Hotel, Parking Garage Abandoned In Montpelier

A proposed hotel and parking garage is being abandoned because of ongoing delays and litigation, officials said.

Hilton chose to terminate the franchise agreement for the project, a partnership between the city and the Bashara family that called for a Hampton Inn hotel and a parking garage, city officials said.

“The big picture for us is that this was an unfortunate missed opportunity for our downtown,” Montpelier Mayor Anne Watson said.

A group of residents opposed to the garage appealed the state Act 250 land-use permit and a local zoning permit.

The appeals process has dragged on even though the city and the Bashara family's Capitol Plaza won each legal round thus far, with Capital Plaza paying nearly $1 million in legal fees, city officials said. The city also has spent more than $1.1 million on the project, officials said.

Voters approved a $10.5 million bond for the project in 2018. The project's feasibility could be revisited at a later date, officials said.