Financing Plan

On December 14, 2010, the Moran development team presented to the City Council a financing plan for the Moran project, during a special two-hour Council work session.  While the plan will continue to evolve over time, the major components are now established.  Importantly, the City’s share of the Moran project is financed with no increases in property tax rates.   This page includes all of the materials that were handed-out during the December 14 City Council work session, as well as some additional information regarding the project’s financing. 

Development Budget

The “sources and uses” budget is an overall budget snapshot – what the funds will be spent on (uses), and where the money will come from (sources).

• Updated Sources and Uses Budget 6/18/10  
• Sources and Uses Budget, with cover memo 12/10/09  
• Budget presentation made to City Council by David G. White, development consultant  
• David G. White bio 
  

Tax Increment Financing (TIF)

Established in Burlington in 1996, TIF is an economic development tool to finance public infrastructure improvements that are necessary for private development to occur. TIF is an important aspect of the Moran project, and will allow the City to finance some of the public components of the project.

• TIF presentation to City Council by David Weinstein, CEDO staff  
• Burlington TIF Policies and Guidelines  
• Map of TIF district  
• TIF revenues and expenses (1999-2009)  
• Schedule of TIF debt through end of district  
 

New Markets Tax Credits (NMTC)

Currently the largest economic development program in the nation, NMTC provides an incentive to invest in qualified projects such as Moran, in exchange for federal tax credits. After a seven year “compliance period,” the investment stays in the project, just as a grant would. NMTCs will bring in millions of dollars to the Moran project.

• NMTC program overview (updated 12/21/09)
• Presentation to City Council by Steve Weems, NMTC consultant  
• Steve Weems bio  
• U.S. Department of the Treasury’s official New Markets Tax Credit web page 
• Novogradac & Company LLP, a national certified public accounting and consulting firm, NMTC page
  
  

Brownfields Economic Development Initiative (BEDI) and Section 108

The City has been awarded a $1 million BEDI grant through the U.S. Department of Housing and Urban Development (HUD) one of just seven projects chosen nationally under this highly competitive program that promotes the redevelopment of abandoned industrial sites. BEDI grant funds must be used in conjunction with a HUD “Section 108” federally-guaranteed loan, which is a financing tool for cities to invest in economic development projects. HUD has  approved a $2 million Section 108 loan for Moran, to be paid back with proceeds from the Waterfront Tax Increment Financing district.

• HUD’s BEDI webpage
• HUD’s Section 108 webpage
  
  

Questions about the financing plan? Please contact Kirsten Merriman Shapiro at kmerriman@ci.burlington.vt.us.