BELFAST - A handful of proposals falling under the broad heading of “economic development” came before the Belfast City Council, Feb. 18.

The Council approved a set of changes to the Northport Avenue TIF (Tax Increment Financing) district, which sets aside taxes from increased value — typically from a business expansion — in a separate fund for improvements to infrastructure within the district.

Under the new rules, tax revenue from increased value of personal property will be added to the TIF fund. Additionally, money generated from the district, which flanks Northport Avenue from Perkins Road to Hinds Road and includes the Coastal Farms and Foods facility, can be transferred to the city’s Downtown Waterfront TIF or used for “credit enhancement agreements” (direct tax incentives to businesses).

Thomas Kittredge, the city’s economic development director, said there is no specific business currently seeking a credit enhancement agreement.

The Northport Avenue TIF was created to bring city utilities, including water and sewer to Perkins Road for the benefit of the Mathews Brothers manufacturing facility. The city pays roughly $20,000 per year on a 20 year bond to fund that project. The district brings in an additional $79,000 per year.

The Council approved a request from Kittredge to put $5,000 toward participating in a project that could potentially make Belfast businesses eligible for benefits under the federal Foreign Trade Zone program.

The program is designed to streamline customs procedures for businesses that import large amounts of raw material, add value then export a finished product. Belfast is currently the port of entry for a Foreign Trade Zone based in Waterville. Under a recent revision to the program, the city could qualify as an “alternative site” for FTZ benefits.

Kittredge said the initiative is not aimed at a particular business, or businesses, but could potentially benefit Mathews Bros, Ducktrap River of Maine or Front Street Shipyard, among others.

In other business, the Council:

• Authorized Kittredge to sent a letter of intent to apply for a Community Development Block Grant that would fund improvements to multifamily housing units. In 2001, the city received a $300,000 CDBG grant. The money, along with $100,000 in matching funds from property owners went toward safety and efficiency improvements in 41 properties, benefiting 70 residents, according to city officials.

• Approved spending $3,000 for survey and appraisal work related to the possible creation of a taxi lane adjacent to the runway at the Belfast Airport.

Ethan Andrews can be reached at news@penbaypilot.com