Dover city councilors may vote next month on a proposed tax increment financing (TIF) district that will pay for infrastructure improvements along the city’s waterfront.
A plan for the TIF district, which includes Henry Law Avenue, Cochecho Street, River Street, and a section of Portland Avenue near the Cochecho River was presented to city councilors earlier this month, according to economic development director Dan Barufaldi.
TIF districts are a development financing tool that use future gains in property taxes to pay up front for capital improvements that will enhance an area and attract development. Revenue generated from new development is then used to pay for the improvements in the district.
“The advantage to the city is that it will allow us to attract developers, with some of the infrastructure already in the ground, so they don’t have to invest millions up front before they have an opportunity to get any money out,” Barufaldi said.
In 2014, Dickinson Development Corp. withdrew its plans for a $65 million project on the waterfront. Developer Mark Dickinson’s plan called for a mix of housing and commercial buildings. The project was approved in 2008; however, Dickinson could not secure financing for the project and terminated his agreement with the city last August.
Barufaldi said the TIF district will help pay for approximately $6 million in improvements to the area, including work on roads and utilities. The next city council meeting is on Wednesday, Jan. 28. — Larry Clow