Safety and traffic lead AnC Bio Act 250 concerns

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A rendering of what the AnC Bio plant would look like from Lake Memphremagog.

A rendering of what the AnC Bio plant would look like from Lake Memphremagog.

copyright the Chronicle July 23, 2014

by Joseph Gresser

NEWPORT — The AnC Bio facility started down the road to Act 250 approval Monday with a site visit from members of the District #7 Environmental Commission and an initial hearing.

Despite wide interest in the project and questions from neighbors of the biotech facility slated to be built at the site of the old Bogner plant, few Newport residents attended the hearing. Nor were there any representatives of state agencies present, aside from those working for the environmental commission.

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Flight Design USA will hire 100

Governor Peter Shumlin cuts the ribbon on the Stateside Baselodge on Friday, December 20.  On hand to celebrate the opening, from left to right, are:  Vermont Commissioner of Commerce and Community Development Lawrence Miller, Filippe Acciolye, an investor in the project from Brazil, Ariel Quiros, co-owner of Jay Peak, Governor Shumlin, state Senator John Rodgers, state Senator Robert Starr, Bill Stenger, co-owner of Jay Peak, Steve Wright, marketing director for Jay Peak, and William Kelly, counsel for Jay Peak.  Photos by Joseph Gresser

Governor Peter Shumlin cuts the ribbon on the Stateside Baselodge on Friday, December 20. On hand to celebrate the opening, from left to right, are: Vermont Commissioner of Commerce and Community Development Lawrence Miller, Filippe Acciolye, an investor in the project from Brazil, Ariel Quiros, co-owner of Jay Peak, Governor Shumlin, state Senator John Rodgers, state Senator Robert Starr, Bill Stenger, co-owner of Jay Peak, Steve Wright, marketing director for Jay Peak, and William Kelly, counsel for Jay Peak. Photos by Joseph Gresser

by Joseph Gresser

JAY — At the opening of the new Stateside Baselodge Friday, Jay officials threw in a pair of bonus announcements.  A new aircraft company will bring more than 100 skilled jobs to Coventry, and the sale of the Spates Block on Main Street in Newport to Jay Peak co-owners Bill Stenger and Ariel Quiros has been finalized.

At a press conference that followed the opening of the 84-room hotel, Mr. Quiros said he has bought Flight Design USA, the company that announced plans this summer to assemble and sell ultra-light planes at the Newport State Airport in Coventry.

Flight Design USA was the American branch of a German company, and the initial agreement allowed the Newport branch to act as one of six U.S. distributors of the company’s two-seater plane.

The new company, called Flight Design Americas, LLC, will have exclusive rights to sell planes in North America, South America and Central America, Mr. Quiros said.

The company expects to hire around 100 engineers, trained mechanics and assembly workers, he said.  It projects sales of as many as 200 planes a year by the third year of production.

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Legislators tour through Jay and Newport

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Bill Stenger, president of Jay Peak Resort, testifies before the combined forces of the House Commerce and Economic Development Committee and the Transportation Committee Tuesday at North Country Career Center in Newport.  Photo by Joseph Gresser

Bill Stenger, president of Jay Peak Resort, testifies before the combined forces of the House Commerce and Economic Development Committee and the Transportation Committee Tuesday at North Country Career Center in Newport. Photo by Joseph Gresser

by Joseph Gresser

copyright the Chronicle 2-6-13

NEWPORT — A passel of state representatives on a bus tour of the Northeast Kingdom heard firsthand about the issues that will have to be addressed to help the area adjust to $500-million-worth of planned development.  One problem the area won’t have to address is an influx of 10,000 new jobs.

Bill Stenger, co-owner of Jay Peak Resort and one of the main forces behind the new investment, told the legislators that although there will be 10,000 jobs created in response to the investment, the total of direct jobs in Orleans County will be between 1,500 and 2,000.

The rest of the 10,000 figure will be a consequence of the economic activity created by the new business, and will ripple through the state and out into New England, Mr. Stenger explained.

He was the first witness to testify before a combined meeting of the House Commerce and Economic Development Committee and the Transportation Committee, supplemented by one or two members of the House Education Committee.

