The Town Council has scheduled a public hearing to consider the proposed creation of a new Tax Increment Finance (TIF) District in the area of Pettengill Road.
Development of the parcels to be included in the 202-acre TIF District will be industrial in nature, according to Town Manager Kevin Smith.
“With the current TIF coming to a close at the end of this year, we’re expecting some big development to come to the area next year. As a means to facilitate more development like the first time around, we’re proposing the creation of this second (Airport Area Infrastructure) District,” he said.
The total assessed value of the proposed TIF District is $607,053.
Smith noted the Town added $90 million of new valuation this year, with $78 million having come from new development in the Pettengill Road area.
“That is all going back on the tax rolls this year. Only $11 million in valuation, about $232,000, was held back for the Town’s obligation to a new traffic light,” he said. “If all goes according to plans with the next users coming through the pipeline, we anticipate an additional $90 million in valuation from future development up in the Pettengill Area.”
Included in the resolution for creation of the TIF District is the stipulation that it will terminate immediately upon the Town’s having met its obligation of $1.25 million for roadway infrastructure improvements, including the construction of North and South Spur Roads within the District.
The construction is estimated to occur over two building seasons, and would not be overseen by the Public Works Department.
The Town, upon execution of Development Agreements, would agree to reimburse the developers the cost of constructing North and South Spur Roads, using incremental tax revenue from the area at an amount not to exceed the $1.25 million commitment.
According to the proposal, the construction of North and South Spur Roads will improve access to the airport area in Londonderry and impact development favorably throughout town.
And based on the financing plan, there will be no bonded indebtedness or other negative impact on the Town, Rockingham County or school tax rates that could be directly attributed to implementation of a TIF District, as the reimbursement plan is funded solely by tax payments to the TIF District.
Residents are encouraged to attend the public hearing on the proposed TIF District on Oct. 19 at 7 p.m. in the Moose Hill Chamber at Town Hall.