VEDA APPROVES $8 MILLION IN ECONOMIC DEVELOPMENT FINANCING

April 28, 2009

Montpelier, VT – The Vermont Economic Development Authority (VEDA) has approved

$8 million in financing to support economic development projects totaling $20 million throughout the state.

 
“In this round of financing approvals, VEDA is pleased to help a number of Vermont businesses in their growth plans through direct lending, or by insuring working capital loans provided by local commercial lenders,” said the Authority’s Chief Executive Officer Jo Bradley.  “Also, several agricultural, educational, small business and energy conservation projects are receiving VEDA financing.”

 
Approved for financing are:

 

• Putney School, Putney – Preliminary inducement approval was given for the issuance of a $2 million tax-exempt revenue bond for the Putney School’s new 15,000 square foot field house.  The field house has been designed to be a model of energy efficiency and renewable power generation through solar photovoltaic systems so that the building will annually produce more energy that it uses.   Putney School is in the  midst of a significant capital campaign that will fund the majority of the project.  The bond issue is intended to provide both permanent funding and bridge finance some of the capital campaign pledges until they are received over the next few years.  Founded in 1935, Putney School is a 4-year, co-educational, private secondary school located on a 500-acre campus in Putney.  The school has 226 students from twenty-three states and fifteen countries.  The new field house will provide Putney School with its first on-campus gymnasium for basketball and other sports.
  

• Mortgage Insurance Agreements  were approved to back working capital loans made by commercial lenders to several Vermont companies: 

-         $1 million to Chittenden Bank for Shelburne Plastics;

 
-          $500,000 to Vermont State Employees Credit Union for Vermont Hospitality Management, Inc., and the New England Culinary Institute (NECI); and

 
-           $264,360 to Peoples United Bank for Cabot Hosiery Mills, Inc.

• Shelburne Plastics, South Burlington – In addition to the Authority’s mortgage insurance commitment, VEDA approved a direct loan of $420,000 to help Shelburne Plastics purchase South Burlington real estate for the company’s operational headquarters. Shelburne Plastics is a plastic blow molding manufacturer and supplier of high quality plastic bottles and containers to the water, juice, dairy, chemical and industrial markets throughout the eastern United States and southern Quebec.  The company has additional manufacturing facilities in Maryland and New Hampshire.  Shelburne Plastics currently has 27 employees, a number expected to grow to 37 within three years of the investment.
  

• Applejack Art Partners, Inc., Manchester Center – VEDA approved $1.3 million to help Applejack Art Partners, Inc. purchase the 163,022 square foot building it currently leases in Manchester Center.  Founded in 1989, Applejack has grown to be one of the foremost innovative art licensing and publishing companies in the United States, selling and licensing artwork to manufacturers in every major product category.  The Wachovia Bank is also participating in the $5.7 million real estate acquisition project.  Employment at Applejack is expected to grow from the current 54 position to 83 within three years of the investment.