South Burlington officials review City Center TIF finances, street and pedestrian plan updates

City Manager Jesse Baker and Community Development Director Alana Blanchard told the South Burlington Planning Commission on a discussion that centered on the City Center Tax Increment Financing (TIF) district’s remaining projects, financial modeling and possible changes to the form‑based code to encourage more predictable, walkable development.

The briefing explained why the TIF matters to the city’s finances and growth: staff reported the district has financed more than $70,000,000 in new grand‑list value and new housing and commercial space since it was created, and that the city is currently collecting about $1,140,000 in annual TIF increment to pay debt service. Baker said the city has now incurred its last debt issuances for TIF projects and that the district will continue to collect revenue through 2037, with debt expected to be retired around 2038.

Why it matters: the commission is preparing amendments to the form‑based code that shape where and how the private sector builds. Staff warned that without continued development beyond projects already in the pipeline the model shows a potential shortfall of roughly $2,900,000 by the end of the collection period; with moderate additional housing production the district would produce surpluses that return new money to the city’s general fund earlier than otherwise.

Baker framed the City Center work as responding to multiple local and statewide priorities: “As the state faces these parallel challenges of a housing crisis, a climate crisis, and addressing affordability, City Centre is really achieving progress towards addressing all of those crises,” he said. He credited the TIF investments with creating a walkable neighborhood, a library that drew roughly 16,000 visitors last year and new retail and housing downtown.

Alana Blanchard summarized remaining public projects funded by the TIF and partners: pedestrian and bicycle bridge over I‑89, streetscape work along Lisonbee Road, Garden Street to link Dorset and Williston roads, and intersection and pedestrian/bike improvements at Minus Drive and Hinesburg Road. She also described completed work such as Market Street and Phase 1 of City Center Park and noted a $72,000,000 total investment figure that combines city, federal and TIF financing and other sources.

On development and the pipeline staff said the large Catamount Run redevelopment by Snyder Braverman has opened the north side and will deliver further buildings this summer and next year; several retail spaces along Market Street are being leased through commercial agents. Staff noted many parcels in City Center remain under separate ownership and that additional, smaller owners are expected to produce a diversity of future buildings.

On finances and scenarios, staff presented modeling that used a range of housing build‑rates (for example, an average of 35 units per year vs. 61 units per year over a multi‑year horizon) to show how revenues would affect the TIF fund balance and when additional municipal general fund revenue would flow after debt retirement. Baker and Blanchard stressed that the model assumes only projects currently permitted or in the pipeline unless the city’s land‑use rules and market conditions encourage more development.

Parking, predictability and permitting were described as critical levers. Baker said implementation of paid parking is politically difficult but important to ensure turnover and support downtown businesses: “We will not have a successful city center if we don't have visitors and shoppers that are turning over regularly to support the small businesses we envision,” he said. Blanchard and staff recommended adjustments to the form‑based code and the official street map to provide predictable lot and block patterns, a hierarchy of street types and pedestrian‑first connections that would make infill and redevelopment more feasible for various property owners.

Commissioners and members of the public asked detailed questions about which parcels are in the TIF boundary (the University Mall was not included), whether additional TIF districts are possible (staff said state limits apply), how the Ed Fund replacement works (staff said the state makes the education fund whole under current rules), and how to balance commercial and residential mixes. Staff confirmed the state auditor audits each TIF district on a five‑year cycle and that South Burlington received a clean TIF audit in 2023.

Planning staff presented draft updates to the official map that show existing, proposed and pedestrian‑first connections. The proposal includes a three‑tier street hierarchy (primary streets with strong frontage expectations, secondary frontages with some flexibility and tertiary or pedestrian‑first links that could allow smaller building footprints). Commissioners supported the idea of pedestrian‑first streets and mid‑block pedestrian connections while asking staff to refine alignments that would cross parks, wetlands or school properties so the map does not imply changes the school district or state agencies have not approved.

No action was taken on the TIF or code changes at the meeting; the commission received the presentation and offered direction. The only recorded formal action at this meeting was the Planning Commission’s approval of the minutes of Dec. 10 as amended.

Looking ahead, staff said they will return with more detailed code amendment language and suggested map refinements and that they will continue outreach with property owners and developers to align the code changes with market feasibility and the TIF’s financial goals.

Ending: commissioners scheduled additional review of the form‑based code and the official map in coming meetings and asked staff to provide follow‑up materials (including clarifications on owner counts and the financial model assumptions) before any regulatory changes are forwarded to the City Council for consideration.