Approval of the Arundel Seasonal Cottages Tax Municipal Development and Tax Increment Financing District will result in major benefits to the Town of Arundel by creating new investment, diversifying the tax base, and adding employment that would otherwise not occur. Specifically, the TIF will result in:
New Investment: At full-build-out the development is estimated to be valued at more than $58 million.
New Revenues: An estimated $10 million in revenues to the Town of Arundel during a 25-year proposed Tax Increment Financing Plan. Of this amount an estimated $5 million will go to the Town’s General Fund and $5 million will go to the Town for use in infrastructure and economic development. This can include support for:
- Sanitary Sewer Construction Along Route 1: While it is designated as Arundel’s downtown area and is identified in the Town’s comprehensive plan as the prime location for commercial enterprise, there are tremendous environmental constraints on development. The domination of high water table soils in some areas with shallow to bedrock soils in others creates extremely limited options for septic systems without municipal sewer. The 2000, 2005, 2007 and 2014 Comprehensive Plans all stress the importance of extending sewer into Arundel on Route 1 to facilitate economic development without destabilizing the environment with insufficient septic treatment in the area.
- Route 1 Sidewalk: Construction of Sidewalk Along Route 1: This project is directly related to the development within the District and will support the area businesses by getting patrons residing within the Developer’s project to other area businesses.
- Revolving Business Loan and/or Grant Program: Funding of a revolving low interest loan and/or grant program to assist in façade renovation or landscape improvements, provide gap financing for equipment, funding for business development services or other economic development initiatives to be further developed by the Board of Selectmen.
- Economic Development Marketing Program: Programs that develop and disseminate marketing materials including brochures, website, media advertisements, and provide responses to site location requests.
- Economic Development Municipal Staff Time: Staff salaries or consulting fees associated with municipal implementation of economic development initiatives, including administering the marketing program, recruiting new businesses into the community, administering loan and/or grant programs, facilitating business retention efforts and serving as a business advocate.
- Administrative and Professional Services Costs: Costs of professional services relating to economic development, including licensing, engineering, planning and legal expenses.
New Employment: A minimum of 23 full-time direct jobs will need to be created to manage and service the resort community.
Low Impact on Services: Because cottages are seasonal, they will add no students to the school system and will have very low impact on municipal services. Project infrastructure, internal roads etc. will be private. A condo association will be fully responsible for maintaining the internal infrastructure.
New Spending to Support Local Businesses: Seasonal residents and guests will provide increased spending at local and regional businesses, supporting business and job growth.
Diversification of the Town’s Tax Base: Arundel is growing as a residential community and has very little new commercial development to help balance the Town’s economic base. This is putting upward pressure on services and expenditures. This development will add considerably to the Town’s commercial tax base, providing revenues to support services, and placing little demand on those services.