Burlington’s Land and Housing is Controlled By a Wealthy Few

Burlington is a town of extremes. 1% of residents control housing for 50-60% of the population, totaling nearly $3 billion in property. This staggering level of wealth concentrated in the hands of 500 individuals contradicts the idea that 1) there isn’t enough wealth in Burlington to clothe, feed, house, and educate every Burlington resident and 2) that Burlington and its local housing institutions are inclusive or democratic.

The extreme wealth, and the power that comes with that wealth and control of housing stock, are in the hands of a few individuals – local colleges, local non-profit landlords, and local for-profit landlords. The few dozen board members of these colleges and non-profits, most of whom are wealthy and far removed from the ‘working class’, make important decisions that affect all of us behind closed-doors.

UVM, the UVM Medical Center, and Champlain College own a combined $1.1 billion dollars in assets, along with 7200 bedrooms serving 11,000+ student renters. While Champlain College pays taxes on most of their assessed properties (granted, some of their assessments online are so grossly low it should be laughable), UVM and the UVM Medical Center don’t pay a dime in property taxes on their combined $1 billion in assets. And since there is no local Burlington income tax, most of the income generated at these institutions, along with their tax bases, flee to the suburbs every night.

These institutions are all run by carefully selected boards of the county’s business, development, financial, and political elites, along with 6 and 7 figure CEOs. Of the 25 UVM trustees, less than half (12) are either students or legislators. Of Champlain College’s 26 trustees, several are millionaire developers themselves. Of the 17 UVM Medical Center trustees, 4 (including the $2 million-a-year-salary CEO are medical professionals). Of the 68 people in charge, at most maybe 10-15% are not in the wealthiest 20% of residents.

Local non-profit housing landlords also have their fair share of wealth and power. Combined, these organizations own a (very under-assessed) $165 million in property, while controlling 3,175 bedrooms. These organizations pay little in property taxes, under the assumption that by offering rent below-market, they are performing a social and community good.

These non-profit boards, while often made up more of professional-class Vermonters than the 6 and 7-figure Vermonters of our medical/collegiate institutions, are limited in number and scope. None of these groups have majority boards made up of the working-class or low-income clients they serve. CHT has 15 board members, 5 of whom (33%) are actual clients served by the organization. BHA has 5 wealthier board members, selected by the (also wealthy) city council. Cathedral Square has 12 board members, most of whom are much wealthier than the other two non-profit boards (including, for some reason, Erik Hoekstra of Redstone in an uncomfortable, and incestuous, conflict of interest). Of these 32 folks, only 15% likely come from the bottom 80%.

The list of our city’s 400 millionaires – for-profit residential landlords, homeowners, and commercial landlords, is long. Their combined wealth is $1.5 billion dollars and they control a total of 12,100 bedrooms.

These 500 individuals, the millionaires + board members, control assets easily valued near $3 billion. In a city where 30,000 people have $0 in property assets, this is staggering wealth inequality. Not only that, but these folks control, 22,475 beds, or nearly 30,000 renters (when we factor in the average number of residents per bedroom at 1.33), giving them direct influence over the lives of over 50% of all residents of the city.

It’s worth wondering who impacts your life more on a daily basis – Congress in Washington DC, or the 500 wealthiest and most powerful Vermonters in your own backyard? And it’s worth wondering what, exactly, can we do to give power back to renters and workers?

The New Burlington Town Center Is Already Hurting Working Class Residents

I have been a very vocal critic of the Burlington Town Center for several years, mainly because the development relies on trickle down housing and trickle down economics to help low income residents. A recent article in VTDigger about UVM Medical Center’s expansion to the BTC, and the pressure and ‘passion’ Mayor Weinberger used to persuade them to move there, shows how the Mayor’s policies consistently hurt more residents, especially vulnerable ones, than help them.

Sources said the mayor lost his cool at the meeting and reminded hospital officials about the sweet deal they had for city services, though Weinberger said that argument was “not a major part of the conversation,” largely because the city’s hands are tied for another decade plus.

(As an aside, the Mayor’s ‘passion’, which has been described to me as temper tantrums, a good source tells me is a big reason why beloved former Library Director Rubi Simon decided to leaver her job and move out of state over a year ago.)

Now that the hospital will be paying an extra $1,00,000 a year, who will be paying for it? As the article makes clear, “patients”. It’s as if the mayor is so insulated from the yearly 8%-10% yearly increase in healthcare costs and premiums, that adding another $1,000,000 onto the backs of overworked Burlingtonians remains somehow overlooked. Not to mention that UVM Medical Center will likely use this as an excuse to continue paying MUCH less than the fair share of a $1 billion business should be paying for their fees in lieu of property taxes.

Who will benefit from the Burlington Town Center? Businesses on and around Church Street, landlords, hotels, and restaurants. Bringing people to the downtown core, even just for a few hours, means they will spend some amount of money there. The city will likely see a small increase in sales tax and alcohol tax revenue. Property taxes, however, will remain stagnant for 20 years, due to voters’ majority to support the TIF vote (supported almost unanimously by city councilors except Max Tracy). Instead of getting upto $1,000,000 a year in badly needed revenue, we will have to wait until the next generation is voting and having children.

Who will lose from the Burlington Town Center? Workers, especially low-wage workers, service workers, and now anyone who uses the UVM Medical Center (which is, essentially, everyone because they have a monopoly). Wages for service workers continue to remain stagnant, and likely the wealthy Church Street business owners, most of whom don’t live in Burlington, will end up pocketing any extra revenue.

“This decision is highly defensible” after all the factors are weighed, Weinberger said.

As long as those factors don’t include the vast majority of Burlington workers and service workers? Mayor Weinberger, the working class hero.