Approval moves the city closer to infrastructure improvements, housing development, and growth
The City of Rutland Board of Aldermen approved the Tax Increment Financing (TIF) District Letter of Intent (LOI) to apply to the state for a TIF District, at its meeting Monday night, Oct. 21.
This step “marks a significant milestone in the city’s strategic efforts to boost economic development, create housing, and address long-standing infrastructure needs,” the city stated in a news release Oct. 22. “The initiative aims to remove key building barriers to private development while improving the quality of life for residents.”
Tax Increment Financing is an economic development tool designed to foster needed development/redevelopment in downtowns and compact village centers. TIF projects catalyze private development by removing key infrastructure barriers. Taxes from the original value of a property continue to go to the state Education Fund and city budget, while a portion of the “increment” (difference between the original value and the developed value of the property) is used to finance the TIF investment.
Presenting the TIF District Plan and LOI before the Board of Aldermen were Ed Bove, executive director of the Rutland Redevelopment Authority (RRA), which serves as Rutland City’s economic development entity, as well as Stephanie Clarke, vice president of White + Burke Real Estate Advisors, who is guiding the RRA through the TIF Districting Process. Clarke was also instrumental helping Killington through its successful TIF application two years ago.
The city anticipates submitting its full TIF District application for VEPC approval by early 2025, with public infrastructure projects beginning as soon as 2026.
The next step for the Board of Aldermen is to review the TIF District Plan, which outlines the possible projects that could occur over the next 10 years. Draft plans are in no way binding, but allows for prudent planning and collaborations with developers and property owners.
Rutland City TIF plan overview:
Private Projects: Could include workforce and affordable housing, mixed-use, and a hotel, totaling over $63 million in increased property value over the next 7 years.
Housing: Creation of 385 housing units over 7 years.
Public Infrastructure: Could include utility upgrades, brownfield remediation, site preparation, improved access, public facilities, and transportation upgrades, totaling almost $17 million of investment over 6 years.
Tax Revenue: Could yield approximately $3 million of additional revenue to the City’s General Fund and $5.6 million to the State Education Fund over 20 years.
“The TIF District is key to unlocking Rutland’s economic potential,” said Michael Talbott, president of the Board of Aldermen. “By taking this step, we’re committing to improving infrastructure in our downtown and providing much-needed housing, all while driving private investment into areas that have long needed attention.”
TIF timeline:
January 2025: Board of Aldermen vote on the finalized plan, followed by submission to VEPC.
Spring 2025: Master TIF District review by VEPC and Board of Aldermen review of first-phase projects
June 2025: Submit first phase projects to VEPC
September 2025: Obtain first phase approval
November 2025: City-wide bond vote for infrastructure funding.
Winter 2025 / 2026: Incur first infrastructure project debt
Spring 2026: Commencement of public infrastructure projects.
For more information, visit: Rutlandvtbusiness.com/tax-increment-financing.
