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V O L . X X V N O. V I I I A P R I L 1 5 , 2 0 1 9 20 R E A L E S TAT E / C O N S T R U C T I O N / D E S I G N F O C U S Referring to those tools as a "capital stack," Mattson explains the example above broadly illustrates how Dirigo Capital and its partner, Capital Area Properties of Gardiner, built the financ- ing they needed for the redevelopment of a former Odd Fellows Hall at 333-339 Water St. in Augusta. e space will be used for retail and residential use. "It's not usually just one incentive," says Mattson. "I look at it like an onion. You have to have many layers to make it work economically." ere's also simple arithmetic involved. e project must generate enough return to make the investment attractive to financial institutions. "If you're trying to do a project in Aroostook County, it's the same cost to build as in Portland, but the rate of return you get, say, from rents, is much lower," says Mattson. "To offset that, you add in Tax Increment Financing, historic tax credits and in some cases low-income housing credits. Sometimes developers will layer on four or five pro- grams to make the numbers work." Transforming communities e Maine State Rehabilitation Tax Credit and the federal historic pres- ervation tax incentive have been two of Maine's most successful tools for fostering redevelopment. Greg Paxton, executive director of Maine Preservation in Yarmouth, says he's seen the programs help transform dilapidated communities. "From a real estate perspective, these are often the buildings people » C O N T I N U E D F RO M P R E V I O U S PA G E As two busy professionals, travel is often on the agenda for the Ismails. They rely on Bangor International Airport for convenient schedules, ample on-airport parking and friendly people. Like them, you can make your travel a top-rated experience. Learn more at FlyBangor.com. Kirsten & Scott Ismail, Hampden "We rate Bangor International Airport a 5-star experience." ALLEGIANT • AMERICAN • DELTA • UNITED Non-stop flights to major hub cities with connections to the world. BGR_MaineBiz_Testimonials.indd 2 4/4/19 10:09 AM Our focused teams put you first Perkins Thompson's Real Estate practice group handles all phases of real estate acquisition, development, leases, and sales. Let our experience and perspective simplify your commercial real estate transactions. Portland | Biddeford perkinsthompson.com Real Estate 20251422 PT_3/8.ad3.indd 1 3/11/19 8:28 AM Kevin Bunker, founding principal of Developers Collaborative, inside the Motherhouse at Baxter Woods in Portland.

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