Photo: CityPlace Burlington is beginning to rise on the site of the former mall. The initial development will include 400 units of much-needed housing. VermontBiz photos.
by Joy Choquette
Housing, retail closings, new development and business opportunities: It’s a mixed bag in the county
Staffing issues, housing shortages and loss of businesses are all challenges right now in Chittenden County. Similar issues are hitting the entire state. But there are bright spots too. Development and redevelopment projects, solutions to the housing shortage issue, and new opportunities for businesses abound in Vermont’s largest county.
With an expected population of 183,172 by 2050, according to “Chittenden County Municipal Population Forecast,” the area currently has 169,301 residents. This number, according to the 2022 US Census Bureau, indicates an increase of approximately 1,000 people since 2020.
The total number of employer establishments in 2021, stated the report, was 5,636. Nonemployer establishments totaled 15,601, though that figure was from 2019. The median household income was $81,957 from 2017 to 2021, according to Census Bureau statistics.
This is significantly more than the median income in other counties. Windsor County, for example, had a median income of $63,787 during the same time period. Orange County’s was $67,906, while Franklin County’s median household income was $68,476.
The five largest employers in the county are the University of Vermont, Global Foundries, Walmart, Dealer.com and the Howard Center. Smaller businesses cover a range of industries. From banks to service companies, from technology firms to utility companies, the county is full of businesses of all sizes.
All these businesses require residential space for employees and leaders of course. Which is Chittenden County’s first challenge: housing.
Housing in the County
Statistics from this same U.S. Census report state that 74,917 housing units were occupied in July 2022. Of these, the median mortgage payment was $2,040 and the median rental cost was $1,386. What the statistics don’t show is the rate of people without homes or those who are in unstable housing situations.
Michael Monte, CEO of Champlain Housing Trust, said that the county has some specific challenges exacerbating the housing market.
“This region has seen the most population growth, but not a commensurate growth in housing, leaving us with perhaps the lowest rental vacancy rates in the state,” said Monte.
It also has the highest median home prices in the sale market. That pressure has been building, said Monte, and in the past few years has exploded.
“While people up and down the income spectrum have been impacted by this lack of stock and increasing prices, it’s even more pronounced and problematic for low-wage workers or those trying to move from renting into a ‘starter home.’” Monte said. “There’s just too much competition with people of more means in this market.”
It's not all doom-and-gloom, however. Monte noted that CHT has about 800 affordable homes of all types in its pipeline.
“This is because of the commitment of the state to use both federal pandemic relief and recovery dollars as well as a portion of the state’s surplus to invest in longer-term solutions to our housing needs,” Monte noted. “We’re very busy trying to bring those homes to the market as quickly as possible.”
There were 36 new apartments opening in Colchester over the summer months. CHT has also been pursuing the development of 100 homes — a combination of rental and townhomes — in the Shelburne area. Building of these is slated to begin next spring.
Additionally, CityPlace and the VFW building on South Winooski Avenue are expected to bring about 125 new apartments to the city of Burlington, Monte stated. There are also 60 new apartments being converted from dorm buildings at Fort Ethan Allen.
“That is just a sampling,” Monte said. “We have a lot in front of us.”
Samantha Sheehan, spokesperson for the city of Burlington, offered more insight into the VFW project. She stated that 38 critically needed affordable housing units and two nonprofit commercial spaces will be part of the project.
There will also be a condo for the VFW Post’s future home. Sheehan described this as “a place of gathering and veteran services programming,” along with a leased space where the city’s Community Justice Center will tentatively relocate.
“Eight apartments will be set aside for households exiting homelessness and will be supported with services; five of these units will have a special preference for homeless veterans,” said Sheehan.
Additionally, more development will likely be coming downtown. “At 266 College Street (the former Y) the city anticipates seeing a zoning application submitted for the redevelopment of the building to include 90 new housing units in the coming month,” stated Sheehan.
In Hinesburg, Director of Planning and Zoning Alex Weinhagen said, three projects are in the works to create more housing for the growing community: Haystack Crossing; Hinesburg Center, Phase 2; and Kelly’s Field 2.
Haystack Crossing will provide 70 lots and 176 homes, including single-family, multifamily and senior housing, along with nonresidential space. This consists of 27,000 square feet of commercial, light industrial and green space.
Hinesburg Center, Phase 2, consists of 22 lots and 73 new homes. Of these, 15 will be single-family dwellings, along with two nine-unit buildings, a six-unit building, and a 34-unit building. There will be another 14,500 square feet of office, retail and light industrial space in three buildings, along with green space.
Kelly’s Field 2 will provide the town with 24 affordable senior-housing apartments in multiple one-story buildings. As rents go up, these units will remain affordable for the seniors who live there, said Weinhagen.
“These are providing more affordable homes,” he said about the three projects.
Charlie Baker, executive director of the Chittenden County Regional Planning Commission, said his organization was pleased to see recent activity on behalf of housing at a state level.
