The flood-damaged federal office building in downtown Montpelier that used to house the town’s post office will be sold at public auction after negotiations between the U.S. General Services Administration and the state fell apart.
The General Services Administration wants to sell the building at 87 State St., which was damaged in the July 2023 flood. Under the federal disposition process, the state, town, or a public organization have the first chance to negotiate a deal for the property.
The pending public auction was first reported by The Montpelier Bridge.
Jon Copans, executive director of the local group Foundation for a Resilient Montpelier, which took part in the talks, said the federal government’s asking price of $2.5 million did not take into account the environmental cleanup costs, and he said the initial negotiations fell apart when the government was unwilling to reduce the asking price.
“The building’s heading to auction, but that doesn’t mean we’re moving to the sidelines,” Copans said. “We’re considering how we might participate in that auction. This building is right in our downtown, less than a block from the Statehouse, and what happens there really matters.”
Organizers want to establish a local development corporation, made up of investors and developers, to own and redevelop the property.
Copans said initial plans show the possibility of building up to 70 units of housing on a parcel of land that is a part of the property. He said the three-story building could be divided into a co-op to bring in interested parties who might not want to take on the project, but who could be willing to develop a floor or two of the building.
“This is a piece of property that has real importance, both to Montpelier, but I would argue to the state, given its proximity to the Capitol Complex. So that’s the case we’re making.”Jon Copans, Foundation for a Resilient Montpelier
“The way I understand it, with these downtown development projects, it’s not a sprint. It’s a marathon,” he said. “So this is just the latest twist in what inevitably will be a long process.”
According to Copans, the group received state money to do an initial analysis of the building and found widespread contamination from polychlorinated biphenyls (PCBs).
But a spokesperson with the General Services Administration said the price would not be reduced right now.
“GSA is required to receive fair market value in a negotiated sale,” the spokesperson wrote in an email message. “While the proposed economic development of the property is a recognized public benefit, GSA is not authorized to discount the purchase price for this use.”
The auction is expected to open in May.
Copans said the local group will continue to try to get funding from the Legislature, as well as through working with private investors.
The town of Montpelier has not expressed any interest in using local taxpayer money for the project, he said.
“This is a piece of property that has real importance, both to Montpelier, but I would argue to the state, given its proximity to the Capitol Complex,” Copans said. “So that’s the case we’re making.”
