Vermont § 5803 - Designation of downtown and village centers

§ 5803. Designation of downtown and village centers

• (a) Designation established. A regional planning commission may apply to the LURB for approval and designation
  of all centers by submitting the regional plan future land use map adopted by the
  regional planning commission. The regional plan future land use map shall identify
  downtown centers and village centers as the downtown and village areas eligible for
  designation as centers. The Department and State Board shall provide comments to the
  LURB on areas eligible for center designation as provided under this chapter. (b) Inclusions. The areas mapped by the regional planning commissions as a center shall allow for
  the designation of preexisting, designated downtowns, village centers and new town
  centers in existence on or before December 31, 2025. (c) Exclusions. With the exception for preexisting, nonconforming designations approved prior to the
  establishment of the program under this chapter or areas included in the municipal
  plan for the purposes of relocating a municipality’s center for flood resiliency purposes,
  the areas eligible for designation benefits upon the LURB’s approval of the regional
  plan future land use map for designation as a Center shall not include development
  that is disconnected from a Center and that lacks a pedestrian connection to the Center
  via a complete street. (d) Approval. The LURB shall conduct its review pursuant to 10 V.S.A. § 6033. (e) Transition. All designated downtowns, village centers, or new town centers existing as of December
  31, 2025 will retain current benefits until December 31, 2026 or until approval of
  the regional future land use maps by the LURB, whichever comes first. All existing
  designations in effect December 31, 2025 will expire December 31, 2026 if the regional
  plan does not receive LURB approval under this chapter. All benefits for unexpired
  designated downtowns, village centers, and new town centers that are removed under
  this chapter shall remain in effect until July 1, 2034. Prior to June 30, 2026, no
  check-in or renewals shall be required for the preexisting designations. New applications
  for downtowns, villages, and new town centers may be approved by the State Board prior
  to the first public hearing on a regional future land use map or until December 31,
  2025, whichever comes first. (f) Benefits Steps. A center may receive the benefits associated with the steps in this section by meeting
  the established requirements. The Department shall review applications from municipalities
  to advance from Step One to Two and from Step Two to Three and issue written decisions.
  The Department shall issue a written administrative decision within 30 days following
  an application. If a municipal application is rejected by the Department, the municipality
  may appeal the administrative decision to the State Board. To maintain a downtown
  approved under chapter 76A after December 31, 2026, the municipality shall apply for
  renewal following a regional planning approval by the LURB and meet the program requirements.
  Step Three designations that are not approved for renewal revert to Step Two. The
  municipality may appeal the administrative decision of the Department to the State
  Board. Appeals of administrative decisions shall be heard by the State Board at the
  next meeting following a timely filing stating the reasons for the appeal. The State
  Board’s decision is final. The Department shall issue guidance to administer these
  steps. (1) Step One. (A) Requirements. Step One is established to create an accessible designation for all villages throughout
  the State to become eligible for funding and technical assistance to support site-based
  improvements and planning. All downtown and village centers shall automatically reach
  Step One upon approval of the regional plan future land use map by the LURB. Regional
  plan future land use maps supersede preexisting designated areas that may already
  meet the Step One requirement. (B) Benefits. A center that reaches Step One is eligible for the following benefits: (i) funding and technical assistance eligibility for site-based projects, including the
  Better Places Grant Program under section 5810 of this chapter, access to the Downtown
  and Village Center Tax Credit Program described in 32 V.S.A. § 5930aa et seq., and other programs identified in the Department’s guidance; and (ii) funding priority for developing or amending the municipal plan, visioning, and assessments. (2) Step Two. (A) Requirements. Step Two is established to create a mid-level designation for villages throughout
  the State to increase planning and implementation capacity for community-scale projects.
