Designation of village centers by State Board

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§ 2793a. Designation of village centers by State Board

(a) A town that has a duly adopted and approved plan and a planning process that is confirmed in accordance with section 4350 of this title may apply to the State Board for designation of one or more of its village centers. If an incorporated village of a town has an approved municipal plan and a planning process independently confirmed in accordance with section 4350 of this title, the incorporated village shall be the applicant for designation of its village center.

(1) For applications filed on and after July 1, 2014, the intention to apply for designation under this section shall be included in the plan of the municipality, and the plan shall explain how the designation would further the plan's goals and the goals of section 4302 of this title.

(2) A preapplication meeting shall be held with Department staff to review the program requirements and to preliminarily identify possible designation boundaries. The meeting shall be held in the municipality unless another location is agreed to by the municipality.

(3) An application for designation under this section must include a map that delineates the boundaries of the village center consistent with the definition of "village center" provided in subdivision 2791(10) of this title and evidence that notice has been given to the regional planning commission and the regional development corporation of the intent to apply for this designation. The map shall be consistent with the guidelines produced by the Department under subsection 2792(d) of this title.

(b) Within 45 days of receipt of a completed application, the State Board shall designate a village center if the State Board finds the applicant has met the requirements of subsection (a) of this section.

(c) A village center designated by the State Board pursuant to subsection (a) of this section is eligible for the following development incentives and benefits:

(1) Provided the proposal is eligible, priority consideration for municipal planning funds under section 4306 of this title for projects that are related to the designated village center.

(2) Inclusion of a village center, as defined in this chapter, as a priority growth center in the State's consolidated plan for housing and community development programs.

(3) The authority to create a special taxing district pursuant to chapter 87 of this title for the purpose of financing both capital and operating costs of a project within the boundaries established through village center designation.

(4) The following State tax credits for projects located in a designated village center:

(A) A State historic rehabilitation tax credit of ten percent under 32 V.S.A. § 5930cc(a) that meets the requirements for the federal rehabilitation tax credit.

(B) A State façade improvement tax credit of 25 percent under 32 V.S.A. § 5930cc(b).

(C) A State code improvement tax credit of 50 percent under 32 V.S.A. § 5930cc(c).

(5) Whenever the Commissioner of Buildings and General Services or other State officials in charge of selecting a site are planning to lease or construct buildings suitable to being located in a village center after determining that the option of utilizing existing space in a downtown development district pursuant to subdivision 2794(a)(12) of this title is not feasible, the option of utilizing existing space in a designated village center shall be given thorough investigation and priority, in consultation with the community.

(d) The State Board shall review a village center designation every eight years and may review compliance with the designation requirements at more frequent intervals. Any community applying for renewal shall explain how the designation under this section has furthered the goals of the town plan and shall submit an approved town plan map that depicts the boundary of the designated district. If at any time the State Board determines that the village center no longer meets the standards for designation established in subsection (a) of this section, it may take any of the following actions:

(1) require corrective action;

(2) provide technical assistance through the Vermont Downtown Program;

(3) limit eligibility for the benefits pursuant to subsection (c) of this section without affecting any of the village center's previously awarded benefits; or

(4) remove the village center's designation without affecting any of the village center's previously awarded benefits. (Added 2001, No. 114 (Adj. Sess.), § 4, eff. May 28, 2002; amended 2003, No. 164 (Adj. Sess.), § 13, eff. June 12, 2004; 2005, No. 183 (Adj. Sess.), § 14; 2007, No. 147 (Adj. Sess.), § 3, eff. May 16, 2008; 2013, No. 59, § 5; 2017, No. 197 (Adj. Sess.), § 9.)


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