Killington Tax Increment Financing District application approved by VEPC
City plan includes improvements to water system and road infrastructure
Vermont Business Magazine The Vermont Economic Progress Council (VEPC) has approved Killington’s application for a Tax Incremental Funding (TIF) district for Killington Road and the Killington Village area. The VEPC Board of Directors voted Thursday to approve Killington’s application, which will allow the city to install new water infrastructure, address water contamination, mitigate road hazards and improve the transport capacity and accessibility.
“Growing Vermont’s economy in every corner of Vermont has been a top priority of my administration, and meeting the basic needs of all Vermonters, including access to safe and clean drinking water, is a Essential element.” said Gov. Phil Scott in response to VEPC’s decision. “Improving public infrastructure such as water systems and roads opens up new growth opportunities for a community, and I am delighted to see Killington accepted into the TIF program to begin this important work.”
The City of Killington is home to Killington Mountain and Killington Resort – a year-round destination for in-state and out-of-state visitors and a major economic engine in Rutland County as the region’s second largest employer. The city’s $62.3 million proposal for public infrastructure improvements will facilitate the private development of the highly anticipated Six Peaks Village, which will include a hotel, more than 35,000 square feet of retail space and approximately 323 new housing units made up of condos, townhouses and single-family homes. – family houses.
“The establishment of the TIF District of Killington and the completion of the proposed improvements are important steps in attracting private investment in projects that add value to the community and grow the economy,” said the Commissioner of the Department of Development economics, Joan Goldstein. “The City’s plan focuses on important economic opportunities that would continue to stagnate without the use of the TIF program.”
Capital investment in the development of high density compact housing and commercial space in Killington has proven unsustainable without a basic road and water system in place. Considered since the 1980s, the development of a resort village has been thwarted by the lack of municipal infrastructure. Development resulting from these FIT investments will occur in locations identified by the city and region to preserve other areas for natural habitat, recreation and open space.
“The installation of a public water supply system and the improvement of the road infrastructure are necessary bases for attracting new businesses and new residents to the city, which are necessary for our local economy to remain relevant. and continues to rebound from the impacts of the pandemic on our hospitality-based economy,” said Killington City Manager Chet Hagenbarth. “Without public investment, the city will continue to see the stagnant and declining big list growth that has occurred over the past decade. Financing these investments locally without a TIF would effectively double the city’s tax rate, which is too much for taxpayers to bear. »
The TIF, which refers to tax increment funding, allows the city to bond for critical infrastructure projects such as road improvements, parking, water expansion and upgrades and sewers and the cleaning of brownfield sites. These works allow private developers to build projects that depend on this infrastructure and that will create jobs, increase the tax base and improve the general economic vitality of the municipality.
With TIF, Killington is permitted to use a portion of the new property tax revenue generated by the growth of private property within the TIF District boundaries to fund the cost of public improvements over time. In addition, the National Education Fund will continue to receive its base tax revenue and will remain unchanged or increase over time due to new property tax revenue generated for education. This mechanism alleviates or eliminates the burden of increased property tax rates for property owners outside the TIF district to fund public improvements.
In the TIF District of Killington, improvements are expected to add more than $285 million in new assessed value to Killington’s Big List, generating more than $115 million in new property tax revenue over the 20-year retention period. for the TIF district. More than $26 million of these new property tax revenues will go to the Education Fund, $4 million to the City’s general fund and the remaining $84 million will be used to service the debt contracted by the City to carry out the improvements.
Killington will need to submit additional documents to VEPC as the project progresses. The first phase of the proposed project under the TIF program will focus on the installation of a new $26.7 million water supply system that will help provide a clean water source and fight against water pollution. contamination of per- and polyfluoroalkyl substances (PFAS) that exists along Killington Road.
“Killington is currently home to around 70 small public water systems and many other private water sources,” said Bryan Redmond, director of the Water and Groundwater Protection Division of the Department of Conservation. environment within the Natural Resources Agency (ANR). “The construction of a new public drinking water supply system to provide safe drinking water to homes and businesses in Killington is a great step forward.
According to Redmond, this work exemplifies ANR’s work to manage and address PFAS compounds in public water systems statewide – one reason the Agency is supporting this project with additional funding. $2.3 million in American Rescue Plan Act funding from its Village Water and Wastewater Initiative.
Improvements along Killington Road are planned to be completed in four phases, with the first phase addressing hazards at the intersection of Killington Road and Highway 4, and improvements at the south end of Killington Road. Once completed, the road project will increase traffic capacity, improve fluidity and provide greater multimodal accessibility to businesses and amenities in the Village.
“The economic development of the entire Rutland County area is taking a transformative step with the approval of the TIF District of Killington,” said Lyle Jepson, executive director of the Rutland County Chamber and Economic Development. “I applaud the Town of Killington for its innovation and proactivity in its planning and for being the catalyst for a transformative time in the history of our region.
Learn more about Tax Increment Financing, the Vermont Economic Progress Council, and information about Killington and other existing TIF districts throughout Vermont.
06/30/2022 Montpelier, Vermont – Vermont Economic Progress Council