The Federal Building at 87 State Street
The Future of 87 State Street - Online Informational Briefing
Monday, June 30, 5:30 to 6:30 PM
Zoom link: https://us02web.zoom.us/j/86306511112?pwd=jzQD1QWXAkNhQv5dE01SBRBAYwvgq8.1
Curious to learn more about the process the federal government is following as they look to sell the federal building and former post office at 87 State Street. Join a virtual information session with Montpelier Commission for Recovery and Resilience Executive Director Jon Copans. A brief update will be provided and then the meeting will be opened up for questions.
Background
The decision of the federal government to transition ownership of the federal building at 87 State Street has enormous implications for Montpelier’s downtown and future. The Montpelier Commission for Recovery and Resilience is spearheading a collaborative effort with the City and State of Vermont to explore the future for the Federal Building and parcel at 87 State Street. This initiative aims to leverage the General Services Administration's (GSA’s) disposition process to transform the currently vacant building into a downtown asset, potentially boosting the local economy, increasing housing, and enhancing the city's resilience. Working with the State of Vermont’s Agency of Commerce and Community Development, an expression of interest in negotiated sale was submitted on May 20. The request to GSA was for at least 270 days to study the site and engage development consultants to ensure the property's future aligns with Montpelier's vision for a vibrant and flood-resilient downtown.
87 State Street Update - May 25, 2025
As our community continues a conversation about the federal building’s future—and the implications of its potential redevelopment on downtown resilience—the Montpelier Commission on Recovery and Resilience (MCRR) would like to share the following information:
Neither the State nor MCRR is recommending that the City purchase the federal building, nor does the City have any plans to do so.
The Agency of Commerce and Community Development has submitted a letter of interest to the General Services Administration (GSA) expressing interest in the building and has requested a 270-day period to conduct appropriate due diligence.
While the City has submitted a letter of support for this effort to GSA, it has not been asked to make any financial contribution—no municipal tax dollars are supporting this effort.
The building, as reported by GSA, is structurally sound.
Due diligence, regardless of whether it results in the State purchasing the building—will provide essential information to determine the viability of a public benefit development group that could pursue a mixed-use redevelopment of the site (e.g., housing, hotel, parking, etc.). A mixed-use development that includes flood-resilient parking could provide a unique opportunity to replace existing riverside parking lots with green space.
When GSA transfers ownership, a covenant will be placed on the building requiring that any changes comply with the Secretary of the Interior’s Standards for Rehabilitation. This means historically significant, character-defining features will most likely need to be preserved. Proposed changes will be evaluated by Montpelier’s Historic Preservation Commission and Design Review Board.
If rehabilitated, the building would most likely be eligible for the Federal Historic Tax Incentive program, which could cover up to 20% of the total cost of the project. This program has been used successfully in other Vermont rehabilitation projects, including the Putnam Block in Bennington and the Brooks House in Brattleboro.
With financial support from the Montpelier Foundation and other philanthropic partners, MCRR has raised $50,000 to contract with experienced real estate development firms to conduct due diligence and explore a path toward obtaining site control.
Thanks to the leadership of our legislative delegation, a $100,000 appropriation has been secured for the Central Vermont Regional Planning Commission to conduct further due diligence focused on the federal building and the viability of additional development along Court Street (e.g., the Pit).
Should a negotiated sale of the building to the State not prove possible, the building will go to public auction. At that point, a public-benefit development group could pursue a purchase. However, public auctions also present the opportunity for an undercapitalized speculative investor to acquire the building and do nothing—an increasingly common scenario in Montpelier and other Vermont communities.
Without question, Montpelier is in a challenging period of transition. Local businesses are struggling, there is significant turnover among City staff, and the municipality is focused on other housing and infrastructure projects. MCRR has stepped up to engage the State and other partners in pursuing this opportunity because we view it as a transformational chance to revitalize our downtown and to make it more resilient.
For the May 9, 2025 update from MCRR on next steps related to the federal building, please click here.
On April 21, the General Services Administration sent to the City of Montpelier a “Notice of Surplus Determination for Federal Real Property. Read it here.
Read the MCRR statement issued on December 5, the day after GSA announced their plans to dispose of the building here.
Background on the GSA Disposition Process can be found here.