Killington seeks $50 million to fund road reconstruction and municipal water system

 MAY 12, 2021

Mountain Times

Developer says ‘but for’ town’s investment in infrastructure ski village is too costly, water tests put seven businesses on ‘do not drink orders’

By Polly Mikula

The town of Killington is facing costly infrastructure limitations but the solution could prove to be a boon — for current businesses, new developments and town and state coffers —  if solved with strategic partnerships.

On Monday, May 10, about two dozen town, state and federal representatives met virtually to discuss the possibility of tax increment financing (TIF) as well as other possible solutions and funding mechanisms.

The town of Killington is seeking about $50 million for infrastructure development for two critical projects: the reconstruction of the Killington Road and a new municipal water system. 

“Both of which have been roadblocks to development of a true Killington resort village for over 30 years,” said Jennifer Iannantuoni, chair of Killington Planning Commission.

The reconstruction of Killington Road has been planned for decades, but the scope has recently increased with the possibility of incorporating a new water system and burying utilities below the road surface while it is dug up.

Creating a municipal water system in Killington was first discussed in 2011, but dropped. It’s become a new priority after many businesses on Killington Road have recently been made aware of water quality issues. Within the past two months seven businesses in town were issued “do not drink” orders due to high levels of PFOAs and other toxic chemicals, with more expected to be added to the list as testing continues, said Wuestenberg from the Vermont Dept. of Environmental Conservation, Monday.

Instead of each affected property investing in its own water remediation solution — which could cost $10,000-$100,000 per property depending on many factors — the town seeks a municipal solution that will not only benefit those currently affected, but could also spur future development as quantity and quality of water would no longer be a limiting factor. 

The crux of the town’s plan to pay for these projects, however, does not lie with hypothetical development. Instead the development of the Six Peaks Village at the base of Killington Resort — which has both an approved Valley Well water system and its Act 250 permit — is waiting in the wings. “But for” the town’s investment in infrastructure, the project would not get off the ground as the developer can’t recoup enough in Phase 1 to make it easily financially viable for them, town officials have noted.

History has proved this true — three times over. In the 63 years since Killington Resort was founded, three planned ski villages at the base of the mountain have failed. 

The fourth planned village, to be developed by SP Land Company, received its Act 250 approval in October 2017. In 2019, SP Land secured the interest of an international resort developer but the upfront infrastructure costs are once again proving an obstacle.

Iannantuoni noted that SP Land has already done a great deal of work to identify the need and capacity for their development and would give these plans to the town. “SP Land would contribute its fully approved Valley Well water system to the town and/or fire district. The town would then upsize the system including the distribution of potable water down the Killington Access Road,” she said. “The Valley Well water system has been designed, the source and construction permits have been received, and two independent hydrogeologists have indicated their belief that significant potable water reserves are in fact available. After this design is upsized and amended permits are received this water system is shovel ready.”

The planned first phase of the Six Peaks Village would add 193 condominium units (five buildings), 31,622 square feet of commercial/retail space, a new 77,000 square foot base lodge, 23 duplex lots and nine single-family home lots. The development is expected be “a compact, high density” development as required for TIF financing.

While the town of Killington can’t afford to bond $50 million from its tax base, once the Six Peaks Village has completed its first phase of development the increased revenue will more than cover the debt service.

“We just need help getting this project off the ground,” said Select Board member Jim Haff. “At today’s interest rates, $50 million bond over 20 years would put us into about the $2.83 million to $3 million range for debt service…we already know we can’t afford this … I don’t know what town in the state of Vermont could, so we’re looking for help. But I also don’t know any other project that could produce 10 times the benefit to everyone,” he said, noting “the increase in municipal and state education tax would be somewhere around $10 million to $11 million per year with the completion of the Village Core and Ramshead developments.”

“Tax Increment Financing is a tool that municipalities use to finance improvements for public infrastructure like streets, sidewalks and storm water management systems,” according to the state Agency of Commerce & Community Development. “As the infrastructure is built and improved, the private sector follows with investments in new and renovated buildings. This private investment incrementally increases the value of the grand list.”

“It can be used as a catalyst to get a stalled project moving forward,” said Megan Sullivan, executive director at Vermont Economic Progress Council. “It’s meant to be a public-private partnership, a negotiated leverage point where you can say ‘If we do this, what will you do?’”

Up to 70% of the increased property tax revenue to the state and 85% of the town’s municipal tax increase created by the TIF district can be retained by the municipality to finance the infrastructure debt.

