Bennington officials approved Monday a contract allowing the town government to partner with a real estate developer in breathing new life to the former Bennington High School.
The project, estimated to cost $29.8 million, aims to redevelop the century-old building into spaces for housing, social services and fitness.
Under the agreement, the town government would invest $2.9 million in the project and lease about a quarter of the 100,000-square-foot building. That space would become the new home of the Bennington Senior Center and the county’s Meals on Wheels program, and would also host a YMCA gymnasium.
Developer Hale Resources plans to transform most of the remaining area into 39 apartments, including 17 units of permanently affordable housing, and a new child care facility, said Zak Hale, the company’s co-partner. About 3,000 square feet is being set aside for office space.
Hale Resources agreed to foot about 90% of the project cost, tapping sources that include grants, tax credits and private investments, according to a presentation by town staff during a selectboard meeting Monday evening.
“We’re about 60% of the way there,” Hale said during the meeting.
The town’s portion of the price tag involves $2 million in construction expenses and $500,000 in pre-development and fit-up costs — which will be funded with federal coronavirus relief dollars.
The municipal government would also help with purchasing the former school building from its current owner, Chris Gilbert, by transferring the existing Bennington Senior Center to him. The center is valued at $400,000.
Hale Resources would also pay Gilbert $1 million in cash, the building’s appraised value, Hale told VTDigger in an interview. Gilbert, a resident of Dorset and Red Hook, New York, bought the property in 2020 for $146,000.
Project proponents have said that, since Gilbert acquired it, he has spent around $1 million in renovating the building that is on the National Register of Historic Places.
Hale Resources would eventually own the building, with the town given an initial lease of 15 years and an option to extend up to 50 years. The company would also be responsible for maintaining it.
Once the building opens its doors to tenants, the town expects to spend $200,000 a year in lease and $88,000 in utilities, education taxes and maintenance costs. But town officials expect this to have minimal impact on taxpayers.
They also regard the town’s financial investment in the project as an investment in Bennington’s revitalization: It would create housing for various income levels, add indoor recreation facilities and rehabilitate a building that has largely been vacant since 2004.
The fact that it would be owned by a private entity would also allow it to be taxed, said Bennington town spokesperson Jonah Spivak. “If the town owned that building, it would not be taxable, would not be helping our grand list,” he said in an interview.
Hale said he hopes to break ground by next March.
