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City reviews TIF-backed plan to fund Stevens Branch affordable apartments
Summary
Council heard a detailed presentation on a proposed public–private partnership that would use tax increment financing (TIF) to pay up to $2.6 million in infrastructure costs to support a 32-unit affordable housing project called Stevens Branch Apartments.
The Barre City Council heard a detailed briefing May 20 on a proposed public–private partnership that would use tax increment financing to fund public infrastructure tied to the Stevens Branch Apartments, a 32-unit affordable housing project.
Consultant Stephanie Clark of Weitenberg Real Estate Advisors told the council the project partners expect the private developer to construct the housing while the city would issue a municipal bond to build utilities, streetscape work and parking adjustments that remove barriers to development. "When a municipality wants to get involved, it issues a bond, it constructs the infrastructure," Clark said, explaining how the resulting tax increment pays down the debt.
The council did not take a vote on the development agreement on May 20. City staff and consultants said the council will be asked to approve a final agreement at a later meeting, after additional review and a public hearing, and after the city secures state review from the Vermont Economic Progress Council (VEPC) required to use TIF. Clark and TIF administrator Carol Dawes said the city’s TIF district has capacity to support the project and that the materials in the council packet show multiple conservative scenarios for the debt service and cash flow.
Consultants outlined a $2.6 million cap on potential TIF borrowing tied to the project’s public-work components and said contingency allowances have been included because design and market conditions remain fluid. Clark said the team intends to return to the council with a public hearing on June 3 and, if approved locally and by the state, to present a bond question to voters this fall. If voters approve the bond and state approval is obtained, the partners hope to break ground in spring 2026 and open the housing in 2027.
City staff emphasized the TIF mechanism will not raise tax rates for existing taxpayers, but instead uses the new property tax revenue generated by the development — the increment — to repay borrowing for the public improvements. Clark and Dawes described required state reviews and audits that the package will face, and said they designed the package with conservative assumptions to withstand that scrutiny.
Council discussion touched on flexibility in the public improvements scope, particularly the parking-lot design and stormwater treatment. Clark said the draft budget contains design contingencies and construction contingencies to allow for engineering refinements, and she invited public works staff to coordinate on green infrastructure elements during final design. Dawes said the team ran "very negative scenarios" to test capacity and was comfortable with the stated $2.6 million cap.
The council reserved final action for future meetings and scheduled a public hearing on June 3 to allow more community input and review before any vote.
