Council approves development agreement for former Fonda site, developer outlines 87-unit plan

The St. Albans City Council voted to authorize the purchase, sale and development agreement for the former Fonda site, clearing the way for a two-building, 87-unit market-rate rental development that the proposer said could begin construction on the first building by June.

During the presentation, the project speaker (identified as Brett) described a plan for two four-story buildings: a first building of about 40 units and a second of about 47 units, for a total of roughly 87 units. He said the unit mix will be primarily one- and two-bedroom apartments split roughly 50/50 and that a small number of studio units originally shown in earlier materials had been reduced. "The first building is 40 units ... the second building would be 47 for a total of 87 units," Brett said.

Brett told the council the site is a Brownfield with contamination at an estimated depth of about 6 to 6.5 feet that limits underground parking and excavation. He said the developer expects to rely on public and state support to make the project financially viable, citing the city's prior investment in the site and roughly $5 million of public money already spent to prepare the parcel. Brett said additional financing sources include state low-interest housing funding the city helped secure and that the private investment he expects the project to attract would be larger than public spending.

Councilors raised concerns about the project's definition of "market rate." Brett said local market comparables align the site with Chittenden and Franklin County HUD figures; he described typical rents he expects for the project as roughly $1,600–$1,800 for a one-bedroom and low $2,000s for a two-bedroom with heat included in many rents. Council members pressed whether that pricing would benefit existing St. Albans residents or primarily attract commuters from neighboring counties. Several councilors expressed caution about whether pricing tied to Chittenden County levels would serve current city residents.

Other project details provided in the presentation: the developer said the buildings would feature masonry and stone detail, individual decks, and that the project is designed to be economically feasible given current construction costs and interest rates. He noted the city has modified local parking requirements to reflect modern development needs.

After discussion, a council member moved to authorize execution of the purchase, sale and development agreement for the market-rate housing units at the site (motion text: "we authorize the purchase, sale, and development agreement for the market rate housing units at 15 Lourdes"). The motion was seconded by Councilor Marie. The motion carried after the council voted in favor.

The council did not adopt detailed rent controls or income-restriction conditions during the vote; discussion focused on market definition and whether the project would free up other housing stock in the city by providing rental options for people who might otherwise remain in larger single-family homes.

The council’s approval authorizes staff to execute the agreement and advance the project toward permitting and financing steps; the developer indicated his team hopes to begin construction on the first building in June, contingent on financing and all necessary approvals.