Rutland City officials say the $3.9 million bond voters overwhelmingly approved on Tuesday will greenlight much-needed water, sewer and utility upgrades and lay the groundwork for future development.
The vote was 1,190 in favor with 213 opposed, according to the city clerk's office.
The infrastructure upgrades will occur along Wales and Center Streets, where developers plan to build a new seven-story structure that will include a 99-room hotel and 26 market-rate apartments. The building will also include a restaurant, rooftop bar and other amenities.
More: Rutland City leaders say upcoming $3.9 million bond vote is critical for downtown development
While voter turnout was not especially strong, the public support for the bond had Rutland City Mayor Michael Doenges feeling "ecstatic."
“To see an 85% positive opinion on a vote like this is just a huge support for the development and the focus that we're trying to put on growing our city to the place where, one, we see the growth that we need, and two, it makes it more affordable to live here,” he said.
Belden Construction, the developer who will build the new hotel, still has to clean up contamination on the building site, Doenges said. He expects that work to start soon.
A $3 million grant from the Northern Border Regional Commission will help the city redesign traffic, parking and improve streetscaping along Center Street.
Infrastructure work to bury power lines, update storm runoff and replace underground pipes is expected to begin next spring.
Doenges acknowledged that will be disruptive to local businesses and said he wants to limit that disruption as much as possible.
“We’re hoping to get everything, including the streetscape redesign of Center Street done by the end of construction season 2026," he said. "We want to keep the dust, dirt and outdoor construction time to a minimum so we’re really planning an aggressive work schedule.”
This summer, the city won state approval for a specially designated tax increment financing — or TIF — district downtown. TIF is a financing tool municipalities can use for costly infrastructure projects to promote development.
Development made within the downtown TIF district will increase property values and encourage private development, like the new hotel, according to city officials.
The new development will add to the city’s grand list and for a 20-year window, up to 70% of the increase in property tax revenue generated by new development within the district can be kept by the city to pay back the bond.
