Sky brightens over Franklin County economy

A mid continuing questions about railroad jobs and debates over Wal-Mart, housing projects and big farms, the economy of Franklin County is showing encouraging signs of expansion.

One good indicator of future growth is "an increase in the number of Act 250 applications," said Sharon Murray, executive direction of the Franklin Grand Isle Regional Planning Commission.

Current activity still doesn't match the robust level of the late 1980s, but there are more applications, both in commercial and residential, after several "fairly flat" years, Murray said. As in the past, much activity is concentrated along the I-89 corridor, but it's not limited to there.

Richford's Economic Advancement Corporation is looking at the development potential of two parcels just outside the village near its existing industrial park, said Laura Ovitt, executive director. That park has only 9-1/2 acres left available. The rest is occupied by Kaytec, a manufacturer of vinyl siding, and Filtex, a yarn and embroidery thread company. Kaytec came here in 1991 and now employs about 80, and Filtex, a 1992 arrival, employs about 20.

Gary Snider, Richford town clerk, said real estate transfers here have begun to pick up at bit after several slow years.

"The prices may be down slightly (from the late 1980s) but the properties are moving," he said. On the other hand, retail sales, just a couple miles from the Canadian border, have declined. "Canadian trade in Richford has fallen in the last couple of years, because of the decline in the Canadian dollar," said Snider.

The weak Canadian dollar has had a negative impact on retail sales all through Franklin County, said Tim Soule, executive director of the Franklin County Industrial Development Corporation.

In Enosburg, the village trustees in November approved a proposal by Pomerleau Inc for a new shopping center. The development, which still must win an Act 250 permit, would include a supermarket, bank, restaurant and retail shops. Construction could start this spring.

In Georgia, Wyeth Nutritionals has tentative approval for a $40 million expansion, and plans to buy the Vermont Whey Company facility. The project still needs waste disposal permits, and will receive its full Act 250 permit once they are issued. The expansion will add 50 to 70 new jobs in Georgia where Wyeth already employs more than 400.

"We're seeing an increase in activities relating to new businesses," said Connie Stanley Little, executive director of the Economic Development Council of Northern Vermont. She has noticed particular interest in the small revolving loan program that provides loans of $1,000 to $25,000.

"Chittenden County has lost a number of jobs and that has backwashed into Franklin County," said Little. Some of those people are opening their own businesses in Franklin County, and the council is helping with both funding and ongoing technical assistance. The technical assistance will be enhanced in January when William Farr, who has been with the Small Business Development Center, begins working with the council.

Little said there's also more interest in the US Economic Development Administration loan program, with its $5,000 to $100,000 loans that supplement funding borrowers get from banks and the Vermont Economic Development Authority.

Among the places where new businesses are particularly evident is in downtown St Albans. A year ago, some downtown merchants on the defensive about a Wal-Mart proposed for just outside of the city. Today, the attitude of downtown has changed, with new businesses opening their doors, hoping to fill niches a superstore doesn't, whether it's Wal-Mart, Kmart Or Ames.

"We're hoping if and when a Wal-Mart or Kmart is built, we'll all complement each other," said Susan Rixon, executive director of the St Albans Area Chamber of Commerce. "We have a really nice mix of businesses," where the personal touch of locally owned specialty stores caters to many special interests.

If the Vermont Environmental Board rules in favor of Wal-Mart later this month, these businesses are positioned to gain by providing products and services to an expanding customer base that may be attracted by, but not satisfied by, a mega-retail store.

Throughout the county, employment in manufacturing jobs has continued to grow. Today about 4,000 Franklin County residents work in manufacturing, more than 1,000 of those in the food industry, said Tim Soule, executive director of the Franklin County Industrial Development Corporation.

Many companies in the county have added jobs in the last year, ranging from Van Houten & Zoon, which has just earned ISO 9000 certification, to the federal Immigration and Naturalization Service.

Also looking healthy is Franklin County's agriculture industry.

