The current Market Street in South Burlington is devoid of nearly any development, but the city wants it to be part of a bustling, new City Center. VBM file photo.
Vermont Business Magazine Governor Phil Scott joined local, state and federal partners Friday, to announce a $525,000 community development grant to the City of South Burlington. The federal Community Development Block Grant will help build City Center Senior Housing – 39 units of affordable senior housing located in the City’s Tax Increment Finance District (TIF). Private developers Chris Snyder and Kevin Braverman will join forces with Cathedral Square, a non-profit affordable housing provider, to build new senior housing on Market Street. This is the first of many proposed projects located in South Burlington’s new City Center.
South Burlington voters approved the creation of a TIF District in 2012 and in 2016 approved the resulting $5 million bond issue to upgrade Market Street with sidewalks, utilities and infrastructure to support more housing and commercial development and create Dumont Park.
“This project would not be possible without the use of tax increment financing. It is a valuable development tool for communities, like South Burlington, to use in revitalizing their downtowns and village centers,” said Gov. Scott. “Tax increment financing has demonstrated benefits to supporting the type of development projects we need to make housing more affordable for all.”
South Burlington is one of seven communities statewide that can use Tax Increment Financing. This financing mechanism allows communities to use future property tax dollars generated by private development that would not occur unless the municipality can build and improve public infrastructure to support new development. Current state law prohibits the creation of any more TIF districts. There is proposed legislation to lift the TIF cap, allowing more towns access to this tool.
“TIF’s enable public-private partnerships – local, state and federal government working collaboratively with private investment. In South Burlington, the outcome is the creation of much-needed housing and the public infrastructure to support growth and economic development. This translates into a stronger, more resilient and affordable Vermont,” added Gov. Scott.
The $525,000 Vermont Community Development Program grant awarded to the City of South Burlington is one of many competitive awards made from the State’s federal allocation of Community Development Block Grants (CDBG). The State awards approximately $7 million annually in competitive grants through its Department of Housing and Community Development. The CDBG grants are funded through the U.S. Department of Housing and Urban Development. Vermont’s congressional delegation has been steadfast in supporting the funding that makes this program possible.
Source: Governor. 3.10.2017. For information about the Vermont Community Development Program and Tax Increment Financing go to the Agency of Commerce and Community Development website at: http://accd.vermont.gov/