Council authorizes staff to finish Turtle Island lease talks for Country Club Road site

The Montpelier City Council on Monday authorized city staff to finish negotiating a lease with Turtle Island, a local childcare provider, for about 4,200 square feet in the existing Country Club Road building and to return a final agreement for council approval.

Council discussion and public testimony focused on lease length, tenant improvements and operations. City staff presented a draft that would set a 10‑year base lease with a review and potential rate adjustment in year six and language allowing extensions; Turtle Island asked to be considered for up to 20 years because it plans to finance renovations with a 20‑year loan. The draft sets first‑year rent at $2.30 per square foot (about $9,660 annually) and contemplates a “true up” on utilities as the parties transition separate metering.

City staff and Turtle Island representatives described planned renovations and a Conner Construction estimate for upgrading the building HVAC. The estimate discussed at the meeting was roughly $100,000. Staff described a possible arrangement in which Turtle Island would complete the HVAC work as part of its build‑out and receive a monthly rent credit — staff discussed an example structure of roughly $2,000 per month ($24,000 per year) credited back until the contractor price is recouped, but the final mechanism and schedule remain to be negotiated.

Turtle Island leaders, including Phoebe Stone, co‑director, Mark LaRosa, board president, and Becca Gentile, treasurer, said the site would initially hold roughly two‑thirds of their current capacity at Elm Street; they described needing additional classroom space (they mentioned two classrooms totaling roughly 1,500 square feet as a working estimate) to restore their full licensed capacity and financial sustainability. Gentile said Turtle Island plans a 20‑year loan to fund renovations and asked for a right of first refusal for subsequent lease periods covering that payback window.

City staff described technical details: Chris Lambrett, the city’s sustainability and facilities coordinator, said Connor’s concept would “box” the Turtle Island space — separating air and utility systems so the tenant would have discrete HVAC and separate electric and gas meters. Lambrett said the proposed rooftop hybrid heat‑pump unit would supply heat and cooling and switch to a rooftop propane backup below roughly 20 degrees; staff explained that some existing ductwork also needs replacement to meet current code.

The draft lease includes up to 30 parking spaces for Turtle Island and a plan to reserve 14 spaces for drop‑off/pick‑up during narrow morning and afternoon windows (about 8–9 a.m. and 3–4 p.m.). Turtle Island also proposed temporary yurts as a contingency to expand classroom capacity while build‑out proceeds; staff said planning and zoning constraints (they noted a local zoning 24‑foot minimum building height in that area) would require further review for any yurts.

Councilors and public commenters raised concerns about: the effect of a long lease on future Country Club Road development, traffic and drop‑off safety on Country Club Road, potential brownfield contamination on the site and the timing of utility separation and metering. Staff told the council they have been coordinating with the planning department and with the hub project at Country Club Road to avoid conflicts and that the initial Turtle Island build‑out would be inside the existing building and should not prevent housing development farther on the site.

After discussion, the council voted to authorize city staff to finalize negotiations and execute a lease consistent with the terms discussed at the meeting, provided there were no substantive changes beyond what had been reviewed. The council did not adopt a final lease document at the meeting; the authorization directs staff to complete outstanding details and return a final contract for vote.

What happens next: staff will continue negotiating clarifications on the termination/notice language, utility separation and metering, insurance requirements and the HVAC credit mechanism. Turtle Island and staff will continue working with planning and building officials to identify any additional interior space that could be added to preserve the provider’s enrollment capacity. The final lease will come back to the council for formal approval before Turtle Island takes occupancy.