Opponents of a major downtown redevelopment project approved by Burlington, Vermont, voters on November 8 are suing to have the referendum declared invalid.
The lawsuit says the ballot question exaggerated how many properties would have their taxes earmarked to pay back a nearly $22 million bond for improvements supporting redevelopment of the Burlington Town Center mall.
Tax-increment financing allows cities and towns to earmark new taxes generated by improvements in specially designated districts toward paying off debt on improvements the city made to support the projects.
The lawsuit alleges the city not only misrepresented how many properties would participate in paying off the debt, but failed to get approval from a special state panel for the plan before putting it on the ballot.
There was no immediate response from city officials.
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