HOULTON – A recent modification to one of the tax-increment financing districts within the municipality has gained the support of town officials, who say the move will help the town capture more revenue that could benefit future infrastructure needs.

Town councilors agreed unanimously during a recent meeting to accept Town Manager Doug Hazlett’s recommendation to amend the TIF agreement with Tate and Lyle. Formerly A.E. Staley Manufacturing, the plant produces modified tapioca starches and ingredients for prepared foods and the paper industry. The business was established in Houlton more than 20 years ago.

Tagged as an economic development device, TIFs aim to enhance and entice investment in a specific portion of a town. Last summer councilors adopted a TIF policy for the town and proceeded to brainstorm districts to brand with the TIF designation.

In addition to Tate and Lyle, the Airport Industrial Park and a section of North Street are also TIF development districts.

While town officials have stressed that the designation of a TIF district does not necessarily grant any tax relief on future development, they have maintained that the designation indicates a location within the municipality that might be eligible for one. It also allows for TIF proceeds to be used for development projects.

In their original application to the state, Houlton officials said that they were going to direct 80 percent of the captured future tax value stemming from the Tate and Lyle TIF agreement for potential use in water and sewer expansion in the area. The recently approved amendment allows the town to direct 100 percent of that captured tax value towards the effort.

“It does not obligate us to do water and sewer expansion,” Hazlett told councilors. “It merely says that should that happen, we’re allowed to use the captured tax value to help pay for it.”

The town will now submit the amended application to the state for approval.

Officials are also continuing their efforts to create a downtown TIF in historic Market Square.