News

Windsor approves loan to residential historical property

By PATRICK ADRIAN
[email protected]
WINDSOR, Vt. — Last night the Windsor Selectboard approved a $60,000 loan from the town’s revolving loan fund to Windsor resident Clifton McNaughton to restore a vacant historical house at 33 Main St.

Board members said this project loan will provide a “learning experience” for the town, who has discussed on previous occasions expanding the use of the loan fund to include property improvement ventures.

McNaughton said that he purchased 33 Main St. in large part because of its commercial and historical value. The house is across the street from The Snapdragon Inn and McNaughton said the house has already attracted interest from inn guests.

“This is not a normal fix and flip,” McNaughton told the board at the previous selectboard meeting on June 11. “This is a significant portion of the town’s history that’s just sitting there literally falling apart.”

McNaughton has restored and resold several houses in the surrounding area, including in Springfield, Vermont and Claremont. He said his projects typically sell within six to eight months due to his strong relationship with area realtors, who often start finding prospective buyers before his project is finished.

Requesting the town’s help was an unusual step, McNaughton said. As with prior projects McNaughton typically relies entirely on bank credit to finance. However, because this house is on a floodplain and has extensive damage from a boiler system explosion, Mascoma Bank will not approve McNaughton’s credit until he addresses the flood insurance and environmental issues.

McNaughton has worked closely with Windsor Zoning Administrator Bob Haight on the flood insurance issue and believes the property will qualify for a flood elevation certificate through the Federal Emergency Management Agency (FEMA) to waive or reduce the insurance liability.

McNaughton will also use the town loan to bring the house up to code in order to satisfy the bank, which will then approve credit to cover the remaining restoration.

According to McNaughton, after the house’s last caretaker died the electric company disconnected the house’s power lines because the house’s electrical connection was dangerously outdated. Later, winter temperatures caused the boiler system to explode, including the heat pipes and radiators. In addition to replacing the electrical and heating system McNaughton will need to remove asbestos from the basement.

While the town traditionally limits revolving loans to businesses, Town Manager Tom Marsh said that restoring blighted properties on Main Street does tie in to the town’s economic development plan, particularly in cases where the investment has a considerable upside.

“We have a vested interest to see how this project goes, and to learn from this process how to handle floodplain regulations for future inquiries,” Marsh said.

McNaughton said that he plans to carefully document the process to acquire an insurance waiver, as the step-work is complex. By documenting it he wants to give the town a guide to help other property buyers.

Selectman Mike Rice said that this was an ideal project on which to base their learning, because they knew McNaughton’s professional credentials and expertise. From this project the town wants to learn what questions to ask future property owners who might request a loan for a similar project.

“[McNaughton’s plan] is what a good proposal should look like,” Marsh said.

The board approved a $60,000 loan with zero interest that McNaughton will need to repay either in 24 months or at the time of sale close.

While this house would be McNaughton’s first historical property, McNaughton said he has a strong background in historical architecture. McNaughton’s father was a successful architect whose firm worked on buildings that include the U.S. Mint and World War II Memorial in Washington, D.C.

“His whole firm was historic preservation,” McNaughton said. “I learned about it whether I wanted to or not.”

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