Jumpstarting development is a perennial struggle for legacy cities all over the country. Some communities lack the training and technical assistance know-how to tap into existing resources, some lack financial capital to incentivize development, and some simply don’t know where to start work in their communities. Vermont’s Designation Programs is meant to provide the extra assistance needed in legacy cities by supporting community efforts to encourage development and redevelopment in targeted, compact areas.
The Greater Ohio Policy Center, in partnership with the Lincoln Institute of Land Policy (LILP) has been studying statewide policies that support legacy cities in addressing weak-market neighborhoods, and the Designation Programs emerged as a noteworthy example. To apply for a designation, municipalities must coordinate with their Regional Planning Commission to confirm that the municipality has a plan as well as funds allocated for local and regional planning. Municipalities must also certify local legislative approval and indicate how the area under consideration supports the state’s goals for the program. The Designation Programs are administered by the Vermont Department of Housing and Community Development, which reviews applications and submits staff reports to a multi-agency Downtown Board for approval.
There are three “Core Designations,” each reflecting a unique type of areas, benefits, and goals. These are:
Downtown Designation, which supports the revitalization of “medium to large-sized historic centers with the community capacity to support a non-profit organization or municipal commission that develops and implements a comprehensive revitalization strategy.”
Village Center Designation, which supports the revitalization of “small to medium-sized historic centers with at least one civic and/or commercial building.”
New Town Center Designation, which is for areas that do not have a downtown or village center but “provide a framework to create compact, walkable, mixed-use centers for municipalities.”
Once a municipality has one the above designations, they are eligible for “add-on designations,” which include:
Growth Center Designation, which is for areas “beyond the commercial center with a framework of policies and regulations to ensure that 20 years of future development will enhance the vitality of the designated core.” Growth Center leadership must be committed to investing in public infrastructure and building stock.
Neighborhood Development Area Designation, which supports “housing development inside or within walking distance to the core designation.”
The designations come with a variety of incentives for municipalities, including:
Focused financial resources, training, and technical assistance for designated areas
Special taxing authority
Priority consideration for state grant programs
Landowner and developer benefits (e.g., tax credits, reallocation of sales tax on construction materials, improved permitting processes, and reduced fees
Since the first Designation Program was created in 1998, the state now has 23 downtown designations, two new towns, and 186 village center designations. Intentional outreach efforts on behalf of Vermont’s Agency of Commerce and Community Development (ACCD) has increased village participation by 90% over the course of 5-years. According to ACCD, the program supported 11 projects in 8 designation downtowns and leveraged over $321 million in private investments with the $2.4 million awarded in tax credits in 2018. Vermont’s Designation Programs demonstrate how states can offer various resources to encourage development in urban centers.
For more information on the Designation Programs, visit the ACCD website: https://accd.vermont.gov/community-development/designation-programs