HAMPDEN, Maine — A property tax deal that will support Emera Maine’s plans to consolidate its southern region operations in Hampden will be the subject of a public hearing next month.
Town councilors voted Monday night to conduct the hearing on the utility’s application for a municipal development and tax increment financing district during their next regular meeting, set for 7 p.m. Monday, Feb. 2.
When a TIF district is created, tax revenues from projects in the district go into a town revenue fund instead of the state’s general fund, and therefore are sheltered from state and county taxes. The funds only can be used for certain projects that are approved by the state Department of Economic and Community Development, which oversees the TIF program.
According to its application, Emera Maine seeks to merge its Bangor-based operations into one central location off Meadow Drive in Hampden.
In 2012, Hampden officials reviewed the proposed project and negotiated terms for a tax increment financing district to support the project as well as generate new revenue to invest in municipal development.
Formerly known as the Bangor Hydro Electric Co., the subsidiary of Nova Scotia-based Emera Inc. rebranded under its new name after it merged with Maine Public Service Co., which became Emera Maine’s northern region.
Emera Maine’s southern region maintains operations at six locations in four municipalities including Bangor, Hampden, Veazie and Lincoln. The building that houses the company’s line, fleet and stock divisions near the Hampden town line on lower Main Street in Bangor — which was built in 1927 — will be vacated after the new facility is finished, according to Emera spokeswoman Susan Faloon.
The company owns two abutting parcels totaling about 50 acres for the project. One of the parcels is located entirely in Hampden and the other is partially in Bangor. The new headquarters will be located entirely in Hampden.
Currently the property has a 13,000-square-foot warehouse-storage building just off Route 202 and alongside the U.S. Postal Service’s Eastern Maine Processing and Distribution Center.
Under the terms of the 25-year agreement, 50 percent of the taxes generated by the new construction would be refunded to Emera Maine for the first five years, 75 percent for years six through 10, 50 percent for the next five years and during the final five years, there would be no reimbursement.
The consolidation project will be conducted in two phases, Emera Maine’s application stated.
The first phase of construction, which will cost about $11.5 million, began last year and is expected to be completed and the facility occupied by late summer or early fall. It includes the construction of additional warehouse space, a fleet service facility and a truck parking garage, all of which will be interconnected. Part of the new warehouse will have a mezzanine level for offices.
Emera Maine anticipates that the second phase, which will cost about $6.5 million, will involve construction of a two-story office building connected to the buildings added in the first phase. The company plans to start work on that aspect in 2017 and occupy it by early 2019.