Proposed TIF for 4 Union Park
In April 2025, David Holman, a representative of Solhem Development LLC approached the Select Board to request that an affordable housing tax increment financing district be considered for a housing complex the company is considering building at 4 Union Park Road. The project was discussed at Select Board meetings on April 3rd, 2025, May 15, 2025, June 5, 2025 and July 17 2025. If you would like to view the presentations and question and answer sessions, there are links available on the Select Board meeting pages to view the meeting videos and written materials.
The proposed 4 -story apartment complex is estimated by the developer to be worth $40M upon completion. At Topsham's FY 2025 tax rate this was expected to result in ~$500,000 a year in tax revenue. The Developer has represented that without the TIF, if the project could be built at all, the apartments would all have to be rented at market rate. The TIF would refund 60% of the taxation resulting from the increase in value caused by the building of the complex back to the developer. The Town would keep 40% of the increased tax revenue. Two of the Town's Bowdoin College summer interns (overseen by the Town Manager's office) took on the project of estimating the net tax revenue result to the Town of the proposed housing complex in a scenario where the project is granted a TIF v. one where it is not. If a property is in a TIF, the valuation is "sheltered" and not taken into account for the purposes of determining how much municipal revenue sharing and state education aid the town receives and how large a share of the MSAD #75 and County budgets the Town must share. The results of the analysis were that the net tax revenue to the Town would only be about $20,000 more per year if the property was not in a TIF. In effect, by giving up ~$20,000 a year in tax revenue, the Town would get 10 housing units affordable to people making no more than 80% of area median income and 51 hosing units affordable to people making no more than 120% of area median income. The Select Board instructed the Town Manager to work with the Developer, the Town's attorney and the Developer's attorney to put together a TIF application and warrant article for the November Town Meeting (which is done by secret ballot and elects the Select Board candidates).
The highlights of the TIF agreement are as follows:
- 30 Year Term. Over the term, 60% of the increased tax revenue for the complex is returned to the Developer, 40% is retained by the Town)
- Of the 183 units in the apartment building, 61 will be classified as affordable housing (10 affordable to occupants making no more than 80% of area median income, 51 affordable to occupants making no more than 120% of area median income).
- The Town's share of the tax revenue may be used (at the option of the Town) for education costs, reserves for a new ladder truck for the fire department, Union Park street/traffic improvements, a prorata share of water and sewer improvements caused by the development and/or an affordable housing fund.
- People working in Topsham would get first preference for units, with people working within 15 miles of Topsham getting 2nd preference.
Note: All of the above is subject to approval of the Maine State Housing Authority.
A frequently asked question is how the complex will affect traffic on Union Park Road. A traffic analysis will have to be done as part of the project when it submits for various muncipal and state approvals. This will be a public process with opportunity for input and is a separate process from the TIF process. The granting of the TIF does not grant approval to build the structure, it is merely an agreement that if the structure receives all the necessary approvals and is built, a portion of the tax revenue will be refunded to the Developer in exchange for the rent of the affordable housing units being maintained at the levels set out above.
Below are links to the public meeting notice and the current draft of the TIF application (the attorneys are about 95% complete and this will be replaced as future drafts are released).
The lot upon which the proposed affordable housing complex would be built is part of an existing muncipal TIF so in order to place the lot in the affordable to housing TIF, an amendment needs to be done to the existing TIF to remove it. The current draft of the amendment application can be accessed here.
If you have any questions, feel free to contact Town Manager Mark Waltz at 207-729-0907 or mwaltz@topshammaine.com.
Note: In order for the new Affordable Housing TIF to be established, a majority must vote in favor of both the "Union Park Road Affordable Housing Muncipal Development and Tax Increment Financing District" (which establishes the new tax increment financing district) and the "Downtown TIF Warrant" (which removes the property to be included in the new district from its current TIF). If either question does not pass the new TIF will not be created.