NORRIDGEWOCK — Selectmen will decide at a later date the parameters surrounding a tax break for a natural gas pipeline developer.
Augusta became the first municipality on Oct. 20 to approve a tax increment financing district for developer Kennebec Valley Gas Co., which is proposing to build a natural gas pipeline from Richmond to Madison.
But the company, which is competing with the town of Madison to build the project, is still seeking approval of TIF districts from 11 other communities in central Maine, including Norridgewock.
Selectmen on Wednesday discussed the tax break but decided to take more time to learn about the proposal. They will also decide how to use the funds from the TIF that would be funneled back to the town.
Selectmen will hold a workshop at 5 p.m., Nov. 16. The TIF agreement will ultimately be voted on by residents.
The TIF would return 80 percent of the pipeline’s property taxes back to the developer for the first 10 years of the project. For years 11 through 15, it would return 60 percent to the developer.
In addition to private investments and contracts with industrial users, Kennebec Valley Gas’ project depends on securing the TIF agreements with all 12 communities.
Madison, however, would not require communities to approve TIF agreements. Its pipeline financing hinges on whether Madison voters approve a $72 million bond on Election Day, Tuesday, Nov. 8.
Town Manager Michelle Flewelling said if Madison is the one to ultimately complete the pipeline, the TIF agreement will be null. But the town should pursue the agreement in case Kennebec Valley Gas is the victor.
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