The Essex Junction Development Review Board on March 20, 2025, approved a site-plan amendment for 197 Pearl Street that will add three studio apartments and open an existing fifth-floor area to expand one unit into a four-bedroom, subject to conditions including compliance with the state's fifth-story affordable-housing requirement and staff-recommended conditions. The motion passed unanimously.

Greg Dixon, civil engineer with Krebs and Lansing Consulting Engineers and the applicant's representative, told the board the three new units come from converting previously designated storage space into studio apartments and that the fifth-floor area is an existing built space created after the original approval. Dixon said the additional three studios are unrelated to the fifth story; the fifth-story change enlarges a corner unit above an existing two-bedroom into a four-bedroom.

Michael Giguere, zoning administrator, explained the state statute that governs adding a fifth story in this district: applicants seeking a fifth floor must deed a specified share of units as affordable for 15 years. Giguere said the statute requires 20% of the building's units be deed-restricted at roughly 80% of area median income for 15 years; for this project the requirement would equal 14 deed-restricted units under the staff's calculation. He said the city has set that covenant term at 15 years and that the applicant must accept the covenants before the city will allow use of the fifth story.

The board and staff also discussed parking. The site currently has 74 parking spaces; older LDC standards used in 2017 yielded a different baseline, and current LDC standards would call for 85 spaces. Staff noted the property received a parking waiver at final site-plan approval because of strong transit access (a bus stop at the site). Board members said the marginal addition of three units did not change their view that the existing parking arrangement remains acceptable, but they asked staff to reflect the updated demand numbers in the approval conditions. One board member noted neighborhood impacts and opposed adding additional parking at the rear because it could harm the adjacent Pearl Street Park experience.

The DRB approved the site-plan amendment with conditions as presented and amended (including correcting minor plan labeling typos identified during the meeting), and assigned staff to finalize conditions addressing the affordable-unit covenants and updated parking references. Dixon said the property owner, Gabe Handy (Gidoo C2 Trust), will decide whether to accept the deed restrictions; Giguere said the applicant cannot use the fifth floor if the covenants are not accepted.