Rutland approves TIF Plan

The City of Rutland Board of Aldermen approved the Tax Increment Financing (TIF) District Plan and its submission to the Vermont Economic Progress Council (VEPC) at its meeting Monday night, Jan. 6. This action comes after the Oct. 21, 2024, approval of the TIF District Letter of Intent.

If approved by VEPC, Rutland’s TIF District will produce incremental revenue to fund critical public infrastructure improvements, including transportation, water, wastewater, stormwater, brownfields remediation, and streetscape upgrades. These enhancements aim to stimulate private investment in housing and commercial development. The TIF District is estimated to generate over $58.4 million in new development value over the next two decades.

The TIF District Plan was spearheaded by the Rutland Redevelopment Authority (RRA) in partnership with White + Burke Real Estate Advisors.  

Proposed TIF District projects include:

Downtown Hotel Development: A seven-story, mixed-use hotel on Center Street that will add 99 hotel rooms, 26 residential units, and commercial spaces while addressing brownfields remediation, as well as water, sewer, and stormwater upgrades.

Lynda Lee Redevelopment: This initiative will convert the historic factory site into a mixed-income housing development with ground-floor commercial units supported by infrastructure upgrades, brownfield remediation, and streetscape improvements.

“These investments will allow Rutland to address longstanding barriers to growth, including aging infrastructure, environmental remediation, and the high cost of redevelopment,” said Ed Bove, planning director for the City of Rutland. “The TIF District is a critical tool to spur economic growth, attract new residents, and expand housing opportunities for all income levels.”

The City anticipates VEPC’s review and approval of the TIF District Plan by spring 2025, with initial infrastructure projects breaking ground in early 2026. Over the district’s 20-year life, incremental tax revenue is projected to generate $3.1 million for the City’s General Fund and $6.8 million for the Education Fund.

TIF District project timeline:

Spring 2025: Approval of the Master TIF District and first-phase projects are reviewed and approved by the Board of Aldermen.

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

What is Tax Increment Financing (TIF)?

Tax Increment Financing (TIF) is an economic development tool designed to catalyze private development by removing key infrastructure barriers and using incremental tax revenues to cover the cost. In the communities that have implemented it thus far it has fostered the types of development Vermont has been encouraging for years and in the places it is wanted — such as downtowns, industrial parks, and compact village centers.

Rutland 360

Residents may have also heard these development initiatives referred to as “Rutland 360,” which is the City’s branded initiative dedicated to providing updates, resources, and information about the TIF District and related development projects. It’s meant to serve as a one-stop hub for residents, businesses, and stakeholders to track progress, access documents, and stay informed about key milestones.

For more information, visit: rutlandvtbusiness.com/tax-increment-financing.