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PCBs and a looming GSA auction complicate plans for Montpelier’s 87 State Street site
Summary
Speakers told the committee a PCB contamination report found heavy concentrations in the federally owned 87 State Street building; GSA intends to auction the property and the Foundation is seeking program changes and local development options to avoid undercapitalized buyers and enable remediation-led reuse.
John Kopycinski, executive director of the Foundation for a Resilient Montpelier, told the House Government Institutions Committee that due diligence work funded by a $100,000 appropriation uncovered significant PCB contamination at the former federal building and post office at 87 State Street.
"It shows pretty heavy contamination in terms of PCBs in the building," Kopycinski said, describing a report Stone Environmental located that documented PCB concentrations. He said GSA has taken an "as is where is" posture in the sale process and will not permit purchaser-led characterization prior to transfer, which complicates local remediation planning.
Kopycinski said the foundation and Central Vermont Regional Planning Commission used the $100,000 appropriation for initial due diligence and to hire Stone Environmental; those efforts revealed the PCB issue only after persistent requests for GSA materials. He warned an auction could attract undercapitalized buyers unable to remediate or redevelop the site and described remediation and redevelopment cost estimates: PCB cleanup ranges cited at about $1 million to $3 million, while full new construction on the parcel could approach $50–60 million.
To address the challenge, Kopycinski presented a proposal to expand the state Department of Economic Development's Rural Industrial Development Program (about $2.5 million currently) to target "federally impacted properties" and to use a locally formed Local Development Corporation (LDC) to participate in acquisition or redevelopment. He described reuse scenarios that keep the building's commercial character while adding about 70 housing units on adjacent land with parking decks, though he cautioned conversion complexity and flood-elevation needs.
Why it matters: 87 State Street sits across from Capital Plaza and represents about 1.6 acres and roughly 50,000 usable square feet; its redevelopment will shape downtown vitality and relate directly to capital-complex recovery plans. The committee did not vote; members and Kopycinski discussed next steps including monitoring the GSA auction window and pursuing program language changes to prioritize communities with federally impacted properties.