“We were really happy to see the housing bill go through the Legislature,” said Baker. “Hopefully, this has a long-term effect in providing more housing.”
Housing issues, he added, have caused a significant drag in all kinds of areas.
“Lack of available housing for employees has been a real problem,” Baker said.
Earlier Rezoning Pays Dividends
This type of development couldn’t have come at a better time for Hinesburg, as the town has been experiencing significant growth in the past few years.
“It’s a lovely community,” Weinhagen said. “We have a vibrant village area with all types of services — everything you need, but in a small-town package.”
While some are referring to Hinesburg as the new Williston, Weinhagen does not.
“We are not now Williston nor will we ever be Williston. We’re not headed in that trajectory,” Weinhagen stated. “Our rural village will always be rural.”
Weinhagen credits the development in the Hinesburg area to the groundwork that was laid years ago.
“It’s being driven an awful lot by some of the rezoning we did in 2009,” he said. “The area zoned for growth — the village area — was about 250 acres. In 2009, we expanded that to 500 acres.”
But then the Great Recession hit. It took a little time for developers to get on board, Weinhagen said. By 2012, they started acting on the new zoning.
“Some of the larger projects, like the Haystack Crossing project, came out of that rezoning,” he said.
In May, the demolition of the old Burlington High School began. It was required after toxic PCBs were discovered in the autumn of 2020. The school is temporarily housed in the old Macy’s building downtown. The deconstruction process is expected to take at least six months, but building on the existing site begins this summer.
CityPlace in the former Macy’s building is expected to be a mixture of both residential and retail spaces. The development team includes Don Sinex, Scott Ireland, Dave Farrington, Al Senecal, William Fellows and Matt Young.
In the city of Burlington, developers have submitted a zoning application for Silt Botanical Bathhouse at 453 Pine St. The project would comprise a 30,000-square-foot Nordic-style bathhouse and wellness space, Sheehan said, as well as 12,400 square feet of retail and commercial space.
“This project will activate a long-underdeveloped site with a $6 million investment from the state of Vermont committed to cleanup and redevelopment of the site enrolled in the Brownfield Economic Revitalization program,” Sheehan said. “The new facility is slated to open in spring 2025.”
In Colchester, construction has begun around Exit 16 with a diverging diamond interchange. This project is expected to be completed in four construction seasons, Baker said. This is year one.
Intended to lessen congestion in the busy area, the Exit 16 project will also add turning lanes to Mountain View Drive, Hercules Drive and Rathe Road. Additionally, dedicated pedestrian and shared pedestrian and bike facilities will be constructed. Traffic lighting will be updated as well.
“I have not heard much about this in terms of business reactions,” Baker said. “It seems like they’re managing to keep traffic moving, just more slowly than it used to.”
On the other side of Burlington is the Champlain Parkway project. This 2.8-mile project will connect the interstate with the South End, hopefully eliminating neighborhood traffic and congestion. The project has been in the works for decades and is expected to be completed in 2027.
The plan, said Baker, is to connect the interstate last. It’s being built from the endpoint backward to help traffic flow, he explained.
“It has close to a 50-year history,” he said. “It was really going through redesign, permitting and litigation. These projects kind of start when they finish all that process.”
Other Challenges Remain
Workforce shortages are the norm throughout the state. This is hurting businesses as they scramble to keep up with customer demands with limited staffing. One area business, the machinery manufacturer Husky Technologies, continues to experience staff shortages, both in Vermont and globally, said Richard Desouza, the company's global director of industrialized tooling operations.
Recruiting skilled talent to fill advanced manufacturing roles is a challenge during the best of times.
“To tackle the ongoing talent shortage challenge, we are working with our human resources team to find creative solutions,” Desouza noted. “This includes programs aimed at increasing our talent pipeline, ranging from retraining programs to apprenticeship programs, that will help develop the next generation of machinists.”
This approach means the company will have more career opportunities to offer both new and experienced skilled tradespeople, Desouza believes.
Retailers too, have been hit hard, not only by the pandemic but also by the influx of online shopping.
“Long-term, it’s been a tough retail market due to online shopping like Amazon,” said Baker, when asked about the recent closing of several retailers in the South Burlington and Williston areas.
This has sparked discussion between municipalities and property owners who now have vacant buildings, said Baker.
“Maybe in the future, we don’t need as much retail,” he said. “I think these are conversations that have been going on.”
Infrastructure, too, is a problem in some areas. Weinhagen stated that both water and wastewater have been a challenge in Hinesburg and will continue to be one.
“We don’t have adequate water supply for some proposed projects, and so we are trying to tackle that.”
A new well is one option being explored.
On the wastewater side, Weinhagen stated that the town is struggling to meet higher standards because of the Lake Champlain cleanup program. A new system was designed and approved by voters, Weinhagen said, but bids ended up being several million dollars above the approved amount. This is due to labor and supply shortages.
