to City General Fund; years 11 to 20, 50% to Recipient, 50% to City General Fund. Location: 2400 Congress Street This TIF was created to support Nichols Portland expansion of its existing manufacturing facility at 2400 Congress Street and retain 450 jobs. 2. Shipyard/Longfellow (Economic Development TIF) (Expired FY07) Duration: 12 year term (FY96 through FY07). Please note this TIF has expired and the City General Fund is receiving 100% of the real estate taxes. Percentages: 90% to Recipient, 10% to City General Fund Years 1 through 6; 50% to Recipient; 50% to City General Fund Years 7 through 11; 1% to Recipient, 99% to City General Fund Year 12. Location: Newbury Street This TIF was used to transform the former Crosby-Laughlin site on Newbury Street into the Shipyard Brewing Company. 3. Auto Europe (Economic Development TIF) (Expired FY11) Duration: 15 year term (FY97 through FY11). Please note this TIF has expired and the City General Fund is receiving 100% of the real estate taxes. Percentages: 75% to Recipient; 25% to City General Fund Location: Commercial Street across the street from Casco Bay Lines, former Galt Block building. Page 1 of 8 a/o 6/30/2018 21 of 30 This TIF was used to renovate the former Galt Block Building into the headquarters for Auto Europe. The Galt Block Building had been vacant for over 10 years. 4. Bramhall/Holt Hall (Economic Development TIF) Duration: 20 year term (FY00 through FY19) Percentages: 75% to Recipient; 25% to City General Fund, plus a Payment in Lieu of Taxes (PILOT) associated with first floor space. Location: 794 Congress Street This TIF was used to renovate Holt Hall, built in the 1860’s, and then vacant in excess of 10 years, into 36 market rate rental apartments and office space on the ground floor at a cost of almost $4 Million. 5. UNUM (Economic Development TIF) (Expired FYE15) Duration: 15 year term (FY01 through FY15) Percentages: 100% capture of increased value with 75% going to the Recipient, and 25% going to economic development projects for the City. Location: Outer Congress Street. This TIF was utilized to support expansion of UNUM offices and to build a 1,200 space parking garage. 6. Waterfront TIF (Economic Development TIF) Duration as originally approved March 18, 2002: 10 year term (FY03 to FY12) Duration Extended as of June 7, 2010 for a 30-year term: FY03 to FY32 Percentage: 100% TIF capture. Annually, the City Council has adjusted this TIF capture rate to place a portion of the property tax revenue in the City General Fund. Location: Selected waterfront properties. This is a municipal TIF to be used for waterfront projects. 6a. Waterfront Maine LP (Cumberland Cold Storage Building) on Commercial Street (Economic Development TIF) Duration: 20-year term (FY12 through FY31) Percentage: 63% years 1 through 5; 64% years 6 through 10; 55% years 7 through 15; 45% years 16 and 17; 40% years 18 and 19; and, 35% year 20 – with a maximum cumulative TIF payment numeric cap not to exceed $2,870,058. Location: 252 Commercial Street on the Portland waterfront. The City entered into the TIF in order to support the renovation of the Cumberland Cold Storage building into a Class A office building, with continued marine uses on the first floor and berthing according to zoning regulations. The reuse of this building will accommodate the relocation of Pierce Atwood, bringing its 175 employees to the Portland waterfront. Page 2 of 8 a/o 6/30/2018 22 of 30 7. Bayside TIF (Economic Development TIF) Duration: 30 year term (FY04 through FY33) Percentages: 100% TIF capture. Annually, the City Council has adjusted this TIF capture rate to place property tax revenue in the City General Fund. The geographic area of this TIF District was expanded by City Council vote on November 17, 2014, expanding it from 62 acres, to 129 acres, to align with the area of Bayside contained in the Bayside Vision Plans I and II. This is a municipal TIF to be used for public infrastructure improvements, relocation of the one remaining scrap metal recycling facility and acquisition of the scrap metal yard site, business recruitment marketing for the Bayside area, pledging