The vision for South Burlington’s City Center is to effectively blend existing neighborhoods, commercial areas, natural areas, underdeveloped properties, and undeveloped lands into the true downtown of South Burlington. The downtown will provide increased connectivity through new cross streets; support an integrated mix of housing, retail, and employment; and be a primary focus point for compact, walkable and bike-able development within the City.
South Burlington’s City Center initiative supports this objective by establishing and enhancing public buildings and gathering spaces, building or reconstructing a series of streets that would connect to the principal corridors of the area, and investing in other public infrastructure to leverage private investment. Combined, these provide opportunities for housing and employment in an area well served by public transit and existing public utilities, improve transportation efficiency, and create linkages to existing neighborhoods in the area.
This vision for South Burlington’s downtown - City Center - has been a dominant feature of the City’s adopted Comprehensive Plan as far back as 1985. For more than thirty years, the community has planned for and invested in the development of a downtown. That vision is now beginning to become a reality.
Public investments are projected to encourage private investment in developments that would occur because of the infrastructure improvements. The base taxable value of the properties located within the TIF District is $36.2 million. The estimated value after the infrastructure improvements and redevelopment is $202 million, which would generate a $165.8 million of incremental value. South Burlington estimates the generation of $133.3 million in incremental property taxes during the 20-year retention period.
The applicant proposed, and VEPC approved, a 75%/25% share of the incremental revenues. This split will allow an estimated $26.1 million of the increment to accrue to the education fund and $7.2 million of the increment to go to the municipal general fund. An estimated total of $99.9 million would go to finance the TIF District debt.
During the TIF retention period, an estimated total of $47.6 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 $5.6 M in additional tax revenue will be generated each year because of the new development. The City incurred first debt for the TIF District late in 2016, so the District is just getting started.
As of June 30, 2017:
Cumulative Public Investment: $1,958,146
Cumulative Private Investment: $3,797,734