“I’m excited about this project and the discussion today because of the regional impact,” said Lyle Jepson, executive director for the Chamber & Economic Development of the Rutland Region. “This is a transformative project. Quite frankly if you can get this TIF it will transform not only Killington but will it will transform the Rutland region.”

 GREEN UP DAY, This Saturday May 1st.

Green Up Day

Saturday, May 1, 2021 at 8:00 AM

It has been a long winter!  Time to get out and help clean up litter from our 44 miles of roadsides and public places.  Citizens are encouraged to volunteer, grab a bag, chip in and help green up the Town!  

Free bags are available outside the Town Office and outside the back entrance to the new Public Safety Building (please drive carefully around the building and watch for exiting emergency vehicles). 

For more details, contact the Town Office (802) 422-3241, x1 or Debbie Burke (802) 422-3623.

STR registration gains as season ends

Mountain Times

By Curt Peterson

 In the eyes of the Select Board, Killington’s short-term rental (STR) registration program seemed to be stuck — at least not moving very fast. Selectman Jim Haff said at a March 13 meeting, that the town has paid taxpayer dollars to LodgingRevs.com, but he felt the firm had not delivered as promised. Selectmen had been concerned that ski season, during which many STRs are heavily in use, was almost over and the registration project, approved by voters in November, wasn’t in full operation. At issue is property owners renting in violation of zoning regulations to large groups who park in narrow roads, have noisy parties and overburden septic and water supply systems. In response, Zoning Administrator Preston Bristow and consultant Ken Wonsor have worked with LodgingRevs.com, the firm hired to monitor Killington’s new short-term rental registration program on internet advertising platforms, to finalize data input and complete a working system. Documenting and uploading zoning data for all the STRs has taken considerable time, Wonsor explained. When property owners register their short-term rentals the legal capacity is confirmed and provided to LodgingRevs. If the owner advertises a rental for groups larger than the registered zoning limit, LodgingRevs advises the town of the violation. “We send LodgingRevs our data spreadsheet, they update their data, and send back a combination report that displays variances between what’s advertised, and what the STR is registered for,” Wonsor said. Town Manager Chet Hagenbarth said, “The town has paid LodgingRevs only $5,600 so far. The firm has only billed for what they have done.” The estimated total cost for setting up the program is $20,000. Bristow reported on March 19 that 519 short-term rental units have been registered and loaded into the Lodging Revs software, where advertised features will be matched against official town registration records. “A short-term rental” according to the town website, “is defined as a furnished house, condominium, or other dwelling room or self-contained dwelling unit rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year.” STR capacities are limited to two persons per legal bedroom, “plus two” – e.g., a three-bedroom home can be advertised to accommodate up to eight people, but not more. Legal capacities are regulated according to water and waste water systems, fire safety regulations, and zoning ordinance. In addition to adhering to occupancy limitations, owners must document compliance with fire safety requirements and Act 250 waste water permits, and confirm their insurance carrier is aware of the rental status of the property. According to the zoning regulation, STRs with an occupancy of 16 or fewer guests are allowed in all zoning districts; those offering accommodation to greater than 16 guests are not allowed in the Forest Reserve and Residential 1 and 3 zoning districts. Bristow said LodgingRevs.com has notified him of 107 properties that were advertising accommodations beyond their registered legal capacities. “We send violators an email notifying them of the discrepancy,” he said. “If the violation isn’t remedied in seven days the violation becomes official, and the fines begin to accumulate until it is remedied.” A violation is treated like any other zoning violation in the town of Killington where a fine of $200 per day can be assessed. Of the 189 STR owners who had not registered their properties in February, only 62 still have not done so. Those owners were sent certified mail letters on March 26, according to town officials. Wonsor said some people are using their units during ski season and only rent in the summer, so haven’t registered yet. Some have stopped renting entirely, or have rented less than 14 days in the past year, so feel they don’t need to register their property. “Now it’s going well and will work great,” Selectman Haff told the Mountain Times on March 29. “We just needed to get everybody on the same page.”

New Base Camp development on tap at Killington’s Bear Mountain

Mountain Times 

MARCH 31, 2021

Courtesy Prestige Real Estate, artist renderings are subject to change
The Base Camp townhomes at Bear Mountain will be the first ski-on, ski-off gated community at Killington. The 78 slopeside townhomes in two multi-family buildings will be two-story, four-bedroom homes with two car garage parking, home offices, floor-to-ceiling windows and mountain views. Nine duplexes are also planned with sales currently underway.

By Karen D. Lorentz

An application has been filed by Killington/Pico Ski Resort Partners (KPSRP) for its master planned unit development (PUD) approval for the Base Camp at Bear Mountain project, the first development of slopeside units at Killington since 2006.

