Wind farm, by the numbers

Franklin County commissioners will hold a public hearing Thursday on a proposed 20-year tax-increment financing agreement between the county and TransCanada, a Canadian-based energy company. TransCanada is proposing to build a 132 megawatt, 44-turbine commercial wind farm along Kibby Mountain and Kibby Range in Kibby and Skinner townships in northern Franklin County. The total investment to develop the project is estimated at $270 million.

The hearing on the proposed Franklin County Enterprise Development and Tax Increment Financing District (TIF) will discuss the number below.

Wind farm, by the numbers:

• 4,077.53 total acres.

• 3,949.95 of those acres in Kibby-Route 27 tract that encompasses the project footprint and transmission line in Kibby, Skinner, Chain of Ponds and Jim Pond townships as well as the roadway and right of way associated with state Route 27 from Jim Pond Township to Coburn Gore Township.

• 75.58 acres in Wyman Township associated with transmission line, as well as the roadway and right of way associated with Route 27 that passes through the township.

• 52 acres in Township D and Township E associated with the roadway and right of way of Route 17, the Rangeley Lakes Scenic Byway.

Source: Franklin County Enterprise and Tax-Increment Financing Development Program

Wind farm TIF plan, by the numbers:

• $455,952: Assessed value of the district as of March 31.

• $185.9 million: Value of taxable property in the unorganized territory of Franklin County as of April 1, 2007.

• $220 million: Estimated new assessed real and personal property value of wind farm project added over life of TIF to Franklin County's unorganized territory.

• $150 million: Amount TransCanada has agreed to guarantee as minimum assessed value.

Wind farm costs

TransCanada's development costs for proposed wind farm:

• $180 million: Turbine cost

• $28 million: Roads

• $18 million: Transmission lines

• $44 million: Development costs

• $270 million: Total estimated company investment to develop project.

Source: Franklin County Enterprise and Tax-Increment Financing Development Program.

Questions and answers:

• What is tax-increment financing? It is a development financing tool available to Maine counties and municipalities.

• Are TIFs commonly used? Maine first enacted TIF laws in 1977. Since then, more than 300 TIF districts have been established across the state. There are two TIF agreements for wind power development in Maine. One is an unorganized territory in Washington County and the other is in Mars Hill.

• How does a TIF work? A portion of property taxes generated by new business investment is sheltered to fund a locally adopted economic development program. The property taxes paid on existing valuation prior to new business investment continue to support general government operations.

• How is a TIF established? A TIF district is a specific geographic area identified for commercial growth and investment. A development program states the benefits and public purpose of the economic development projects to be undertaken. A financial plan details the funding mechanism to support the projects and establishes the duration of the TIF program (up to 30 years).

Source: Eaton Peabody Consulting Group, Maine Revenue Services