RUTLAND, Vt. (WCAX) – A transformation is being planned for Rutland and the development is happening thanks to a tool recently touted by Gov. Phil Scott in his inauguration address Thursday.
“It’s really important that we make those calculations carefully, we bond appropriately and if we do that we’ll be in good shape,” Rutland Mayor Mike Doenges said.
After years of discussion, the first step has been taken to approve a tax increment financing or TIF district in the Marble City. TIFs help towns or cities use tax revenue from future projects to pay back loans, freeing up money to redevelop and build new infrastructure.
“It’s all going to be the city components that we focus on from the TIF district to support the project, and I think having this is actually one of the things that just enables it, we might not be able to do a project without this which is great,” Doenges said.
Various Vermont towns and cities have formed TIF districts, spurring growth in communities. It helps reduce development costs and incentivizes investment.
“With that, we’ve been able to get almost half of that in grants. And that’s what’s really great about TIF. It’s not just, everyone thinks I get the TIF and I count on, the town of Killington went after grants and it’s amazing, it’s an amazing tool,” said James Haff, the zoning administrator for Killington.
In Killington, tax increment financing helped pay for major repairs underneath and on the Access Road, helping to spur plans for new housing.
In Rutland, water, wastewater and sewer upgrades are on the table for the city.
TIF projects work in tandem with developers, covering upfront costs which town officials say create important partnerships.
“In order to enter into this TIF district, we have a development agreement with a developer. They are to pay even if they don’t build anything at this time,” Haff said.
“Killington’s is extremely successful. They’ve got a commitment from their developer to pay that increment regardless of whether the project goes forward and we’ll see that here, as well,” Doenges said.
Doenges says there’s still a bit of time to wait until the Vermont Economic Progress Council gives the go-ahead on their end. Their next meeting and chance to approve is in late February.
