VEDA APPROVES $48.4 MILLION IN BUSINESS FINANCING

February 9, 2010

Montpelier, VT - The Vermont Economic Development Authority (VEDA) approved $48.4 million in financing for commercial, agricultural, technology, educational, renewable energy, and small business projects throughout Vermont.

 
“VEDA is pleased to provide financing support to such a variety of new business projects, especially during what remains a difficult economy,” said Jo Bradley, VEDA’s Chief Executive Officer.  “Jobs will be sustained and new jobs created, and that growth is critically important for Vermonters.”

 
Among the projects approved by VEDA:

 
·         Green Mountain Power, Colchester – Green Mountain Power received preliminary approval for $25 million in Recovery Zone Facility Bond (RZF) support from VEDA.  The special facility bonds utilize federal tax exemptions provided through the American Recovery and Reinvestment Act.  Green Mountain Power received preliminary approval for an additional $5 million in taxable bonds to support expenditures planned for the following year.  Pending final VEDA approval of the bond issue, Green Mountain Power plans over the next two years to undertake numerous large capital projects throughout Chittenden, Addison, Caledonia, Washington, Windham, and Windsor counties.  Projects include substation upgrades, renewable energy deployment, hydro dam refurbishing, and reliability and transmission projects. Total project costs are anticipated to be $31.7 million in 2010, and an additional $46.6 million in capital expenditures in 2011.  Green Mountain Power serves 122 Vermont communities across nine counties in the state.  The electric utility employs 191 persons, a number expected to grow modestly within three years, due in part to these projects.

 
·         Heritage Flight, South Burlington – Heritage Flight also received preliminary approval for issuance of up to $6 million in Recovery Zone Facility Bonds to provide permanent financing for a large new hanger and private terminal facility at the Burlington International Airport.  Heritage is completing renovations to the 79,000 square foot former Vermont Air National Guard hanger purchased by the company.  The facility is located on airport land leased from the City of Burlington.  The Project improvements include renewable energy investments for a wind turbine, solar electric and solar heating panels that will provide a portion of the energy consumed at the facility.  Founded in 1984, Heritage Flight provides charter air flights using both its own planes and other aircraft available through its charter partners.  Heritage Flight is also an FAA-certified airframe and avionics repair and maintenance station.  The Pratt and Whitney aircraft engine maintenance facility is adjacent to the Heritage Flight facility, allowing planes and their engines to both be maintained and serviced with one stop in Burlington.  Heritage Flight also provides emergency service to commercial jets when necessary at the Burlington International Airport.  

 
·         Southern Vermont College, Bennington – Southern Vermont College received preliminary approval for issuance of $8.5 million in tax-exempt revenue bonds from VEDA.  Southern Vermont College plans to use $6.5 million of the bond issue to provide permanent financing for Hunter Hall, a 41,000 square foot, 110 bed residence and classroom building constructed in 2008 and 2009. The remainder of the bond issue will refinance other existing debt and will be used for additional capital improvements.  Southern Vermont College is a small private, four-year co-educational career-oriented liberal arts college, with 500 students, and 96 employees.  It is expected that within three years of the project, the college will create an additional 19 jobs.

 
·         Skinny Pancake, Inc., Burlington – VEDA approved $154,560 to assist in Skinny Pancake’s renovation of their Lake Street restaurant in Burlington, and acquisition of a new food operations property on Oak Street, also in Burlington.  Northfield Savings Bank is also participating in the $386,400 project.  The Oak Street location, once completed, will serve as a coffee shop and retail outlet for the local community in Burlington’s North End.  The facility is also planned to process much of the local foods delivered for the Skinny Pancake enterprise during peak times.  Begun in 2003 as a cart on Church Street, Skinny Pancake now has two restaurants, including one in downtown Montpelier.  The company has 60 employees, a number expected to grow to 71 jobs within three years of the project.

 
·         Queen City Printers, Inc., Burlington – Financing of $127,600 was approved to support a $319,010 equipment purchase by Queen City Printers.  A new digital printing press will help Queen City expand beyond offset printing to offer new products and services.  Founded in 1951, Queen City Printers employs 42 people.  Chittenden Bank is also participating in the project.

 
 
VEDA also approved a $100,000 loan to Vermedx, Inc. in Burlington to help fund product platform expansion.  Financing was approved through the Authority’s new Technology Loan Program, designed to assist smaller technology-related firms.

 
In addition, VEDA approved:

 
·         $926,950  in financing to Vermont farmers through the Authority’s agricultural loan program, the Vermont Agricultural Credit Corporation (VACC);

·         An additional $100,000 through the Authority’s new Technology Loan Program;

·         $1.3 million to support small business development projects through the Vermont Small Business Loan Program;

·         $602,110 to repair or improve existing privately-owned drinking water systems through the Drinking Water State Revolving Loan Fund;

·         $176,578 through the Vermont Business Energy Conservation Loan Program to help small businesses make energy efficiency and conservation improvements;

·         $244,000 through the Vermont 504 Loan Program to support business real estate development projects; and

·         $182,000 through the Authority’s Brownfields Revitalization Fund Loan Program, which assists in the redevelopment of contaminated properties.

 
VEDA’s mission is to promote economic prosperity in Vermont by providing financial assistance to eligible businesses, including manufacturing, agricultural, and travel and tourism enterprises.  Since its inception in 1974, VEDA has made financing commitments totaling over $1.5 billion.  For more information about VEDA, visit www.veda.org or call 802-828-5627.