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Updated: September 8, 2025

Amid Scarborough's rapid growth, some residents demand a slower pace 

apartment buildings under construction Photo / Tina Fischer Ten 12-unit apartment buildings are under construction at the corner of Mussey and Gorham roads in Scarborough.
By Tina Fischer

Scarborough’s recent designation as the fastest growing town in Maine, has a large faction of long-time residents urging town officials to pump the brakes on development. 

A grassroots organization calling itself Not So Fast Scarborough rallied close to 150 residents to speak out at two recent Town Council meetings that focused on a proposal for a Tax Increment Financing district for the area around U.S. Route 1 and Dunstan Corner. 

There are already six TIF zones in Scarborough. Those who spoke out said there was no need to incentivize further development. 

Citing increased traffic congestion along U.S. Route 1 and the recent construction of several large housing developments, the residents said growth is outpacing infrastructure and diminishing their quality of life.

Scarborough’s population increased 7.9% from July 2020 to July 2024 (a net increase of 1,765 people), to just over 24,000, according to U.S. Census figures, making it the most rapidly growing town in the state.

“We’ve hitched our wagon to a runaway train of growth. We’re so concerned about supporting development that we’ve lost sight of our demographic," Don Hamill, a former Town Council member and spokesperson for the organized opposition, said at the Aug. 20 public hearing.

a room full of residents listening to Scarborough TC meeting
PHOTO / COURTESY CONCERNED TAXPAYERS OF SCARBOROUGH
Close to 100 Scarborough residents turned out for the Aug. 20 Town Council meeting focused on a proposed TIF district for Dunstan Corner. More communicated their objection to the TIF via email.

“We’ve outperformed virtually every town in our county in terms of development, which has come with questionable benefits and serious implications," Hamill added. "It’s put pressure on our schools, threatened our health and safety and endangered our environment.” 

Even amid the growth, school enrollment numbers for Scarborough have declined slightly from a high of 3,000 in 2020 to just under 2,900 for 2025.

Traffic woes

More than 20 townsfolk who also complained of traffic so unrelenting that it was often difficult to exit their driveways and dangerous to traverse town.

Some questioned whether it was time for a development moratorium.

Speakers at both council meetings also expressed outrage at the 120-unit apartment complex under construction at the busy intersection known as Eight Corners (the intersection of Spring Street and Mussey Road). Council member Karin Shupe said at the Sept. 3 council meeting: “I was on the Planning Board when Eight Corners was approved. There was nothing we could do because of the zoning.”

Lower tax rate

The largest development in town is the Downs, a 577-acre mixed-use community, which is in a designated TIF district.

Situated between U.S. Route 1, Haigis Parkway and Payne Road, the Downs has created 622 housing units since 2018 and added over 50 businesses to the complex. Developers have estimated that at full build out the project will add a total of 2,000 homes.

The Downs is also expected to contribute more than $10 million in tax revenue annually, according to figures released in May, when Karen Martin, executive director of the Scarborough Economic Development Corp., praised the development. 

“The economic impact of the Downs is historic,” Martin said in a statement, “creating jobs and minimizing increases in the property tax rate.”

Scarborough’s mil rate for FY2026 is $11.33 per $1,000 valuation. In 2018 it was $16.49. The town conducted revaluations in 2019 and in 2024. 

In neighboring communities the mil rate is $10.88 for Old Orchard Beach, $14.20 for Saco, $11.98 for South Portland and $11.85 for Cape Elizabeth. Neighboring Gorham has yet to set its FY 2026 rate but the current rate is $14.70.

Scarborough’s website states that in FY 2026, $5 million in TIF revenues will be used to offset operating expenses, covering debt service for the Public Safety Building and Gorham Road improvements and funding capital expenditures for infrastructure and recreational projects. 

“TIFs are anticipated to remain a significant tool for managing the town's tax rate in the coming years,” the website predicts.

A TIF for Dunstan Corner was ultimately defeated when councilors voted unanimously Sept. 3 not to approve it. (The request for a TIF and a credit enhancement to help finance a proposed 50-unit affordable senior housing project in Dunstan Corner had in fact been withdrawn prior to the vote.) 

Some council members cautioned that voting down a Dunstan Corner TIF was unlikely to prevent future projects in that part of town, which is zoned for commercial development, and they urged concerned residents to stay involved.

“This TIF [vote] doesn’t change the zoning," said Council member Larry Cain.

Council Chair April Sither added, “We need to start using the tools that are available to us perhaps more aggressively.”

*A TIF is a financing tool that can potentially benefit both a developer and a municipality by leveraging increased property taxes to offset construction costs and to help fund town infrastructure projects. A TIF also allows a municipality to shelter from state funding formulas some of the additional assessment from development, which can result in increased state subsidies as well as a reduction in county taxes.
 

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