Governor Scott Announces $525,000 Grant to Support City Center Senior Housing

Today from South Burlington’s City Hall, Governor Phil Scott announced a $525,000 community development grant to the City. The federal Community Development Block Grant will help build City Center Senior Housing—39 units of affordable senior housing located in the City’s Tax Increment Finance District (TIF).

Private developers Chris Snyder and Kevin Braverman will join forces with Cathedral Square, a non-profit affordable housing provider, to build new senior housing on Market Street. This is the first of many proposed projects located in South Burlington’s new City Center. South Burlington voters approved the creation of a TIF District in 2012, and in 2016 approved the resulting $5 million bond issue to upgrade Market Street with sidewalks, utilities and infrastructure to support more housing and commercial development and to create City Center Park.

“Over forty years ago, our community dreamed of building a community center, and now we are on the cusp of seeing a new downtown realized,” said City Council Chair Helen Riehle. “This investment supports the construction of critical senior housing with wrap-around services from Cathedral Square. It also augments the designation of City Center as a tax increment financing district, which is absolutely essential to the realization of South Burlington’s and the state’s goals of supporting compact, downtown development,” she continued.

“This project would not be possible without the use of tax increment financing. It is a valuable development tool for communities, like South Burlington, to use in revitalizing their downtowns and village centers,” said Gov. Scott. “Tax increment financing has demonstrated benefits to supporting the type of development projects we need to make housing more affordable for all.”

South Burlington is one of seven communities statewide that can use Tax Increment Financing. This financing mechanism allows communities to use future property tax dollars generated by private development that would not occur unless the municipality can build and improve public infrastructure to support new development. Current state law prohibits the creation of any more TIF districts. There is proposed legislation to lift the TIF cap, allowing more towns access to this tool.

“TIF’s enable public-private partnerships – local, state and federal government working collaboratively with private investment. In South Burlington, the outcome is the creation of much-needed housing and the public infrastructure to support growth and economic development. This translates into a stronger, more resilient and affordable Vermont,” added Gov. Scott.

To see the press conference, view it on YouTube.

About the Vermont Community Development Program
The $525,000 Vermont Community Development Program grant awarded to the City of South Burlington is one of many competitive awards made from the State’s federal allocation of Community Development Block Grants (CDBG). The State awards approximately $7 million annually in competitive grants through its Department of Housing and Community Development. The CDBG grants are funded through the U.S. Department of Housing and Urban Development. Vermont’s congressional delegation has been steadfast in supporting the funding that makes this program possible.

 

 

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