[B]urlington city officials agreed to replace an aging dump truck with a new, larger tandem truck, gave the nod for City Hall to hire a full-time information technology support worker, and recommended the reconstruction of a tough intersection outside a popular bagel shop – using private money to help.
But the biggest project to sail past the city Board of Finance’s four members Monday was the preliminary development agreement and ground lease of city land for the Community Sailing Center’s proposed new waterfront building.
The agreement is the first inclusive city approval process known as a Public Investment Action Plan, or PIAP. Mayor Miro Weinberger introduced the investment program in 2013.
The sailing center, a private nonprofit, would build a $2.5 million permanent home next year using a half-million dollars from the city, after voters approve the center and five other projects in March.
How TIF works
A municipality incurs debt to build up and enhance an area, known as a TIF district, that could benefit from redevelopment or infrastructure improvements, and is otherwise unlikely to see growth without incentives.
Property values in the designated zone, the Waterfront TIF in this case, are frozen at the assessed value of the property at the time of district’s creation.
As the property values rise over the years, thanks to the improvements and growth, the added property value, or “increment,” is split, with a large chunk going to pay off the incurred debt from the city’s projects. A smaller amount goes to the city for future improvements.
“It’s huge for the sailing center and for the city, I think, to have moved forward with a long-term lease arrangement with a nonprofit like us,” said Mark Naud, executive director of Community Sailing Center. “It is a huge first step in a lot of really great stuff to come, particularly along the waterfront. It’s been blighted for so long.”
The new center was one of 50 ideas submitted in 2013 for new development along the waterfront through the PIAP process. A board whittled submissions to five that were voted on in the March election.
Once approved, the city agreed to help seed the infrastructure for the projects using tax-increment financing, or TIF, funds from the waterfront district that encompasses the targeted redevelopment area.
The Community Sailing Center idea is the first of those public investment projects to which Weinberger promised $9.6 million in combined TIF money.
The half-million dollars going to the Community Sailing Center will be used for site development to prepare the vacant brownfield for a foundation, which the center hopes to have poured this construction season.
According to the city’s lease agreement, it will rent land to the Community Sailing Center for $50,000 a year for the first five years, or $4,166 a month.
The rental fee could be reduced by as much as 80 percent if the city grants the center credit for community services, such as scholarships or subsidies to nonprofits, schools or individuals. If approved, the rent could go down to $10,000 per year, or $833 a month.
20 years at the Sailing Center
Despite being around for decades, the Community Sailing Center has long operated out of old, worn-down city buildings that have been retrofitted. Two port-o-lets are the only restroom facilities on site, though it serves 6,000 people each year.
The center works with kids and adults through the King Street Youth Center, ReSource, The Boys & Girls Club, and the YMCA, as well as the Burlington School District, and local programs in Essex, Milton and South Hero – and others. It hosts the UVM competitive sailing team, which is one of the top racing teams in the United States, Naud said.
The center is in a Public Works building and a white tent is pitched next door for classes. Boats are stored across three chained-up lots.
The new Community Waterfront Center is being designed by architect Marcel Beaudin, who created the original lakefront boathouse which was designed to offer space for what the Community Sailing Center does today: renting boats, offering lessons, educating school groups and providing affordable boat storage options.
Although the center’s TIF financing isn’t as generous as the $6.3 million pot planned for the Moran Plant – which needs to raise an estimated $34 million – Naud said his group is a good test case for the new waterfront developments.
“If we’re not successful on the waterfront, no one will be successful. If the community cannot support a project of our scale … I’m not sure how they could support any other project, politically or economically,” he said
The agreement was released, but it will not be final until the City Council approves the board’s recommendation Sept. 8.
