Tax increment financing districts, or TIF districts, in connection with Cabela’s developments are not uncommon.
In Hooksett, N.H., where the town is currently working with Cabela’s, 52 percent of the voters approved an $18 million TIF – twice the amount of Scarborough’s, said Town Administrator David Jodoin.
When Cabela’s first approached the town, said Jodoin, the company asked for a $10 million TIF. It was the town’s decision, he added, to up the amount.
Included in the TIF are sewer upgrades, road improvements and repairs to a historical bridge that otherwise would have been separate bond issues, said Jodoin.
In East Hartford, Conn., Mayor Melody Currey said the city will provide a $6.7 million tax abatement over seven years for Cabela’s, waiving the store’s property taxes at $1 million a year. The state of Connecticut will also provide a $9.95 million TIF for the store.
“Cabela’s is doing quite well,” said Currey. “We’re at a point in time where to bring business to the table – especially out-of-state business – we’ve got to put out the carrot.”
But as long as the town is making more money in the long run, said Currey, it’s worth it.
“Personally, though,” added Currey, “I’d like to shoot whoever started TIFs. It’s public money we’re doing this with.” The competition between towns to attract businesses with bigger and better TIFs, she added, isn’t always the best deal for the towns.
With Scarborough, said Rosenfeld, the town is coming out on top.
“It’s really a partnership between the town and a developer,” said Rosenfeld. “The costs are really high, but the benefits are large. This is a big project for Scarborough and the state of Maine.”
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