 Well happy tiff Tuesday everybody and thanks for bearing with us and getting through the snow Obviously you're planning out to a press conference in April and you're taking a chance So thanks for coming to my appeal here, but and thanks to mayor Watson for hosting us today Here at City Hall in my appeal here. It's such an amazing place and also really as we'll talk about in a moment a Very relevant place to be having a conversation about tax increment financing So I want to start by saying earlier this year the Vermont League of Cities and Towns commissioned what we believe to be the first independent analysis of The Vermont's tax increment financing program. It's a program that's been around for about 40 years It's a program that about 13 communities in Vermont have either used or considered using Or are considering actively using right now And our members earlier this year came to us and told us especially those that have used the tool to transform sections of their community They've told us for years that this is the most effective economic development tool they've ever used and Without that tool those without access to the tool told us they want access to that most effective economic development tool But there's a little trick which is it takes Some work in the state house and with the governor to make sure that tools available to municipalities So VLCT partnered with a Vermont firm right down in Heartland Rural innovation strategies to conduct an analysis and questioned whether the TIP program was meeting the state's community development goals Whether it was contributing to the state coffers or taking from them And whether there were other more effective tools just because our members say it's great We want to prove it and show to the legislature and to the governor's office that it's great So the role we hired rural innovation strategies They in turn hired an economist and a team at the University of Wisconsin's Oshkosh Center for customized research and services to assist including the economist Jeffrey Sash Who actually has experience in multiple government TIP programs? the findings in the analysis Which you can grab a copy right over there on the table the findings and analysis tell us that They support the continued use of the program in short It's achieved the codified development goals here in Vermont It's encouraging our communities to think long term and perhaps most importantly It's growing Vermont's tax base year over year Before I ask the city and town leaders that have joined us here To talk us through the findings and how they manifest themselves in practice on their streets a quick reminder about what TIP is Real simple and oversimplified Vermont's to tax increment financing law Allows a municipality to incur debt to make infrastructure payments and make infrastructure investments and repay that debt Using the increased tax revenue that that infrastructure generates the gross oversimplification We currently have about 11 active TIFs Here in Vermont and two retired TIFs. We currently have one TIF that is under consideration down in killington and perhaps most notably We have a TIF right here across the street. I don't believe city halls in the TIF, but I think it's across the street, right? Here in Montpelier and they're working on making their first investments here in the next months and years Well, why now? Why did we decide to do this analysis today as opposed to last year of the year before? well We've anticipated a multi-year TIF debate in the state house will come to a head this year and sure enough as We sit and stand and talk here in Montpelier City Hall in the Golden Dome not a quarter mile away There's a bill that will likely have action on the Senate floor today or tomorrow that would expand the TIF program It's called the project-based TIF program and it would simplify this program that only About 13 communities in Vermont have had a chance to use so that rural communities could access it people you hear from today I want to thank the especially the Senate Finance Committee Which included this in an amendment in committee to the economic development bill H-159? And I want to thank members of the Senate Committee on economic development housing and general affairs who have been supportive of expanding the tax increment financing program also Vermont's VLCT's independent analysis of the TIF program Suggests that it's in the best interests of Vermont that the project-based TIF and H-159 becomes law But don't take my word for it I want to I want you to hear from people that have used the program and know a little more about the program and have had a chance to look at our analysis and I think there are several great examples whether it be in Burlington with Mayor Weinberger and his team who have really pioneered TIF and shown what can happen on a Lakefront that the city once turned its back to and redeveloped but we have a more recent success story Just to their south and technically I think east which I never get in the name of South Burlington Which is in South Burlington and we asked Jesse Baker the city manager in South Burlington to come and tell us a little about City Center, but also to tell us about how this TIF program could help other communities Jesse has the unique Experience not only of working in South Burlington Where they have an active TIF but having been in one of our most successful TIFs in Winooski Where she was city manager for multiple years and where TIF has Really transformed that city into what you see today from what it was when I was driving an ambulance through that town 25 years ago So without further ado, Jesse Baker Good morning as Ted said my name is Jesse Baker I serve as the city manager in South Burlington, but I've also had the honor of seeing TIF term long-term community driven Planning into new tax dollars for the education fund for new jobs and for a sense of place in two different Vermont communities Both when I served as a city manager in Winooski and now is the current city manager in South Burlington So starting with Winooski after decades of community conversation and planning Winooski looks much different today than it did 20 years ago With hundreds of new homes new restaurants and new businesses in our down in their downtown I think