Owners of small motels and inns cite surprise code costs, financing gaps

Owners of small lodging businesses described how unexpected code and inspection requirements added sizeable unplanned costs to renovation projects and urged clearer, earlier information and financing options.

Greg McManus, who said he and his wife bought and renovated a 17‑unit roadside motel near Killington, told the committee that inspections by the Division of Fire Safety flagged electrical problems after purchase and forced a full rewire that he estimated cost about $100,000 out of pocket. McManus said that if that work had been known earlier it could have been rolled into financing; instead it made some projects financially infeasible.

McManus also said many small properties are old, out of compliance on plumbing or wiring, and that lenders often underwrite based on current income, making it hard to cover large one‑time improvement costs. He urged better outreach so lenders and early buyers know about revolving loan funds, utility grants and SBA loan products available for renovations.

Ryan Donnelly recounted a fire marshal inspection process that grew from a two‑page report to an eight‑page list of requirements over a multi‑year period; he said late delivery of written guidance and ambiguous timelines make planning difficult and recommended that reports categorize immediate versus long‑term repairs.

Melanie Rose said her historic building is on well water and was told she must install a roughly 30,000‑gallon tank to add a sprinkler system; she cited a past estimate of $70,000 for a diesel pump and said the up‑front cost prevents planned expansions.

Committee members responded that staff are preparing a resource list and the Department of Economic Development will be asked to coordinate. No formal committee action or vote was taken during the testimony portion.