TIF revenue as a repayment source to HUD or any other agency or entity that finances Bayside investment, and administrative and staff costs for the Economic Development Department. Investments from this TIF also include two Credit Enhancement Agreements (CEA’s) with the following: 7a. Capital LLC (Intermed Building) on Marginal Way (Economic Development TIF) Duration: 15 year term (FY09 through FY23) Percentage: 100% to return, to Developer, to an annual maximum cap of $355,000 and annual debt service threshold test. Location: Bayside next to I-295 The City entered into the CEA in order to assist with the development of a parking structure in connection with the office building. 7b. Southern Maine Student Housing on Marginal Way (Economic Development TIF) Duration: 11 year term (FY08 through FY18) (Expired FY18) Percentage: 100% to return, to Developer, to a maximum annual cap of $120,000 and annual debt services threshold test. Location: Bayside next to I-295 The City entered into the CEA in order to assist with the development of a parking structure in connection with the student housing development. 8. Riverwalk/Ocean Gateway (Economic Development TIF) Duration: 13 year term (FY07 through FY19) Percentages: Formula based percentages in Credit Enhancement Agreement Location: Hancock and Fore Street area Page 3 of 8 a/o 6/30/2018 23 of 30 The TIF was entered into to assist with the construction of a parking structure for the development plan for the area adjacent to Hancock Street. 9. Avesta/Pearl Place (Affordable Housing TIF) Duration: 30 year term (FY08 through FY37) Percentages: Various percentages captured value to return to Developer based on Maine State Housing Authority Certificate of Approval, to a maximum of $22,000 annual cap. Location: Oxford and Pearl Streets This TIF is an affordable housing TIF to assist in the creation of affordable housing in the City’s Bayside area along Oxford and Pearl Streets. 10. Creative Portland Development and Arts (Economic Development TIF) NOTE: This area wide TIF District was reduced/renamed by the City Council on February 19, 2015, reducing the geography to just the Baxter Library property (see #10a below), and renaming it the Baxter Library TIF District with the term ending FY19; this will take effect with FY16). Original Duration: 15-year term (FY10 through FY24); Term amended as noted above to end FY19. Original Percentages: 100% capture; annually, the City Council may adjust this TIF capture rate to place property tax revenue in the City General Fund; Percentage amended to reflect the 65% capture for the Baxter Library project. Original Location: Multiple properties included in the Downtown Area; Location amended as noted above to be only the Baxter Library property. This TIF was originally created to assist in maintaining the creative economy businesses through the creation of the Creative Portland Corporation and TIF funds to assist in funding its administrative personnel and program of activities up to a maximum of $100,000 annually. This element of the original TIF District is now included in the recently created Downtown Transit Oriented Development (TOD) TIF District – See Item #18 below. 10a. Baxter Library LP at 621 Congress Street (Economic Development TIF) Duration: 9-year term (FY11 through FY19) Percentage: Lesser of annual 65% to return to Developer or amount necessary to service project debt. Adjustments to annual payment if project refinancing occurs. Location: 621 Congress Street The City entered into the CEA in order to assist with the reuse, redevelopment, and preservation of a hallmark downtown building built in 1888, where adaptive reuse of this former library is challenging and expensive. This Project added $2.5 Million in new municipal assessed commercial valuation and generate an average of $14,000 annually, in funds, to support the Creative Economy TIF Program or Page 4 of 8 a/o 6/30/2018 24 of 30  the City’s General Fund as directed by the City Council. The reuse of this building will accommodate the relocation of the VIA Group, bringing its 64 employees to this upper area of downtown Portland. 