SHELBURNE — With at least three businesses that could potentially seek tax breaks on new building investments, the Finance Committee has asked the Board of Selectmen to consider forming a “TIF Evaluation Committee” to review all TIF applications and make recommendations to both the selectboard and to town meeting voters.
Last spring, the town approved a Tax Incentive Financing agreement for a Greenfield-based woodshop to build a new, larger facility on Main Street. This year, the owners of the former Sweetheart restaurant want to apply for a 10-year TIF agreement similar to the one approved for the woodshop.
Besides a prospective application for the Sweetheart, the owners of the former Singley’s Furniture Store property and of the former Swan Building site on Bridge Street are also considering business redevelopment of their respective village properties.
The economic target areas, according to the Finance Committee, would be industrial-zoned areas, the Route 2 corridor, and the village area between Route 2 and the Deerfield River.
The town’s economic development goals, in approving any tax incentive applications, would include improving the economic condition of the town; expanding employment, especially with high-paying jobs; complementing existing businesses and attracting new ones; increasing the tax base; encouraging redevelopment; or promoting regional collaboration.
Criteria would include job creation, the amount of capital investment, and type of business growth — including expansion of existing firms or new investment by firms outside the town. Industry sectors, with manufacturing, technology, research and development, and corporate offices would be a priority; retail, warehouses and distribution uses would be likely to receive less tax relief.
If this new board is formed, the TIF Evaluation Committee would evaluate a proposal. Then the TIF agreement must be approved by selectmen, by a town meeting and by the state’s Economic Assistance Coordinating Council, a board responsible for designating Economic Opportunity Areas.
Certified projects would extend from 5 to 15 years, depending on the number of jobs created and the size of new investment.
In preparing recommendations, the committee would meet with the applicant, review application materials, and request any additional information, if needed, that would help evaluate the proposal and its impact on the town. The Finance Committee recommends the new committee would consist of two Finance Committee members, one from the Board of Assessors, one from the Zoning Board, the town administrator and a resident.
Before the committee would consider a TIF application, the applicant would have to show that full taxes have been said on the property involved.
If the TIF Evaluation Committee and the Board of Selectmen disagreed on an application, they would meet to iron out their differences, or bring both decisions to town meeting voters and let them decide.
Selectmen are now reviewing the report and recommendations made by the Finance Committee.