Meetings
Transcript: Select text below to play or share a clip
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: Okay.
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: We're live. Everybody Welcome
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: to the Senate House Conference on H1. It is 01/27 and on the omnibus housing bill, it's still the May 29. Thank God. I don't want to be coming
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: later any sooner. The Senate countries have met and have considered your proposal, and we're very grateful for the areas where you've supported our proposals. We have sort of a last best offer that we would like to present if we Yeah. Mister chair? Please. We would like the implement at $85.75. We would like the but for to include affordable and moderate, and we would like to get rid of the cap altogether, and we would be willing to keep the sunset at thirty five.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: I wanna go back and
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: look at this. And we have a couple other We have couple Increment at seventy five eighty five. The but for will include affordable exclude exclude the portable and moderate. We would ask that we rid of the cap and that you keep the sunset At thirty five.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: Thirty twenty three. Yeah. Thirty five.
[Sen. Thomas Chittenden (Member)]: Sunset on.
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: Thirty five. Both. Both. Both. They're aligned.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: And
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: then we actually have a little housekeeping piece that we were shooting
[Jessica (Administration TIF expert, exact surname/agency not stated)]: at too. So what is this the last copy we've all done?
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: Forty three? Yep.
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: Think it's 01:43?
[Sen. Randy Brock (Vice Chair)]: No. It's a 07:19AM. But it is
[Jessica (Administration TIF expert, exact surname/agency not stated)]: it's a section here for me. What section?
[Sen. Randy Brock (Vice Chair)]: Nineteen ten c, use of tax increment retention period.
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: Here. I've got it right here.
[Sen. Randy Brock (Vice Chair)]: Right
[Sen. Thomas Chittenden (Member)]: on page 16.
[Sen. Randy Brock (Vice Chair)]: And then on the following page, where e, the page after this one, adjustment of percentage.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: It's alright,
[Sen. Thomas Chittenden (Member)]: Tara. It's 15 on
[Jessica (Administration TIF expert, exact surname/agency not stated)]: the label.
[Sen. Randy Brock (Vice Chair)]: So it is page 18, line seven for you all.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: The adjustment percentage?
[Sen. Randy Brock (Vice Chair)]: Yes. So this was I just want you to know with our last best offer, have consulted with members of the administration. The this is to us an administrative change that makes sense, and we would ask that Jessica be allowed to speak freely if needed, but that we change fifth to tenth year following the creation of a site. The municipality shall submit a tax increment financing plan. We imagine you said fifth because you brought it down to a six year program. But we would, if we have a 2035 date, we would want that to say, tenth of the year. And
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: Jessica can elaborate, Mr. Chair, if you're willing to.
[Jessica (Administration TIF expert, exact surname/agency not stated)]: So the reason for that is that this aligns with the big tech statute so that when you do tax increment financing districts, you recognize that for the first four to five years, there
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: is
[Jessica (Administration TIF expert, exact surname/agency not stated)]: limited income that's going to be generated because you are creating the infrastructure to build out the private development. And the real increment is generated in that five to ten year period. In big tip, we ask for districts to come back for a review as part of a review to see how much increment is projected to be earned in the next ten years when the majority of the increment is going to be generated so that you can adjust, if necessary, the amount of increment that's retained to pay off the bond. It's not a practical exercise to do it in year five. And if we're keeping with the TIF statute and we're keeping with a twenty year life of a district with potentially a thirty year payoff period, by that year ten, you're going to know how much increment is going to be projected to be retained so that you can pay off your bond within that thirty year timeframe. And that's consistent with what we do in TIP districts. That language came directly from the TIP statute. It has a ten year review.
[Sen. Thomas Chittenden (Member)]: And adjusting the increment retention, though?
[Jessica (Administration TIF expert, exact surname/agency not stated)]: We would be adjusting the percentage of increment retained at the ten year mark.
[Sen. Thomas Chittenden (Member)]: And that's currently in TIP statute.
[Jessica (Administration TIF expert, exact surname/agency not stated)]: That is what it's
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: currently done.
[Sen. Thomas Chittenden (Member)]: I guess a couple of questions. So the date of the housing development site creation is what we have to figure out, when is that actually created?
[Jessica (Administration TIF expert, exact surname/agency not stated)]: The site is created according to the current bill at the time that VEPSI creates the district.
[Sen. Thomas Chittenden (Member)]: Approves it.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: That you approve it.
[Jessica (Administration TIF expert, exact surname/agency not stated)]: That's right. And then the district has five years to incur debt. An additional three. With an additional potential three, and then ten years to retain increment. Or twenty years, I'm sorry, to retain increment with a with a look back at the ten year mark to see if the projection Yeah. Is going to generate more increment that's necessary because you don't want to have at the end of the twenty year period your municipality holding $15,000,000 in tax increment if they only need $2,000,000 pay So
[Sen. Thomas Chittenden (Member)]: in reality, too, what I think you're saying is that part of the use of the proceeds could be to pay interest for four years as well, or debt service So within that just puts it that much further out during the development period. So you won't actually have history until year five.
[Jessica (Administration TIF expert, exact surname/agency not stated)]: You're not going to have history until really year 10. And that's consistent with what's done correctly, and that's consistent with our experience. Yes.
[Sen. Thomas Chittenden (Member)]: Okay. It does not seem unreasonable.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: Okay. All right. If that makes sense.
[Sen. Thomas Chittenden (Member)]: It does. Okay.
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: Like to think while we go to the
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: floor. And
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: we will hopefully be back at about $3.50.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: I think I understand $70.85.
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: $5.85. Okay. But for including excluding affordable and moderate. And
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: right. Okay. Great. And sunset. Sunset.
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: Thirty five. Sunset, 35. No cap. Yeah. And we have
[Sen. Randy Brock (Vice Chair)]: confidence the governor would sign this last vessel.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: Okay. Thank you. This is
[Sen. Kesha Ram Hinsdale (Chair, Senate Economic Development, Housing & General Affairs)]: okay. We will be back as soon as we are able, but we're gonna aim for 03:50.
[Rep. Tom Stevens (Chair, House General & Housing Committee)]: That's 03:50. I