Re-Visioning Falmouth Route One: Financing Public-Private Stormwater Management through Creative Collaboration Theo Holtwijk Town of Falmouth Zach Henderson Woodard & Curran Maine Stormwater Conference - 2013
Re-visioning Route 1 Falmouth, ME The future of Route 1 in Falmouth, ME has been discussed since 2002. Key Considerations: Zoning Infrastructure o Traffic o Utilities, incl. stormwater management o Streetscape/Landscaping February 2012: Maine Competitive Coastal Grant Program Stormwater Management Plan Development
Stormwater Planning Outcomes 1) CLARIFY LINKAGE of public and private stormwater infrastructure. 2) EVALUATE IMPACT of growth on infrastructure capacity and stormwater quality. 3) IDENTIFY OPPORTUNITES for shared runoff management across public and private property for improved quality and quantity management. 4) Outline a roadmap to better water quality in Mill Creek, Mussel Cove and Casco Bay.
Route 1 Commercial District Falmouth Webes Creek Watershed
Catchment Boundaries
Existing SW Management
Comprehensive Drainage System and SW Control System Overview
Public and Private Mngt. Opportunities
Priority Drainage Infrastructure
Route One - 2013 Action Private Property Public Property January Stormwater Management Plan January Concept Infrastructure Plan May Council approves Zoning Amendments June Voters approve Infrastructure Plan Funding December Bid documents Infrastructure Plan
Route One Infrastructure Plan Combine various already planned improvements into a single construction project Incorporate public components of Commercial District Stormwater project Plan includes streetscape, traffic management, and utility needs Concept Plan: TY Lin-Woodard & Curran- MRLD Team
Scope (and Cost) of the Plan $6 MM Plan included $1.2 MM for stormwater capacity and quality improvements
Scope (and Cost) of the Plan Include underground power and communication lines? Cost doubled cost from $6 MM to $12 MM Can the Town of Falmouth afford a $12 MM project?
Proposed Project Financing $12 MM project proposed to be 100% locallyfunded from Route One South Tax Increment Financing District (TIF) What is TIF? How does it work? Is there enough money to do entire project?
TIF 101: What is TIF? Tax Increment Financing = TIF State DECD program for municipalities Using new property taxes Resulting from new commercial investment Provides financial assistance Public and private projects Tool to stimulate local economic development
TIF 101: How does it work? Town to target and designate a specific geographic area for business growth ( TIF district ) Town to anticipate new private investment (i.e. tax revenues) in the district (immediate or over time)
Tax revenue example - Current Area = 10 acres Current value = $1,000,000 Mil rate = $13.43/$1,000 value Current taxes = $13,433
Example - Future TIF district = 10 acres Add new value = $10,000,000 Total value = $11,000,000 Mil rate = $13.43/$1,000 value New taxes = $147,763 Tax Gain ( Tax Increment ) = new taxes minus old taxes = $134,330 Great news, right? Well, not so quick!
Can Towns keep Tax Increment? NO, because the higher a community s property valuation is, the wealthier it is. Therefore, the less it receives from State of Maine and the more it pays to the County. Increases in property valuation result in: Less State aid for education Less municipal revenue sharing from State More County taxes paid Result: Significant downward fiscal impact
How large is this fiscal impact? Falmouth example (impacts differs per municipality) - $10 Million increase in property valuation Generates $134,330 in new taxes Fiscal effect is calculated to be $87,908 Net is only $46,392 (keep only 35%) TIF sheltering allows Town to set aside property value increases and retain 100% of new taxes But spending is limited to specific, eligible items
Eligible expenses Purpose = economic development 1. Pay off bonds issued by Town as part of an infrastructure project 2. Compensate investing business for a portion of its private development costs ( credit enhancement agreement or CEA) 3. Pay for eligible municipal economic development activities NO = schools, libraries, general Town government, etc.