11. McAuley Place (Economic Development TIF) Duration: 30 year term (FY10 through FY39) Percentages: 60% to Recipient; 40% to City General Fund. Location: 605 Stevens Avenue This TIF was created to assist in the renovation of the former Mother House/Convent (built over 100 years ago) on Stevens Avenue into a market rate independent senior living community, including 45 to 50 apartments in the renovated Convent; 25 to 30 apartments (new construction) in an addition to the Convent; and, 36 units (new construction) located in three townhouse/cottages adjacent to the Convent. 12. PowerPay/Portland Public Market (Economic Development TIF) Duration: 30 year term (FY11 through FY40) Percentages: Years 1 through 8 – 75% to Developer, 25% to City General Fund; Years 9 through 30 – 50% to Developer, 50% to City General Fund. Location: 25 Preble Street This TIF district was created to support the retention and expansion of PowerPay along with redeveloping an important asset in Portland’s Downtown that was formerly known as the Portland Public Market. Because of the complex renovation issues and the high cost associated with redeveloping the Portland Public Market property, PowerPay requested TIF assistance to cover the Project financing gap. PowerPay renovated and moved its headquarters to this location with well over 150 employees. 13. Thompson’s Point Development Company, Inc. (Transit-Oriented TIF) Duration: 30 year term (FY15 through FY44). Percentages: Phase One of Project: Years 1 through 10 – 75% to Developer and 25% to City transit- oriented projects; years 11 through 15 – 60% to Developer, 25% to City transit-oriented projects, and 15% to City’s General Fund; years 16 through 20 – 50% to Developer, 25% to City transit-oriented projects, and 25% to City’s General Fund; years 21 through 30 – 40% to Developer, 25% to City transit-oriented projects, and 35% to City’s General Fund. Phases Two and Three of Project: Years 1 through 30 – 0% to Developer; 25% to City transit-oriented projects; 75% to City’s General Fund. Location: Thompson’s Point This Transit-Orient Development (TOD) Tax Increment Financing (TIF) District was created to support Thompson’s Point Development Company Inc.’s redevelopment of Page 5 of 8 a/o 6/30/2018 25 of 30 Thompson’s Point into the Forefront at Thompson’s Point. Additionally, the TOD will assist to expand and improve transit connections between Thompson’s Point and key commercial locations within Portland (i.e. Jetport, Portland Transportation Center and Portland’s Downtown) and around the region. Thompson’s Point consists of approximately 30 acres of real estate adjacent to the Portland Transportation Center that is home to the Northern New England Passenger Rail Authority, which runs the Amtrak Downeaster and Concord Trailways bus company. The Forefront at Thompson’s Point is a proposed mixed-use development that will transform a blighted and grossly underutilized 30-acre parcel located along Interstate 295 into a highly visible gateway destination event center that is expected to generate significant economic activity within the District and throughout Portland. The Company plans to redevelop Thompson’s Point in a manner that includes a substantial investment in public infrastructure, including construction of an above-ground parking garage with approximately 700 spaces, road extensions and widenings, rail crossings upgrade, utility investments, and expanded walking and biking trails. 14. The Village at Oceangate, LLC (Bay House) (Economic Development TIF) This TIF was terminated by the City Council on November 3, 2014 due to the conversion of market rate apartments into condominiums which is not allowable use of TIF funds. Duration: 11 year term (FY14 through FY25) Percentages: Years 1 through 5 – 75% to Developer, 25% to City General Fund; Years 6 through 10 - 65% to Developer, 35% to City General Fund. Total revenue to developer is capped at $647,971 over the term of the District. Location: Hancock Street, between Newbury and Middle Streets. This TIF district was created to support the development of The Bay House Project. The Project includes the construction of two new buildings that will contain ninety-four (94) market rate apartments, a parking garage, and approximately 5,700 square feet of commercial retail space. Use of TIF proceeds is directed to support public infrastructure investments. 