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W W W. M A I N E B I Z . B I Z 21 A P R I L 1 5 , 2 0 1 9 F O C U S 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 call eyesores," Paxton says. "Often these buildings not only look bad, they're hurting the real estate market around them. By being rehabilitated, and becoming landmarks in many cases, they're now helping the market, inspir- ing others to do similar projects and bringing in people to live and work." e state credits have been used on 95 rehabilitation projects since 2008, delivering $856 million in economic impact, 1,800 housing units and 9,820 new jobs. ey've also generated $99.3 million in tax revenue. "e simple fact is, without the tax credits, virtually none of the projects would have been done," says Paxton. Do credits detract from tax base? e crux of a longtime debate about economic development is whether developers are dipping into the tax base. Ultimately, incentives offer ways around paying taxes or reducing the tax burden. "But the projects are generating eco- nomic activity, they're generating prop- erty tax, and in commercial deals they generate payroll taxes that go with the jobs being introduced," Egan says. "Plus, many of these properties, like schools and churches, were never on the tax rolls. So there's a big boost to communities." In the case of historic tax credits, studies show increased property tax rev- enues generated by the historic projects exceed the annual cost of the program. "All taxes collected in 2016 at the state and local level exceed the amount of tax credits issued," says Paxton. "By 2022, all the money the state has invested in this program will have been paid back to the citizens of Maine by virtue of the increased taxes to be collected. For many of these buildings, the average property tax assessment increased by 350% as a result of these projects." "If you ask the top 10 housing developers in Maine if they could have redeveloped a mill, say, in Biddeford or Lewiston without the Maine historic tax credit, they would say 'No,'" says Mattson. "It's a game-changer." Combining programs Kevin Bunker, founder of Developers Collaborative in Portland, has used historic tax credits on numerous projects. He's also combined various programs. "I'm attracted to projects that are community-based and hard to figure out," says Bunker. "at sends me to use all these tools, to layer and stack them and make them interact properly with one another. at's a whole science." In 2012, Developers Collaborative combined federal New Markets Tax Credits and historic tax credits as part of its stack to purchase and redevelop the Lamb Block, a historic building in Livermore Falls redeveloped for mixed- use commercial space. New Markets Tax Credits allow investors to provide capital and in return claim federal tax credits for up to 39% of their investment. e credits offer a source of cheap or free equity develop- ers wouldn't otherwise have, allowing them to do projects that aren't otherwise financially feasible, Bunker says. www.bowmanconstructors.com 207.368.2405 info@bowmanconstructors.com YOUR COMMERCIAL BUILDING SOLUTION You have a vision You have worked hard to bring your business to this point and you are ready to grow. We have a plan With our exper se and decades of experience, we are ready to work with you and turn that vision into a reality. Together, we can Make it happen " The Bowman Team clearly felt developing a good working rela onship with the owner was as important as any other tool they had. " - Downeast Ins tute s e b a g o t e c h n i c s . c o m • s o u t h p o r t l a n d • 1 0 0 % e m p l o y e e - o w n e d SITE TO SUCCESS Civil Engineering Land Surveying Planning & Permitting Transportation/Traffic Engineering Landscape Architecture Commercial Land & Site Development High Definition Laser Scanning Environmental & Natural Resources GIS & CADD Services Sebago's employee-owners can assist in your project needs from surveying to construction and everything in between. C O N T I N U E D O N F O L L OW I N G PA G E » P H O T O / T I M G R E E N WAY

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