Things to keep in mind TIF districts may be designated for up to 30 years Acreage and value limits apply Expenses can be for improvements outside District, as long as they are directly related physically or operationally - to the District TIF Districts require State approval
Falmouth TIF Districts
Property Valuation History Acres Base Value 2013 Value West Falmouth Crossing 60 $553,000 (1998) Route One North 252 $15 MM (2000) Route One South 142 $27 MM (2000) $47 MM $40 MM $91 MM
Examples of TIF Projects no stormwater
TIF Development Program Capital Expenditure Schedules Year Expense 2010 Lunt/Depot Rd Repaving $7,934 TIF Staff Time $30,986 Route 1 Sidewalk $4,092 GIS Maintenance $620 Total $43,632 2011 Falmouth Road $446,890 Carry over: Route 1 Sidewalk $254,240 Carry over: Route 1 Sidewalk $335,960 Carry over: Route 1 Sidewalk $317,800 Carry over: Village Pedestrian Access $325,414 Wayfinding / Signage $6,700 TIF Staff Time $31,916 GIS Maintenance $2,513 Total $1,721,432 2012 TIF Staff Time $32,873 Falmouth Road $223,110 GIS Maintenance $2,513 Traffic Islands $224,000 Total $482,496 2013 TIF Staff Time $33,860 Underground Utilities $500,000 Clearwater Drive "Gateway" upgrade $336,000 GIS Maintenance $2,513 Total $872,372 2014 TIF Staff Time $34,875 Underground Utilities $500,000 GIS Maintenance $2,513 Route 9/Bucknam Road Intersection $225,120 Total $762,508 2015 Underground Utilities $500,000 TIF Staff Time $35,922 Stormwater Management $40,200 GIS Maintenance $2,513 Total $578,634 2016 Underground Utilities $500,000 TIF Staff Time $36,999 GIS Maintenance $2,513 Total $539,512 2017 Bucknam Road $336,000 TIF Staff Time $38,109 GIS Maintenance $2,513 Total $376,622 2018 TIF Staff Time $39,253 Sidewalk Repair and Construction $167,500 Public Parking $280,000 Street Tree Planting $167,500 GIS Maintenance $2,513 Total $656,765 2019 TIF Staff Time $40,430 GIS Maintenance $2,513 Total $42,943 2020 TIF Staff Time $41,643 GIS Maintenance $2,513 Total $44,156 2021 TIF Staff Time $42,892 GIS Maintenance $2,513 Total $45,405
Finance Input Factors each Year REVENUES - 1. Increase in Overall Property Valuation 2. Increase in Captured Property Valuation 3. Tax Rate 4. Captured Tax Value EXPENSES - 1. TIF Project List/Capital Expenditure Schedule 2. Debt Service Schedule
Keep positive balance each Year Beginning TIF Balance REVENUES Add Funds from Bond Issuance Additional TIF Taxes Subtotal EXPENSES Cost of Project TIF Project Expenses per TIF Development Plan Debt Service Route South Bond Subtotal Ending Balance
Financial Plan through 2030 Falmouth Route 1 South TIF Updated 10/01/2013 Prepared:RGB Updated: TH 10/01/2013 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Beginning Balance 2,331,735 2,226,957 762,321 688,991 407,162 326,266 349,769 348,647 425,954 481,807 566,322 REVENUES Add Funds from Bond Issuance 9,400,000 Additional TIF Taxes 821,928 874,959 889,033 903,322 918,472 937,117 948,831 960,691 972,700 984,859 997,169 Subtotal 3,153,663 12,501,916 1,651,354 1,592,313 1,325,634 1,263,383 1,298,600 1,309,339 1,398,654 1,466,665 1,563,491 EXPENSES Cost of Project 11,700,000 TIF Project Expenses per TIF Development Plan 926,706 39,595 100,206 334,745 160,712 86,708 137,734 88,790 139,879 141,000 217,154 Debt Service Route South Bond - - 862,156 850,406 838,656 826,906 812,219 794,594 776,969 759,344 741,719 Subtotal 926,706 11,739,595 962,362 