April Burbank

Free Press Staff Writer

South Burlington residents have wanted their own downtown for decades. With a state financing deadline only three years away, City Manager Kevin Dorn is courting private developers to keep the project on schedule.

Private development is the key-but-elusive part of pulling off the project — a heart of the city between Dorset Street and Williston and Hinesburg roads.

The area already has a Trader Joe's and Pier 1 retail development, but the rest of the agreements need to happen soon, according to a consultant's report written in March but discussed at the South Burlington City Council for the first time this week.

"The lack of development agreements and permits is a significant risk to the City with regards to the City Center project," the consultant, Mike Smith, wrote in March.

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"You're on a right track, but you need, in my opinion, to ramp it up," Smith told the City Council on Tuesday night, according to a recording of the meeting on the city website. "And there has been some ramping up, I've read in the paper, since this report was written."

The city created a Tax Increment Financing (TIF) district in 2013, which would leverage about $75 million in increased private property tax revenues over the next two decades to pay for public infrastructure projects like streets, sidewalks and sewage systems.

To make the financing mechanism fly, South Burlington officials first want to be sure that private developers are on board. If not, taxpayers would be on the hook for millions of dollars, Smith wrote.

Leaders had hoped the city would take on debt for public projects as early as next year — a process that requires voter approval, the possible purchase of land in City Center and extensive planning and permitting.

Under state requirements, the city is supposed to begin taking out bonds for TIF district infrastructure projects by 2017 at the latest, or else it would need to reapply for state approval.

The city has taken some steps forward since March: South Burlington officials are weighing a proposal from developer Saxon Partners to purchase the Rick Marcotte Central School and construct $100 million worth of retail and housing projects in City Center. Other developers have toured the area.

City officials continue to examine the Saxon Partners proposal as they meet with other interested developers and begin to plan next fiscal year's budget.

"We're working hard," said City Manager Kevin Dorn. "We're working very hard. We meet sometimes two or three times a week on the project."

At the same time, Dorn said, the success of City Center rests largely outside the city's control. "We can't force private sector deals to appear," he said.

Pam Mackenzie, who chairs the South Burlington City Council, said City Center is progressing at a reasonable pace.

It's too early to celebrate.

"2017 is right around the corner," Smith reminded the City Council.

"This is a huge project for Vermont. ... You need somebody that has got the capital, got the heft behind them to make this happen," Smith added.

Smith, the consultant, is the former president of FairPoint Communications in Vermont and became interim president at Burlington College this week.

Contact April Burbank at (802) 660-1863 or aburbank@freepressmedia.com. Follow her on Twitter at www.twitter.com/AprilBurbank