The State has given the City of St Albans approval for a Tax Increment Financing District within the city’s designated Growth Center, a move that will allow the City to keep some of the incremental property taxes generated by new development within the Growth Center to fund public infrastructure required for that development to occur.
On August 30, the Vermont Economic Progress Council (VEPC) gave final approval to the Tax Increment Financing (TIF) District and Finance Plans after many hours of deliberation that included a meeting in St Albans, public comment, and a tour of the city and the proposed TIF District.
‘This authorization will help the City of St Albans undertake and pay for the necessary public infrastructure improvements that will foster responsible economic and community development,’said Stephan Morse, Chairman of VEPC.
The TIF District was created by the St Albans City Council on April 30, 2012, following a series of public hearings.
‘We are looking to build a stronger and healthier community through economic development. The TIF is essential for us to enable and stimulate development and redevelopment within the district,’said Liz Gamache, St Albans Mayor. It will provide employment opportunities, improve and broaden the tax base, and enhance the general economic vitality of the city, while also benefitting the region and the state.’
The authorization allows the City of St Albans to use a portion of the incremental property tax revenues generated by new development within the TIF District to finance certain public infrastructure projects such as the Federal Street multi-modal connector, construction of a parking structure, improvements to Taylor Park, and streetscape improvements, all groundwork that will encourage private sector development projects planned for the Growth Center to move forward. That development, in turn, will generate incremental property tax revenues, that otherwise would not have been generated, to pay for the infrastructure debt.
The St Albans TIF plan calls for the sale of the current State Office Building and the relocation of state offices to a new office building downtown. TheAdministration and City officials are preparing plans for the new building and presentation of a complete development package to the Legislature. If approved, the new building would serve as the catalyst for the City's downtown revitalization efforts.
According to Governor Shumlin, "The Administration isexcited to be working in partnership with the City on this important economic development project."
Before the City can incur any TIF District infrastructure debt, the voters of St Albans City must approve an overall debt level, and then vote on any subsequent bonds to be issued by the city for TIF District infrastructure projects.
‘Redevelopment and revitalization is priority number one for the City,’ stated City Manager Dominic Cloud, ‘We are delighted with this approval because the TIF will help us accomplish projects that the public has been waiting for, as well as grow jobs and the City’s Grand List.’
With a TIF District the value of the properties within the district are frozen at the time the District is created by the municipality. All property taxes generated by that original base value continue to go to the municipal general fund and the education fund.
For 20 years, and municipal and education property taxes generated by any new development are shared, with 75 percent going to finance the TIF District infrastructure debt and 25 percent going to the municipal general fund and state education fund.
VEPC
The Vermont Economic Progress Council is an independent board consisting of nine Vermont citizens appointed by the governor and two members appointed by the General Assembly that considers applications to the state’s economic incentive programs.
VEPC is attached to the Vermont Agency of Commerce and Community Development, whose mission is to help Vermonters improve their quality of life and build strong communities.
For more information, visit: http://accd.vermont.gov/strong_communities/opportunities/funding/tif/sta...
Soruce: VEPC. 9.4.2012