Local Business Incentive Programs Overview

The City of Rutland has developed several innovative business assistance programs to support and incentivize new business investment and job creation within the City. These programs consist of Industrial and Commercial Property Tax Stabilization, Water and Wastewater Rate Reduction Incentive, and a Business Incentive and Assistance Program. A synopsis of each program is listed below and the full policy for each is available at www.rutlandvtbusiness.com.

Industrial and Commercial Property Tax Stabilization

It is the objective of the City of Rutland to incentivize new investment by stabilizing industrial and commercial property taxes within the City.

Property tax stabilization will occur in the form of a Tax Stabilization Agreement (TSA) between the City and a qualifying business.

Real and personal property tax stabilization will be available to businesses that are making tangible new financial investment in their facility and/or machinery and equipment, thus creating new jobs within the City.

TSA shall normally be for a period of five (5) years, and in no case longer than ten (10) years.

TSA will be limited to municipal taxes on real and personal property.

Water and Wastewater Rate Reduction Incentive

It is the objective of the City of Rutland to incentivize new investment and job creation by offering an incentive that will lower the qualifying business’ costs related to water and wastewater start-up costs and fees.

The incentive will occur in the form of a Water and Wastewater Rate Reduction Incentive Agreement (WWRRIA) between the City and a qualifying business.

The WWRRI will be available to non-residential users located within the City of Rutland who are making tangible financial investment in a facility, creating new jobs within the City, and whose business operations will require utilizing a minimum of 1,000 Gallons per Day (GPD) in new or expanded water usage.

The incentive agreement will be applied to the base water and wastewater rates only.

WWRRIA shall normally be for a period of five (5) years, and in no case longer than ten (10) years.

A Standard Offer for a qualifying business meeting the basic standards of eligibility will be as follows:

  1. Complete waiver of the City’s customary Allocation Fee (based on $4 per gallon per day usage) if the business is located within the City of Rutland.
  2. Water and Wastewater rate reduced for a period of five years.
  1. New Users: Rate reduced off total bill according to a schedule of Year 1 = 50%, Year 2 = 40%, Year 3 = 30%, Year 4 = 20%, Year 5 = 10%.
  2. Existing User: Quarterly credit for expanded water and wastewater use will be calculated.

Contract terms other than the Standard Offer options are intentionally flexible in order to best serve the interests of the City and the needs of the business.

Business Incentive and Assistance Program

It is the objective of the City of Rutland to incentivize new investment by making available to qualifying businesses specific assistance and incentive opportunities.

Business Incentive and Assistance opportunities available through the program will include:

  1. Secured loans of up to $50,000 administered by Heritage Family Federal Credit Union and subject to its approval.
  2. Forgivable loans of up to $10,000 administered by the City via the RRA.
  3. Grants of up to $5,000.
  4. Infrastructure improvements where program funds fully or partially finance required improvements.
  5. Workforce training support where program funds fully or partially finance workforce training services.
  6. Free/discounted workspace where program offsets cost of temporary workspace within the City.
  7. Re-location assistance where program funds offset costs of a business’ relocation to Rutland City.

Incentive and financial assistance opportunities will be available to qualifying existing businesses that are currently located in the City, making tangible new financial investment, and creating new jobs within the City.

Incentive and financial assistance opportunities will be available to qualifying prospective businesses which would be starting a new business, relocating an existing business, or expanding an existing business to a location within the City, making tangible new financial investment, and creating new jobs within the City.

Businesses working solely in the fields of retail, food service, or low wage service (under $13/hr wages) would not be eligible for incentive and assistance opportunities under this program.

Upon BOA approval a formal BIAP agreement will be executed between the City and applicant to clarify in writing what the incentive/assistance package will entail, terms of the agreement, and what the City and applicant’s future obligations and responsibilities will be.

The City/BOA may also enter into agreements which provide for terms different from those set forth herein if it is determined to be in the interest of the City.

Submission Requirements:

To be eligible for the incentives set forth herein, a completed application shall be presented to the RRA:

  1. In the case of a new investment to an existing Rutland City business: prior to substantial completion of the work associated with the investment, such as the substantial completion of proposed construction or renovation, and/or the implementation and commencement of operation of proposed new equipment or machinery. The term “substantial completion” means that the work is sufficiently complete so that the applicant can utilize the new investment for its intended purpose.
  2. In the case of the establishment of a new business: prior to the commencement of normal business operations.

For all programs determination of eligibility and level of assistance/incentive, and timeframe will be based on the recommendation of the Rutland Redevelopment Authority (RRA) and subject to the approval of the Board of Aldermen (BOA).

Downtown Rutland Partnership (DRP)

The Downtown Rutland Partnership strives to provide an exciting downtown Rutland experience for businesses, organizations, and the people in our community. To qualify, businesses must be located in the Downtown Rutland Special Benefits District.

  1. Downtown Revolving Loan Fund – Loans made to qualifying businesses, $30,000 max.
  2. Downtown Rutland Micro Business Grants – Qualifying businesses can apply annually, $5,000 max.
  3. Open for Business Fund