"This year we hear a lot of complaints, but I think we're doing all right," said Glenn Rogers, regional farm management specialist with the Extension Service. There was a flurry of activity early this year when about 40 farms went out of business, but Rogers said that reflected "pent up" demand.

"In '91, '92, '93, we hardly lost a farm," he said. With a weak economy then, "the alternatives to dairying were non-existent." This spring, "there were good milk prices, land prices were coming up and interest rates were real low," and people who had been waiting to get out, left.

Most of the good agricultural land from those farms "is being used by other farmers and most of the facilities are being used. The land isn't going into development immediately," Rogers said.

The trend toward ever larger and fewer farms is continuing, but, "I'm not alarmed, although I understand where people are coming from," said Rogers. "We are losing numbers of farms, but our production is going up. In addition, gross receipts on a wholesale level from dairy are going up." Fewer cows are producing more milk,

and farm income is rising. In 1969, said Rogers, Franklin County had 693 dairy farms and a total agricultural income of $22.8 million. In 1992, farms were down to 471 and income had increased more than 400 percent, to $94 million. For 1994, those figures will be 458 farms and $95 to $96 million.

Even the largest operations in Vermont are still family farms, said Rogers. "Ninety-eight, 99 percent are family owned and it's been that way for a very long time." Although some are incorporated, that is done "for tax purposes and for inter-generational transfers," in order to keep the family farm in the family, Rogers said.

Diversification is also contributing to agriculture's strength in Franklin County. Today county farms raise fallow deer, beef cattle, goats, trout and bait fish, as well as more exotic creatures like ostriches and their relatives, emus, said Rogers. Add to that the expanding nursery, greenhouse, and vegetable businesses.

"I'm very positive on agriculture even with GATT," Rogers said. He expects General Agreement on Tariffs and Trade may mean a drop on the milk blend price over time, but that may be offset by increases in sales of value-added products.

One new cross-border initiative is talks with a Quebec-based alliance directed at tourism and recreation, said Little. Being discussed now is the possible linking of biking trails and walking paths in Vermont with similar networks in Quebec. "We're also looking at waterways," and efforts to jointly promote Lake Champlain, and ski areas in both countries, she said.

There are several unresolved issues that will affect the local economy. A federal decision on the proposed purchase of the Central Vermont line by Rail-Tex is expected in January. About 100 Franklin County people work for Central Vermont, and Rail-Tex would slash those numbers and reduce pay of those employees it retains.

An on-going dispute pits would-be developers of a 24-unit low income housing complex in Swanton against a coalition of area residents. Also in limbo is a proposed 30-unit affordable housing project off Brigham Road in St Albans Town, which had been planned on a site where wetlands have now been identified. The town is hoping to find an alternate location. An eight-unit elderly housing project in Georgia has just been renovated by the Lake Champlain Housing Development Corp.

GATT, as well as NAFTA, may significantly affect many facets of the Franklin County economy. But it will be many months, perhaps even years, before the full impact will be known. The North American Free Trade Agreement has boosted milk exports to Mexico, said Soule. It has also helped several manufacturers based here, "and hasn't brought about the demise of any business in Franklin County."

Rogers said GATT will probably cost farmers something, although he couldn't predict long-term effects. But it may also open new markets, and provide more global opportunities, said Soule.

"The important thing is not to be complacent," about the county's current economic health, said Soule. Unpredictable or wild rises in energy costs or taxes, for example, could put area businesses--manufacturers, retailers and farms--in an unfavorable position for global competition.

"We need to be vigilant in controlling costs," said Soule. That, plus maintaining a good infrastructure, from sewers to an education system that trains a good workforce, he said, is key to future economic health.

Eloise Hedbor is a freelance writer from South Hero.

Copyright Lake Iroquois Publishing, Inc. d/b/a Vermont Business Magazine Dec 1994
Provided by ProQuest Information and Learning Company. All rights Reserved