15. Fore India Middle, LLC (former Jordan’s Meat Site) (Economic Development TIF) This TIF was terminated by the City Council on November 3, 2014 due to the project not coming to fruition. Duration: 4 year term (FY14 through FY17) Percentages: Years 1 and 2 – 50% to Developer, 10% to City TIF Project; 40% to City General Fund; Year 3 - 40% to Developer, 10% to City TIF Project; 50% to City General Fund; Year 4 – 40% to Developer, 60% to City General Fund. Total revenue to developer is capped at $650,000 over the term of the District. Location: Portion of block surrounded by Fore, India, and Middle Streets. Page 6 of 8 a/o 6/30/2018 26 of 30 This TIF district was created to support the development of a portion of the former Jordan’s Meats site. This development project includes a five-story, approximately 180,000 sf. of mixed-use consisting of 12,300 sf. of retail space on Middle Street, 9,800 sf. of retail space on Fore Street, three levels of office space comprising 63,900 sf. on Middle Street, and 18 residential condominium units along Fore Street and India Street. In addition, there will be two "internal" parking garages behind the retail spaces (not visible from the street), one 110-space garage at the Fore Street level, and another 63-space garage one story above at the Middle Street Level. The Developer expects to have an urban grocery on Middle Street with a variety of produce, meats, food, and household items, with an emphasis on natural, organic and healthy items. The other retail users and the office users have not been identified yet. Use of TIF proceeds is directed to support public infrastructure investments. 16. 409 Cumberland Avenue (Affordable Housing TIF) Duration: 22 year term (FY14 through FY35) Percentage: 50% to Developer; 50% to City Housing Affordable Housing Revolving Loan Fund Location: 409 Cumberland Avenue This Affordable Housing TIF District supports the development of 46 affordable units and 11 market rate units of rental housing. TIF revenues will be used by Developer to pay operating costs for the project; City TIF revenues will be used for the establishment of an affordable housing revolving loan fund. 17. 134 Washington Avenue (Affordable Housing TIF) Duration: 20 year term (FY15 through FY34) Percentages: 50% to Developer; 50% to City General Fund. This Affordable Housing TIF District supports the development of an 18-unit residential rental project. TIF revenues will be used by Developer to pay for operating costs for the project. 18. Downtown Transit Oriented Development (TOD) TIF (Economic Development TIF District) Duration: 30 year term (FY16 through FY45) Percentages: 12% Year One; 22% years 2 through 30; 88% to General Fund Year One; 78% to General Fund Years Two through Thirty. This Downtown TOD TIF will support various municipal and other development projects, including sidewalk and pedestrian enhancements, streetscape, lighting, yearly funding of up to $100,000 for Creative Portland to assist in funding its administrative personnel and program of activities (see Item #10 above), street alignment, utilities, bicycle improvements, public transit, wayfinding, and administrative and staff costs for the Economic Development Department. Page 7 of 8 a/o 6/30/2018 27 of 30 19. 17 Carleton Street (Affordable Housing TIF) Duration: 22 year term (FY16 through FY37) Percentages: Years 1 and 2: 0% to Developer; 100% to City. Years 3 through 22: 65% to Developer; 35% to City General Fund. This Affordable Housing TIF District supports the development of a 37-unit residential rental project. TIF revenues will be used by Developer to pay for operating costs for the project. 