Senate President Pro Tem Peter Shumlin and Speaker Shap Smith, joined by members of the Addison County delegation, today spoke of the need for an economic assistance package for businesses and farmers effected by the Crown Point Bridge closure. The closing of the bridge has caused businesses and farmers to lose thousands of dollars in what is already an incredibly difficult economic time.
“The bridge closure has resulted in local businesses losing up to $6,000 a week and one farmer who I have been in contact with has been forced to spend over $20,000 to bring his crops back to Vermont,” said Senator Peter Shumlin. “In what is already an incredibly tough economic time, these additional financial stresses are devastating and can not be sustained for much longer.”
The legislative leaders have sent a letter to Governor Douglas urging that Vermont provide similar economic relief to that of New York where Governor Paterson recently announced a $2.935 million economic assistance package. The leaders suggested that Vermont use up to one million dollars available through the American Recovery and Reinvestment Act’s State Stabilization Fund to deliver the assistance through a grant package.
“Without economic assistance, it is clear that both businesses and farms in Addison County will be forced to close their doors,” said Speaker Shap Smith. “Over the next couple of weeks we will continue to talk with those effected by the closure to learn how these dollars can be best utilized,” said Speaker Shap Smith
The letter to Governor Douglas and details of New York’s economic assistance package are attached and pasted below.
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November 30, 2009
Dear Governor Douglas, The closing of the Crown Point Bridge has been devastating to thoseVermonters who depend on the bridge for their economic livelihood. Asyou know, the bridge closing has brought local businesses to the brink of shutting their doors, separated farmers from their crops and cut off employers from their staff. The economic damage caused by the bridge closing has been incredibly painful for many of the region’s small businesses and farmers during this tough economic time. Recently, Governor Paterson of New York announced the creation of a $2.935 million economic assistance package to help businesses affected by the bridge closure. This relief consists of grants and low interest loans which will be made available to businesses, farmers and manufacturers. We believe Vermont should provide similar relief to those on the Vermont side of the bridge. While the state itself is dealing with the impact of the economic recession, there are funds available through the American Recovery and Reinvestment Act’s State Stabilization Fund Program. We believe that it would be appropriate to use up to one million dollars of these funds for this economic assistance. Without economic relief, small businesses and farms will be forced to close and more Vermonters will join the ranks of the unemployed. If you would like to talk in more detail about this request please do not hesitate to be in touch with our offices. Speaker Smith can be reached at 828-2245 and Senator Shumlin can be reached at 828-3806. Sincerely, Senator Peter Shumlin Representative Shap SmithSenate President Pro Tem Speaker of the House
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To: Addison County Legislative DelegationFrom: James L. DailyRe: Champlain Bridge Impact on Vermont BusinessesDate: November 23, 2009
The statement below (in italics) was recently released by the State of New York and outlines a newly created economic assistance program for New York State businesses directly affected by the unexpected closing of the Champlain Bridge. I am writing on behalf of Porter Medical Center, as well as other Addison County employers, to advocate that the State of Vermont follow this lead. Here is the statement:
Governor David A. Paterson today announced the creation of a $2.935 million economic assistance program to help North Country businesses affected by the Lake Champlain Bridge closure. The program will address the region’s full range of economic industries by awarding grants to small businesses; making low-interest loans to assist small firms in paying employees and keeping their doors open; and helping farms and manufacturers offset increased travel costs.
The Lake Champlain Bridge economic assistance program will be administered by the Empire State Development Corporation and has threecomponents:* $1.3 million for Retail Assistance Grants: Small cash grantswill be made to retail and service firms that have suffered revenue losses of at least 20 percent during the fourth quarter of 2009 fiscal year, when compared to the same period last year. These grants will compensate up to 50 percent of uninsured loss, up to a maximum of $10,000.
* $1 million for Targeted Assistance for Increased Travel Cost: Agricultural and manufacturing firms will receive assistance to reduce added business costs due to the distance that detours add to their routes. Initial loans for working capital and capital investment can be converted to grants upon retention of employment.
* $635,000 Community Revolving Loan Fund: Using a local communitylender, loans will be made to help cash-strapped firms maintain payroll, order inventory and pay for operational expenses. Repaid funds will stay in the community for future business investment and growth. At the lender’s discretion, repayment may be deferred until service is restored.
Source: Shumlin's office. 12.1.2009