Council reaffirms three‑year option term for Hub ground lease after executive session

The Montpelier City Council reaffirmed its earlier position on the Hub nonprofit’s proposed land lease, insisting on a three‑year option term and surety‑bond protections after several hours of public and executive‑session discussion.

Background and dispute: The Hub board seeks an option to lease an approximately 1.5‑acre parcel for indoor recreation and a potential larger multiuse development. The Hub’s board chair, Ned Winthrop, told the council the organization needs more time to assemble a financing package — roughly $4 million including private fundraising, loans and a federal grant — and requested a five‑year option term. "We contend that that is just an inadequate time frame for us to put together the package," Winthrop said, asking for a minimum five years to secure a federal grant component. He said if the council keeps to a three‑year limit the Hub would likely walk away and seek another site.

Council action: After public comments and an executive session under 1 V.S.A. § 313(a)(2) for real‑estate negotiations, a motion to reaffirm the council’s previously proposed three‑year agreement and the surety bond requirement passed. The council’s position preserves an automatic one‑building lease structure with a three‑year option on the ground lease; staff said the council could revisit details if both parties continued to negotiate but refused to extend the option term at this meeting.

Key concerns voiced publicly: Commenters urged the council to protect the city’s resilience and future plans for the Country Club Road site — recommending a master‑plan coordination clause, a termination‑for‑convenience right (90 days) and performance metrics for below‑market rents — and warned about potential traffic, noise and liability impacts. The Hub said it is willing to negotiate other protections such as surety bonds and reporting, but that a longer option term is essential to pursue anticipated federal grant timelines.

Next steps: With council reaffirmation of a three‑year option, Hub representatives said they will consult further with their real‑estate counsel and consider whether to continue the project. Council and staff will continue confidential negotiations as necessary; the public will be updated when there is new material to release.

Ending: The council’s action maintains its prior negotiating position and keeps the Hub project under active consideration but unfinalized; both sides said they expect further talks but disagreed on the timeline needed to assemble financing.