Tax Increment Finance (TIF) Districts

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Overview: A Municipal Tax Increment Financing (MTIF) District:

A Municipal Tax Increment Financing (MTIF) District is an economic development tool authorized under Maine law that allows a municipality to capture and reinvest a portion of new property tax revenue generated by development within a defined area. When an MTIF is established, the existing assessed value in the district is set as a baseline, and only the taxes from new value created after designation are set aside for a limited time to fund public improvements such as roads, utilities, stormwater infrastructure, housing, and transportation safety.

A MTIF does not raise taxes or divert existing revenue; instead, it helps ensure that growth helps pay for the infrastructure and public investments needed to support it, while strengthening the local tax base over time.

In 2025, the City of Ellsworth procured a TIF consultant, Raegan LaRochelle, to assess these four districts. In November, the consultant held a public “TIF 101” forum (see link below), and her final report will be published here in February 2026.

Here is a link to the recording:

The City of Ellsworth anticipates adding more TIF districts soon to capture the development growth it is experiencing. Stay tuned for details!

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  • Ellsworth TIF Districts

  • A TIF (Tax Increment Financing) District is a designated geographic area where local governments use future increases in property tax revenue, generated by new development, to fund public improvements and economic revitalization projects within that district, effectively paying for infrastructure by capturing the “increment” of new value created, rather than relying on current taxes. These districts are created to spur investment in blighted or underdeveloped areas, financing things like roads, utilities, and redevelopment by borrowing against anticipated tax growth, making development financially feasible.

    For more information on the City of Ellsworth TIF districts, please contact Twila Fisher, Economic Development Director (tfisher@ellsworthmaine.gov).

  • TIF PowerPoint presentation from November 6, 2025  – https://www.ellsworthmaine.gov/wp-content/uploads/2025/11/2025_11.06-presentation-TIF-101-Ellsworth…

    Watch the TIF 101 session recorded on November 6, 2025.
    TIF Video – https://www.youtube.com/watch?v=eY_ek-EmmIc

    Here is the TIF final presentation from July 20, 2026 prepared by Larochelle Consulting, LLC. 2026_07.20 CIty Council TIF final presentation

    Here is the TIF funding for Ellsworth CIP short and mid term priorities from July, 2026  Final Report to Council_CIP_Priorities

  • Ellsworth, Maine, currently utilizes four Tax Increment Financing (TIF) districts.
    • Beckwith Hill: An economic development TIF covering areas like Beckwith Hill, Bucksport Road, and outer Union Street, including business and commerce parks, used to fund infrastructure and economic development projects.
    • Leonard Lake Senior Housing: A TIF specifically for developing senior housing in the Leonard Lake area.
    • Oriole Way Senior Housing: A TIF targeting senior housing development on Oriole Way.
    • Oriole Way Affordable Housing: Established to provide affordable housing in the vicinity of Washington and Foster Streets, also known as the High Street area.

    For more information on MTIFs, please read this Council Memo created in 2025 by City Manager, Charlie Pearce.

    Memo_ What is a TIF March 2025