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V O L . X X V I N O. X X I I S E P T E M B E R 2 1 , 2 0 2 0 8 B U S I N E S S M A I N E B U S I N E S S M A I N E B U S I N E S S N E W S F RO M A RO U N D T H E S TAT E Preservation tax credits have spurred $525 million in investment B y M a u r e e n M i l l i k e n Over the past four years, the state's Historic Preservation Tax Credit program has added $166 million to local property tax rolls, including $17 million in new property tax payments, bringing in more money that has been paid out, a new report says. The program, which the Legislature recently extended to 2025, has generated $3 million more in tax rev- enues than have been spent in state and federal tax credit since 2016, according to the Maine Historic Tax Credit Economic Impacts Report released by Maine Preservation, in partnership with Coastal Enterprises Inc., Greater Portland Landmarks, GrowSmart Maine and the Maine Real Estate & Developers Association. The study was done by economist Charles Lawton and public policy expert Frank O'Hara of Planning Decisions Inc. The credits have created hundreds of full-time jobs, generated millions in construction investment, thousands of units of affordable housing and had a ripple effect on downtown development, those involved in the report said. "This is exactly how we build our economy," said Greg Paxton, executive director of Maine Preservation. Elizabeth Frazier, a government relations attorney at Pierce Atwood, said that the program is "exceptional" in that fact that it is now generating more money than is spent on it, something that's not a stated goal of tax credit programs, which are designed to be incen- tives to development. The Maine State Rehabilitation Tax Credit allows 25% credit for any historic rehabilitation that also qualifies for the 20% federal credit. Projects are paid for up front and must meet benchmarks throughout the development to qualify for the credits, which are applied after a project is finished. Some 106 HTC projects have been completed in the state since 2009, and there are 59 now in the process, including 16 under construction. Investment, rehab, jobs numbers The report found that the 106 completed projects have: Generated $525 million in construction investment; Rehabilitated 3.6 million square feet of commercial and residential space; Created or preserved 1,911 housing units, of which nearly 1,300 were affordable; Generated 200 to 700 full-time-equivalent jobs through construction spending alone annually for the past decade; Nearly 700 full-time year-round jobs have been cre- ated by businesses occupying commercial space and in building maintenance, generating $13 mil- lion a year in income for local families; Added more than $166 million to local property tax rolls in communities where the projects, including $17 million in new property tax payments since 2010; Another $19 million in new income and sales tax revenues are estimated to have come into state coffers since 2008 because of HTC projects. A boost for small-scale developers The Maine credit includes an additional 5% if the proj- ect includes affordable housing. "That's exactly why CEI is a partner," said John Egan, CEI's chief invest- ment officer. He said the credits have generated 2,000 units of housing, 1,300 of those affordable housing. He said while large mill redevelopment projects, like those in Biddeford and Lewiston, are beneficial, it's the smaller "three-story, 50-feet-wide" redevelop- ments across the state that also make a difference. "We see it all across Maine," Egan said. The credit allows CEI to work with a diversity of small-scale devel- opers who otherwise wouldn't be able to afford a project, he said. Those credits often also leverage out-of-state invest- ment in Maine-owned projects, Paxton said. "The vast majority of projects are owned by Mainers." B R I E F P H O T O / M A U R E E N M I L L I K E N Maine's Historic Preservation Tax Credit program has added $166 million to local property tax rolls. This is exactly how we build our economy. — Greg Paxton Maine Preservation build awareness of the economic benefits and workforce opportuni- ties that travel and tourism create. Fogg resigned from the association last December and had recently worked as a tourism industry consultant. N O T E W O R T H Y C E N T R A L & W E S T E R N The Professional Logging Contractors of Maine in Augusta said it raised $27,643 for Children's Miracle Network Hospitals in Maine at its annual Log A Load for Maine Kids Southern Maine Golf Tournament held in Lovell. The University of Maine at Augusta announced that it was one of 26 schools across the country selected by the Federal Aviation Administration as a participant in the Unmanned Aircraft Systems-Collegiate Training Program. The program recognizes institutions that prepare students for careers in unmanned aircraft systems, commonly referred to as drones.

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