Albion may consider tax breaks to incentivize investments in housing, downtown

Photo by Tom Rivers: Flags advertise merchandise and collectibles at The Downtown Browsery Co-op at 118 North Main St. in Albion.

ALBION – The Albion Village Board say it will look at how some communities are using Tax Increment Financing (TIF) as incentives to bring investment in a downtown business district and other targeted areas.

Village trustee Joyce Riley learned about TIFs at a recent municipal conference. She spoke about them during last week’s Village Board meeting.

“We have to find a way to make dormant buildings be vibrant,” Riley said.

A TIF would give a property owner a discount on taxes for their investment in a project. Mayor Angel Javier Jr. said a drawback could be a loss of tax revenue. He wants to see the potential impact on the village tax revenue as part of a TIF district.

The TIF would be similar to a PILOT (payment in lieu of taxes) where there is a gradual sliding scale for a property owner, where a small amount is paid in the beginning and a percentage is added each following year until it is at full value. A PILOT typically is 10, 15, 20 or 25 years. Locally, the PILOTs are done through the Orleans Economic Development Agency on behalf of the taxing jurisdictions.

Riley said there could be a loss of revenue in the beginning of a TIF, but ultimately there would be more revenue for the village later in the PILOT and the village and community would have the benefit of more buildings being put to use.

“We have to look at it at the long haul, not the short haul,” she said. “In the long haul we’ll make more money.”

Village officials said they would do more research on Tax Increment Financing. Riley said it would be another way to facilitate business and housing investment in Albion in a way that is less reliant on state grants.