Tax Increment Financing (TIF) Policy

Introduction

The Town of Auburn's Tax Increment Financing (TIF) Policy was approved by the Board of Selectmen on October 26, 2020. The Program is a three-way partnership between the state, the Town, and the participating job creating business that can provide real estate and personal property tax exemptions. The program is utilized to increase commercial property values, retain existing businesses interested in expanding its operations; attract new business and private development to the city, and reduce the financial risk to ensure projects move forward and are successful. 

  1. Process
  2. Application Forms
  3. TIF Policy
  4. State EDIP Web Page

TIF projects require the review and approval of both local and state officials. In general, it is the intent of Town Administration to complete the whole approval process within 5-7 months from when the letter of intent and all necessary information is received from the applicant. Please keep in mind that this timeline can potentially be shortened or prolonged due to a number of factors. It is recommended that applicants keep Town Meeting deadlines in mind when looking to apply for a TIF. Additionally, the State has a number of deadlines for consideration. Below are approval process guidelines: 

1 An interested applicant shall contact the Town Manager and the Economic Development Coordinator to discuss the proposed project. In addition, for both local only and state tax credits the applicant should speak to the MOBD Regional Director. Correspondence between local officials, state officials and the business is essential for making sure TIFs are processed in a timely manner and to ensure applications are accurate.
2 After initial contact, the applicant shall submit a letter of intent to apply for state and/or local tax credits under the Economic Development Incentive Program. A copy of the letter should be sent to the MOBD Regional Director, the Town Manager, Economic Development Coordinator, and the Board of Selectmen.
3 Applicant shall provide the town the “Preliminary Application: Local TIF & State Investment Tax Credit Application” or the “Local-Incentive Only TIF Application” that can be found under the 'Applications' tab. Additionally, the applicant shall submit the “Town of Auburn TIF Application for Internal Review”. 
4 Following the submission of the letter of intent and all necessary applications, Town Administration will notify the Board of Selectmen within 30 days that the Town received a request for a Tax Increment Financing agreement. Town Administration will work with the proposed business to negotiate a proposed TIF agreement to recommend to the Board of Selectmen and Town Meeting.
5 Following the recommendation of Town Administration, the applicant will present the project to the Board of Selectmen at a scheduled public hearing. The Board of Selectmen will vote to endorse or reject the project. The Selectmen will also vote to authorize Town Administration to move forward with a warrant article for the next Town Meeting.
6 If the Board of Selectmen votes to bring the TIF agreement to Town Meeting, Town Administration will work on drafting a warrant article for the next Town Meeting. Town Administration will ensure that all necessary requirements are followed to schedule a Special or Annual Town Meeting.
7 Once Town Meeting is scheduled and the warrant is finalized, the project will go before Town Meeting Members who will vote to support or reject the TIF agreement.
8 Following a favorable Town Meeting vote and endorsement by the EACC, the applicant shall provide yearly updates, as required under the Economic Development Incentive Program, to the State and Town regarding the progress of the project, including job creation numbers.