It will take on new life after 32 acres of the 87-acre site were sold for residential development.
The long process will culminate in a 142-unit, over-55 development that has been a partnership between the town and developer Harmony Place.
The Rutland Development and Industrial Commission has overseen the effort, which was highlighted by purchase of the former state land by the town in 2012 and by the Jan. 31 sale of a portion to the Harmony Place development.
That investment of approximately $500,000 and years of work by the town in conjunction with the RDIC will yield a purchase price that
adds to town funds and will eventually give the town an estimated $800,000 in yearly tax revenue.
Michael Sullivan, who heads the RDIC, said the project will benefit the town with ongoing revenue but also not cost the town, since the over-55 development will not add significant school expenses and, being a private property design, not require expenses such as plowing and road maintenance.
Another benefit to the town is that plans include walking trails that will be open to the public.
“This was a very cooperative project between the town and the developer,” Sullivan said.
He detailed the recent progress. In May 2020, the town issued a Request for Proposal for the property. In June 2020, the developer submitted a proposal in response to the RFP proposing to construct 142 residential dwelling units on a portion of the land.
On June 28, 2021, the town and the developer entered into a Land Disposition Agreement for the sale of 32.8 acres of the Heights property. They then received formal site plan approval from the Heights Planned Development District Review Board on July 27, 2022. Then negotiations continued until the deal was closed on Jan. 31, 2023.
Over the three years of work on the project permitting and sale, the RDIC has spearheaded the efforts.
“The RDIC has a responsibility to develop the site in a manner that would generate tax revenue to the town. When the project is completed, the town will realize approximately $800,000 per year in annual real estate taxes alone, with no significant impact on town services,” Sullivan said.
“This is important to the town of Rutland,” Sullivan, who has served on the RDIC for 26 years and seen the project from the beginning, said of the development plans. He added that “the town hasn’t spent any money on the site beyond the original purchase price.”
The RDIC’s mission included obtaining the property rights and ownership from the state and negotiating the demolition and cleanup of the site.
Approximately 345,000 square feet of buildings had to be razed, according to the reuse plan developed in cooperation with the state, before the Legislature approved the sale to the town. That 1997 plan envisioned elderly housing, but also business/industrial as well as recreation and municipal uses.
“The RDIC was able to realize the construction of the roadway Rutland Heights Way as part of the ‘cleanup’, improving the site value by approximately $1,250,000 and providing a much needed second access to the schools,” Sullivan said. “In addition, the town will receive over $1,000,000 in fees, etc., for the project.”
After an initial offer of $850,000 for the property, the RDIC negotiated a final selling price of $1,650,000.
The community will be built in three phases, with the first phase to include construction of 40 units. Phase 2 will consist of 58 units, and Phase 3 will consist of the remaining 42 units. Site construction is anticipated to begin in spring 2023.
The proceeds from the sale of the parcel will allow Rutland to pay off the remaining $112,000 owed on the Rutland Heights property.
At this time, there are no specific ideas for the remaining parcels, Sullivan said. However, the RDIC does intend to put out subsequent RFPs for future mixeduse purposes. During the process of working with the developer, the larger property was divided into three parcels.
One of the parcels is the 32 acres being used for the 55-plus community. The remaining two parcels make up the remaining 55 acres, both of which are located on Maple Avenue on either side of Rutland Heights Way.
“There are many opportunities for future use and the RDIC and the town intend to pursue them,” Sullivan said.
The Rutland Heights State Hospital opened in 1898 as the first state-operated sanatorium in the United States, focused on treating tuberculosis patients. It became a veterans hospital in 1922 and closed in 1991, with the buildings demolished in 2004.
Moreinformationabouttheproject can be found online at www. townofrutland.org/rutland-development- industrial-commission.
