MONTPELIER, Vt. (WCAX) – New housing projects are coming online for Montpelier, redeveloping former commercial space at a time when the city’s tax base is changing.
Approaching the first anniversary of devastating flooding, Montpelier has its foot on the housing gas pedal.
“One of my younger siblings just moved in here on the third floor and it took them three months to find a place,” said Elaine Ball, pointing to new apartment’s on Elm Street, where the Uncommon Market used to be.
Around the corner, on historic Langdon Street, other new apartment space was made possible by $150,000 in tax credits, helping a private developer restore ground floor businesses and 16 apartments above.
Ball, who also lives in Montpelier, says all the new units are welcome news for the vibrancy of the city. “We need more people downtown and supporting businesses,” she said.
As they’re redeveloping some of these properties, developers also have to adhere to new floodplain regulations, raising the floor up several feet and installing several steps up in front of buildings.
The nation’s smallest capital has been on a roller coaster in recent years. Since the pandemic — and the rise of remote work — demand for downtown offices is weak. That lack of food traffic is starving some downtown businesses who are still paying off COVID and flood loans, and also depriving the city of tax revenue.
“I think there’s a lot of enthusiasm, but with gritted teeth,” said Montpelier City Manager Bill Fraser. He says it’s the only city with more workers than residents and for decades has benefited from a vibrant downtown with people working in and out of state government. Now, with a shortage of workers returning full-time, he says downtown housing is critical to fill the gap. “You can walk to your door, go to the local store, restaurant. You’re providing that around-the-clock customer base.”
The new Act 250 reform law — which this week overcame a veto from Governor Scott — may help too. The former Elks Club and golf course which the city acquired in 2022 is targeted for housing in an area that will likely be exempt from Act 250 regulation.
Tim Heney, a local realtor and Montpelier City Councilor, says meeting the housing need will take decision-makers working with public and private developers, and the right balance of local zoning. “It’s how to get a philosophy of, okay, we want to have housing and we want guardrails, but how to create it in a way that will work, and be open-minded about it,” he said.
Back on Langdon Street, businesses are hoping for residents new and old — and visitors — to continue on the path of their flood recovery.