The Downs team provided an update to the Town Council on their current development and plans for the future.  This presentation was part of a Town Council workshop on The Downs on October 2, 2024. The presentation featured information on environmental initiatives at The Downs and plans for the Downtown area. 

Dan Bacon presented on behalf of The Downs, with additional comments from principals Peter Michaud and Roccy Risbara. When asked about the timeline for the Downtown, Mr. Bacon replied that a five-year period is anticipated. Councilor Jon Anderson noted that this schedule was consistent with the original proposal.  Development from Payne Road and from Route 1 was the focus in the early years, as the development and infrastructure was brought from the outside to the center of the development where the Town center is anticipated.

Mr. Michaud explained that they have invested $81 million in infrastructure thus far.  The Credit Enhancement Agreement (CEA) between The Downs and the Town is expected to offset some of that investment, but over a 30-year period.  Thus far, $2.6M of taxes paid on new valuation has been reimbursed under the CEA, off-setting less than  3% of the total infrastructure investment made by the developer.  

Karen Martin with SEDCO and Nicholas Cloutier, Town Assessor also presented updates to the Council on current development and valuation, as well as presenting the latest information on the fiscal impact to the Town for selected service delivery.

Ms. Martin presented the latest run of the fiscal impact model using actual data for the first six years as well as  FY 25 data as the base for future years.  The net fiscal impact considers expected revenues generated, CEA payments to the developer as well as projected costs to provide Town services to the project.  The fiscal impact model suggests a resoundingly positive return on investment with a cumulative fiscal impact for the 30-year development to be nearly $125 Million.  Despite the reimbursement rate for property taxes paid being 40% in the early years, when all revenues generated from the project are considered, the total reimbursement to the developer through the CEA will be approximately 18% of the total revenue.  

Ms. Martin also looked at the tax shift benefit for town which resulted in a 31.6% benefit for FY 25.  Total revenues from all captured assessed valuation in all TIF districts was $6.2 Million.  The sheltering effect occurs when the state does not count the valuation of new development in TIF districts in their funding formulas.  By removing the value of this new development, the Town received an additional $1.96 million in the form of additional revenue sharing, additional school funding and reduced the County taxes. This impact is 31.6% for Fiscal Year 25. In other words, we sheltered value in the TIF’s that generated $6.2 million in property taxes; and we received a total benefit of $1.96 million, that would have been lost had that development not been in a TIF district.  The Town intends to update the fiscal impact model consistently throughout the project and report the results.  

The workshop can be viewed on the Town’s Youtube page — https://www.youtube.com/watch?v=Jef4k0-L3H0