The legislators arrived for lunch at the North Country Career Center after taking a tour of Jay Peak and hearing the plans for economic development in the Northeast Kingdom proposed by Mr. Stenger and his partners.  They were accompanied on their journey by a group of high-ranking officials from the state agencies of Commerce and Community Development, and Transportation.

When they got to the Career Center the delegation found a crowd of around 90 people, including educators, local officials, business owners and interested citizens had already assembled.

Representative Bill Botzow of Pownal, chairman of the commerce committee, opened the meeting and gave Representative Mike Marcotte of Coventry, his vice-chairman, an opportunity to say a few words.

“I want to thank the legislators for coming up here.  We’re really proud of what we have here,” Representative Marcotte said.

He said of the work that must be done in connection with planned development, “they’re great challenges to have, but they’re challenges we have to meet.”

Mr. Stenger, who was the first witness, told the representatives that it was the “quality and character of the community” that inspired his plans.  Capital, he said, was the key to development, and the federal EB-5 visa program, which allows foreigners to get residency status in the U.S. in exchange for a job-creating investment, has provided an ideal source of capital.

He said the program has allowed Jay Peak to realize good ideas without the necessity of having a mortgage.

When the program got to the point where it needed to be renewed by Congress, Mr. Stenger said, he sat down with Senator Patrick Leahy, who was one of those behind the law, and Governor Peter Shumlin to think of what might be done if the law was extended.

They decided that it would make sense to bring in good new businesses and give them the opportunity to grow in the Northeast Kingdom.

When the bill reauthorizing the program was signed in September it opened a three-year window, Mr. Stenger said.

In those three years two new business, AnC Bio and Menck Windows, will have to be up and running.  Other ideas, such as a hotel and convention center in Newport and a redeveloped block in the city, will have to be substantially complete, he said.

He said that he and his partners have been working closely with educators around the area to make sure that people have the skills needed when it comes time to hire workers.

The issues that will need to be addressed as the current plans come to fruition include transportation, health care, housing, and education and training.

“All those elements are represented in this room,” Mr. Stenger said of those seated behind him.

“Keep our eye on us, because it’s been a long time since this part of Vermont has been a leader.  We’re going to do great work,” he concluded.

Before leaving the witness table Mr. Stenger, smiling broadly, said he was glad that whoever put together a list of projects for the Agency of Transportation included rebuilding Route 242, the road that serves Jay Peak.  “It made my day.”

Mr. Stenger was followed by superintendents Robert Kern of the North Country Supervisory Union, Chris Masson of the Essex North Supervisory Union, and Stephen Urgenson of the Orleans Central Supervisory Union.

Mr. Kern said that many of the schools in the area are old and need work if they are to accommodate an increased population of students.  He asked the legislators to consider providing help for school renovation, noting that Morgan has repeatedly voted down bonds because its voters feel they cannot pay for renovations on their own.

He also suggested that the state needs to provide demographic information to allow schools to make informed decisions about needs they will have to meet quickly.

Mr. Kern said he has no way of knowing how many new workers will be arriving or how many children they will bring with them.

Mr. Masson pleaded for consideration of spreading the development into the Canaan area.  The number of jobs in the community has dropped precipitously since Ethan Allen moved much of its production to its Orleans plant, he said.

Mr. Urgenson asked for a better communications infrastructure in the Northeast Kingdom.  Faster communications and better cell phone coverage will result in greater creativity, he argued.

Representing higher education, Penne Ciaraldi of Community College of Vermont, Ann Nygard of Lyndon State College, and Cindy Robillard of the Department of Labor outlined their efforts to create a partnership to develop job training programs in the Northeast Kingdom.

Ms. Nygard said educators have to build a “cradle to career pathway” for students.

Eileen Illuzzi, interim director of the Career Center, told how her school has worked to anticipate career opportunities.  She said the career center established its hospitality program three years earlier after a visit to Jay Peak.

“Hospitality is not a career choice, we need to make it a destination career,” she said.

She said the career center is “all about options.”  Even students who decide not to complete a two-year career program may have gained something.

