VEDA approves $4.9 million in financing

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VEDA approves $4.9 million in financing

Thu, 12/16/2004 - 8:00pm -- tim

VEDA BOARD OF DIRECTORS APPROVES
FINANCING COMMITMENTS TOTALING $4.9 MILLION
Montpelier, VT - Business development, acquisition and expansion plans totaling almost $10.9 million will receive $4.9 million in financing assistance from the Vermont Economic Development Authority (VEDA).
Projects approved by the Board include manufacturing, educational, travel and tourism, agricultural, and service businesses, said Jo Bradley, Chief Executive Officer of VEDA. We are pleased to be able to help these businesses grow and expand, bringing new jobs to their regions.
The VEDA Board approved financing for the following projects:
" Business Relocation to Shaftsbury Expected to Create 165 Jobs in Bennington County Within Three Years -
Bernstein Designs was approved for $924,000 in financing to acquire and improve the vacant former Stanley Works facility in Shaftsbury. The company, which manufactures and sells mannequins and retail model forms to major retails stores across the country, is a family-owned and operated business, having been founded in 1917. Now operating out of a 92,500 square foot leased facility in Port Washington, N.Y., Bernstein Designs will also acquire an affiliated company, Alternatives Plus Manufacturing, Ltd., based in Hoosick Falls, VT as part of the $2.76 million project. Both operations will be consolidated at the Shaftsbury location, bringing an initial 130 jobs to the area, a number that is expected to grow to 165 within three years. Chittenden Bank is also providing financing for the project.
" Killington Mountain School to Establish New Campus
Killington Mountain School, recognized as one of the top five winter sports academies in the country, has been approved for a $1.5 million revenue inducement bond to help finance development of a new campus. This will be the first time in the schools history that it will own its own campus. Founded in 1974, the school now has 75 students; former students have been placed on the U.S. Ski Team and in the Olympics. The VEDA inducement bond, to be purchased by a local bank, will enable the school to acquire 3.8 acres of land, and a 26,282 square foot former inn. Renovations to the property will include 15 dorm rooms, four faculty apartments, administrative and coaches offices, a library, board/meeting room, student lounge, serving and dining room, athletic training room, equipment storage room, physical therapy room, and science and photography labs. Total project funding of $1.95 million will be supplemented by up to $2.5 million in additional funds raised through a capital campaign. It is estimated that post-project, Killington Mountain School will employ 38.
" New Pallet Manufacturing Plant Coming to Rutland
A-1 Lumber Company, a new hardwood pallets manufacturing company formed by Boris Serkalow of N. Clarendon, will lease a 12,000 square foot building being constructed for it in Rutland Economic Development Corporations (REDCs) Airport Industrial Park. The VEDA Board approved $500,000 for the company to purchase machinery and equipment and provide working capital as part of a $1.1 million total project. Banknorth and REDC are also participating in project financing. It is expected that 18 new jobs will be created within three years at the plant.
In the Vermont SBA 504 Corporation portion of the meeting, the VEDA Board approved the following projects:
" Purchase of the Manchester Highland Inn by Diana and Didier Cazaudumec. $398,000 was approved as part of a $1.1 million project to purchase the 15-room inn and 2.4 acres. The Chittenden Bank is also participating in the project financing.
" Construction and equipping of a 5,200 square foot grocery store and deli in Lyndonville by Marcel A. Dionne and Good Food Company, Inc. VEDA approved $228,000 in financing for the project, which is also being financed by the Merchants Bank and NCIC. Total project costs are expected to be $634,200. The store will carry fresh and organic produce, meats, fish, deli products and general grocery items. The deli will seat 20-24 people.
" Purchase of the 11-room Battenkill Inn and 6.7 acres in Sunderland by Samual J. Sassano, Thomas W. Mosher & Samuel Thomas Inn., Inc. VEDA approved $414,000 toward the $1 million project, also being financed by the Chittenden Bank.
" Purchase of the Matterhorn Inn in West Dover by Joseph and Wanda Kruszewski. The property, which has been closed for some time, is located on Route 100, consists of 31 units located on 4 acres of land. The $709,000 project, to which VEDA is lending $219,000, is also being financed by Ledyard Bank. It is expected that 4 full-time equivalent positions will be created initially, with projections calling for that number to double with two years.
" Ellis and Boxer, LLC of Springfield were approved for $183,000 in SBA 504 financing to purchase a 5,500 square foot building to house their law firm, which employs 19 people. Chittenden Bank is also participating in the project.
In the Vermont Agricultural Credit Corporation (VACC) portion of the meeting, the VEDA Board approved the following farm ownership and operations loans:
" $248,000 to Tomas and Mary Machia of St. Albans to purchase 12.9 acres, a house, barn and outbuildings -- part of a larger farm located on Lake Street which the Machias have been renting for 17 years. Peoples Trust Company and the Farm Service Agency (FSA) are also participating in the $423,000 project.
" $149,500 to Keith and Cindy Tifft of Orwell to purchase a 64-acre farm and buildings located on the Sawmill Road, a portion of which they now rent to operate their goat dairy farm. The Tiffts operate the largest goat dairy in Vermont, with 400 milking goats on the farm.

" $84,700 to Fillmore Farms in Bennington for the purchase of 28 cows, and to provide working capital.
" $60,500 to David and Cynthia Renninger of Benson for the purchase of 25 cows, and to provide working capital.
VEDAs mission is to promote economic prosperity in Vermont by providing financial assistance to eligible businesses, including manufacturing, agricultural and travel and tourism enterprises. In its 30-year history, VEDA has made financing commitments totaling over $1 billion.