SACO — A tax increment financing district, requested by a developer who wants to put apartments in an empty mill building on Saco Island, has been altered by the city council.

Chinburg Properties of New Hampshire has proposed a rehabilitation project for a vacant mill building on Saco Island that is locally referred to as Building No. 4.

The building has been vacant for about 30 years, and developers say they need about $18 million to bring the project to fruition.

Chinburg Properties is seeking assistance from historic tax credits, and has also asked the city for a TIF district. The TIF would give a percentage of tax revenue back to the developer to help finance the redevelopment.

On Tuesday night, a public hearing regarding the TIF was continued from Monday of last week. Mayor Don Pilon said the hearing was suspended due to the late hour.

A handful of people spoke Tuesday night ”“ some for the project and some against it.

Beth Johnston, who is the mother of Councilor Nathan Johnston, said she would like to see “something good” happen to the building, but she didn’t think the proposal was the right project. She had concerns about traffic and the potentially high rental costs of the proposed apartments.

Local businessman Sam Zaitlin said the redevelopment of the building will be an asset to the community, and the TIF is necessary to make it happen.

“There’s a bright future. It’s in your hands,” he said.

The original terms of the proposed TIF would have 80 percent of tax revenue go back to the developer over a 30-year period, with a cap of $5 million.

The council approved a change in the proposal made by Councilor Kevin Roche. Roche proposed the TIF be changed so that the developer would get 80 percent of tax revenue for eight years, and then 60 percent for the remaining 22 years.

Because the terms of the proposal have changed, the council must hold another public hearing.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribunecom.