TIF stands for Tax Increment Financing. TIF utilizes new property tax revenues generated by private redevelopment in downtown and near the waterfront to invest in public infrastructure in the same area. The City has used this tool to fund projects such as the Lake Street reconstruction and extension, the Urban Reserve acquisition, and the Lakeview Parking Garage.
Beginning in 2020, the completed redevelopment of the Burlington Town Center is anticipated to generate approximately $2.4 Million in new property tax revenue annually. With voter approval on November 8, 2016, approximately $1.8 Million of this new property tax revenue will be used to repay the debt associated with purchasing the reconstructed St. Paul and Pine Streets and the improvements to Cherry and Bank Streets. The completed project is also anticipated to generate significant new tax revenue from other sources, including from sales and rooms and meals taxes.
Up to approximately $22 Million in TIF Funds will be used for:
- Pine Street Acquisition, construction and streetscape improvements, including property acquisition, street infrastructure and construction, streetscape, stormwater, utility, lighting, and multimodal transportation improvements
- St. Paul Street Acquisition, construction and streetscape improvements, including property acquisition, street infrastructure and construction, streetscape, stormwater, utility, lighting, and multimodal transportation improvements
- Cherry Street Streetscape Upgrades, including streetscape, stormwater, utility, lighting and multimodal transportation improvements
- Bank Street Streetscape Upgrades, including streetscape, stormwater, utility, lighting and multimodal transportation improvements
- Reimbursement of costs incurred by the City related to the administration of the TIF district
All of the streets and public improvements will be fully public, and owned and maintained by the City. No public funds will be utilized to fund any portion of the private development, and the City will not have any relationship to the private revenue generated by the project.
TIF will be used for public improvements to 8 street segments (above) around the BTC Site, including the reconnection of St. Paul Street (below) and Pine Street.
For more information about TIF and the public improvements that it will pay for, check out these documents:
- Renderings of proposed Public Improvements
- Information about the Nov. 8, 2016 Ballot Item
- Tax Increment Financing Poster