it's of it still as my downtown as I still live in Winooski If you've attended a class at CCV if you've gotten a student loan through Vsac Or if you've joined us for Halloween in Winooski where there are a thousand jack-o-lanterns aligned around the rotary in Winooski You've experienced the success of a TIF district in South Burlington where I currently serve We've turned a suburban growth pattern on its head by creating a new densely developed downtown our city center Featuring hundreds of affordable homes a new library a new City Hall and more market rate homes under construction Even today on a snowy April morning. There are excavators in the ground With TIF we are addressing our climate change goals by focusing development in our core downtown on Transit lines and walkable and bikeable to over a thousand job opportunities But of seeing and feeling and touching the product of TIF isn't enough The University of Wisconsin analysis spells out in numbers the success of this tool in in the six years they studied Vermont's TIF program paid for a hundred and eighty million dollars of public infrastructure in 12 district TIF districts that generated 685 million dollars in private development more than half a billion dollars of investment in six years and It created 4,000 new jobs The University of Wisconsin analysis points to two key ways to measure the success of TIF programs as an economic development tool And as a fiscal tool Few policymakers have taken issue with its effectiveness as an economic development tool And my comments as my comments and the report suggests Vermont's TIF program is effective in that manner But this analysis also argues that Vermont's TIF is a fine tip tool is a fine an effective financial tool as well a net present value analysis in Winooski showed that the TIF program Achieved a reasonable rate of return It shows that by allowing 75 percent of the increase in property tax revenues Attributable to TIF to be used to pay off debt The education fund has more money than it in it than if the test if the TIF districts had not happened During the study period the property tax contributions to the Ed fund were estimated to have increased 68% Compared to the pre-tiff contributions Development that occurs in TIF in the TIF districts create a different higher set of growth assumptions than previously reported by other Researchers in Vermont TIF provides both sufficient financial incentives and a planning framework that generates development that could not have occurred elsewhere It engages the end and engages the community in a who are we and who do we want to be? Conversation with the financial tools attached to really enable the communities to realize the vision of who they are And it has been very successful in my experience as a city manager It is now my distinct honor to turn it over to to a one of my former colleagues and Watson the mayor of the great capital city Thank You Jesse As Jesse said, my name is Anne Watson. I'm the mayor of Montpelier and Right here in Montpelier. We actually have one of the newest TIFs Having just been created a few years ago And we in Montpelier intend to use our TIF program to build of the public infrastructure That will catalyze the construction of affordable housing in our downtown in fill commercial development and other private investment Without TIF more housing and more development would likely occur in green fields outside of the downtown And throughout the county leading to more vehicle trips more carbon consumption more traffic and more forest fragmentation The TIF program is one of the most effective tools for state local and federal tools that can incentivize smart growth long-term planning and fiscal responsibility The program facilitates long-term community planning And it also requires communities to purposefully think about the infrastructure. They need to spark economic development Then they lay out a plan to build that infrastructure Once a community has bonded for that infrastructure, it can facilitate infill and dense compact development A multi-year planning process that requires the community to vote in support of that plan is followed by five years of construction And a 20-year repayment period The University of Wisconsin analysis shows that the TIF program accomplishes multiple development goals Including the goals codified in Vermont statute enshrined in regional plans and statewide economic development plans and ultimately Goals that are held by Vermonters Vermont's TIF program encourages dense downtown development while preserving our working landscapes, and that is something I believe that we can all get behind Thank you Thank you. So just to reiterate a couple of quick points here. You heard from Jesse. It's an effective economic development tool It is adding funds to the Ed fund year-to-year a 68% increase over that six-year study And perhaps as Charlie Baker and our other regional planning Commission directors would say it's an effective planning tool It's a long-term planning tool that brings with it money and teeth, which is really really important Our next speaker has been a select board member for 24. Is that what we decided 26? More than 25 years. How's that? That's what I said a poor former board member of the Vermont League of Cities in town towns and Select board member currently in the town of Johnson Eric Osgood Eric all yours Thank You Ted if my name is Eric Osgood select board member from Johnson and I would say Johnson's not unlike many other communities around the state size-wise population-wise and Our wealth-wise Tiff is to this point been sort of a Too high a threshold for us to reach and so we've not really taken been able to take advantage of it We have had some investments into our community Some downtown redevelopment Along the main street. We've had some flood mitigation measures taken to help businesses and some of the town's infrastructure We have a small revolving loan fund that's dedicated for revolving or for Economic development And so we have had some investment in our community in the growth and improvement of our community we've also Through the wisdom of the voters purchased some property and the intent is to develop that into a small industrial park We just have not been able to get over that hump