Epping Road TIF (Tax Increment Financing) District

The Epping Road TIF District is a 587 acre district that flows from Epping Road near Brentwood Road to the 101 interchange.  The TIF is an instrument to spur economic development in the Epping Road commercial corridor, much of which is either undeveloped or underdeveloped.  The Epping Road TIF District has the potential to add over 130 million dollars to the Town's taxable base, on which the property tax rate is based.  There are 285 acres of key properties within the proposed TIF District.  As of 2021, the Epping Road TIF District has produced over 71 million dollars in additional value to the tax base.  This value is currently being used to pay off a 10 year bond which funded infrastructure improvements within the TIF.

ADOPTION

Town voters adopted three articles at the 2015 Town Meeting relative to the TIF District.  These were articles 10, 28, and 29 of the 2015 Town Warrant.  The first article gives authority to bond a project for a road, with water and sewer improvements through two major parcels on Epping Road.  This bond would not be issued until developer agreements are in place to pay debt service on the bond, meaning no cost to Exeter taxpayers.  The second article was the adoption of the RSA 162-K allowing the Town to implement TIF Districts.  The third article was the adoption of the TIF Plan (see below) with the establishment of the TIF Advisory Board to oversee the TIF District. 

AMENDMENTS

The TIF Financing Plan has been amended twice by Town voters.  The first amendment was adopted in 2018 as Article 25 of the Town Warrant.  This article increased the borrowing authority of the TIF by 1.1 million dollars.  These funds were utilized to construct a light at Epping Road and Continental Drive.  The second amendment was Article 24 of the 2020 Town Warrant.  This amendment did not change the borrowing authority of the TIF (now $7,945,342) but instead reallocated the current borrowing authority to allow funding to be used for a corridor study on Route 27 between the Route 101 interchange and Route 111-A, and to execute infrastructure improvements on Route 27 (Epping Road) between the Route 101 interchange and Continental Drive.

What is a TIF?

A TIF, or tax increment financing district, is a special district, encompassing a specific area of a town, that is formed to provide specific funding for the targeted area to fund infrastructure improvements.  In return, these infrastructure improvements (such as roads, water and sewer) serve as the spur to additional development, which generates tax dollars.  These tax dollars are used to pay off the cost of the improvements directly.  Then the TIF dissolves, and all future tax dollars revert to the general fund, benefiting all taxpayers.

WHO APPROVES THE TIF?

The Epping Road TIF was approved by Exeter voters on March 10, 2015.  The TIF Financing Plan was subsequently amended by the voters in 2018 and 2020.  All financing plans are linked below.

WHAT IS THE TAX IMPACT OF THE TIF?

Since the bond issued to support the TIF is paid for directly by taxes created in the TIF, there is no cost to taxpayers.  Depending on how much development occurs in the TIF, the bond used for public improvements could be paid sooner or later than expected.  The Town currently is paying debt on a 4.7 million bond which was issued for 10 years, with revenues generated by the TIF District.

WHAT IS THE "BREAK EVEN" POINT FOR THE EPPING ROAD TIF TO PAY FOR THE APPROVED BOND?

The break even point for the TIF is estimated at 23.5 million dollars to pay debt on the full 6.8 million dollar bond over 20 years that will fund road, water and sewer improvements.  Since the TIF is planned for developed in excess of 100 million dollars of new value, it is expected if the TIF is successful, the bond will be paid off earlier than 20 years.

Does the TIF divert tax dollars away from other Town needs?

No.  The TIF generates revenues only on incremental increases in value, so no tax dollars are diverted from current town, school, county, or state education taxes.  In this instance, the Epping Road TIF District currently has an assessed value of 2.7 million dollars.  Taxes will continue to be collected and distributed based on that value.  Additional development that occurs as a result of the TIF will be assessed as part of the TIF District (the "increment") and those tax dollars will go to payoff any bond issued to fund the necessary infrastructure to support the TIF.

WHAT PROJECTS HAVE STARTED IN THE TIF SINCE ADOPTION?

The TIF already has seen successful projects be approved and break ground, including Gourmet Gift Baskets, C3I, Willey Creek Condominiums, and Unitil.  

HAVE OTHER NH COMMUNITIES ADOPTED TIF?

Yes.  Several NH communities, including Newmarket, Dover, Rochester, Raymond, Derry, Durham, Peterborough, and Keene, have adopted TIF Districts as part of their overall development strategies.  TIFs allow communities to compete for development.

How is the TIF ADMINISTERED?

The RSA (162) that allows for the TIF sets up a TIF Advisory Board that oversees funds that are dedicated to making the improvements within the district.  RSA 162-K also describes the TIF process, including required public hearings prior to bringing a TIF forward to place on a Town Warrant.  The TIF Advisory Board is a public board subject to RSA 91-A the right to know law.  The TIF Board reports to the governing body, the Select Board.

Is the TIF permanent?

A TIF only lasts as long as needed for the improvements to be made.  Once the improvements are completed, the TIF "sunsets" and any revenues generated going forward go to the Town's general fund.  Town meeting has the ability to repeal the TIF at any time.  If the TIF is unsuccessful, Town meeting can repeal it.  

I have MORE questions ON THE EPPING ROAD TIF.  Who do I contact?

Questions on the Epping Road Tax Increment District can be directed to Economic Development Director Darren Winham at dwinham@exeternh.gov or by phone at 603-773-6122.