Includes $20.5 Million Tax-Exempt Revenue Bond
Montpelier, VT – The Vermont Economic Development Authority (VEDA) has approved nearly $30.5 million in business financings, including reissuance of a $20.5 million tax-exempt revenue bond. Roughly $10 million of the total approved financing is comprised of loans for a variety of economic development projects in Vermont’s commercial, agricultural, small business and energy sectors.
VEDA approved the reissuance of up to $20.5 million in tax-exempt revenue bonds previously issued by the Authority for Wake Robin Corporation, a Vermont 501(c)(3) nonprofit corporation that owns and operates a well-known continuing care retirement community with approximately 320 residents in Shelburne. VEDA has assisted Wake Robin with tax-exempt bond financing several times to finance the construction and expansion of the facility. The new bond was purchased by M&T Bank.
In addition, VEDA approved over $3 million in direct commercial loans, including:
Troy Minerals, Inc., Colchester - VEDA approved financing of $960,000 to help Troy Minerals, Inc. of Colchester purchase the real estate and business assets of the South Wallingford Quarry. In addition, the company will purchase new machinery and equipment as part of the project, for which TD Bank is also providing financing.
The South Wallingford Quarry comprises 212 acres and a crushing plant and is believed to contain enough stone to sustain operations there for another 20 years at the current rate of extraction. The quarry purchase will allow Troy Minerals to expand inventory and sales at a crushed stone aggregate operation it also owns in Florence. Troy Minerals, Inc. was formed in 1991 to develop and operate various stone quarries. The company currently employs nine people and will also maintain the South Wallingford Quarry’s eight employees.
Ye Olde England Inn, Stowe - After extensive renovations and redesign work are completed, new owners will reopen Ye Olde England Inn in Stowe next fall. VEDA approved financing of $1,441,000 to assist in the project, and the Community National Bank is providing financing, as well. The property on the Mountain Road in Stowe consists of two buildings on 2.2 acres and 30 rooms and suites. The new majority owners and business partners, Leigh Blood and Rich Cooper, plan to re-brand, market and launch the property as a member of the Lark Hotels Collection. As part of the project, the property will be completely renovated to improve room layout and cosmetic appearance, transforming it from an English-style inn to a modern New England lodge. Plans are to reopen the facility, which has been closed since last spring, in September of 2015. Within three years of the purchase and renovation project, it is estimated that 28 full-time hourly and salaried jobs will be created.
BIW, LLC, Manchester - A real estate holding company for a Manchester mattress manufacturer will receive a $220,000 VEDA loan to put a new roof on its factory building. The company, WCW, Inc., manufactures and distributes mattresses and mattress products nationally and internationally to the medical, consumer and hospitality markets. A few years ago, WCW consolidated all its operations in a move from Hoosick Falls, New York to
Manchester. VEDA provided financing at that time to help the company make the move. Products offered by WCW include electric adjustable beds, latex foam beds, memory foam beds, airbeds, dog beds, memory foam toppers, pillows, bed frames/foundations, wheelchairs and seat cushions. WCW has developed a system called Self Adjusting Technology, which is based on a unique, non-electric pump that adjusts support to conform to each individual’s unique shape. The Merchants Bank is also providing financing for the project, which will result in the replacement of the roof on a 29-year-old building. WCW currently employs 104 people and it is expected this number will increase to 115 in the next three years.
Flex-A-Seal, Inc., Essex Junction - VEDA approved a $114,000 VEDA loan to its long-time borrower, Flex-A-Seal, Inc., to fund its purchase of a new CNC milling machine that will increase capacity, reduce production costs, speed delivery times and handle more specialized work. The project will also fund an expansion in modular work areas for manufacturing supervisors and the purchase of other equipment. People’s United Bank is also participating in funding the project.
Flex-A-Seal’s products include dual and split cartridge seals, welded bellows, cryogenic seals and heavy-duty slurry seals. These products are sold worldwide to companies involved in pulp and paper, chemical and food processing, drug manufacturing, wastewater, potable water, refineries, marine and pipeline systems.
VEDA’s financing relationship with Flex-A-Seal started with a real estate loan in 1991, and since that time, has included a number of machinery, equipment and building loans. Flex-A-Seal started in 1983 with three employees. Today, the company employs 88 people in Vermont and that number is expected to grow to 105 within three years of the project.
VEDA also approved:
- $3.2 million through the Authority’s SBA 504 Program, through which the Vermont 504 Corporation, with SBA’s approval, makes SBA 504 loans to eligible and qualified borrowers;
- Almost $1.4 million through the Authority’s agricultural loan program, the Vermont Agricultural Credit Corporation (VACC); and
- $906,891 in energy-related financing.
In addition, over $1.4 million was approved through the Authority’s Small Business Loan Program, which assists growing Vermont small businesses that are unable to access adequate sources of conventional financing. Approved loans include:
- Vergennes Laundry, Vergennes - $110,000 to partially finance the purchase of the Main Street, Vergennes building which Vergennes Laundry, a wholesale/retail wood-fired bakery, espresso and wine bar, has leased since 2010. Vermont Federal Credit Union is also providing financing for the project.
The Vermont Economic Development Authority (VEDA) is Vermont’s statewide economic development finance lender. VEDA was created by the General Assembly in 1974 with a mission “to contribute to the creation and retention of quality jobs in Vermont by providing loans and other financial support to eligible and qualified Vermont industrial, commercial and agricultural enterprises.”
Over the years, VEDA has grown and adapted its financing programs to keep pace with an ever-changing economy. VEDA offers a wide range of low-cost lending options for Vermont businesses and farms of all sizes, and the Authority’s lending solutions are customized to each borrower’s individual needs. Whether in the form of direct loans, tax-exempt bond issuance or loan guarantee support, VEDA’s innovative financing programs help ensure that Vermont businesses and farms have the capital they need to grow and succeed. VEDA most often lends in conjunction with banks and other financing partners, helping to stimulate economic development activity in Vermont.
Since 1974, VEDA has provided over $2.07 billion in financing assistance to thousands of eligible Vermont entrepreneurs, manufacturers, small businesses, family farms, and agricultural enterprises, helping them to realize their business growth goals, create jobs, and enhance the vitality of Vermont’s economy. For more information about VEDA, visit www.veda.org or call 802-828-JOBS.