Mark your calendars: Rutland voters will be asked to approve a $3.9M bond on October 7.
On July 31, the Vermont Economic Progress Council (VEPC) approved the City of Rutland’s first phase filing in its Tax Increment Financing (TIF) District. This moment paves the way for the City to move forward with critical infrastructure upgrades along Center and Wales Streets in support of the proposed hotel. But there is still one more step that must be taken before this work—these improvements—can become a reality: a bond vote.
Mark your calendars: Rutland voters will be asked to approve a $3.9M bond on October 7. These funds, in addition to the $3M from the NBRC, will be used to pay for the infrastructure that supports transformative private development, including buried electrical lines, upgrades to water, sewer and stormwater systems, and a refreshed streetscape.
A common question about bond votes for TIF projects is: “will this raise my property taxes”. In short: no. The bond will be repaid using the new incremental taxes generated by the private development. Property taxes will not be raised in order to pay for this bond.
Let’s take a closer look at how taxes and this investment all connect.
What does the TIF bond actually fund?
Approval of the bond vote on October 7th will allow the City to move forward with specific, targeted infrastructure improvements that will be necessary in order for the hotel—and other future private development—to occur. These infrastructure projects will:
- Allow for the transformation the long-vacant “pit” into a vibrant hotel, restaurant, and rooftop bar
- Allow for the redesign of Center Street so that it is more accessible, contains bump-outs for vendors and restaurants, and streetscape improvements that draw in curious visitors to our local shops
- Upgrades to water, stormwater, and wastewater systems, which will reduce overflows into Otter Creek, as well as enhance capacity for fire safety for all of downtown
The new hotel alone is expected to significantly increase foot traffic to the area, boosting sales at local businesses and increasing local option tax revenue, all without burdening taxpayers.
Will my taxes go up as a result of this development?
Taxes are based on the voters’ approval of the City’s budget. Since this project contains costs within the development itself, it will not be a driver of municipal tax revenue.
Let us not forget that 15% of the new tax revenue generated by the private development will flow to the City’s General Fund, further offsetting the burden on taxpayers. Additionally, the infrastructure investments are intended to further catalyze private development, making additional tax revenue possible.
It’s a smart design
The City of Rutland is at the threshold of something great. To put numbers to it, this relatively modest investment creates development opportunities that are projected to include:
- 385 units of housing over 7 years
- $16.9M in infrastructure investment over 6 years
- $63.4M in increased property value over 7 years
- $3M additional tax revenue to the General Fund over 20 years
- $5.6M additional tax revenue to the state Education Fund over 20 years
TIF—and this bond—will help put Rutland on a path to grow smarter, support a stronger tax base and create a downtown that is vibrant with activity, serves as an economic engine in our region and the state, and that becomes a destination for visitors and new residents alike.
For more information, visit the Rutland 360 website: https://www.rutlandvtbusiness.com/tax-increment-financing/ or email Ed Bove ([email protected])
About the Rutland City Task Force and Rutland 360. A collaborative initiative, Rutland 360 is led by the Rutland Redevelopment Authority, the City of Rutland, the Chamber & Economic Development of the Rutland Region, and the Downtown Rutland Partnership. Together, these stakeholders (known as the “Task Force”) have developed the Rutland City TIF District Master Plan, a strategic effort to drive economic growth and revitalization in our city.
