LIMESTONE, Maine – Limestone will hold a special town meeting Wednesday, Feb. 21 for residents to decide if they will allow tax incentive agreements between the town and developers looking to revitalize the former Loring Air Force Base.
In 2023, Portland-based Green 4 Maine purchased 450 acres of the former base from Loring Development Authority, making that land subject to taxation within the town for the first time. The ownership change helped Limestone’s mill rate drop from 28 mills to 22.69 mills later that year, the lowest tax rate since 2019.
After recent conflicts with Loring Development Authority, Limestone officials want a stronger say in what happens on Loring property and how the town could benefit. That’s why they are proposing that residents approve three tax increment financing districts, known as TIFs, for current and potentially future Green 4 Maine-owned land.
Maine’s Municipal Tax Increment Financing program allows municipalities to negotiate credit enhancement agreements with developers looking to construct or expand businesses. Per those agreements, developers receive a portion of their property’s increased tax value after they finish construction or expansion. Municipalities also receive a portion of the assessed value that elected officials determine and approve.
If approved, the TIF districts could create major economic and tax benefits for Limestone if major companies set up on Green 4 Maine property, said Alan Mulherin, interim town manager.
“The town’s total assessed tax value would increase and that would decrease the potential amount for the townspeople to contribute through taxation,” Mulherin said.
Limestone’s Select Board would vote on credit enhancement agreements with Green 4 Maine during a future meeting, according to the town’s warrant articles for the Feb. 21 town meeting. The Select Board scheduled both a public hearing and special town meeting at 6 p.m. that day.
For all three proposed TIF districts, at least 25 percent of property must be deemed suitable for industrial and commercial development, the total area of Green 4 Maine’s property must not exceed 2 percent of the town’s total acreage and the value of taxable property on Green 4 Maine land as of April 1, 2022 cannot exceed 5 percent of the town’s total taxable property.
The TIF designation must also result in long-term economic benefits, including employment opportunities and an increased tax base, said Interim Town Manager Alan Mulherin.
“If more developers come [to Green 4 Maine’s property], that would create more jobs for the region,” Mulherin said.
Green 4 Maine currently owns the land contained within the proposed TIF District 1 but not land within the proposed District 2 and 3. Limestone was able to create proposals for the District 2 and 3 TIFs because Green 4 Maine has the option to purchase those land parcels through an agreement with the authority, Mulherin said.
Multiple attempts to reach Green 4 Maine President Scott Hinkel were unsuccessful as of Monday.
The special public hearing and town meeting will begin at 6 p.m. Wednesday, Feb. 21 at the Limestone Community School auditorium. During the public hearing, residents can ask questions about the proposed TIF districts. The vote will be held after the public hearing has concluded, Mulherin said.
In other business at last week’s meeting, the Select Board approved a contract with CGIS, a Portland-based company that will create online GIS tax maps, replacing the town’s handwritten tax cards and maps.
Per the contract, CGIS owner Ray Corson will convert the handwritten maps to an online mapping system for an estimated $3,500 to $5,800, prepare the accompanying property tax data for an estimated $800 to $1,600 and be the town’s GIS mapping server for an estimated yearly cost of $1,500 to $2,100.
Highway Foreman Spencer Keiser said that his department expects to receive their new plow truck by Thanksgiving or Christmas this year. The Select Board approved purchasing a 2025 International HX 520 plow truck from Hermon-based Daigle & Houghton for $259,000 in January.
The Select Board approved an agreement with the New Brunswick Energy Marketing Corporation to sell the town’s renewable energy credits generated from its two solar fields at Loring Commerce Center. The town will receive $11,581 per credit, based on $37 per renewable energy credit, to put into a maintenance account for the solar arrays.
Mulherin told board members that the town has paid a $356 penalty to the Internal Revenue Service that allegedly came from July 14, 2023 payroll records that were not submitted for Limestone Community School.
On Thursday, School Business Manager Chris Kilcollins said school leaders will work with the town to determine who will be responsible for reimbursing the $7,138 in payroll taxes that the IRS claimed was not filed on time.
