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Health Management

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Case: The Vermillion Housing Initiative

The City of Vermillion is a college town of about 10,000 residents situated on the northern Great Plains. The University of South Dakota is the City’s largest employer but it has recently acquired a large high tech company and a mining equipment manufacturer. About two-thirds of the people who work in Vermillion reside outside the city limits because of the lack of suitable housing.

Vermillion would like to grow so that it can provide citizens with higher quality of life—more citizens means more tax dollars available. The Vermillion Chamber Development Company recently came up with a 5-year Strategic Plan for expansion (see below). However, developers have been reluctant to put capital at risk believing that it would be hard to make a profit in such a small market. Using what you have learned from this week’s reading and PowerPoint presentation, discuss ways in which Vermillion might use tax policy to stimulate development. Once you have generated some tax policy ideas, evaluate them with respect to fairness. If you were a citizen of the community, would you support any of these policies?

Vermillion may implement a tax increment financing policy, which funds economic development projects. This would allow the project to self-finance from property taxes.

Community Advancement
5 Year Strategic Plan

GOALS
Increase Population by 500
Increase Average Taxable Growth by 25% (This data is currently tracked by Clay County Assessor. The baseline will be the average year to year growth of _NEW taxable property over the last 10 years).
Increase Household Income to State Average
OBJECTIVES
In order to meet the above goals the following objectives must be met.
HOUSING – Increase housing units by 260 (52/year). New units should accommodate life changes of existing residents and to provide affordable inventory for new residents. Desired new household mix will be determined through a housing study/model, but would likely include both single family and rental units.

JOBS – Add 430 new jobs (86/year) averaging $15/hour in diverse industries to maximize the talents of the workforce being created at USD and VHS, as well as jobs that compliment and support the existing business base (i.e. suppliers of existing manufacturers). Desired ratio of new jobs is:
145 Blue Collar (Manufacturing and Warehousing)
285 White Collar (Finance, Back Office, IT)

AMENITIES – Create new and enhance existing amenities that will improve Vermillion’s ability to attract new residents through:
Growth of outdoor offerings (Missouri River Visitor Center, continue to expand services at Clay County Park, extend bike paths to and along the Missouri River, as well as expanding existing paths in city and county)
Become the art and cultural capital of SD.
Capitalize on the National Music Museum (i.e. partner with NMM to expand the facility and programming, and create a music series highlighting national talent)
Refine and grow signature festivals (Ribs Rods & Rock ‘n Roll, Thursdays on the Platz, Shakespeare Festival) which feature Vermillion’s art and cultural talent base.
Support the growth of art programs in the community for all ages to improve live music and theatre offerings.
Promote and grow existing athletic programs offered by USD, VHS, City Parks and Recreation, as well as market Vermillion as a host community for regional tournaments.

MARKETING –create a marketing plan to recruit new residents from the region, the existing commuter base, and from USD graduates and alumni.

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