Montpelier, Newport leaders press committee for state support to acquire and remediate federally impacted downtown properties
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Summary
Preservation groups and city officials urged the committee to use S 3 27 funds to help acquire and remediate flood‑damaged, federally owned or receiver‑controlled downtown parcels. Testimony focused on 87 State Street (Montpelier) and a distressed three‑block parcel in Newport, citing PCB contamination, remediation cost ranges and an imminent GSA auction.
Local leaders told the committee that state flexibility in S 3 27 would allow rapid state support to prevent long-term downtown blight.
Ben Doyle, president of the Preservation Trust of Vermont, and John Copan, executive director of the Foundation for Resilient Montpelier, laid out a due-diligence summary for 87 State Street (the former federal building/post office). They said the General Services Administration (GSA) announced in December 2024 it would dispose of the property and that GSA had completed some remediation work but intends to list the building for auction in the spring. "There was about 4 feet of water on the first floor after the flood," Doyle said, describing the 2023 flood damage. Copan said the site has roughly 50,000 square feet of usable space on 1.6 acres and is a critical downtown asset.
Due-diligence work found PCB contamination. Copan testified the environmental consultant's remediation estimate for PCBs falls in a range between about $1.1 million and $3 million for cleanup work, and that a full characterization would cost roughly $150,000. He and Doyle said acquiring site control quickly is essential because the auction timeline (they said an auction could open in May and run for 60 days) may otherwise let an undercapitalized investor acquire and hold the property without redevelopment.
"The federal government has left a giant burning dumpster fire in our downtown," Doyle said, arguing that only public-sector tools and public-private partnerships can marshal the tens of millions of dollars needed for a thoughtful, flood-resilient redevelopment. Both presenters described forming a local development corporation (LDC) as the statutory vehicle to acquire the building, access brownfields and other public financing, and hold the property for later redevelopment, including 70'80 housing units on the parcel's rear.
Newport's mayor (speaker 14) described a separate, long-running, receiver-controlled development block that the city says needs immediate acquisition to unlock an ambitious downtown master plan. He told the committee the city has roughly $300,000 in local match funds and that a $1,000,000 commitment from the state (or a fund set-aside) would be a critical first step to secure the block from the federal receiver and to access additional federal and philanthropic resources.
Committee members asked about remediation feasibility, ownership timelines and whether resulting projects could be structured to reduce long-term public subsidy. Staff noted possible constraints tied to other funding (for example, taking certain grants could trigger NEPA studies and long holding periods). Both Montpelier and Newport presenters said rapid acquisition funds and LDC structures would increase the chance of responsible redevelopment and reduce the risk of prolonged vacancy.
What happens next: Presenters asked the committee to consider S 3 27 language that would let the existing development fund be used for acquisition, characterization and holding costs for federal/receiver-impacted properties. The agency and committee staff will weigh options for match levels and award caps and provide updated draft language for the committee to review.
