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Downtown Sales Tax Reallocation

Grants to Vermont Municipalities and Developers for
Property Development Projects in Downtown Areas

Agency Type:

State

Funding Source:

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Vermont Agency of Commerce and Community Development (ACCD)

Deadline Date:

07/02/18

Description:

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Grants to Vermont municipalities partnering with developers to support the development of eligible downtown areas throughout the state. Qualified projects include the rehabilitation or expansion of contiguous real property located within an eligible downtown district.

Municipalities and the developer of a qualified project may jointly apply to the Downtown Board for a reallocation of sales taxes on construction materials. Qualified projects must be located within a designated downtown district. Reallocated taxes must be used by the municipality to support the qualified project. In 2018, funding is available for both the Downtown and Village Center tax credits and the Sales Tax reallocation program, and projects in both categories will compete for the available funding.

Applications and projects must be consistent with the following definitions:

1. “Construction materials” means all construction materials purchased by the owner or owners’s representative, project manager, construction manager, general contractor, or subcontractor to be incorporated into a qualified project. Construction materials include building components; sand, gravel, etc. incorporated into the site; and landscaping materials incorporated into the project. Construction materials do not include furniture, furnishings, and equipment which does not become real property, tools used in construction, or fuel or other supplies used in construction but not incorporated into the project.

2. “Qualified project” means expansion or rehabilitation of contiguous real property that is or will be used at the completion of the expansion or rehabilitation as a structure in a downtown development district designated under chapter 76A or Title 24, but only to the extent that the expansion or rehabilitation becomes an integral component of the real property and the project does not seek qualifications for the Vermont Downtown and Village Center Tax Credit Program authorized under subchapter 11J of chapter 151 of Title 32. “Qualified project” also means new construction of contiguous real property that will be used at the completion of the construction as a structure in a downtown development district designated under chapter 76A of Title 24 but only to the extent that the new construction is compatibly with the buildings that contribute to the integrity of the district in terms of materials, features, size, scale and proportion, and massing of buildings.

3. “Municipal project” means a project undertaken by the municipality in support of a qualified project and which uses the reallocated sales tax revenues in support of that qualified project.

GrantWatch ID#:

GrantWatch ID#: 183753

Estimated Total Program Funding:

$2,400,000

Estimated Size of Grant:

Amounts Available for Reallocation:

1. In a municipality with a population of 7,500 or less, all taxes paid on sales of construction materials in excess of $100,000 for each separate qualified project may be reallocated to the municipality;

2. In a municipality with a population greater than 7,500 but less than 30,000, all taxes paid on construction materials in excess of $200,000 for each separate qualified project may be reallocated to the municipality;

3. In a municipality with a population greater than 30,000, all taxes paid on sales of construction materials in excess of $1,000,000 for each separate qualified project may be reallocated to the municipality.

The benefits of this program, combined with the downtown and village center tax credits, are capped at $2,400,000 annually. Funding for the combined projects (tax credits and sales tax reallocation) in any given municipality may not exceed 30% of this total cap in one year.

Term of Contract:

The application must demonstrate that the qualified project will be under construction within 12 months of the award date, and the qualified project and the municipal project must be completed within 36 months of the award.

Additional Eligibility Criteria:

Qualification Requirements:

-Applications must be for qualified projects within a designated downtown. The Board will not consider projects that are substantially completed before designated is granted to the municipality.

-Applications must be submitted jointly by the municipality and the owner of the qualified project.

Pre-Application Information:

Applications may be submitted either just prior to the start of construction or during construction of the qualifying project, but not after construction has been substantially completed.

Applications will not be considered at the same Board meeting at which the applicant municipality requests initial downtown designated.

Email an electronic copy of the application by 4:30 PM on July 2, 2018. Late applications will not be considered. Decisions will be made at the July meeting of the Downtown Board on July 23, 2018.

More information about Designated Downtown Districts may be found here:
http://accd.vermont.gov/community-development/designation-programs/downtowns

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Caitlin Corkins
caitlin.corkins@vermont.gov

Grant Coverage Areas:

URL for Full Text (RFP):

Geographic Focus:

USA: Vermont: Designated Downtown Districts