State incentives will let companies grow, add jobs

The Vermont Economic Progress Council announced that seven companies in the state, including one in North Bennington and one in Springfield, would receive $3.8 million in incentives in exchange for creating more than 550 new, full-time jobs over the next five years.
http://www.rutlandherald.com/article/20150106/NEWS02/701069908

Published January 6, 2015 in the Rutland Herald State incentives will let companies grow, add jobs By Patrick McArdle STAFF WRITER The Vermont Economic Progress Council announced that seven companies in the state, including one in North Bennington and one in Springfield, would receive $3.8 million in incentives in exchange for creating more than 550 new, full-time jobs over the next five years. NAHANCO, or National Hanger Company located in North Bennington, will receive almost $228,000 and Vermont Packinghouse in Springfield will receive about $233,000. Fred Kenney, executive director of the Vermont Economic Progress Council, which is part of the state’s Agency of Commerce & Community Development, said Vermont Packinghouse is planning to reuse the old Ben and Jerry’s building in Springfield as a slaughterhouse and meat packing house. Michele Pilcher, president of NAHANCO, said the company was planning to launch a retail division. The money from the state will help with investment in advertising through the Internet and enhanced technology for NAHANCO’s website. “It’s going to lead into additional distribution centers. We are anticipating an increase in sales so we may need an increase in infrastructure to reflect that,” she said. NAHANCO, which is currently promoting itself as “the retail source,” sells things stores need to operate like shelving, racks, tagging guns and bags in addition to clothes hangers. “We’re very pleased with the (Vermont Economic Progress Council) and that they’re behind us in our quest to enlarge our workforce here in Vermont and to expand this division. This division we could have expanded anywhere but it really does partner with our whole manufacturing process,” Pilcher said. While a press release sent by the state Monday said the awards are expected to create 557 jobs among the seven companies that received them, Kenney said the numbers at individual companies are considered proprietary and aren’t publicly available. Other companies that received incentives include Twincraft in Winooski, which is expected to expand into the liquid soap market and Precyse, a company that will hire to people to work at home in the field of medical coding. The biggest award, for about $1.5 million, went to Cabot Hosiery Mills in Northfield so it can grow its Darn Tough Vermont brand. Kenney said the applications for the incentive programs were reviewed to make sure they met specific deadlines before they could be approved. For instance, the application has to demonstrate that the tax revenue generated will be high enough to exceed the amount of the incentive. “Annually, they have to meet performance requirements each year (such as) new hires, new payroll and capital investment each year in order to earn the incentives for that year,” he said. Incentives were also awarded to companies that showed that they could not expand, or couldn’t expand as effectively, without them. The incentives are paid out over five years if those performance requirements are met so none of the companies who were part of Monday’s announcement have yet been paid. Kenney said he thought the applications he saw for the most recent round of incentives provided some optimistic signs. “We’ve seen a lot of Vermont companies that wanted to add new equipment and physical space but in this round, people wanted to add new employment opportunities. That might be a sign that things are turning around,” he said. The Vermont Economic Progress Council is nine-person board whose members are appointed by the governor and the Legislature.