Year Created: 2011
Type: TIF Plan Approved by VEPC under TIF Authority 32 VSA 5404a(h)
Split of Increment: Education Fund = 75%/25% and Municipal General Fund = 75%/25%
In 2011 the City of Burlington created a TIF District that roughly corresponds to, and is completely within, the boundaries of their Designated Downtown that was originally approved by the State of Vermont in 1998. The TIF Plan was approved by VEPC for utilization of the incremental education revenue under the authority provided by Act 184 (2006).
The intent of the TIF is to support investments in public infrastructure that will enable implementation of the City’s adopted plans and goals by supporting downtown economic, housing, and community investments consistent with the vision of Burlington as articulated in the Burlington Legacy Project Action Plan:
Burlington is at the heart of a regional population and economic center that offers meaningful jobs at livable wages; where a diverse housing stock serves all income levels; with a growth rate that balances jobs and housing; offering high quality arts, entertainment and recreational opportunities of interest and benefit to all residents; with concentrations of higher density, mixed‐use development surrounded by residential neighborhoods and open space.
The City plans to use the TIF tool to support public investments including the construction of structured parking, development of roadways and streetscape improvements, Brownfield remediation, utility relocation and reconstruction, and transit improvements.
The base value of the properties in the TIF District was $174.4 million. The estimated value after the infrastructure improvements and development is projected to be $252.4 million, for an increase of $78 million. Burlington estimated the generation of $62 million in incremental property taxes during the 20-year retention period.
During the TIF retention period, a total of $64 million in education property tax revenue (from the base and 25% of the increment) will accrue to the Education Fund. At the end of the retention period, an estimated $1.7 million in additional tax revenue will be generated each year because of the new development. The City incurred first debt for the TIF District in 2016, so the District is just getting started at the time of their last reporting period ending June 30, 2016.
As of June 30, 2017:
Cumulative Public Investment: $134,653
Cumulative Private Investment: $25,661,095