NEAL P. GOSWAMI, Staff Writer
Wednesday, October 29
BENNINGTON — The Bennington County Industrial Corp. is looking to enhance the infrastructure of the Shields Drive industrial park so it can be developed and attract business. BCIC Executive Director Peter Odierna said the group is trying to complete three tasks that will help develop about 40 acres of unused land: Complete a master plan for the park, modify and streamline its umbrella Act 250 permit for the land and complete work to electrical and telecommunications grids.
The hope is to develop the remaining land into about a dozen separate plots to either sell or lease. The master plan calls for the construction of between 350,000 and 500,000 square feet of new space in a campus-like setting, said Odierna. Development of the land could help Bennington attract new industrial and commercial businesses to town. All of the existing industrial space is currently being utilized, according to town officials.
To complete the capital improvements, however, BCIC will need a $160,000 loan from the Vermont Economic Development Authority, according to Odierna. He said the application for the loan has already been submitted.
The Bennington Select Board also agreed at its meeting Monday to take second position behind VEDA, which is required by statute. BCIC currently has a loan from the town, dating back to 1989, with a principal balance of about $115,000, according to Scott Murphy, the town's economic and community development director. BCIC makes monthly principal and interest payments of $1,010, according to Murphy. By taking second position, the town would allow VEDA to collect collateral first in the event that BCIC defaults on its loans. Murphy said that is unlikely, however. "They're in a very strong cash position right now," Murphy told the Select Board.
Even if BCIC did default, the loans are worth considerably less than the value of the land, Odierna said. "It's well below what the market value of those undeveloped acres are," he said. The undeveloped land has been appraised at about $800,000, Odierna said, and BCIC has had "an outstanding working relationship with VEDA" in the past.
The VEDA loan has a favorable interest rate, as well. According to Odierna, BCIC will pay the prime interest rate minus three percent for the first three years of the loan. The rate will be adjustable for the following years.
Several companies have expressed interested in locating in Bennington, according to Odierna. He declined to identify potential tenants, saying it was too early in the process.
"There's a number of clients in our pipeline who are interested. It's way too early to think about taking a victory lap, but there certainly is interesting," Odierna said.
VEDA's mission is to promote economic prosperity in Vermont by providing financial assistance to eligible businesses. It was created in 1974, and has made financing commitments totaling more than $1.4 billion.