Tax Increment Financing (TIF) Districts

2024 Barrington Commons and Town Center TIF District

Tax Increment Financing (TIF) is an economic development tool for funding improvements which support commercial development and has been used successfully in communities throughout New Hampshire.  Jump to Frequently Asked Questions.  

Proposed Barrington Commons and Town Center Tax Increment Financing District

The plan is to buy the 13-acre vacant lot in-between Calef's Country Store, the Post Office, MD Motors (formerly Knight's Garage), and the Elementary School and establish a Barrington Commons park with gathering and recreation features.  Additionally the plan calls for improvements to the Town Center area including school zone signs, crosswalk(s), and more.  To pay for this plan, residents are asked to consider establishing a tax increment financing district which would capture taxes from new development within the district to pay for the plan.  The proposed Barrington Commons and Town Center Tax Increment Financing District is an approximately 516 acre district (~1.65% of Barrington) which captures commercial, public, and recreation property along Routes 9 and 125 in the Barrington Town Center area.  This is a plan to preserve Barrington's character and to spur economic development in Barrington's Town Center.  Barrington has focused much time and energy on the development of a Town Center.  This has included the 2007 Town Center Plan, 2014 Community Profile, Recreation Needs Assessment and Strategic Plan, updates to the Master Plan, and various changes to the Zoning Ordinance and Zoning Map focused on the Town Center.  The vision for this part of Barrington has always included extensive civic use/open space which preserves Barrington's character and supports the desire for commercial development.  The footnote of that vision which has regularly been ignored is; how to fund the type of civic use/open space which residents desire.  A tax increment financing district would create that funding source by utilizing only the added tax value from within the district.

At Town Meeting in 1988, Barrington voters adopted the provisions of RSA 162-K which authorizes tax increment financing districts.  This first step of the process laid the foundation to allow the Select Board to propose tax increment financing districts for voter approval.  In 2022, the Planning Board and Select Board started the conversation around accomplishing the Town's goals for the Town Center.  At the center of those conversations was how to pay for investments in the civic use/open space of the Town Center.  Both Boards felt that a tax increment financing district was a great way to reinvest the increased tax value in order to promote additional commercial development.  The Town Administrator held meetings and solicited input from public and private stakeholders alike.  This input was incorporated into the Development Program presented to the Select Board.

Barrington Commons and Town Center Tax Increment Financing District Details

At Town Meeting in March of 2024, voters will be asked to establish the Barrington Commons and Town Center Tax Increment Financing District.TIF Map

Barrington Commons Conceptual

Quick Facts

  • A tax increment financing district can be a “win-win” for residents and businesses
    • For residents: A tax increment financing district can encourage desired commercial development in specific areas of the community where it is wanted and needed and would not otherwise occur on a timely basis. Once the public improvements in the district have been paid for, the increased tax revenue generated by the new development becomes part of the Town’s general revenue. With a tax increment financing district, the improvements needed to stimulate tax base expansion are offset by that expansion at basically no cost to the other tax payers.
    • For Businesses: A tax increment financing district can provide an attractive and viable mechanism to pay for the public improvements necessary to support desired business development, expansion, or renovation in specific areas desirable to the Town. Without access to these public improvements, an otherwise desirable business may choose to locate or expand in another community resulting in lost tax base, jobs and economic vitality. Businesses want to locate in a “Town with a plan”.  Properties within the tax increment financing district are assessed and pay the same taxes as all other property owners.

Barrington Commons and Town Center Tax Increment Financing District History/Development Process

    March 12, 2024 (Town Meeting Voting Session)

    February 3, 2024 (Town Meeting Deliberative Session)

    Deliberative Session Presentation and Discussion Video (1 hr. and 30 mins.)

    January 8, 2024 (Select Board Meeting - Warrant Public Hearing)

    Town Center Tax Increment Financing Public Hearing Presentation Video (45 mins.)

    December 11, 2023 (Select Board Meeting)

    1. At the December 11, 2023 meeting, the Select Board discussed proposed terms for a purchase and sale.

    *In early 2024, the Select Board finalized the following terms of a Purchase and Sale Agreement: Map 239, Lot 7 Purchase and Sale Agreement 20240229

    November 27, 2023 (Select Board Meeting)

    1. At the November 27, 2023 meeting, the Select Board voted to move forward with a purchase and sale on Map 239, Lot 7 to be funded through a proposed tax incremental financing district.  The new proposal is different than the 2023 proposal in the following ways:
      1. Smaller – 516 Acres
        1. Nearly 1/3 the size of the 2023 proposal; focused on the Town Center.
      2. Shorter – 8 Years
        1. Proposed at less than half the length as the 2023 proposal.
      3. Focused/Specific – Buy Map 239, Lot 7
        1. Not an abstract plan like 2023, a tangible and specific plan to preserve Barrington’s character.

    September 11, 2023 (Hired TF Moran to Update Town Center Vision)

    1. At the September 11, 2023 meeting, the Select Board discussed having TF Moran complete an evaluation and updated visual plan for the vision of the Town Center. 

    August 17, 2023 (Town Center Concert Series)

    1. At the August 17, 2023 Town Center Concert, Select Board members had an informational table to talk with residents about the larger vision for the Town Center.

