Year Created: 2018
Type: TIF Plan Approved by VEPC under TIF Authority 32 VSA 5404a(h)
Split of Increment: Education = 70%/30% and Municipal General Fund = 100%/0%
The City of Montpelier was originally chartered in 1781 as a grant to settlers from Massachusetts. The first settlement was established along the North Branch in 1787, during the time Vermont was an independent republic. The settlement grew quickly and by 1805 had a population of 1,200. That same year the State Legislature sought a permanent home and Montpelier was selected to be the capital of Vermont. In 1811, it was further selected to serve as the shire town for Washington County. For nearly its entire history, Montpelier has played host to all levels of government. Beginning in 1828 with the establishment of the Vermont Mutual Fire Insurance Company, Montpelier began a long history of being a center for finance and insurance businesses. The economy expanded when rail lines were extended to Montpelier and Barre in 1849 enabling the growth of manufacturing and related industries.
Over the next 150 years, Montpelier survived fires and floods to grow to its current population of 7,855 (2010 Census). Its economy has been based on a mix of public and private employers, industrial and professional businesses, and urban and rural jobs. It continues to hold the distinction of the smallest state capital in the United States.
As discussed in the TIF District Plan, the economic and housing development conditions of the recent past have not been fully positive. Since 1960, the population has declined steadily from 8,782 to 7,855 while the number of jobs has only recently started to approach what existed prior to the 1988 recession (UI yearly data 1988 – 2016). Thus, 30 years later, Montpelier is still looking to fully recover the jobs lost in that recession. The decline in population and lack of overall job growth has not gone unnoticed by officials and residents in Montpelier. The City Council established a council goal in 2013 to study the issue and commissioned an Economic Development Strategic Plan (EDSP) that was completed in 2016. Thus study resulted in the creation of the Montpelier Development Corporation and seeks to focus on the City’s strengths in higher education, food processing and advanced manufacturing, entrepreneurs (particularly in software development & IT), finance/insurance, not-for-profit services, professional, business & technical services), specialty retail and tourism, hospitality and the arts.
Montpelier's TIF District Plan includes Infrastructure projects totaling approximately $17 million. Montpelier estimates that the increase in the grand list due to the projected private sector developments will generate $26.9 million in incremental property tax revenues during the 20-year retention period ($11.1 million municipal and $15.8 million education). The municipality has pledged 100% of the municipal increment to the TIF District debt and VEPC approved the education increment of 70%. As of the end of fiscal year 2019, Montpelier had not incurred the first instance of TIF District debt and is not retaining increment.
As of June 30, 2019:
Cumulative Public Investment: $479,106
Total Increase in Taxable Value: $0