Rutland City Board of Aldermen greenlights first phase of TIF

The approval brings the city closer to infrastructure improvements, housing development and growth

The City of Rutland City Council approved the district’s Letter of Intention (LOI) for Tax Increment Financing (TIF) to apply to the state for a TIF district at its meeting on Monday evening, October 21st.

This move “marks a significant milestone in the city’s strategic efforts to stimulate economic development, create housing and address long-standing infrastructure needs,” the city said in an Oct. 22 news release. “The initiative aims to remove important barriers to construction private development while improving the quality of life for residents.”

Tax increment financing is an economic development tool intended to promote necessary development/redevelopment in inner cities and compact village centers. TIF projects accelerate private development by removing key infrastructure barriers. Taxes from a property’s original value continue to go to the state education fund and city budget, while a portion of the “increment” (difference between the property’s original value and developed value) is used to finance the TIF investment.

Ed Bove, executive director of the Rutland Redevelopment Authority (RRA), which serves as Rutland City’s economic development entity, and Stephanie Clarke, vice president of White + Burke Real Estate, presented the TIF district plan and LOI to the Council of Aldermen, who represented the RRA guides through the TIF districting process. Clarke was also instrumental in Killington’s successful TIF application two years ago.

The city expects to submit its full TIF district application for VEPC approval in early 2025, with public infrastructure projects beginning as early as 2026.

The next step for the Board of Aldermen is to review the TIF District Plan, which outlines the possible projects that could be implemented over the next 10 years. Design plans are in no way binding, but allow for careful planning and collaboration with developers and property owners.

Rutland City TIF Plan Overview:

Private Projects: Could include workforce and affordable housing, mixed-use apartments and a hotel, resulting in a total property appreciation of over $63 million over the next seven years.

Housing: Creation of 385 residential units over 7 years.

Public Infrastructure: Could include utility upgrades, brownfield redevelopment, site preparation, improved access, public facilities and transportation upgrades, totaling nearly $17 million in investment over six years.

Tax revenue: Could generate about $3 million in additional revenue for the city’s general fund and $5.6 million for 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. “With this move, we commit to improving the infrastructure in our downtown and providing much-needed housing, while driving private investment in areas that have long needed attention.”

TIF timeline:

January 2025: City Council votes on final plan, followed by submission to VEPC.

Spring 2025: Review of the Master TIF District by VEPC and Review of Phase One Projects by the Board of Aldermen

June 2025: Submit first phase projects to VEPC

September 2025: Receive approval for the first phase

November 2025: Citywide bond vote on infrastructure financing.

Winter 2025/2026: Taking on the first debt for infrastructure projects

Spring 2026: Start of public infrastructure projects.

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