“How can we change the project or find additional funding?” Weinhagen asked. “That’s a challenge.”
Opportunities in Chittenden County
With Chittenden County as the hub of some of the state’s technology industry, it’s encouraging to see that places such as Hula, a co-working campus, business incubator and venture capital fund, continue to thrive.
Hula credits BETA Technologies, among many other successful startups, as previous graduates. “They’ve been doing a great job of incubating tech startups,” said Baker of Hula.
In Milton, Husky celebrated its 70th year in business in June and, Desouza noted, the 25th anniversary of its Vermont campus this year. With that longevity comes both new challenges and new opportunities.
“As long-tenured team members look ahead to retirement, our goal will be to attract and train the next generation of skilled workers,” said Desouza. “We are working diligently to develop programs that demonstrate the breadth and depth of career opportunities that Husky offers.”
Though the company struggles with workforce shortages, it also draws on the benefits the state has to offer.
“Vermont boasts a tight-knit community and is an excellent place to live and run a successful business,” said Desouza. “While the industry is competitive, it’s very supportive.”
Farmers and artisans in the Chittenden County area are enjoying City Hall Park again as the 2023 Burlington farmers’ market is in full swing.
With approximately 120 vendors and hundreds coming to shop, more traffic will be found downtown on Saturdays. This is good news for area businesses, particularly restaurants. Many are still feeling the pinch of COVID-19.
Sheehan said that though businesses are bouncing back post-pandemic, they still aren’t at pre-pandemic levels.
“We are hearing from some businesses that they see a lingering impact from a sluggish return of office workers downtown who generally support area businesses on weekdays,” said Sheehan. “We hope that the increase in new residential units downtown will help increase this reliable customer base over time.”
Two new programs that the mayor’s office unveiled will hopefully help Burlington City business owners further. With a challenging lending environment, many new startups and growing businesses are struggling, said Sheehan.
To combat this, the city has launched a small business revolving loan program to better support small and diverse local businesses. These include a mix of grants and loans.
Likewise, the city of Burlington knows that hiring and retaining staff remains a challenge.
“To respond to this need, the Burlington Department of Businesses and Workforce Development just hired a new workforce development manager,” said Sheehan.
CityPlace
The demolishing of the central part of the former downtown mall in 2018 and the vacancy of the rest of it facing Church Street was a literal open wound for Burlington as the ground lay bare between the former Macy’s (now temporary home to Burlington High School) and the now-empty LL Bean, which moved to Williston.
But with steel flying and that housing Monte mentioned coming to fruition, the city expects to reinvigorate the central core.
The latest plans call for upwards of 400 units of housing, with ground floor retail to be completed next fall and another 85 affordable housing units completed in 2025. In addition, the long-sought reconnecting of the north and south portions of St. Paul and Pine streets will be completed with the help of $18.8 million in tax increment financing. The old mall, when built in the 1970s, severed those two streets.
Photo: CityPlace co-owners (from left) Al Senecal, Scott Ireland, and Dave Farrington discuss project plans with Burlington Mayor Miro Weinberger during the November 2022 groundbreaking. Very top photo shows site progress as of June 2023. VermontBiz photos.
Grand Opening
Another piece of good news for Burlington arrived more recently.
Vermont Law and Graduate School in late June celebrated the grand opening of its Burlington location and the new legal aid clinic that will be housed there.
Photo: Burlington Mayor Miro Weinberger and VLGS President Rod Smolla cut the ribbon on the new VLGS Justice Reform Clinic on June 22. VermontBiz photos.
Funded by a $975,000 federal grant secured by U.S. Sen. Bernie Sanders (I-Vermont) through the fiscal year 2023 Congressionally Directed Spending process. The new Center for Justice Reform Clinic at VLGS–Burlington will merge the school’s immigration assistance work and broader justice reform work to reduce recidivism, address mass incarceration and improve community-based restorative alternatives at all intercept points, from precharge to postconviction, across the state of Vermont.
VLGS-Burlington, located on College Street, will also host the school’s fully ABA-accredited online hybrid JD program, an admissions office and classes through the school’s Center for Justice Reform and the National Center on Restorative Justice.
“The American criminal justice system is profoundly broken and continues to fail Black Americans, people of color, immigrants, the poor and working-class people again and again,” said Sanders. “We must put an end to the prison industrial complex and invest in solutions that prioritize human life and real justice, not greed and profits.”
“The establishment of Vermont Law and Graduate School-Burlington reinforces our commitment to serving our Vermont community,” said its president, Rod Smolla. “It also advances our strategic plan by providing our online hybrid JD students the opportunity to learn in the state’s legal hub, with all the amenities Burlington has to offer.”
While challenging issues abound in Chittenden County’s business world, there are bright spots and new opportunities too. Connecting with other business owners, thinking outside the box and tapping into the resources available are essential. It may mean the difference between success and closing shop in the next few years.
Joy Choquette writes from the Franklin County area.