Approval of the TIF District Plan Initiates the City’s Engagement With the Vermont Economic Progress Council
Rutland, Vermont — The City of Rutland Board of Aldermen has approved the Tax Increment Financing (TIF) District Plan and its submission to the Vermont Economic Progress Council (VEPC). This action comes after the October 21, 2024 approval of the TIF District Letter of Intent.
The TIF District Plan was spearheaded by the Rutland Redevelopment Authority (RRA) in partnership with White + Burke Real Estate Advisors, playing an essential role in defining district boundaries, identifying key projects, and aligning community and economic development goals.
With both the TIF District Plan and the Letter of Intent approved, the City is now positioned to submit its application to VEPC. If approved, the TIF District will produce the incremental revenue needed to pay for critical public infrastructure improvements, including transportation, water, wastewater, stormwater, brownfields remediation, and streetscape upgrades. These enhancements aim to stimulate private investment in housing, as well as commercial development. It is estimated that the TIF District will generate over $58.4 million in new development value over the next two decades.
The proposed TIF District includes projects such as:
- 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: Conversion of 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 20-year life of the District, 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.
About Tax Increment Financing (TIF):
Tax Increment Financing (TIF) is an economic development tool designed to foster 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. TIF projects catalyze private development by removing key infrastructure barriers, using incremental tax revenues to cover the cost.
Rutland City TIF Project & Rutland 360
Rutland 360 is the City’s branded initiative dedicated to providing comprehensive updates, resources, and information about the TIF District and related development projects. This platform serves as a one-stop hub for residents, businesses, and stakeholders to track progress, access documents, and stay informed about key milestones. Visit www.rutlandvtbusiness.com/tax-increment-financing for the latest news and updates.