    August 14, 2023 (Select Board Meeting)

    1. At the August 14, 2023 meeting, the Select Board reviewed feedback from abutters of the 13-acre parcel who are all in support of Town acquisition. 

    July 10, 2023 (Select Board Meeting)

    June 27, 2023 (Select Board Strategic Planning)

    1. At the June 27, 2023 Strategic Planning Session, the Select Board reviewed a 13-acre lot for sale in the Town Center and an opportunity to reevaluate the Town Center Tax Increment Financing District.  There was broad interest from the Board in further considering both items.

    March 28, 2023 (postponed from 3/14) - Town Meeting Vote - Article 9

     

    Frequently Asked Questions

    • What is a Tax Increment Financing District?

    • What are the Rules?

      • Some key provision are listed here, but you should review the entire statute, RSA 162-K for a full understanding.
        • A municipality must first adopt the provision of RSA 162-K before creating a Tax Increment Financing. (Done at Town Meeting in 1988)
        • Following adoption of the provisions of the statute, the Town may then establish one or more development districts.  (Proposed for March 2023; See Town Center TIF District Maps)
        • For each district, the Town must establish a Development Program including a Tax Increment Financing Plan which shall allocate use of tax increments for financing, operation, maintenance, and improvements in the district and for general municipal purposes.  (See Town Center TIF District Development Program and Financing Plan)
        • There is no limit to the number of Tax Increment Financing Districts a community can have, however, the total acreage in any one District shall not exceed 5% of the total acreage in a municipality or more than 8% of a community’s assessed value. Furthermore, all Tax Increment Financing Districts combined shall not exceed 10% of the total acreage of the community or more than 16% of a community’s assessed value.
          • The proposed Barrington Commons and Town Center Tax Increment Financing District is 516 acres or 1.65% of Barrington's total acreage.
          • The proposed Town Center Tax Increment Financing District is valued at $38,833,200 or 2.1% of Barrington's total valuation.
        • Money raised within a district must be spent within that same district.
    • Who Approves a Tax Increment Financing District?

      • RSA 162-K requires the legislative body to create and/or amend a Tax Increment Financing District.  In Barrington, the voters are the legislative body and make such decisions each March at Town Meeting.  
    • What is the Tax Impact of a Tax Increment Financing District?

      • According to the Financing Plan, the costs to support a Tax Increment Financing District are paid for directly by additional tax value created within the Tax Increment Financing District, there is no cost to taxpayers.  

    • How Does a Tax Increment Financing District Work?

      • After defining the Tax Increment Financing District, the current assessed values and property tax revenues are “frozen” and continue to flow to the Town’s general fund. However, any future “incremental” increases in property tax revenues within the Tax Increment Financing District (through new construction, expansion, or renovations) can be “captured” and all or a portion of this new revenue can be used to pay for the  improvements detailed within the development program. Once the development program is complete, the property taxes generated in the District go to the Town’s general fund.
    • Does the Tax Increment Financing District Divert Tax Dollars Away from Other Town Needs?

      • No.  The Tax Increment Financing District generates revenues only on incremental increases in value, so no tax dollars are diverted from current Town, Education, or County taxes.
        • Town Center Tax Increment Financing District Tax Details
          • The Town Center Tax Increment Financing District is currently assessed at $40 million dollars.  Taxes will continue to be collected and distributed based on that value.  Additional development that occurs as a result of the Tax Increment Financing District will be assessed as part of the Tax Increment Financing District (the "increment") and those tax dollars will go towards the costs to support the Tax Increment Financing District.  
    • What Projects are Planned in the Town Center Tax Increment Financing District?

      • The Town Center Tax Increment Financing District Development Program** lists the variety of projects which could be funded using the Tax Increment Financing District.  
      • (Coming Soon)
    • Have Other New Hampshire Communities Adopted Tax Increment Financing Districts?

    • How is a Tax Increment Financing District Administered?

      • RSA 162-K requires the establishment of a Tax Increment Financing District Advisory Board which oversees funds that are dedicated to making the improvements within the district.  The Town Center Tax Increment Financing District Development Program and Financing Plan** details the specific duties and responsibilities of the Advisory Board and addresses the division of responsibilities among the Select Board, Town Administrator, and Advisory Board.  The Tax Increment Financing District Advisory Board is a public board subject to RSA 91-A, the Right-To-Know law.
    • I Own Property or Live in the Tax Increment Financing District, What Does that Mean?

      • First, and most importantly, property owners in a Tax Increment Financing District are assessed and pay taxes the same as all property owners in Barrington.  The incremental tax revenue generate from properties within the district will be directly reinvested within the district.  Additionally, property owners in the Tax Increment Financing District have the opportunity to serve on the Advisory Board which must be comprised of a majority of property owners in the district.  Finally, owning property in a Tax Increment Financing District creates the opportunity to partner with the Town to make large-scale improvements to support economic development.  
    • Is the Tax Increment Financing District Permanent?

      • A Tax Increment Financing District only lasts as long as needed for the improvements to be made.  Typically, a Tax Increment Financing District will sunset at a pre-determined date.  Alternatively, once the development program is complete, the Tax Increment Financing District expires and any revenues generated going forward go to the Town's general fund.  Town Meeting has the ability to amend or repeal the Tax Increment Financing District at any time.
    • I Have More Questions Regarding Tax Increment Financing Districts in Barrington, Who Do I Contact?