Rachel Pierce
MONTPELIER — A local development corporation formed to save Montpelier’s former post office building at 87 State Street and won the auction with a $540,000 bid.
Earlier this year, the Foundation for a Resilient Montpelier worked with the state to explore buying the former federal building at 87 State Street through a negotiated sale — a process giving state and local entities an early opportunity on federal property. But the Foundation walked away from the GSA’s $2.4 million asking price, citing contamination concerns.
“There was tremendous uncertainty about heading into a public auction,” said Executive Director Jon Copans. “At that point, it’s anyone’s game. Anyone can participate and the outcome is extremely unpredictable.”
By the time the auction opened on June 15, a 10-member local development corporation (LDC) had been set up for the purpose of ensuring “the responsible acquisition and redevelopment of the former Federal Building.” Its board met repeatedly over the next seven weeks to weigh strategy, especially once an anonymous bidder finally opened the auction at $500,000 on July 29.
The GSA real estate website shows a total of six offers, climbing in $10,000 increments. The LDC’s winning bid of $540,000 was well within the $1 million cap approved through a state program, and far below the government’s original price tag.
“If we’re going to be honest,” LDC President and Montpelier City Councilor Ben Doyle said, half-jokingly, “$540,000 was probably $539,000 more than what this building is worth. But what we’re really paying for is control — making sure the property doesn’t just sit as a white elephant for years.”
The effort drew support at every level: the state stepped in early, with then-Agency of Commerce and Community Development Secretary Lindsay Kurrle, negotiating with the GSA on Vermont’s behalf; the local legislative delegation reworked the state program behind the funding; and ten institutions lent their names and time to the LDC.
“It’s pretty self-evident how important this piece of land is,” Copans said. “It doesn’t take much cajoling to persuade people to help out.”
Copans and Doyle both toured the building during the auction and were struck by how well it has held up. The GSA “really did invest to stabilize the building after the flood,” said Copans.
Doyle agreed, saying, “structurally, it’s very sound.” Doyle used to work in the building, and found being in it again a surreal experience. “It feels like people got up and walked away from their desks three years ago,” he said. “The phones, the typewriters, the office furniture are all still there.”
The keys aren’t in hand yet. The GSA has up to 60 days to formally accept the $540,000 bid, then up to 60 more to close the sale, though Copans anticipates the timeline will be quicker. “We fully expect that within a little over two months, we’ll be closing on the property,” he said.
Once that happens, the heavy lifting begins. The LDC will bring in experts to characterize the building’s PCB, asbestos and lead contamination and put a real dollar figure on the cleanup costs, estimated at roughly $1.8 to $3 million. Copans made it clear that the LDC has never planned to keep the property for good. “Our goal is really to assess the contamination, get that cleaned up, hopefully make some flood resilience improvements and then find a private developer that wants to carry it forward through the development process,” he said.
The debates over what 87 State Street should become are still ahead; the LDC’s own vision includes commercial space inside the building and housing on the lot behind. Copans urged the community to be patient during this final push to acquire the building, but he welcomed people to reach out with questions and ideas. “We are in a position to control our own destiny as a community,” he said, “as we imagine what the future holds for 87 State Street.”
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