  A center reaches Step Two if it: (i) meets the requirements of Step One or if it has a designated village center or new
  town center under chapter 76A of this title upon initial approval of the regional
  plan future land use map and prior to December 31, 2026; (ii) has a confirmed municipal planning process pursuant to 24 V.S.A. § 4350; (iii) has a municipal plan with goals for investment in the center; and (iv) a portion of the center is listed or eligible for listing in the National Register of Historic Places. (B) Benefits. In addition to the benefits of Step One, a center that reaches Step Two is eligible
  for the following benefits: (i) funding priority for bylaws and special-purpose plans, capital plans, and area improvement
  or reinvestment plans, including priority consideration for the Better Connections
  Program and other applicable programs identified by Department guidance; (ii) funding priority for infrastructure project scoping, design, engineering, and construction
  by the State Program and State Board; (iii) 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 of a center; (iv) priority consideration for State and federal affordable housing funding; (v) authority for the municipal legislative body to establish speed limits of less than
  25 mph within the center under 23 V.S.A. § 1007(g); (vi) State wastewater permit fees capped at $50.00 for residential development under 3 V.S.A. § 2822; (vii) exemption from the land gains tax under 32 V.S.A. § 10002(p); and (viii) assistance and guidance from the Department for establishing local historic preservation
  regulations. (3) Step Three. (A) Requirements. Step Three is established to create an advanced designation for downtowns throughout
  the State to create mixed-use centers and join the Vermont Downtown Program. A center
  reaches Step Three if the Department finds that it meets the following requirements: (i) Meets the requirements of Step Two, or if it has an existing downtown designated under
  chapter 76A of this title in effect upon initial approval of the regional future land
  use map and prior to December 31, 2026. (ii) Is listed or eligible for listing in the National Register of Historic Places. (iii) Has a downtown improvement plan. (iv) Has a downtown investment agreement. (v) Has a capital program adopted under section 4430 of this title that implements the Step Three requirements. (vi) Has a local downtown organization with an organizational structure necessary to sustain
  a comprehensive long-term downtown revitalization effort, including a local downtown
  organization that will collaborate with municipal departments, local businesses, and
  local nonprofit organizations. The local downtown organization shall work to: (I) enhance the physical appearance and livability of the area by implementing local policies
  that promote the use and rehabilitation of historic and existing buildings, by developing
  pedestrian-oriented design requirements, by encouraging new development and infill
  that satisfy such design requirements, and by supporting long-term planning that is
  consistent with the goals set forth in section 4302 of this title; (II) build consensus and cooperation among the many groups and individuals who have a role
  in the planning, development, and revitalization process; (III) market the assets of the area to customers, potential investors, new businesses, local
  citizens, and visitors; (IV) strengthen, diversify, and increase the economic activity within the downtown; and (V) measure annually progress and achievements of the revitalization efforts as required
  by Department guidelines. (vii) Has available public water and wastewater service and capacity. (viii) Has permanent zoning and subdivision bylaws. (ix) Has adopted historic preservation regulations for the district with a demonstrated
  commitment to protect and enhance the historic character of the downtown through the
  adoption of bylaws that adequately meet the historic preservation requirements in
  subdivisions 4414(1)(E) and (F) of this title, unless recognized by the program as
  a preexisting designated new town center. (x) Has adopted design or form-based regulations that adequately regulate the physical
  form and scale of development with compact lot, building, and unit density, building
  heights, and complete streets. (B) Benefits. In addition to the benefits of Steps One and Two, a municipality that reaches Step
  Three is eligible for the following benefits: (i) Funding for the local downtown organization and technical assistance from the Vermont
  Downtown Program for the center. (ii) A reallocation of receipts related to the tax imposed on sales of construction materials
  as provided in 32 V.S.A. § 9819. (iii) Eligibility to receive National Main Street Accreditation from Main Street America
  through the Vermont Downtown Program. (iv) Signage options pursuant to 10 V.S.A. § 494(13) and (17). (v) Housing appeal limitations as described in chapter 117 of this title. (vi) Highest priority for locating proposed State functions by the Commissioner of Buildings
  and General Services or other State officials, in consultation with the municipality,
  Department, State Board, the General Assembly committees of jurisdiction for the Capital
  Budget, and the regional planning commission. When a downtown location is not suitable,
  the Commissioner shall issue written findings to the consulted parties demonstrating
  how the suitability of the State function to a downtown location is not feasible. (vii) Funding for infrastructure project scoping, design, and engineering, including participation
  in the Downtown Transportation and Related Capital Improvement Fund Program established
  by section 5808 of this title. (Added 2023, No. 181 (Adj. Sess.), § 66, eff. June 17, 2024.)