BREWER — City officials Tuesday night approved an $11 million tax-increment financing package aimed at keeping a local auto parts maker competitive while creating new jobs and retaining existing ones.

The equipment not only is expected to result in the creation of 13 new positions, it also will allow the company to retain about 15 jobs that otherwise might have been eliminated, BAC comptroller Jerry Bernier said last week.

According to Bernier, the new equipment will enable BAC to continue manufacturing automotive components for its primary customer, the makers of the Toyota Camry and Corolla models. Those models are undergoing design changes and if the business is to continue supplying parts,

BAC needs to invest in new equipment and retool existing machinery.

During his presentation for councilors, Economic Development Director Drew Sachs said the company plans to install $9 million in new manufacturing equipment during the next two years and $2 million more in equipment by 2005. He said the company expects to expand its plant or build an addition to house the equipment acquired in the second phase of investment.

TIF districts, subject to local and state approval, enable municipalities to shelter new tax revenues, thereby preventing the new value from reducing the community’s levels of school funding and state revenue sharing, or increasing its county tax bill, Sachs said. Unlike regular taxes, which go into the general fund, a portion of the TIF district’s taxes are earmarked for costs directly related to BAC.

To that end, $1.46 million, or 58 percent, of the new tax proceeds the project is expected to generate over the 20-year life of the TIF will be retained by BAC, Sachs said. During the same period, the city will collect 42 percent, or $1.06 million, in new tax revenue.

This is a copyright article written by Dawn Gagnon of the NEWS Staff that appeared in the Bangor Daily News, Wednesday, March 14, 2001.