Joined by key lawmakers, supporters of Vermont’s downtown tax credit program and others, Governor Peter Shumlin today outlined a proposal to provide an additional $500,000 annually to strengthen city and town centers, while restricting until 2020 some of the big-box retail development that he said can sap the economic vitality of community centers. Among the results of this is an agreement between a developer and environmentalists that will clear the way for a new Walmart in Derby.
Under the downtown plan, lawmakers will be asked to approve a 30 percent increase in the $1.7 million (brining the total to $2.2 million) Downtown and Village Tax Credit program, which supports historic renovation, housing, job creation and other qualifying efforts to strengthen the economic vitality of the 24 Designated Downtowns and 107 Villages in the program. That money was used in 2013 for 21 projects and leveraged over $22 million worth of construction activity.’ 
The $500,000 being proposed today would enable the program to fund another five or six projects per year, meaning $7.5 million more in investment in our downtowns and village centers annually.’ 
The Administration's commitment to seek this downtown funding helped facilitate an agreement between the Preservation Trust of Vermont, Vermont Natural Resources Council and Wal-Mart developer Jeff Davis. The Preservation Trust and VNRC have agreed to drop their opposition to a proposed Walmart project in the Northeast Kingdom, clearing the way for Davis to construct the store in the Newport-Derby area and bring affordable shopping to an underserved area of the state.’ 
In exchange, Davis has agreed to halt any similar projects in Vermont through 2020. He will also contribute $200,000, through the Preservation Trust, to help support Orleans County communities. That is in addition to the $600,000 mitigation funds already earmarked to Newport to help the region prepare and adapt to the arrival of the Derby Walmart outside the downtown area.’ 
‘The primary goal of this package is to ensure Vermont’s downtowns and villages are strong, vibrant places to work, play and live,’ Shumlin said. He noted that the announcement was being made at 101 Main Street in Burlington, which is under construction as part of a community development project funded with the assistance of a Downtown Tax Credit. The program has helped fund projects in Barre, Bellows Falls, Dover, St. Albans, Winooski and many other Vermont communities.’ 
The proposed $34 million Hilton Garden, developed by Redstone, will be located at the old armory on lower Main Street. It received a $150,000 tax credit under the Downtown program.
‘Vermont quality of life is dependent on having strong downtowns,’ said Burlington Mayor Miro Weinberger.’  ‘I appreciate the Governor's efforts to enhance the downtown tax credit as an important investment tool for Burlington and other Vermont cities and villages.’’ 
‘The Walmart moratorium gives downtowns time to plan for any future big-box development coming down the pike,’ Shumlin said. He said St Albans, for example, was able to strengthen its downtown in advance of the arrival this fall of a nearby Walmart, hopefully mitigating any significant negative impacts from the nearby big-box store.