AUGUSTA, Maine — A bill introduced Wednesday in the Maine Legislature proposes allowing downtown revitalization funds to assist businesses with the cost of flood insurance.
Representative David Rollins (D-Augusta) presented the bill to the Legislature’s Taxation Committee, emphasizing the vulnerability of riverfront properties to damage from ice jams, snowmelt, and severe storms. “Just a few inches of water can cause thousands of dollars’ worth of damage,” Rollins stated.
A December 2023 storm caused extensive flooding in towns situated along the Kennebec River, including Augusta, Hallowell, and Gardiner. The flooding inflicted significant damage on numerous downtown businesses. Several establishments, including shops and restaurants, experienced prolonged closures due to water inundating basements and damaging essential systems like heating, ventilation, and refrigeration, as well as ground-floor spaces.
Rollins noted that annual flood insurance costs in Kennebec County can amount to thousands of dollars. While flood insurance isn’t mandatory for businesses, many lenders require it when a mortgage is involved.
The bill seeks to empower cities and towns that already have a downtown tax increment financing (TIF) district to allocate a portion of these funds to alleviate the expenses of flood insurance.
During Wednesday’s hearing, Amanda Campbell from the Maine Municipal Association expressed opposition to the bill. Campbell said that it deviates from the “original investment intentions” of the tax districts. She further explained that “TIF revenues to assist businesses would be better spent on relocating those businesses to a sustainable location out of harm’s way. In these times of resilience and hazard mitigation, incentivizing business and development in potentially hazardous areas is counterproductive and puts bad money before good.”
However, Keith Luke, the Augusta Economic Development Director, believes that providing businesses assistance with flood insurance would offer them a financial safety net and urge investment in the redevelopment of downtown properties. After all, he stated that cities along major rivers have been a constant and integral part of Maine’s history and will continue to be the lifeblood of their communities for years to come. “People want to live, work and invest near the water, and we as communities actively encourage this through our economic development strategies,” he said.
The Taxation Committee is scheduled to have a work session on the bill in the upcoming weeks.
