Waitsfield has received a key state approval that will, among other things, qualify the town for wastewater subsidies as the town advances plans to bring a bond for wastewater to voters in June. The town’s newly received Neighborhood Development Area (NDAS) designation is one of the funding tools in the town’s plan to cover the cost of a municipal wastewater system primarily through state and federal grants.
On March 25, the Downtown Development Board of the Vermont Agency of Commerce and Community Development approved the town’s NDA application. The approval, combined with the town’s recent efforts in modernizing its zoning bylaws as well as its work on municipal wastewater, will facilitate building new and infill housing in the historic village and Irasville.
“It accomplishes this by reducing the time and cost of state permitting in areas within walking distance of commercial centers -- whether converting a wing of a house into an apartment or developing an entirely new neighborhood. It’s a pivotal step towards smart growth, placing an emphasis on thoughtful development that enhances the village’s charm and livability. This aligns perfectly with Waitsfield’s long-term vision, as articulated in the 2023 Waitsfield Town Plan, to transform its village areas into bustling, pedestrian-friendly, mixed-use hubs,” explained Sam Robinson, community planner for the Mad River Valley Planning District, in a recent newsletter.
Specific benefits of the designation are as follows:
- Priority recognition by state grant programs.
- No Act 250 jurisdiction for priority (mixed-income) housing projects.
- Fifty percent Act 250 fee for all other residential projects.
- ANR wastewater fees capped at $50.
- Exemption from land gains tax.
- Lower off-site prime agricultural soil mitigation ratio of 1:1.
- No appeals based on character of the area for a municipal conditional use approval determining that a housing project meets the “character of the area” criteria.
- Two-year pilot, up to $2M for downtown tax credits.
Priority recognition for state grant programs may help the town’s chances of receiving funding from the state’s pollution control grant program for its wastewater system. The estimated cost of the system is $15.6 million. All of the costs for a feasibility study, preliminary engineering report, and 30% of the final design phase have been covered by ARPA funds and grants from the Clean Water State Revolving Loan fund.
Here is the funding stack the town anticipates when it comes to funding the wastewater system:
- Vermont Pollution Control grant $3 million.
- State ARPA village wastewater funds $1 million.
- USDA Rural Development grant $4.75 million.
- Congressional Direct Spending $3.5 million.
- USDA direct loan $2.35 million at 2.25% for 30 years.
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