A special town meeting in Naples on Monday, Feb. 25, could lead to the use of future property tax increases to pay for civic improvements.

The meeting is intended to get support for an application for tax increment finance zones along the Naples Causeway area, as well as the Route 302 corridor which lies beyond the Causeway area, closer to Route 35.

The projected revenue the town stands to earn by creating these zones is $5.4 million in the Route 302 corridor area, and $2.2 million in the Causeway area, over the next 25 years.

Barbara Clark, president of the Naples Main Street organization, said tax increment finance zones are important to a town like Naples, which thrives on seasonal tourism.

“You want your downtown area to be a place where people come and congregate,” said Clark, who thinks improving the look of the Causeway area would cause tourism to grow.

“How can we survive if we don’t have people who spend money so we can keep going,” said Clark.

The Naples Selectboard met a couple of weeks ago to discuss an application for a 25-year tax increment finance zone application.

If approved by Naples residents, the application will be submitted to the Department of Economic and Community Development for the state of Maine. Norton said the state will approve the application if it meets all the required guidelines.

Confusion about the purpose of tax increment finance zones, as well as the risks involved, are obstacles to getting town approval of the application.

Tax increment finance zones are created to hold money from future residential and residential property tax increases above the current value. Money in the fund can then be used to pay for projects within the zone.

“It’s a way for the town to accomplish what it wants to accomplish, and avoid the negative impacts of the tax shift,” said Noreen Norton, an economic development consultant with Eaton Peabody Consulting in Augusta, who is working with town officials on the tax increment finance zones.

Those projects may include anything from widening sidewalks in the causeway area, to the installation of flower boxes, or even the purchase of new fire safety equipment, if new business development made it necessary.

“The (tax increment finance plan) we’ve come up with allows for a huge amount of flexibility,” said Norton.

Norton was careful to point out that property in all areas of town will be assessed equally, and the mil rate will remain the same for those properties in the tax increment finance zones. Taxpayers throughout Naples stand to gain from the creation of these zones, because when Cumberland County calculates Naples’ tax bill, the appreciated values in those zones are not considered, which keeps taxes lower than they would be if no zones existed.

New fencing, flower boxes, and possibly a town clock are among projects Naples Main Street is trying to accomplish. Although private donations are helping the organization gain momentum, the creation of tax increment finance zones would provide additional aid in revitalizing the downtown area, said Clark.

“It’s exciting for us, because if we get this, there are a lot of areas we can upgrade to help the community, and entice businesses to open in the area, seasonably and year ’round,” said Clark. At present, Clark estimated there are 30 to 40 businesses in the causeway area, in addition to several homes.

Town Manager Derik Goodine said he is hoping residents will turn out to support the select board at the special town meeting, and he is encouraged because he is not heard any negative feedback regarding the application.

But that could change. Norton said uncertainty about the economy may cause some residents to be wary of relying on projected tax revenues for the funding of projects. Eaton Peabody has done projections for property value appreciation over the next two decades for the proposed tax increment finance zones in Naples, and revenue streams should be steady.

“We believe we’ve been conservative, but the market could change,” said Norton.

However, Norton added that it would be very unlikely for property values in those areas of Naples to depreciate in the coming years.

Goodine said that Naples properties are appreciating at a much faster rate than other communities throughout Maine. Because of this, the state has been taking away education subsidies from the town, which affects Maine School Administrative District 61. Tax increment finance zones would allow Naples to keep more education subsidies, because the valuation of the town would not increase so rapidly, due to sheltered property values.

“I believe it’s the right thing to do, and it’s the right time to do it…it will give us the money to achieve hopefully all of the goals of the downtown study we did in the early 90s,” said Goodine.