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Developer previews imminent demolition at Diamond Run Mall; Act 250 filing to address stormwater compliance
Summary
Project representatives told the select board they expect to file an Act 250 demolition application within 30 days to remove the blighted mall, comply with the state’s 3-acre stormwater rule and revegetate roughly 10 acres of parking and pavement; a former Kmart building may remain.
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Representatives for the Diamond Run Mall told the Rutland Select Board on April 22 they will file an Act 250 application within about 30 days to demolish the majority of the vacant mall, manage debris and bring the property into compliance with Vermont’s 3‑acre stormwater rule.
David Graeke, a representative for the mall owner, said the demolition is required to meet stormwater obligations and address ongoing on-site misuse and waste disposal. “We will demolish that mall as soon as we get the Act 250 permit,” he said. Graeke said the demolition application will be the mall owner’s responsibility and separate from any later building application by Walmart.
The nut graf: project engineers told the board the compliance approach will remove roughly 10 acres of impervious surface and return it to a vegetated state with specified topsoil to meet the 25% reduction approach commonly used to comply with the 3‑acre threshold. Craig Jewett of MSK Engineering explained that the area slated for revegetation is shown in the developers’ plans in green and represents more than 10 acres. The red‑hatched area in the plans — former mall footprint and associated surfaces — would be demoed but remain impervious, while the former Kmart structure nearest the arena is likely to remain because it is considered reusable.
Developers said the demolition plan includes solid-waste management reviewed by the Vermont Department of Environmental Conservation; they also plan on on-site recycling and crushing of concrete and asphalt to reuse material where feasible. Graeke emphasized the demolition and the later Walmart application would be separate permits because Walmart reportedly does not hold an ownership interest in the portion of the site subject to demolition. He invited the town and the Rutland Regional Planning Commission to engage as statutory parties and promised to circulate the municipal impact questionnaire and application documents when filed.
Ending: Board members asked questions about site access, managing vandalism and the potential for reduced tax assessment if buildings are removed. Graeke said those future matters would be determined later and that the immediate goal is compliance with the stormwater rule and removal of blight. The developer said the demolition application will be filed within approximately 30 days and town staff will receive the municipal impact materials to review.

