Things looking up down in Bennington

A new vitality and willingness to invest in the community are making Bennington the destination point advocates of this southwestern Vermont town always said it could be.

New are a retail plaza, a performing and visual arts center and an outcropping of small businesses, which with industrial expansion and a $16 million expansion at the medical center, are pulling the region out of the recession as a "winner," said Mike Williams, Bennington Area Chamber of Commerce executive director. "We've had losses, but we've gained more. Hiring is going on all over."

The recession did hit the region hard. Battery-maker Johnson Controls and Woolworth's closed this year, and Green Mountain Race Track in Pownal closed in 1993. A total of about 500 jobs were lost. State Department of Employment statistics show 500 fewer workers in the labor force in the county and 450 fewer employed persons than a year ago. Many unemployed workers have exhausted their benefits; new service jobs pay less than did lost industrial jobs. Local districts struggled with less state aid to education, and school budgets--rejected by angry taxpayers three and four times--were passed in October only after being pared to the bone and after a teachers' contract was imposed by the Southwest Vermont Supervisory Union Board.

But September unemployment, at 3.8 percent in the town and 3.9 percent countywide, was down a point from September 1993. Area plants including MSI Mace, Nastech, Bijur Lubricating and Allied Signal in Hoosic Falls, NY, hired some former Johnson Controls workers, according to Frances Hicks, of the district DET.

"Johnson Controls was a big loss, but we have many of their people in retraining, required to qualify for extended benefits. Some are getting a commercial drivers' license or going back to school. Others have relocated. Some are unhappily employed; probably a third are still unemployed. Johnson Controls paid up to $16-$17 per hour, and people are not able to get the same pay. A lot of Woolworth's people went to Martin's Shop 'n' Save. Many retail jobs are part-time, but people are used to working part-time," said Hicks.

Despite the Johnson Controls closing, expansion at MSI Mace, Nastech and Mack Molding has increased the regional manufacturing base. The overall occupancy rate of industrial space in the county has increased 10 percent over last year, and tenancy in the Bennington County Industrial Corp incubator building in North Bennington has increased 15 percent, according to Chris Hunsinger, BCIC executive director.

MACE, NASTECH AND MACK

MSI, manufacturer of Mace brand self-defense spray and other personal safety products, is bringing new life to the long-vacant Holden-Leonard "Big Mill" on Benmont Avenue. President Jon Goodrich has an exclusive, long-term lease agreement with the Vermont Economic Development Authority (VEDA), owner of the mill. MSI spent over $140,000 in renovations this summer to expand into the middle section of the large, U-shaped, four-story building. The empty right wing is available for retail space.

MSI recently acquired Federal Laboratories, a Saltsburgh, PA, manufacturer of tear gas grenades and projectiles, and Kindergard of Carrollton, TX, which makes child safety products, and moved the product lines to Bennington, boosting employment to 194 workers. New jobs were in both manufacturing and middle management, according to Kelly Donahue, public relations manager. In the six months ending June 30, net sales were $5.15 million compared to $5.05 million for the same period last year. Income per share, however, was 1 cent for the period compared to 11 cents at the end of June 1993. Third quarter results were not yet available.

A strong automotive market has been a boon to Nastech, which makes steering columns. A joint venture of the Torrington Company, a Connecticut-based subsidiary of Ingersoll Rand, and NSK Ltd, a Japanese firm, Nastech is fully moved into its new, multi-million dollar space and has exceeded the number of anticipated new jobs. Employment is now 450, according to President Dennis Noel, who said the Bennington facility is at maximum operation "unless there are some major new orders."

Mack Molding, a custom plastics molder based in Arlington, could begin hiring by December, according to Hicks. Mack's $30 million expansion is under way in Arlington and is expected to open in early 1995. The first phase of the project is expected to create 150 jobs, with a potential of 450 jobs over 10 years.