Ms. Illuzzi told the story of a student who hoped to go to medical school.  When she fainted at the sight of blood during a visit to an operating room, it gave her a chance to reconsider her path, Ms. Illuzzi said.

The Menck Window company, a German firm, may want to consider working with the career center to create an apprenticeship program, Ms. Illuzzi said, something that accords with their national style.

Patricia Sears of the Newport City Renaissance Corporation gave a ringing endorsement of the city.

“This is Newport’s time, this is Vermont’s time, this is our time,” she declared.

She talked about opportunities that can be created by a planned foreign trade zone, which if approved by the federal government would greatly expand the possibilities of international trade in the area.

“We’re all on the path to awesome,” Ms. Sears announced.

Doug Morton of the Northeastern Vermont Development Association said his organization has conducted a number of studies of transportation needs in Orleans and Caledonia counties.  The studies could use revision, he acknowledged, but the basic information is still sound.

After the scheduled testimony, Mr. Botzow asked if any individuals wished to offer their opinions.  Nick Ecker-Racz of Glover stepped forward to tell the legislators that he thinks that an improved public transportation system ought to be part of their thinking.  He also warned against programs that involved excess regulation.

Finally Mr. Ecker-Racz cautioned the representatives that increased wealth in the community will inevitably result in an influx of drugs, including cocaine and heroin.  Programs should be put in place beginning in elementary school to guard against the problem.

Eleanor Leger of Charleston said she thinks that good local businesses will thrive in the new environment.  She expressed excitement about the proposed free trade zone, which she said could aid her business, Eden Ice Cider, which gets many of its bottling supplies from South America.

Reed Ogden of Barton warned against too eager acceptance of a Walmart scheduled for construction in Derby.  Studies, he said, show that every Walmart employee costs taxpayers $1,000 in support services due to the company’s low wages and benefits.  He acknowledged that the data behind that study was eight years old.

Mr. Ogden pointed to a community-sponsored for-profit store established in Saranac Lake, New York, as an example of an alternative way for people to buy the goods they need at a price they can afford.

Finally, Newport Mayor Paul Monette told the legislators that his city welcomes all the development.  He said that transportation was the only problem he could see.

He said that a bottleneck at the bottom of Main Street could be eliminated by building a roundabout.  Or a new bridge, which he suggested might have to go through the spot where Representative Marcotte’s store now stands, could serve as a bypass for traffic.

In concluding the meeting Mr. Botzow offered a kind of benediction.

“I think the future is bright,” he said.  “I hope in five, ten or 20 years we look back and say ‘we did it right.’”

contact Joseph Gresser at joseph@bartonchronicle.com

For more free articles from the Chronicle like this one, see our Editor’s Picks pages. For all the Chronicle’s stories, pick up a print copy or subscribe, either for print or digital editions.

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Stenger outlines plans worth $600-million

Bill Stenger. left, and U.S. Senator Patrick Leahy

copyright the Chronicle 10-3-2012

by Joseph Gresser

JAY — A $600-million investment plan set out by the owners of Jay Peak Resort Thursday could change the face of the Northeast Kingdom over the next three years.  In the process it could create ten thousand new jobs.

That was the message Bill Stenger, co-owner and president of the resort, delivered in a pair of press conferences, one held at Jay Peak, the other at the Gateway Center on Newport’s waterfront.

Sharing the stage with Mr. Stenger were U.S. Senators Patrick Leahy and Bernie Sanders, Congressman Peter Welch and Governor Peter Shumlin.

Most of Mr. Stenger’s plans focused on Newport.  They included construction of a new hotel and conference center on the site of the present Waterfront Plaza, the replacement of the Spates block with a five-story commercial and residential building, and construction of a 75,000-square-foot research building for AnC Bio, a bio medical research company.

any of the major players in Vermont politics mingle before the press conference announcing Jay Peak’s new investments. Developer Tony Pomerleau, seated at left, talks with Governor Peter Shumlin. Seated next to Mr. Pomerleau is his niece, Marcelle Leahy, who is speaking with her husband, Senator Patrick Leahy. Standing behind Senator Leahy is U.S. Senator Bernie Sanders. Jay Peak co-owner and president, Bill Stenger, waits at the podium at the far right to begin his presentation. Photos by Joseph Gresser

Mr. Stenger also announced that a German window manufacturer will move to Newport and set up shop in a portion of the old Bogner Building.