The proposed community consists of  156 residential units. Application #21-011 seeks specific site plan approval from the town’s development review board (DRB) for Phase 1 consisting of nine duplex residences and two multi-family buildings for a total of 78 residential units.

Phase 1 also includes a gatehouse office and pump station and all related infrastructure. The entire project is located within the Falls Brook/Bear Mountain section of the 25-acre Ski Village Zoning District.

The developer for the proposed project is Ottauquechee Realty Advisors, whose principals are Steve Malone and Richard Saunders. Both are former developers of Top Ridge and The Lodges within Sunrise Mountain Village, both developed along the Sun Dog trail. Malone said that once KPSRP receives the necessary Act 250 permit approvals allowing for the construction of the proposed Base Camp development, his firm will immediately purchase the 25 acres and construction will proceed as soon as possible.

He is hopeful that the aforementioned permits will be received by late summer.

Malone is handling the permit application process on behalf of KPSRP, but noted that KPSRP currently owns the land and is the applicant through the entire permitting process. Malone said he will present KPSRP’s application at the DRB hearing and attend to the necessary state environmental permits (water and wastewater) prior to the Act 250 application. At this point in time, he expects the Act 250 process will probably be done via Zoom.

As the coordinator for the project, Malone has assembled a design team that includes: Studio A Landscape Architecture and Engineering, D.P.C. out of Saratoga Springs, New York, for site design; Engineering Ventures of Burlington for civil engineering; and AJ Architecture and Design from Glens Falls, New York, for the design of townhomes deploying a modern architecture style that is now popular at ski resorts.

“It is a revival of the mid-20th century modern style that is currently sweeping across U.S. and Canadian resorts,” Malone explained.

Malone also noted that specific design elements for the townhomes were the result of a survey of 120,000 loyal Killington skiers. Potential buyers indicated that they’d plan to use their resort property 50% of the year.

“The market for the upscale townhomes is young families, typically with two kids and parents in their early-to-mid 40s who are fairly high wage earners and want a new ski home,” he said.

The market for resort and waterfront markets is hot now, Malone added, noting that available resale properties at ski resorts have been largely depleted. Adding that a portion of buyers are changing residency from urban locations to mountain resort locations where there is a year-round active lifestyle.

In addition, Malone stated enough presales have been secured to start construction at Killington later this summer, noting just the duplex townhome residences have been designed to date and comprise the only product currently for sale.

Courtesy Prestige Real Estate, artist renderings are subject to change

Ski-in/ski-out units at base of Bear 

Heidi Bomengen, co-owner and broker at Prestige Real Estate of Killington, said her office is the exclusive listing agent for sales of the units. Currently, the base price for slopeside units in the first six duplex buildings is $1.75 million.

“The interest level in these properties has been very strong,” she said, noting they were listed in January and currently there are 10 signed reservation agreements with $10,000 non-binding deposits.

“The real estate market has been strong across the board  homes, condos, and land in Killington for the last two years with 2019 the busiest I ever saw, and 2020 matched it despite a three month gap [caused by the Covid-19 pandemic]. It was really busy and this year’s market is even busier – it’s explosive,” she said. “Properties are going under agreement in a matter of days with a deadline for offers, and most are going over the asking price,” she said of the hot market.

The two-level duplex units feature a first floor layout with a two-car heated garage, entry area, gear locker, storage room, office, bathroom, bonus room, and open dining, living, and kitchen areas as well as access to patios. The second-floor sleeping level consists of four bedrooms and three full bathrooms;  two are master suites and two bedrooms have a shared bath.

The townhomes feature radiant heat, gourmet kitchen, and high-end finishes throughout, Bomengen noted. Among the living room features are: 14-foot ceilings, expansive views of the Bear Mountain ski trails via large floor to ceiling windows, and a custom gas fireplace and surround with Vermont Thinstone and Shou Sugi Ban Charred Western Hemlock. The second floor has 9-foot ceilings and carpeted floors in the hallways and bedrooms. A covered back patio is plumbed and wired for a hot tub and another patio is plumbed for a propane barbecue.

There are also a number of optional amenities, including: security systems, heated patios and walkways, a 10 KW Tesla Wallmount Battery electrical backup system, and a gas fireplace in a master bedroom among them.

Pending Act 250 approvals, non-binding deposits may be canceled at any time, Bomengen noted. When Act 250 approvals are received, purchasers will have to sign a purchase and sale agreement and make a binding and non-refundable 20% down payment/deposit.

Public input invited

The town of Killington has announced that its development review board will hold a public hearing to review the application on Thursday, April 15, at 6:30 p.m. at the Sherburne Library Meeting Room at 2998 River Road with attendance available via Zoom.