yet And I think with h-159 and the changes that Lower the threshold for communities like Johnson to reach that maybe we can get there and develop that site and that required all of the Infrastructure as far as power water sewer that's all municipal Supported is There it's just getting it onto the property developing the road the infrastructure of that type of development and then hopefully get some businesses in there We think it's a win-win for the town and for the state with that growth of development It brings in increases our grand list which is increasing our tax base as well as the job creation not only helps the The state but it also would the businesses it would help their education tax fund as well So we think it's a win-win We do support 159 and hope that it does pass and with that the smaller communities such as Johnson and many others around the state would be able to take advantage of the tip Thank you You always get a smaller emcee that can move around the podium more nimbly sorry so as Eric just said the Project-based TIF program in h-159 is vitally important to make this program which Some of our bigger cities and bigger towns represented at this podium have been able to use It's about equity and fairness to make sure the smallest of our towns have access to the same tools The largest of our towns have access to to invest in themselves going forward On this tip Tuesday, there are 10 findings in this report What these people behind me have spoken about is not just their opinion They're echoing the 10 findings in that report One of the findings was that this tool TIF is a great balance between risk and reward and a great balance of investment and accountability And I thought there was nobody better To tell you why than somebody who used to run the tax increment financing program Somebody who used to be the director of the remote economic progress council Somebody who currently is a practitioner of economic development at the addison county economic development corporation And that's the great legendary fred kenny fred Thank you, ted Yeah, i am fred kenny an executive director of the addison county economic development corporation I'm also currently president of the regional development corporations of vermont the association of all 12 rdcs in vermont, and i'm representing them all here today So the university of wisconsin report is the first known independent analysis of vermont's tiff program The report outlines what i've known for about two decades that vermont's tiff program Is an effective development tool and a good investment As the former state director of vermont's tiff program and now as an economic development practitioner I want to highlight an important fact that was included in their analysis The report concludes that the combination of safeguards that are built into vermont's tiff statute Maximizes its effectiveness and accountability While minimizing taxpayer risk. How does it do that? Well vermont restricts the type of taxes that can be used to repay The tiff debt many states allow sales taxes to be used vermont does not vermont has a shorter time frame To repay the debt than most states the minimal time period is typically 20 to 29 years Many states offer 30 to 39 years vermont's is 20 years vermont is one of the only states to impose a cap on the number of tiff's districts that can be created Nearly half the states in the country allow private developer costs to be financed not in vermont Only 10 states require a state approval of a tiff district including vermont And vermont is one of the very small number of states That require a voter approval of tiff debt And while the project-based tiff proposal in h159 would alleviate a lot of the minutiae that Legislation requires of the larger communities to access the regular tiff program It would not reduce the transparency The accountability and the effectiveness of the tiff financing tool in vermont Thanks So I want to conclude by bringing our attention To back to the report and back to the assessment An analysis that the university of scotson and the rural innovation strategies group has done for us On page 19 of this report There's a handy dandy table And one of the big questions about tiff from its Opponents and proponents and what we we really challenged the university to look at was is this increasing the education fund because there were reports out there that make claims that The tiff program actually cost the education fund money On page 19 figure six. There's a great A great graph That shares a little about the anticipated growth of these tiff districts According to The most thorough review of the tiff program that's been done for the legislature by the jfo the joint fiscal office They estimated that these tiff districts if not for tiff would have grown 18.4 percent in grand list value Over the life of the study the six years The actual return to vermont and to the taxpayer was closer to a doubling a 97.6 growth growth rate So this program is making growth happen in these tiffs at an astronomical rate And the report goes into specifics and uses one Community as a great example because one of the arguments against this claim Is that the growth would happen somewhere in vermont without tiff Well, this report does a case study of white river junction As we all know white river junction is unique and that it sits on a border of a state In a more favorable tax environment in a more develop a development friendly Environment with new hampshire and in white river junction In harford the the tiff was in white river junction So it's in harford, but it's in white river junction that jfo estimated the growth rate was going to be close to 44 Over those six years now. I don't know about you. I didn't expect 44 growth in any of our downtowns over the past Six seven eight years, but that was the estimate But even where that number was so high The harford and white river junction tiff district district doubled the expectation for the growth in that town And it is very easy to see That if not for in white river junction that could have easily happened in lebanon It could have easily happened somewhere across the border and handover and in new hampshire So a great argument that this program is doing its job I'd encourage everyone to take a look