By James Kent
At a press event Thursday morning, Feb. 20, Mayor Doenges and developers from Center & Wales LLC signed a letter of intent, marking a formal commitment to move forward with the $40 million investment that will reshape the corner of Center and Wales streets. The project will bring a seven-story, mixed-use building featuring 99 hotel rooms, 26 market-rate apartments, a restaurant, a bar, and a rooftop bar.
While the project has been in development for years, Thursday’s announcement lands at a politically significant moment, with Rutland voters set to decide the city’s leadership in less than two weeks.
“Since 1973, this has been a hole in the ground,” Doenges said of the vacant area. “There was a fire that burnt down a previous hotel in this space, and it has been a parking lot, it’s been a concert venue—it’s been all sorts of things to the city. And soon, it’ll be a hotel again, and that’s absolutely fantastic.”
A community investment with broad support
The Downtown Hotel + Living Project is the latest development effort to revitalize downtown Rutland, and Doenges emphasized that the initiative reflects local commitment, not just outside investment.
“This isn’t just an investment from a company in the city,” Doenges said. “This is an investment from a standpoint of time and effort from community members who care about our city.”
“This is a major step for us,” said Kent Belden from Center +Wales. “There’s a lot of different moving parts, and we’re not completely there, but this is a major and important step.”
The road to construction
While the letter of intent is a milestone, several key hurdles remain. The formation of the Tax Increment Financing (TIF) district, which will help finance necessary infrastructure improvements, must be approved by Rutland voters this fall.
“The timing of the closing on our financing is subject to that TIF district vote,” Belden explained. “This is an important step. Our financing is linked to this agreement with the city, and that all has to come together.”
If approvals move forward on schedule and voters approve the TIF district in the fall, construction could begin by the end of 2025, with an 18-month build time for the structure, followed by an additional three months for hotel and apartment fit-up.
Environmental cleanup and economic impact
Before construction can begin, developers must remove 5,000 cubic yards of contaminated soil, resulting from asbestos from the former Berwick hotel, which burned in a 1973 fire, and contaminants from a neighboring dry cleaner business, which also burned. The contaminants left over from the dry cleaner create the most complicated part of the cleanup.
“I think This might be the fourth attempt at cleaning up this site,” Belden said. Some of the most hazardous material will need to be trucked to Michigan for treatment.” Fortunately, the whole site doesn’t have that.”
Despite the costs, supporters say the project will bring lasting benefits. It is estimated to create 200 jobs during construction, with an additional 30 to 40 permanent positions at the completed hotel.
The development is projected to generate $600,000 in municipal tax revenue, $2 million for the Education Fund, and $500,000 annually in room and meal taxes over its first 20 years.
As Rutland voters prepare to decide the mayoral race on March 4, Doenges positioned the project as part of the city’s broader push for economic revitalization.
Doenges’ challenger, Henry Heck, has raised concerns about city spending and economic priorities. While the Downtown Hotel + Living Project has broad support, the election outcome and future city leadership could influence its trajectory.
Rutland City celebrates its step forward
“We’re going to celebrate the dirt,” Doenges said, acknowledging the disruptions that will come with construction. “This is going to be an amazing thing for our community.”
Doenges ended the morning’s remarks with a huge thanks and debt of gratitude to the many individuals and organizations in the Rutland community that have worked tirelessly to bring this long-desired hotel project to reality.
With Election Day fast approaching, it remains to be seen whether voters will credit Doenges for his role in the project (a new hotel has been promised for decades, with serious conversations beginning three years ago, before Doenges took office)—or if the momentum will shift in a new direction.
For updates on the Downtown Hotel + Living Project, visit: rutlandvtbusiness.com/tax-increment-financing.
Kent Belden from Center & Wales LLC shook hands with Rutland City Mayor Michael Doenges, moments after the two signed the letter of intent to move forward with the Downtown Rutland hotel project.