A copy of Application #21-011 may be viewed at the town offices at 2706 River Road between 9 a.m. and 4 p.m. Mondays through Fridays by appointment (call 802-422-3241 ext. 3). The application with multiple attachments may also be requested, in whole or in part, in portable document format (PDF).

Participation in this local proceeding either in person, by video conference (Zoom), or through written statement is a prerequisite to the right to make any subsequent appeal. Written statements should be submitted at least seven days prior to the hearing.

For participation via Zoom, a meeting link will be posted on the day of the hearing on the Killington town website calendar, killingtontown.com.

Killington finalizes short-term rental regulation

Mountain Times

 NOVEMBER 25, 2020

The registration deadline is Jan. 1

By Curt Peterson

Killington voters approved the zoning change for Short-Term Rentals Nov. 3, 482-262, but the actual form to register required two more Select Board meetings to finalize.

The state defines a short-term rental (STR) as a residential property rented for less than 30 days at a time, and for more than 14 days in a given year. Killington has more STRs (900 estimated) than its 860 population, inspired by the Killington-Pico ski resort, and various four-season events and activities.

At issue was the fee schedule for registering and obtaining a permit for short-term rental units.

At the Nov. 17 meeting the Select Board debated whether to base the fees on “bedrooms” or “occupants.”

In the end, the number of bedrooms became the determinant.

A permit for a unit with up to two bedrooms will cost $150, permits for three-bedroom units will cost $200, and four or more bedroom unit permits will cost $250. These are annual fees and must be paid when the units are registered with the town. The registration deadline is Jan. 1, 2021.

In Killington many units qualify for two occupants per bedroom, “plus two” occupants total. A two-bedroom unit, e.g., could legally house six occupants.

One property owner asked whether his fee would be based on actual number of bedrooms, or the number that he actually offers to rent. In his case, he said, he rents fewer than exist.

Selectman Jim Haff said the number of bedrooms actually offered to renters should be the number the owner puts on the registration application, which determines the fee.

Landlords who rent for less than 14 days per year are not required to register their units.

The registration program will be monitored by a firm contracted by the town to scan Killington rental units advertised on the internet through short-term rental sites. The sites’ companies will be amending their application forms to include the required Killington permit number for each offered unit. They can then track how many occupants a listing boasts vs. the number permitted by the town.

According to Zoning Administrator Preston Bristow, some property owners were advertising properties with occupancies far greater than approved by the state. Problems documented by the police and fire departments regarding parked cars blocking roads and noise complaints by neighbors had inspired creation of the STR registration ordinance.

The term for all permits will run from Nov. 1 to Oct. 31. For this first year, owners have until Jan. 1, 2021 to get their properties registered.

Bristow drafted the registration documents.

Besides the number of bedrooms, registrants must provide their state-mandated occupancies relative to septic and fire safety regulations, and certify that requirements of proper rental insurance are met.  They also have to acknowledge awareness of the fire alarm regulations if they have an alarm system.

Selectman Chuck Claffey encourages property owners to register their units online to avoid Covid infection risk of coming to the town offices.

There were some complaints about the ordinance.

Dave McComb, who said he manages or owns around 80 STRs, objected to the November through October permit period.

He quoted the town zoning ordinance: “The duration of a short-term rental registration shall be one year from the date of issuance.”

Sue Walker thought the registration fee should match the start date of the permits – and if not, it should be pro-rated. The ordinance was adopted 17 days after the Nov. 1 permit effective date.

Haff explained the town had wanted to enact the ordinance in May, but a vote was called for, putting adoption off until after the election in November. In the meantime, he said, the town has incurred monitoring and documenting costs they need to recoup through the fees associated with this change of zoning and subsequent registration.

Data enumerating existing STRs are being documented. Town Manager Chet Hagenbarth said all the detached homes will be in the data base by the end of November, and condominiums will be entered in December.

Town accepts Durkee’s bid for the former Killington Fire House

Mountain times 

NOVEMBER 25, 2020

By Curt Peterson

On Nov. 18 Steve Finer of the Fire Department signed the purchase and sale agreement for the former Killington Fire and Rescue (KF&R) fire house on Killington Road. The price to be paid is $415,000.

The buyer is Fireside Properties, LLC, one of several local companies owned by Stephen Durkee, and title is to be transferred on or before Jan. 15, 2021. The building is being sold “as is” and there are no contingencies for financing or satisfactory inspections.

Durkee also owns Killington Market, Inc., an abutting property on Killington Road.

