BENNINGTON — The group seeking to redevelop the Putnam Block has extended the due diligence period on an option agreement to purchase the property from the Greenberg Family.
The Bennington Redevelopment Group LLC announced plans this summer to buy six buildings at the Four Corners intersection, including the former Putnam Hotel. A 90-day window began in July.
The group and the Greenberg family have agreed to extend the agreement by 90 days, according to Bill Colvin, assistant director at the Bennington County Regional Commission. Colvin said more time is needed to review an environmental assessment and conduct other due diligence.
The extension agreement does not affect the previously negotiated $2 million purchase price for the project, Colvin said.
"Due to the complexities involved in redeveloping historic properties in urban areas, additional time is needed to sort through some of the details before moving toward a closing," Colvin stated in a news release issued Tuesday. "None of this is unexpected, but it takes time. Future lenders and potential grant funders for this project will expect this due diligence work to be completed prior closing on the property."
Group members "sincerely appreciates the cooperation of the Greenberg family," Colvin continued.
The Bennington Redevelopment Group announced in July plans to redevelop the Putnam Block, sometimes calls the Greenberg Block, into mixed-use space with offices, restaurants and retail space.
BRG members, described as "a consortium of local business leaders, institutions and civic-minded investors" with local companies, colleges, financial institutions and the hospital, say a completed project would be an economic boom for the town. The project is estimated to cost at least $20 million to $30 million and is expected to be paid for by debt, private investors, and tax credits.
The buildings are the block's namesake, the former Putnam Hotel, the Old Courthouse and Pennysaver Press building, the Winslow Building, Oldcastle Theatre, as well as the former H. Greenberg and Son Hardware property and the Mobil Station.
This story will be updated.
Contact Ed Damon at 802-447-7567, ext. 111.