Category: Community Development
Project: Historic Brooks House Redevelopment
Project Location: 120-136 Main Street & 4 High Street Brattleboro, VT 05301
Status: Complete
Cost: $23,642,039
Description: The historic Brooks House is an 80,000 square foot mixed-use building located in the
geographic and historic heart of Brattleboro Vermont’s downtown. It is THE most prominent
commercial property and architectural element in this rural community. Built in 1871, it was one of
the most prominent luxury hotels in New England. A second life came to the Brooks House in the
1970s when the icon was saved from demolition and retrofitted into 59 residential apartments and
16 commercial spaces.
In April 2011, a five-alarm fire gutted much of the building destroying the homes of over 80 people
and several businesses. If the blow to the downtown via the fire wasn’t enough, Brattleboro then
suffered losses through major flooding caused by Tropical Storm Irene that same year. After two
years of sitting idle and increasing anxiety among the community, a group of five local citizens
purchased the building and organized a multi-million dollar restoration plan.
Resurrecting the Brooks House was essential to the health and viability of Brattleboro’s downtown
but required a complex financing structure to make it possible. The $23 million project leveraged all
possible sources - New Markets Tax Credits, Federal and State Historic Tax Credits, conventional
financing, a state legislative appropriation, a community development block grant, town funding,
individual investors, owner equity, and support from those near and far. The financing closed in
July 2013.
Completed just over a year later in October 2014, the project sponsors redeveloped the building to
include an innovative mix of retail, office, education, and residential spaces. Key elements of the
restoration include reconfiguring the upper stories to provide bigger apartments for different income
levels, adding on to the mid-levels to serve as office and classroom space for education based
tenants, and restoring the historic ground floor storefront space for retail tenants.
Community Needs Addressed: “From my perspective it simply cannot be overstated the
importance of the Brooks House coming back online. It has been three years since the fire and
[Tropical Storm Irene] and in that time downtown businesses and the community as a whole have
struggled.” Quote in 2014 by Patrick Moreland, the town of Brattleboro’s interim town manager.
The 2011 fire left substantial roof, wall, water, and smoke damage throughout the building –
displacing all its residential and commercial tenants. All that remained of this downtown icon was a
hazardous, burned out, vacant, ghost-like shell. The boarded up building discouraged economic
investment in the downtown and left gaps in needed community goods and services. Just four
months after the fire almost razed the Brooks House to the ground, Tropical storm Irene and the
flooding of the Whetstone Brook devastated Brattleboro leaving the core downtown under several
feet of water resulting in a FEMA disaster declaration. Unfortunately Brattleboro wasn’t all that well
off prior to these catastrophes. Brattleboro is located in a very rural area, in a census tract with an
unemployment rate of 9.4%.
NDC Academy 2015
Community Development
Historic Brooks House Redevelopment
Creating complexity in the $23 million redevelopment of the Brooks House was that the building
appraised as-stabilized value of $5.8 million was $17.2 million short of the amount required for its
rehabilitation. The results were tight constraints in the borrowing capabilities of the project and a
significant gap in the financing structure. To close the gap, a complex, multi-layered financing
package of federal and state tax credits, private investors, grants, state and local funds, and
traditional debt was necessary. But the owner had little interest in taking on the complex
redevelopment.
Benefits and Outcome: Complete and occupied by October 2014 the reinstated Brooks House
now brings in over 350 students and faculty through anchor tenants Vermont Technical College and
Community College of Vermont, residents from 23 mixed income apartments, retail and restaurant
customers through the five ground floor commercial retail tenants and up to three restaurateurs, and
employees through the one additional office tenant. Five of the twenty-three apartments are rented
to households earning less than 80% of the area median income, where rents charged will not
exceed 30% of 80% of the area median income.
The new Brooks House impressively welcomes residents and visitors with its modern amenities
alongside its restored historical façade. The façade, windows, storefronts, turret, and slate roofing
were preserved through federal and state Historic Tax Credits. Inside, the building is high
performing with new insulation, air sealing, windows, water source heat pumps for heating and
cooling, energy efficient lighting and equipment, full ADA accessibility, and high speed, fiber optic
internet access.
Restoration of the building brings the downtown better access to education, food, goods, and
services while serving as a catalyst for stabilization. It is estimated that the revitalized Brooks
House will bring in significantly more tax revenue than the building did before the April 2011 fire.
In addition to the preservation of this historic icon, new jobs in the core downtown (estimated at 100)
will result through the new businesses, restaurants and higher education institutions tenants of the
new Brooks House. New mixed income housing in a tight rental market with five affordable
apartments will breathe new life into the economically challenged downtown. And lastly, the project
serves to promote continued investment as the community tries to remain tall during the closure of
Vermont Yankee nuclear power plant, a major employer, and its loss of associated jobs.