The Newport State Airport in Coventry will also get a makeover as Mr. Stenger and his business partner, Ariel Quiros, take over the operation of the field.  They will continue to work with Dan Lathrop of Lakeview Aviation, the current operator of the airport, and will add several hangers, a new terminal building and bonded warehouses.

Mr. Stenger did not completely ignore his skiing properties.  At Jay Peak plans call for an expansion on the Stateside of the mountain where a hotel will be added.  An entirely new area is to be developed in the West Bowl, where a second new hotel is planned.

Mr. Quiros and Mr. Stenger bought the Burke Mountain ski area recently and announced a $102-million project that will include four new ski lodges there.

Ninety percent of the projects’ costs will be funded by money raised from the EB-5 visa program, which grants Green Cards to foreign citizens who invest $500,000 in an approved project that creates at least ten permanent jobs.  The new jobs can be created directly by the projects or indirectly as a result of increased economic activity spurred by the new businesses.

The expected total of over $500-million in EB-5 funds must result in more than 10,000 direct and indirect jobs before all Green Cards are issued by the federal government.

The EB-5 program, which has financed most of the $250-million in improvements made at Jay Peak over the past five years, was slated to expire this month.   Congress recently passed a bill reauthorizing the program for another three years, which President Barack Obama signed into law Friday, September 28.

Mr. Stenger gave much of the credit for the three-year extension of the visa program to Senator Leahy.  Unless the EB-5 program gets a further extension, the projects outlined by Mr. Stenger will have to be completed by 2015.

In his remarks Senator Leahy said he already has his staff working on a bill that would make the visa program a permanent part of U.S. law.

The backgrounds of those who seek to participate in the EB-5 program are investigated by federal immigration officials, as is the source of the funds to be invested.  Federal officials also must certify that the expected jobs have been created before a participant is given final resident status and a path to U.S. citizenship.

Mr. Stenger began his explanation of his investment plans by talking about the work that has been done at Jay Peak Resort over the past five years.  He said construction of two new hotels, a golf course and clubhouse, an indoor ice rink, and water park has resulted in a five-fold increase in Jay Peak’s payroll.

At present the ski area employs 1,200 people, Mr. Stenger said.

He said that Jay Peak has completed 75 percent of its expansion plans.  He said the resort plans to spend $170-million between 2013 and 2015 to build 100 homes, new lifts, an 84-unit hotel and a medical center on the Stateside portion of the ski area.

Mr. Stenger said Jay will build new lifts and trails as well as a new hotel in the West Bowl area of Jay Peak.

Moving east, Mr. Stenger outlined plans that would radically reshape the city of Newport.  Along with Mr. Quiros, Mr. Stenger plans to buy the block on the south side of Main Street between Second and Center streets from Doug and Vivian Spates.

The Spates block on Main Street in Newport occupies the space between Second and Center streets. Plans announced Thursday, September 27, at the Gateway Center call for the whole block to be torn down and replaced with a new five-story building combining retail, commercial and residential spaces.

Conceptual drawings by Black River Design show the new Renaissance Block across Main Street from the Goodrich Memorial Library. The top floors are designed to provide residents with a view of Lake Memphremagog. Drawings courtesy of Jay Peak Resort

Plans call for the Spates Block to be razed and replaced with a five-story building.  In accordance with Newport’s zoning code the ground floor would be devoted to retail space.  The second story will be devoted to office or other commercial uses, Mr. Stenger said, while the top three floors will be residential.

An architect’s rendering of the block showed a couple on the top floor of the building, enjoying a view of Lake Memphremagog from the terrace of their penthouse apartment.

The building, which will be called the Renaissance Block, is expected to cost $70-million and is slated for completion in 2014.

The following year the Newport Marina Hotel and Conference Center is scheduled to open on the site of the present Waterfront Plaza on the Causeway.  The cost of the 600-bed hotel is estimated to be $100-million.

