Burlington approves state sales-tax allocation for BTC public improvements at 130 Bank Street

The Burlington City Board of Finance on Feb. 18 approved a budget amendment to accept a 2024 award of Vermont sales tax reallocation funds for the BTC Public Improvements Project at 130 Bank Street.

The amendment, presented by Bridal Pine, director of the Community and Economic Development Office, and Chapin Spencer, director of Public Works, moves the awarded sales-tax reallocation into the municipal budget for construction of public improvements downtown. Pine told the board the state program allows designated downtown areas to seek sales-tax reallocation when projects generate sufficient taxable activity; using the award reduces the amount the city expects to borrow through its tax increment financing (TIF) program.

The change will reduce the city's planned borrowing for the project, Pine said, while Spencer noted ongoing design work on the eastern two blocks of Bank and Cherry Streets could change final costs. Councilor Burrow asked whether the award had been anticipated in the project funding model; Pine described the allocation as "icing" that was not part of the original funding assumptions and cautioned the city should not count on such awards when budgeting.

Councilor Barlow moved the recommended action; Councilor Carpenter seconded. The board voted "aye" and the motion carried unanimously.

City staff said updated cost estimates and further project briefings will come to the City Council in the coming months as design work on the added east blocks continues. The board did not quantify the award amount in the meeting materials presented for this session.