With Mars Hill’s latest tax incentive project approved by the state government, local officials are looking to find a way to help bring new life to their downtown.
The town’s fourth tax increment financing project, involving a new potato storage facility built by the McCrum farm of County Super Spuds, was given the OK in early September by the Maine Department of Economic Development, according to Mars Hill town manager David Cyr.
The state’s 40-year-old tax increment financing (or TIF) program allows new business developments to reduce their local tax liability and local governments to garner investments in infrastructure or other priorities.
“This one is unique from the others in that the town splits the benefit 50/50,” said Cyr of the new TIF, which will funnel about $6,000 a year for 20 years to downtown revitalization efforts.
In the town’s three other TIF agreements, including for the Mars Hill wind farm and the Pineland Farms potato factory, the companies pay local taxes and then receive that amount back, Cyr said. The town’s overall valuation from the state government is unaffected, Cyr said.
“The TIF shelters the value of that property from the state general purpose and education aid and county valuations,” he said. “It does not adversely impact the mill rate.”
In the case of the Pineland factory, now owned by Bob Evans Foods, the TIF saves the company about $75,000 a year under a 20 year agreement, Cyr said.
The new TIF covers County Super Spuds’ new potato house, which is assessed at $725,000. Under the TIF the facility will save about $12,000 per year over a 20 year agreement, with $6,000 of that going to the town for revitalization.
“The town council has agreed to utilize the proceeds for downtown revitalization to perhaps create a number of things,” such as a revolving loan fund for small businesses, Cyr said. The next step in the process is for the town council and local public to “decide, what do we want downtown revitalization to look like?”
While Mars Hill’s Route 1 Main Street today is home to some vacant buildings, longtime townsfolk remember a bustling downtown that once served the needs of thousands of people.
“Forty years ago, almost every one of those buildings on Main Street had some kind of retail,” Cyr said, listing three grocery stores, clothing and jewelry stores, a hardware store and two auto dealerships.
“But the face of retail has changed. We’re going to try to be more creative,” Cyr said.
“For smaller businesses, it can be an important source of capital,” Cyr said of small business loan programs.
Aside from the TIF, downtown Mars Hill has seen several business projects in the last year.
In May, college student Dayna Collins started the Inside Scoops seasonal ice cream and snack stand near the town’s park on the Prestile Stream. Earlier this month, Michael Stiggle opened Timberwolves Restaurant in the former JJ Newberry building on Main Street and is hosting weekly live music events.
The town also is in store for a new gas station and convenience store. According to Cyr, the Brewer-based R.H. Foster company, which operates the Mars Hill One Stop, purchased the recently-closed Circle K gas station.
Cyr said the company is planning to close the One Stop gas station and store at the intersections of Route 1 and Route 1A, and open a larger On The Run convenience store and gas station at the former Circle K site.