The Newport Marina, Hotel and Conference Center, seen here in an architect’s rendering, is proposed for construction on the site of the present Waterfront Plaza.

Mr. Stenger said he is in discussions with Burlington developer Tony Pomerleau to purchase the property, which has extensive frontage on Lake Memphremagog.  Mr. Pomerleau was saluted for his contributions to the state at the press conference, which took place on the eve of his ninety-fifth birthday.

Mr. Stenger described the two projects as bookends for Newport’s Main Street, and asked his listeners to imagine a walk from the hotel up the city’s boardwalk and back down Main Street.

The other Newport developments will be concentrated at the former Bogner property, which was purchased by AnC Bio, the U.S. division of a South Korean biotechnology company.  Mr. Quiros and Mr. Stenger are owners of the U.S. division of AnC.

The biotech company will start manufacturing and distributing products from the existing 90,000-square-foot Bogner building in the spring of 2013.

Work on a 75,000-square-foot research center is to begin next fall at a total cost of $104-million.  The glass tower will essentially be a copy of the company’s research building in Seoul, South Korea.  Inside there will be clean rooms, equipment and research facilities available for lease by other companies or universities, according to William Kelly, the counselor for AnC Bio and Jay Peak.

Mr. Kelly said he expects that researchers will be drawn to the new facility because of the availability of the equipment.

The former Bogner building will have a second manufacturing tenant, this one a German manufacturer of energy-efficient windows.

Mr. Stenger said that one of the people who looked into investing in Jay’s EB-5 program turned out to be someone whose work involved scouting locations in the U.S. where foreign companies might want to locate.

He brought the Newport area to the attention of the owners of Menck Window Systems, who visited the area several times before committing to locating in Newport.

Mr. Stenger said representatives of the company, a 134-year-old family owned concern, were very impressed that Lawrence Miller, secretary of the state’s Agency of Commerce and Community Development, attended the meetings and was solicitous of their needs.

Bringing Menck to Newport will require a $20-million investment, he said, but will result in at least 140 full-time manufacturing jobs.

The Newport State Airport in Coventry will also see considerable investment.  The Federal Aviation Agency will extend the existing runway by 1,000 feet next year from 4,000 feet to 5,000 feet.

This, Mr. Stenger said, will make it possible for larger planes to land and take off, and change the economics of the field.

The existing  runway is to be resurfaced and a separate taxi-way will be built, Mr. Stenger said.

Plans call for the Jay Peak partners to take over operations of the airport, and build a new 10,000-square-foot terminal building, two 15,000-square-foot hangars, a 14,000-square-foot aircraft manufacturing and repair facility, and a 40,000-square-foot bonded warehouse in anticipation of the creation of a Free Trade Zone in Orleans County.

Work at the airport is expected to cost $20-million and be done between 2013 and 2014.

Mr. Stenger credited Senator Leahy with shepherding the visa program bill through the Senate, and thanked Congressman Welch for his work getting it passed by the House.  The legislation passed with overwhelming margins in both bodies.

Each member of the Congressional delegation spoke at the two press conferences, as did Governor Shumlin.  All praised Mr. Stenger and Mr. Quiros for their vision.

Senator Sanders said, “The most popular sport in America is complaining about the federal government.  What you are seeing here is a marriage and partnership between private business and federal, state and local government.”

Secretary Miller, speaking at the Gateway Center press conference, provided assurance that Mr. Stenger’s plans are likely to come to fruition.

He said that sophisticated investors from around the world have carefully examined Mr. Stenger’s plans and made half-million-dollar investments in his projects.

As to whether there are 5,000 people with the skills to take jobs in the new businesses, Mr. Miller pointed out that many people have left the state in search of work.

“We want them back.  We want them home,” Mr. Miller said.

To any who may doubt the reality of his plans, Mr. Stenger offered this assurance:  “We have the mission, we have the vision, we have a love for this community.  We will make it happen.”

contact Joseph Gresser at joseph@bartonchronicle.com

For more free articles from the Chronicle like this one, see our Editor’s Picks pages. For all the Chronicle’s stories, pick up a print copy or subscribe, either for print or digital editions.

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