Finer signed the purchase and sale agreement. The town is acting as authorized sales agent for KF&R, who own the property. Because the town has financed, and will own, the new Public Safety Building, which will be finished by the end of this month, proceeds of the sale will accrue to the town.

Selectman Jim Haff told the Mountain Times there is written authorization for the town to sell the property on the Fire Department’s behalf.

The request for proposals called for a minimum bid of $300,000. There were two bids, each for the minimum amount, one from Rock Landscaping and Property Management, and the other from Ryan Orabone, owner of Till I Die Apparel.

In addition to the higher price, stipulations favoring the seller included a 10-year easement to the existing truck refilling tank and Roaring Brook water access system for Killington Fire & Rescue.

Fireside Properties has agreed to “work with the Town of Killington to ensure that future development of the property is consistent with the anticipated new town center designation.”

The buyer has delivered a $5,000 deposit to the town, the balance of the purchase price to be paid when title is passed.

Mr. Durkee did not respond to the Mountain Times’s inquiry into his plans for the property.

Killington Public Safety Building prepares to open, budget shortfall discussed

 Mountain Times

OCTOBER 28, 2020

By Polly Mikula

Last week the new Killington Public Safety Building received its temporary dept. of fire safety certificate of occupancy, meaning the town’s fire, rescue and police departments could begin to move into their new headquarters, Town Manager Chet Hagenbarth explained.

The new building on Killington Road is just over a mile north of the current fire station. The new 14,000-square-foot structure houses the fire department, Search and Rescue team, and the Killington Police Dept.

The building features four bays for firetrucks in the front facing Killington Road and one in the rear for light rescue and police, with sufficient spacing. There is also a hose tower to drain fire hoses and store them properly after use, an efficient exhaust system, a toxic rinse room (to wash off fire retardant and other chemicals before entering the building), a men’s and a women’s locker room with showers, and a mezzanine floor with office space and storage.

In a separate section of the building, the police department has a “sally port” to allow secure gated entry for a police vehicle, a temporary holding cell, an interview/interrogation room with one-sided glass, office space and rooms for proper record storage.

The building also features a 900-square-foot community room that can seat 50-60 people (not considering current social distancing requirements) with a small kitchen attached and public bathrooms.

“It’s a beautiful building and all went as planned building-wise,” said Hagenbarth. “Then we ran into a few big obstacles.”

Over budget

The first of those obstacles was ledge, the second was the pandemic, and the third was water capacity, Hagenbarth explained. “None of which were in our control, but its still hard to not blame myself… I’ve never missed a budget in all the projects I’ve overseen,” he said.

Cumulatively, additional non-building related costs added up to $478,121.51, after the future sale of the existing firehouse (estimated as a $300,000 offset), Hagenbarth reported Tuesday, Oct. 27 at the Select Board meeting.

The town had included a 12% budgeted contingency, for normal overages, he explained but these were “unexpected outliers.”

The town borrowed $4,775,000 to finance the construction after voters approved the measure in March 2019. The 4-acre parcel was purchased separately the year prior for $525,000.

“Ledge costs were incurred outside the building footprint through to the 45,000 gallon storage tank and for drainage, which was required to be routed around the building to the stormwater treatment swale in front of the building,” Hagenbarth explained.

Additional ledge costs totaled $211,888.17.

The Covid-19 pandemic contributed to increased costs by delaying the project and pushing it into winter months and by increasing the costs of materials.

“Winter conditions costs were incurred because the stormwater permit as delayed from July 1-Sept. 3 causing a two month delay,” Hagenbarth explained. “Subsequently, the additional two-month delay caused by ledge removal caused the building to not be enclosed prior to the winter weather conditions setting in. Had either event not occurred, this cost would have been reduced to approximately $40,000 for a potential savings of over $120,000.”

The delay that pushed the project into winter conditions cost the town an additional $161,155.37, Hagenbarth reported. The costs directly associated with the Covid shutdown totaled $54,708.10, additionally. But pending state grants could help offset this cost a bit, Hagenbarth said.

Finally, water capacity fell short of state guidelines, requiring additional effort to meet code. “A potable water storage tank system was required by code to be calculated using 50% of the well’s capacity of 55 gallons per minute. The potable water storage system calculation must assume all water faucets etc are running and keeping the eye wash station continuing to function,” Hagenbarth explained.

A $50,369.87 potable water storage system had to be added to meet those requirements.

Hagenbarth and the Select Board will discuss possible measures to cover the $478,121.51 additional project cost in the coming weeks.  “We have options, I do not think we’ll be going back to the voters to ask for more money or have to increase taxes to cover this cost,” he said.