20. ImmuCell (Economic Development TIF) Duration: 12 year term (FY18 through FY29) Percentages: Years 1 through 11: 65% to Developer, 35% to City General Fund; Year 12: 30% to Developer, 70% to General Fund. This Economic Development TIF supports ImmuCell Corporation’s expansion from its existing facility at 56 Evergreen Drive to a new two-story, 12,625 sq. ft. (est.) production facility on Caddie Lane off of Riverside Street. ImmuCell Corporation is a growing animal health company that develops, manufactures, and sells products that improve animal health and productivity in the dairy and beef industry. Over the last nearly 16 years, the Company has invested in excess of $11 Million in the R&D of a product that addresses mastitis, the most significant cause of economic loss to the dairy industry. This lead product in development is Mast Out, a novel, ground-breaking treatment for mastitis in lactating dairy cows. Completion of construction of this new facility is expected in 2017. 21. Deering Place (Affordable Housing TIF) Duration: 30 year term (FY19 through FY48) Percentages: 75% to Developer, 25% to City General Fund for 30 year term. This Affordable Housing TIF District supports the development of 75 units of residential rental housing. TIF revenues will be used by Developer to pay for operating costs for the project. 22. 58 Boyd Street (Affordable Housing TIF) Duration: 30 year term (FY19 through FY48) Percentages: 50% to Developer, 50% to City General Fund for 30 year term. This Affordable Housing TIF District supports the development of a 55 unit, mixed income, multi-family rental apartment building. TIF revenues will be used by Developer to pay for operating costs for the project. Page 8 of 8 a/o 6/30/2018 28 of 30  PLO WMAN ST EA S TE RN P RO R M NO EN AD TH E ST 5 Tax Increment Financing I - 29 ON ST ER S L AN D TR EA ST N E ST O N ST Districts on Peninsula T M UR NU EL T WAL W BO DS IL M ST UL LI EM GO S NE R ST ER R M May 2018 T SO TU O CU S N R VE NI TT CO M O ST N HA M EC G ER VE ST ST ST O ND ST T ST M A NS IT M EC ER HO WH R W UE IL B MARGINA E L AR Legend SH Q L ST D VE RID ST S YE PE WAY FA R AN LA Deering Place AH TT ST ST ST E BE R C DY ST NO ST KE O EXIT 7 N TH T O IN IO T M 58 Boyd St AH W AR ST ST M TH M O R DI N RO ST NI P CT N 17 Carleton St AH AM G R S M G O E ST M NE ES UN ST ST RD RE R N D ND T ST SU G ST JO NL E N Y SO EL ST ET CO NT ST W Bramhall/Holt Hall RF I D ER AF M IL LN R ST EV ST RO NU DE E X ST ST E ME NS E D D N AS C EA R FO O G RO MO EN 409 Cumberland Ave Affordable Housing FO E AN IS N O PL HA O AD E M AD E O NS 'B ER RE R M RE NO R M M LN O S T BE L M R DE N NC E IO CT LE N PR O AV E RA S TH SO ST E AV E RE LN N AF ST ST 134 Washington Ave Affordable Housing G BO T ER N RO RD D RN ST S O ST AN LAW RT S TE YD M O L AT D PREBLE ST EXT CA XF W ST BE L EA R FR ST RK N O T BE AT AN S LA E R E LN G Baxter Library IC KL PA E M IN SC M IL TI C K RV AN Y HA SH IL W IN D ST RA WA CU LE TS ST FE Y NE CL E ING HO ST ST ST N BA N O RD GT Y LA Bayside TIF ST KE EV W K SI DE O XF S ES KE L RE E AVE LO NC E BA N VD TER RS ST ON SH GG ST Downtown TOD BL DE PO E ST R AN NC RI TE D X ON E SM DU AN BA IT ST ST ST H RH Pearl Place AM M S ST ST O AD A M ST N M TG M OU O O NTF O Power Pay AY M RT ST ST PE ST ER T L Y SE AR S BO T FR ER Riverwalk ST M KL YD SO AN ST FR I IN Waterfront ST KL ST LO E RD AN C FO N L ST D EXIT 6A US RA BE IL ST T DE EXIT 6B W ST FE Waterfront Capital Improment ST M ER O T IN T D RR AS ST E IA O SU C AV NC Waterfront Capital Impro AY N ST HA W LA D FO N DE AL LA CK RE EN IN R HA ST E N G CH BE M ST AV M ST AR AP PS IN 5 M E CU LA 29 CT L HI R ST R I- L E BE L ST O ST FR ST RY AM HA N A BU E E NK L W CH IN NE AV ST ST N CH S ST FR UR T A NK ST HB EC ST ES R ES L IN E KE NNEB N DL W AS ST UT M N G ST ID D C YR M ST R CO IN O E D ST TL D XF A E IA ES O R S ST S ST ST AM RE TE R T TH FO C AS ALD LAN ER EL M W ST VE ST G TA V ST ST A RE NO AL W CH R D FR FO ST HA ER UR E AL IS PR D ST CH N AN RR FE RY KL RC I LN PA S LE BU ST IN TL ER EB W AT ST T M ST ME BR ST AR NE K CO ES TE EX C ET M STAT E T ST M HA E ST ND PL N ST PO RT LA E G DL ST E M ID ST E ST XT PE E ST A R K AV K RL PA IL CU M ST ST I BR SI O AN O LN LV M CH W R E N R HO ME E C S Y ST CA ST ST US O ST E CA CR AL E ST CO N X LD ST AV LA SS FO O D ST S T G L AN N PATT R EY ST BE PL IO ON M ST M O E UN OU MA N CU CT AK