Code of Vermont Rules Agency 11 - AGENCY OF COMMERCE AND COMMUNITY DEVELOPMENT
1. Purpose and Authority
The Agency of Commerce and Community Development (ACCD) operates under the authority of several state statutes and the Vermont Constitution. The agency’s core purpose is to ensure a balanced approach to Vermont's economic growth while protecting the environment and promoting social well-being.
Statutory Authority:
The rules promulgated by ACCD are based on enabling legislation such as:
Title 3 of the Vermont Statutes (Executive Branch).
Title 24 (Municipal and Regional Planning).
Title 32 (Taxation).
2. Economic Development Programs
The ACCD manages a number of economic development programs, some of the key ones include:
Vermont Economic Development Authority (VEDA)
Rulemaking and Purpose: VEDA is tasked with promoting capital formation, business expansion, and job creation in Vermont. Its rules govern the availability of financial assistance to businesses that meet certain criteria.
Case Law Example:
In State v. Vermont Economic Development Authority, the court ruled on the validity of a loan agreement under VEDA’s rules, determining that the authority had the power to make loans to businesses meeting specified criteria but could not modify terms beyond what the legislature intended.
Vermont Small Business Development Center (VtSBDC)
Rulemaking and Purpose: The VtSBDC provides counseling and resources for small businesses. Its rules set out eligibility for business plans, counseling services, and more.
Case Law Example:
Vermont Small Business Development Center v. Vermont Manufacturing Association clarified that ACCD rules do not interfere with private contracts or prevent businesses from pursuing outside financing options.
3. Housing and Community Development
ACCD oversees housing programs through several subdivisions like the Vermont Housing Finance Agency (VHFA) and other housing development initiatives.
Affordable Housing Programs
Rulemaking and Purpose: The ACCD administers rules for state-subsidized housing developments, which include financing programs, land use regulations, and zoning regulations to support affordable housing projects.
Case Law Example:
In Landmark Housing v. Vermont Agency of Commerce, the Vermont Supreme Court upheld the state's zoning laws and regulations that prevent the construction of multi-family housing in certain areas as part of the state’s approach to balancing urbanization with environmental protection.
Downtown and Village Center Tax Credits
Rulemaking and Purpose: Rules under the ACCD allow for tax incentives for development in downtown areas or village centers. The goal is to incentivize economic activity in urban or historic areas.
Case Law Example:
The case of City of Burlington v. Vermont Agency of Commerce involved a dispute over whether the ACCD could approve tax credits for a new development project in a district previously designated as historic, with the court ruling that the ACCD had discretion as long as it met legislative guidelines.
4. Planning and Zoning Regulations
The ACCD provides oversight for municipal planning and zoning in the state of Vermont, guiding communities in how to approach growth and development.
Land Use and Zoning Regulations
Rulemaking and Purpose: ACCD's rules govern land use, specifically how municipalities must implement zoning codes to facilitate sustainable development while maintaining community character. These rules can address setbacks, density, or even environmental protection.
Case Law Example:
In Newport v. ACCD, the court addressed the role of the agency in interpreting zoning laws for municipalities. The court ruled that ACCD’s interpretations of land use rules were consistent with the enabling statutes, but municipalities had the right to apply more stringent requirements within their localities.
5. Tax Increment Financing (TIF)
ACCD oversees rules for Tax Increment Financing (TIF) programs, which allow municipalities to borrow against future property tax revenues to fund development projects.
TIF Districts
TIF is a critical tool for development, especially in distressed urban or underdeveloped areas. It helps fund infrastructure improvements and essential services.
Rulemaking and Purpose: The rules define how TIF districts are designated, how public-private partnerships are structured, and the guidelines for determining the scope of development projects that qualify for TIF financing.
Case Law Example:
In State v. City of Stowe, the Vermont Supreme Court ruled that the city had properly followed ACCD’s rules in setting up a TIF district but had failed to provide adequate public notice as required by law, thus invalidating part of their financing arrangements.
6. Environmental Protection and Development
ACCD rules also cover issues of environmental sustainability, ensuring that economic development projects do not damage Vermont’s natural resources.
Environmental Impact Review
Projects funded or overseen by ACCD must undergo environmental impact reviews as mandated by state law. ACCD rules provide the framework for these reviews.
Case Law Example:
In Green Mountain Conservation v. ACCD, the Vermont Supreme Court upheld ACCD's decision to approve a large-scale commercial project, citing that the agency had properly conducted an environmental review, even though the plaintiff argued that it should have been more extensive.
7. Grants and Incentives
The ACCD administers various grants and incentive programs aimed at supporting businesses, nonprofits, and municipalities.
Grant Rules
Rules regarding eligibility, the application process, and the use of grant funds are outlined by ACCD. These grants aim to improve the state’s infrastructure, support tourism, or invest in technology and workforce development.
Case Law Example:
In State v. Agency of Commerce, the Vermont Supreme Court ruled that ACCD had properly followed grant disbursement guidelines in allocating funds to a business development project. However, it clarified that grant recipients must provide sufficient documentation for continued eligibility.
Conclusion
The Vermont Agency of Commerce and Community Development (ACCD) has a broad mandate with rules that govern a wide range of economic development and community service activities. The case law surrounding these rules generally upholds the agency’s discretion in enforcing them, as long as they follow statutory authority and provide sufficient public notice and opportunities for local engagement.
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