at the report. It'll be on the website at blct.org and It has 10 great findings that have been echoed here today, but I want to end with these three reinforcements This program is a proven effective economic development tool this report backs that up This program is an incredible long-term planning tool This program is growing the ed fund and this program in the entire country is one of the most Accountable and transparent tax increment financing districts It's ever created and I have to give credit to fred kenney and the team that over the years have built it that way And to our friends in the legislature who have Insured despite our objections at times that this program is what it is today Which is a really accountable transparent program and with that I'd open it up to any questions for me or any of the brilliant people behind me that know more than I do Calvin Sure, so I can start and fred might be able to Tell me more because fred was one of the godfathers of the language, but so H 159 and the project-based tiff Makes tiff more scalable for a small town So currently when you do a tiff project you identify hundreds of parcels in multiple projects Over a five-year period of time that are going to be developed Do I have that right? There's a 10-year period of time five-year period of time You're going to develop a bunch of infrastructure over five years And it's going to increase the value of say literally 100 or 200 properties, you know parcels The project-based tiff reduces that to say you have one project And so you're going to do just a wastewater project or just a streetscape project Your max cap is five million dollars instead of with tiff. It can be much higher, you know 20 30 million dollars And you have a smaller number of Parcels that are going to be in there. You also have less time to do the project So you have three years instead of five years recognizing that this is a simpler project. You're not doing multiple projects and the criteria for What you're doing I think with tiff you have to meet x number of the criteria With project-based tiff it reduces the number of criteria that you need to meet Recognizing that it's a smaller project So it really scales it the nice thing or some of our members would argue The trick with this it doesn't alleviate any of the accountability or transparency measures that are in the existing tiff program That's a complication for our members. But this report Not only does it endorse project-based tiff this endorse makes record this report makes recommendations on how The state should be helping our municipalities access this program by providing technical assistance To our communities as they go through something like project-based tiff Did I get that right anybody want to Fred do you I think you covered it pretty Well, um, I mean for me the biggest benefit of the project-based tiff Pilot that's in h159 is that it makes tiff available to smaller more rural communities Typically with tiff you have a large area like a designated downtown and the tip is the whole designated downtown Multiple projects multiple infrastructure projects multiple development projects With project-based tiff it's one project as ted said Maybe one or two infrastructure projects So it's much easier for a smaller community that doesn't have extensive staff To um administer the program and and run the whole thing through the public approval process The state approval process and to administer the tip You know, I remember remember uh governor scott back in i think it was March or february 2020 he was talking about expanding tiff to smaller communities And maybe this is a question for lawmakers too, but I mean why why hasn't this happened? What's been holding this up? I could give that a shot as well You should ask the lawmakers I think it's really telling though that in the senate today Uh, they're likely going to act on an economic development bill that would expand project-based tiff And expand the tiff program into this pilot program making the program more accessible to rural communities So there are there is a lot of support for the idea of expanding tiff Beyond the existing program and making sure that this is an equitable program one that a rural town has just as much Access to as a big town like burlington or south burlington. No offense Uh, I think that what this independent analysis does is hopefully explain once again That this program is putting money in the ed fund There have been reports out there. They've questioned that and this is independent analysis when you look through this report This is not saying that tiff is Perfect and as the you know panacea is going to be the solution to all of our problems It points out some of the difficulties when measuring tiff this tells says it's hard It's complex to to determine what this program has Uh, what the the exact definitions of the success in this program are for instance It says it's hard to measure the growth that happens outside of the tiff when you have a project in burlington or south Burlington the downtown that changes the waterfront and creates a city center There are projects outside of that city center that benefit from the tiff program Those aren't accounted for in any of the measurements So some of these things simply aren't measured and this report talks about that However, what the report clearly says is the tiff program is putting money in the ed fund. It's supporting long-term economic planning and it's Supporting the type of growth that we want in brahman. So I think making it simple is you know, it's because it's a complex program And there hasn't been enough reporting to really prove the success of this program over 40 years And we hope this report helps anybody else want to add to that? What I'm too long Anything else calvin David do you have a stumper for us? I don't know Thank you so much. I want to thank mayor Weinberger for coming down I want to thank mayor watson and fred and jesse and eric for making the trip on a snowy morning Everybody out there, especially to charlie baker and our friends at the regional planning commissions for all the support They've given to economic development and planning and growth and And economic development tools out there. So thanks save drive home and have a great day Thank you