The City of Rutland, in partnership with private developers, has announced the Downtown Hotel + Living Project, which will complete the Center Street block at Center & Wales.
This $40 million development will introduce a seven-story, mixed-use building featuring 99 hotel rooms, 26 market-rate apartments, and vibrant dining and social spaces, including a restaurant, bar and a rooftop bar.
The Downtown Hotel + Living Project will provide a welcoming space for visitors, offering modern accommodations for business guests, tourists and families. The project also plans for 26 new apartments with premium amenities, helping to meet the demand for quality downtown housing.
By complementing the Paramount Theatre’s growth and boosting economic activity, this project will support ongoing economic development efforts. Infrastructure enhancements, including buried utility lines, improved fire suppression systems and upgraded stormwater mains, will reduce service disruptions, as well as mitigate flooding risks. Additionally, the project will create jobs both during and after construction, supporting local businesses in attracting new talent.
Even with agreed-upon tax stabilization, the project will generate significant tax revenue to support Rutland’s municipal government and schools, contributing approximately $600,000 in municipal taxes and $2 million to the Education Fund over its first 20 years.
In addition to property taxes, the project will generate $500,000 in annual rooms and meals tax revenue and nearly $75,000 in Special Benefits District tax revenue each year. After the TIF bond is repaid, the project will provide over $1 million annually to the General and Education Funds.
The City has provided incentives, including approximately $4.6 million in reduction of future taxes over the first 12 years, and approximately $750,000 in waived permit fees, water and sewer rate reduction, stand-by water fees and business personal property tax exemption over the first ten years.