Starbucks development on pause in Rutland

By Katy Savage
RUTLAND— The site earmarked for Rutland’s first Starbucks has hit a snag.
Alrig-USA, a Michigan-based developer that was granted permits to build a Starbucks in September, withdrew its application two months later, when the site was sold to a new developer, according to Zoning Administrator Tara Kelly.
Ocean Gate Realty Advisors purchased the building for $650,000 in November.
Kelly said Alrig, which had a purchase and sales agreement, did not give a reason for the withdrawal.
“Obviously, something fell apart,” Kelly said.
An Alrig-USA spokesperson declined to comment.
The property at 37 North Main St. is owned by Pistols and Roses.
Pistols and Roses owner Mark Foley didn’t know why Alrig pulled out. He said the right developer was needed for the project.
“I think it’s very important for Rutland, it’s a key intersection,” he said. “It needs to be redeveloped.”
As part of the sale, Ocean Gate acquired the development plans for Starbucks.
The plans call for tearing down an historic building that was once Royal’s Hearthside restaurant to erect the new 5,500-square-foot Starbucks. The original plans also require an access easement with CVS Pharmacy, which is owned by Ocean Gate.
Ocean Gate is a real estate investment firm with offices in Boston and New York City.
A principal of Ocean Gate declined to identify himself when reached by phone. He said negotiations with developers were ongoing and it was “too early” to say what would become of the site.
“It’s a development site,” he said.
Kelly said no further permit approval is required to build the Starbucks as Alrig proposed.
Rutland Redevelopment Authority Executive Director Brennan Duffy, who has been working with the new developers, said Starbucks was one company Ocean Gate was considering partnering with.
“My understanding is that they are in negotiations with a lease agreement,” Duffy said.