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Newport council OKs White & Burke TIF study, reserves Walmart fund after conflict concerns
Summary
The council approved a White & Burke contract to study a possible Tax Increment Financing district and voted to reserve $395,607 in the city's Walmart fund to cover feasibility and planning work; public commenters raised potential conflicts of interest that council members and the mayor said would be handled under existing ethics rules.
Newport City Council members voted Jan. 27 to hire White & Burke to evaluate the feasibility of a Tax Increment Financing (TIF) district tied to the city's recently adopted master plan and to reserve the remaining Walmart fund balance to cover the work.
David Force, a Newport Downtown Development board member, told the council White & Burke's two-phase proposal begins with a $50,000 feasibility study to define potential district boundaries, estimate public infrastructure costs and model incremental tax revenue; a second phase, costing another $50,000, would develop a master TIF plan and submit it to the Vermont Economic Progress Council (VEPC) if the feasibility work supports moving forward. Force said additional costs for engineering and related consultants could range from $150,000 to $300,000.
Force recommended using the Walmart fund so "there is no scenario in which the cost of securing TIF approval from the state would have to be covered by Newport taxpayers." He said NDD would pursue grant funding but recommended reserving the Walmart balance to cover higher-end estimates and to avoid delaying work.
Several council members asked whether the city should fund only the initial $100,000 and defer further commitment pending grant results. The presenters said the scope and timing of projects are uncertain and that White & Burke's work is meant to identify whether viable projects exist before costly investments begin.
Public commenters raised potential conflicts of interest, noting that some candidates running for mayor and people employed by local development organizations could sit on the council or otherwise influence decisions that benefit those organizations. One speaker said, "There is a massive conflict in a city council member who is the only person running for mayor, who is in a position of leadership with the organization that's going to benefit from this money." The mayor and affected council members responded that the city has an ethics policy and a newly active ethics commission, that conflicts are "owned by the person who believes they own that conflict," and that recusal would occur where a material financial interest exists. Council member (speaker 3) said she routinely recused herself in votes where she believed a material interest existed and would do so again.
After discussion, a motion to contract White & Burke for TIF feasibility and to reserve the remaining Walmart funds carried by unanimous voice vote. The mayor said she would sign the paperwork and forward it to the city attorneys.
What comes next: staff and NDD will proceed with Phase 1 work, pursue grant opportunities and return findings to the council; any formal TIF plan would require additional public information sessions and a publicly warned council vote before VEPC submission.
