Kennebec Regional Development Authority

The Kennebec Regional Development Authority (KRDA) is a public association of 24 central Maine towns that collectively agreed to build a business park next to Interstate I-95. KRDA was created in 1998 in response to a challenge grant from the administration of Governor Angus King who offered $1 million to any group of towns able to propose a winning business development plan. The successful plan was required to be backed by $3 billion worth of assessed property values to support the bonding necessary to build the proposed project. In 1999, the 24 towns in KRDA won the grant and became the builder and manager of FirstPark.
KRDA presently receives about $340,000 in taxes assessed on FirstPark properties that are already developed. This revenue and any additional taxes from lots later sold will continue for the 99 year life of the inter-local agreements signed in 2001 with Oakland, the host town. One of KRDA’s obligations is to make an annual payment of $257K on its remaining debt, a construction bond that was taken out in 2001 to build the park to its present level of completion. On November 1, 2020, the bond will be paid.
KRDA presently assesses member towns $587K per year and refunds back approximately $255K from recovered real estate taxes for a net annual cost to the towns of $332K. Payments are assessed and revenue rebated in proportion to each town’s tax valuation.
All elements of the budget are voted on each March in an annual meeting and reviewed during the year in monthly meetings of the Executive Board and quarterly meetings of the General Assembly.
FirstPark
FirstPark consists of 24 lots. Many are ready-to-build lots with paved streets and utilities including water, sewer, storm water detention ponds, and fiber conduit.
Electricity is provided by 3-phase, 440 volt, underground cable from duplicate feeds. Verizon and Fairpoint have provided the developed areas of the park with underground high bandwidth fiber for optical data, voice and ancillary services.
Tax Increment Financing
In 2001, each town in KRDA signed a 99-year agreement with Oakland for the distribution of new tax revenue developed within FirstPark. Under those agreements, Oakland is protected from having to receive less state money for school funding or from having to pay more in county taxes because of increases in property values within FirstPark.
In 2001, Oakland obtained state approval to place FirstPark into a 30-year tax increment financing (TIF) district lasting until June 30, 2031. While the TIF district is in effect, all of the taxes accruing from new property within FirstPark (presently about $340K per year) are turned over to KRDA without need to account for any school funding or county tax losses.
In 2004, when KRDA and the state negotiated terms for T-Mobile to come to FirstPark, it was agreed to provide the company a 25% credit enhancement TIF for a term of 15 years. Under this agreement, 25% of T-Mobile’s property taxes are returned to the company each year from 2005 through 2019. At present this payment is approximately $50K.
The Impact of T-Mobile
In 2005 T-Mobile built a 78,000 square foot call center that presently employs over 700 people. T-Mobile’s call center in FirstPark presently employees 600 customer service representatives overseen by another 100 management and training personnel.
Executive Board of Kennebec Regional Development Authority
*Howard Mette, Winslow
*Andrew Cook, Rome
*Craig Nelson, Farmingdale
*Kathryn Ruth, Pittsfield
*Michael Roy, Waterville
*Dwight Lanning, Benton
*James J. Jurdak, Oakland
*Stephen Monsulick, Readfield
*Peter Mills, Cornville
*Tom Munson, Fairfield

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