SH N ST TE SH E R RE LTO STA AN ST ST ST FO NA N NT S T D TO E PO GRA E T U CT DA ST L ST DE LM R PL RT L " M FR T T TA S ST CT AN S CO ST D FO N G A RF AN Y R PL IN TO WE ST RE S R N WH PI ONM T BO ER NT SP E ST OY T HI L AV NT OU E E O CE O H N D AV PL AK R CR B ER LA AV ON ST ST CU M ST SS AV ON ST SO S G ST T RIN UT G ST H ST DE E DE ERIN ST LS CR E S RT H HI C EN O AV E G ER T SBTR H C IA WES EL AM HE NR Y ST APPENDIX C LS IN G PL W HA CO CO L L ST DE ER ST MM D O T ST TT HI L L PL AN ST S AV ON ST AK AS RT S TT AN ST E H L R VE RNON ST PL M PL MELLEN AP DA EL ILL CO L SS N GR DE ERIN DOUG PL S ST E NF O ESS SP ST MA ST CH RU ST B R ID R AR CM CO NG RE S IN T GE GS LN PA G LE LAS LN R K ST M S LS ET O AP ST N ST PL L TR O E T W NE A S ST CA R PL LL BR A L R TO N HA CK E HO M T T ST S CT ST A DOW ST BR T ST H WALKER ST ING HI YO RK G SP R HI G H ST HOULTO ST W E MARSHALL ST IN PI N PL TE PL ST N ST R ST N WEST ST JO Y O CTNY T AT E LS T N CT ST R RC TS IA O RD ST FO ME E ST ST GU CO RT IL YO PA R M LE W BR ST H RK K A ST ST WESTERN PROMENA DE IS CK DA AT S E GR NF E T TT AY O ST PINE ST ST CT ST AN OT M SH CU DE RM NEAL ST TY N THOMAS ST G ST CL ST VAUGHAN ST E A CT CHADWICK ST UC RK TA R N TE SP ST LI ST HA CARROLL ST M ST G ST R IN SP EM SA ST 29 of 30 DA Y L MA NF O ER ST OR ST BR RT M YL IG H TA G PL SU M S O ST HO ST SC RD LS BOWDOIN ST FO ST T ST IF ST O CL ND CH RE AN BO R OR ST BE A ST GE L EM EM SA ST ER Y ST CA HA RD ST FLET CH ER ST O MM E RC IA L ST SC O BAY B ³  Appendix D FYE2018 Report FY 18 Tax Rate: 0.02165 TIF Name Starts/ TIF PLAN TOTAL ORIGINAL Increased PERCENT Total Cpt. PROCEEDS City TIF City General Fund (OAV and Non- Captured Taxes SITE Specific with CEA: Ends-FY TERM YEAR ASSESSED ASSESSED Assessed value APPLIED Value TO OWNER Funds from IAV) HOLT HALL 00/19 20 YEARS 19 4,956,760 349,110 4,607,650 67% 3,070,538 66,477 0 40,837 - FY18 Taxes 107,314 7,558 99,756 66,477 Baxter Library (f/k/a Arts) 11/19 9 YEARS 8 2,502,600 0 2,502,600 65% 1,626,690 35,218 0 18,963 - FY18 Taxes 54,181 0 54,181 35,218 AVESTA/Pearl Place 08/37 30 YEARS 11 3,578,360 646,050 2,932,310 34% 996,985 21,585 0 55,887 - FY18 Taxes 77,471 13,987 63,485 21,585 OCEAN GATEWAY/Riverwalk 07/19 13 YEARS 12 22,448,600 1,085,550 21,363,050 33% 7,105,350 153,814 0 332,198 - FY18 Taxes 486,012 23,502 462,510 153,831 PowerPay/Ptld Pub Mkt 11/40 30 YEARS 8 6,259,500 1,862,600 4,396,900 75% 3,297,675 71,395 0 64,124 - FY18 Taxes 135,518 40,325 95,193 71,395 McAuley 10/39 30 YEARS 9 1,345,700 0 1,345,700 60% 807,420 17,481 0 11,654 - FY18 Taxes 29,134 29,134 17,481 Thompson's Point TOD 15/44 30 YEARS 4 10,298,470 4,970,470 5,328,000 100% 5,328,000 86,513 28,838 107,611 - FY18 Taxes 222,962 107,611 115,351 115,351 409 Cumberland Ave. AH 14/35 22 YEARS 5 3,717,960 470,200 3,247,760 100% 3,247,760 35,157 35,157 10,180 - FY18 Taxes 80,494 10,180 70,314 70,314 134 Washington Ave. AH 15/34 20 YEARS 4 1,079,400 155,600 923,800 50% 461,900 10,000 0 13,369 - FY18 Taxes 23,369 3,369 20,000 10,000 17 Carleton St. AH 16/37 22 YEARS 3 757,500 261,600 495,900 65% 322,335 6,979 0 9,421 - FY18 Taxes 16,400 5,664 10,736 6,979 ImmuCell 18/29 12 YEARS 1 1,651,100 52,600 1,598,500 65% 1,039,025 22,495 0 13,251 - FY18 Taxes 35,746 1,139 34,608 22,495 Area-Wide TIFs, with CEA BAYSIDE 04/33 30 YEARS 15 204,355,870 122,318,180 82,037,690 58% 47,803,362 463,312 571,631 3,389,362 FY18 Taxes 4,424,305 2,648,189 1,034,943 - CEA/Atlantic Bayside Trust 09/23 15 YEARS 10 31,005,420 0 31,005,420 Formula 355,000 - CEA/Blue Atlantic 08/18 11 YEARS 11 16,248,030 0 16,312,380 Formula 108,312 WATERFRONT 03/32 30 YEARS 16 42,287,660 7,667,340 34,620,320 66% 23,015,589 197,259 301,028 417,240 FY18 Taxes 915,528 165,998 498,287 - CEA/Waterfront Maine 12/31 20 YEARS 7 15,187,300 950,930 14,236,370 64% 9,111,277 197,259 DOWNTOWN TOD TIF 16/45 30 YEARS 3 1,094,825,490 968,136,850 126,688,640 22% 27,871,501 603,418 23,099,554 FY18 Taxes 23,702,972 20,960,163 2,742,809 603,418 Total Value: 1,400,064,970 1,107,976,150 292,088,820 125,994,130 Total Taxes: 30,311,407 23,987,684 6,323,723 2,727,773 1,187,684 1,540,072 27,583,651 30 of 30 FYE2018