1,185,151 999,368 913,614 949,953 883,384 916,848 900,343 958,873 Ending Balance 2,226,957 762,321 688,991 407,162 326,266 349,769 348,647 425,954 481,807 566,322 604,618 Increase in valuation 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% Valuation 61,200,900 61,965,911 62,740,485 63,524,741 64,318,801 65,122,786 65,936,821 66,761,031 67,595,544 68,440,488 69,295,994 Tax Rate 13.43 14.12 14.17 14.22 14.28 14.39 14.39 14.39 14.39 14.39 14.39 Captured Value 821,928 874,959 889,033 903,322 918,472 937,117 948,831 960,691 972,700 984,859 997,169 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Beginning Balance 604,618 846,815 1,118,032 871,025 867,584 983,936 1,091,323 1,070,610 1,070,610 1,070,610 1,070,610 REVENUES Add Funds from Bond Issuance - - - - - - - - - - - Additional TIF Taxes 1,009,634 1,022,254 1,035,033 1,047,970 1,061,070 1,074,333 1,087,763 - - - - Subtotal 1,009,634 1,022,254 1,035,033 1,047,970 1,061,070 1,074,333 1,087,763 - - - - EXPENSES TIF Project Expenses per TIF Development Plan 43,344 44,569 593,930 383,130 298,468 344,197 509,225 - - - - Debt Service Route South Bond 724,094 706,469 688,109 668,281 646,250 622,750 599,250 - - - - Subtotal 767,437 751,037 1,282,040 1,051,411 944,718 966,947 1,108,475 - - - - Ending Balance 846,815 1,118,032 871,025 867,584 983,936 1,091,323 1,070,610 1,070,610 1,070,610 1,070,610 1,070,610 Increase in valuation 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% Valuation 70,162,194 71,039,221 71,927,212 72,826,302 73,736,631 74,658,338 75,591,568 Tax Rate 14.39 14.39 14.39 14.39 14.39 14.39 14.39 14.39 14.39 14.39 14.39 Captured Value 1,009,633.97 1,022,254.40 1,035,032.58 1,047,970.48 1,061,070.11 1,074,333.49 1,087,762.66 - - - -
Route One South TIF $2 MM for stormwater Expenses by category through 2030: Total debt service (principal and interest) $ 11,918,172 Stormwater retrofits $ 838,608 Frontage redevelopment $ 150,000 TIF staff $ 690,662 GIS $ 45,225 Intersection/road projects $ 2,542,496 Other $ 323,100 Total TIF expenses through 2030 $ 16,508,263
Managing Town Risk 1,200,000 Annual TIF Revenue vs. Annual Debt Service 1,000,000 800,000 600,000 Revenue Debt Service 400,000 200,000 -
So, what about stormwater work? Goal: Deal with capacity issues + provide treatment of stormwater runoff - Reviewed several options/alternatives Treatment: Selected a surface biofilter in Route One esplanade area - 16 Biofilters on Route One - 2 Treebox filters on Fundy and Depot Roads - Swale enhancements on Bucknam Road (with financial support from MDOT) Total treatment area: 5+ acres
Falmouth Shopping Center Vicinity
Sample Biofilter locations (Courtesy FST+TJDA)
Falmouth Shopping Center (Courtesy FST+TJDA) BEFORE
Falmouth Shopping Center (Courtesy FST+TJDA) AFTER
Esplanade Biofilter (Courtesy FST)
Next Steps for Town of Falmouth 1. Bring in Infrastructure Project on Time and on Budget 2. Use Stormwater Plan to: Explore retrofits/upgrades when other property driveway connections are considered Explore public-private stormwater retrofit opportunities on private properties Informed discussion with owners Pro-active management Especially when sites are redeveloped Encourage private retrofits with Town financial assistance How big a carrot? Update stormwater regulations in Zoning Ordinance Flexible permitting related to plan to produce better environment
Thank you Questions / Comments?