Project Collaborators:
The project sponsor, Mesabi LLC, is comprised of 5 individual civic leaders, all of whom reside
and/or grew up in Brattleboro and are active within their community. This group stepped forward
when it became evident that the existing owner was not prepared to undertake the complex
redevelopment and assemble the multi-layered financing package necessary to rehabilitate the
structure and realize the buildings potential.
The project financing required a high level of dedicated cooperation and communication among
numerous partners and collaborators. Vermont Rural Ventures (VRV) partnered with the
Massachusetts Housing Investment Corporation (MHIC) to provide $23 million in New Markets Tax
Credit authority. Federal historic Rehabilitation Tax Credits were also part of the complex, twinned
transaction.
Additional partners in the $23 million development include U.S. Bancorp Community Development
Corporation, Mascoma Savings Bank, the Brattleboro Savings and Loan, the Vermont Economic
Development Authority, Brattleboro Development Corporation, the town of Brattleboro, and Vermont
Community Development Program, as well as up to 16 individual investors and the individual
NDC Academy 2015
Community Development
Historic Brooks House Redevelopment
owners themselves. Furthermore, two local entities, Merchants Bank and Vermont Mutual, each
purchased state historic tax credits further supplying much needed cash to the project.
What Makes Your Project Unique? : The historic 80,000 square foot, mixed-use Brooks House
itself is exceptional. However, it is the community support, varied sources of capital, and creative
financing to bring diverse employers and services to Brattleboro’s downtown that makes this project
unique.
Sixteen Brattleboro residents, in addition to the owners, backed the project with investments of
$25,000 or greater, amounting to an incredible $1,445,000. Strong community support is also
demonstrated through legislative appropriation and commitment of Vermont State Colleges as
anchor tenants. Town support is evidenced in the select board’s unanimous vote for tax
stabilization, a $150,000 loan, and an $800,000 community development block grant. This
widespread community support shows the value Vermonters place on downtowns.
Secondly, the sources of funding needed, beyond traditional financing, were significant. Market rate
debt was not feasible nor supported by an appraisal. To work, the project needed to leverage all
possible funding - federal rehabilitation tax credits, state historic tax credits, state economic
development agency financing, federal Community Development Block Grant funds, a state
appropriation, town loan, municipal tax stabilization, energy efficiency rebates, owner equity, local
investors, and NMTC allocations from two CDEs.
Thirdly, the Brooks House brings a diverse group of businesses to downtown Brattleboro, ranging
from sole proprietors, to higher education institutions and restauranteurs. Tenants include the
Community College of Vermont, the Vermont Technical College, Oak Meadow (home school
curriculum), Duo Restaurant, Brilliance (retailer), and Wow Yogurt -- tenants who will bring an
estimated 100 jobs to downtown.
Lastly, before the 2011 fire the Brooks house housed substandard 59 efficiency units. The 23 new
residential units consist of a mixture of units and people - with options of one, two or three bedroom
apartments, five of which are reserved as affordable units for households earning less than 80% of
the area median income.
Organization’s Name: Vermont Rural Ventures
Website: http://vermontruralventures.com/
Main Contact: Beth Boutin
Email: [email protected]
Phone Number: 1-802-863-8424 x210
NDC Academy 2015
Community Development
Historic Brooks House Redevelopment
NDC Academy 2015
Community Development
Historic Brooks House Redevelopment
$
$
$
$
Construction & Related Hard Costs
Project Soft Costs
Financing Costs
Reserves
Version: October 2014
$
Architectural, Engineering & Permitting Costs
23,642,039
1,522,377
947,414
1,249,010
16,457,300
1,102,277
2,363,661
Amount
Project Name: Brooks House
Project Contact:
Submission Category:
Total Uses of Funds $
$
Acquisition Costs
Use
Uses of Funds
$
$
Stock
Efficiency Vermont & Miscellaneous Grants
23,642,039
83,364
Total Uses = Total Sources
Total Sources of Funds $
11,167,315
$
101,010
482,350
$
Merchants Bank State Historic Tax Credit Equity
US Bancorp NMTC and Federal Historic Tax
Credit Equity
667,000
1,000,000
$
$
150,000
2,000,000
800,000
1,391,000
5,800,000
Amount
Mesabi Owner Equity
Richards Personal Loan
$
$
Vermont State Appropriation via Brattleboro
Development Credit Corporation
Town of Brattleboro Loan
$
$
$
Community Development Block Grant
Vermont Economic Development Authority Loan
Mascoma Savings Bank Loan
Source
Sources of Funds
PROJECT SOURCES & USES OF FUNDS
NDC Academy 2015
Community Development
Historic Brooks House Redevelopment