Small industries are also a growth indicator, Hunsinger said, and in the BCIC building, Each incubator business employs less than 10 people, but we hope they will grow. Some have moved from homes into the BCIC facility. The most recent are Flitback of Vermont, which cuts copper foil for circuit boards, Mary Jane Artware, which makes handpainted fabrics, and Drillmaster, which makes gun drills."

ANCHOR PLUS SATELLITES EQUAL 140 JOBS

The Hannaford Brothers plaza on Route 67A, anchored by a huge, glossy Martin's Shop 'N' Save, saw full occupancy within three months of opening. Blockbuster Video, Poor Simon's, which is a clothing store, Woodworking Warehouse and Rite Aid are the satellite businesses. The plaza generated about 140 new jobs, about 55 of them full-time. Rite Aid moved from the Ames plaza and did not hire new personnel. Although opposed by environmentalists who wanted to preserve the land along the Walloomsac River and by those who said Bennington didn't need another shopping center, the plaza was "a good addition" to the town, Williams said.

"It's situated in the right place (near other commercial development) and was done the right way (conforming to Act 250). I don't know if it has hurt existing businesses, but I think the competition has made other markets rally and become sharper."

Martin's manager, Denis Noel, said, "Bennington needed a new, clean supermarket. We've brought lower prices back without the games and gimmicks. Over time we'll win the war of double coupons. With the volume we're doing, we must have hurt the other stores. We've forced them to incur some expense and clean things up."

Meanwhile, the former Woolworth's in the Monument Plaza remains silent and empty, and rumors persist that retail giant Wal-Mart is interested in the site. A local group has organized to fight any Wal-Mart advances.

Several vacant stores on Main Street are now occupied. Michael Madison, owner of Tastee-Freez on Route 7, has contracted to buy the former Adams Clothing Store building at 422-24 Main to operate a brew pub and restaurant. Renovation of a long-time eyesore, the former Bennington Garage on West Main Street, created attractive space for Community College of Vermont, Bennington Area Home Health and other offices.

Zoning Administrator Stephen Jusczyk had approved $3.3 million in building permits by the end of June this year, compared to $1.7 million on June 30, 1993. Big dollar projects were the MSI mill renovation at $141,300, the home health agency office at $48,000 and a United Counseling Service facility expansion at $300,000.

ART CENTER IS A POWERFUL DRAW

A giant step toward making Bennington a cultural center was taken this spring when the Bennington Center for the Arts opened on Route 9. The dream-child of businessman-philanthropist Bruce Laumeister--who built the $1.25 million, 13,000-square-foot, white, barn-like gallery and theater in a pastoral setting west of town--the center has provided a home not only for performing and visual artists but for the Oldcastle Theatre Company, Bennington's resident professional theater group. Williams said the successful Oldcastle season and the Society of Animal Artists show of wildlife paintings and sculpture, which ran from September 15 to October 30 gave the season "a tremendous boost."

"Tourism started slow but finished strong. The chamber put an additional $7,000 into marketing, including an ad in "USA Weekend" and $3,500 in grants to nonprofits. There seemed to be events every weekend, the foliage held, and the Bennington County Christmas tree going to Washington will be a big event with a large convoy going along," Williams said.

GOOD MEDICAL CARE AND SCHOOLS MAKE REGION ATTRACTIVE

Southwestern Vermont Medical Center received a certificate of need in September for a $16.2 million expansion and renovation project--the first in 20 years. The facility's upgrade will maintain both quality and cost effectiveness, according to President Harvey Yorke.

Without the project, SVMC would have had to cut back on surgical services, resulting in patient loss and higher costs, he said. A new cancer center will house a linear accelerator for radiation therapy, easing the burden of travel for therapy on local cancer patients. SVMC expects to fund the work by a .67 increase in patient fees over four years, a $11.2 million bond issue, $2 million in internal money and a $3 million capital campaign. Groundbreaking is projected for May 1995, with opening of the four-floor addition within 18 months.

SVMC has seen a high turnover of medical personnel in recent years, with some physicians leaving for more lucrative practices in urban areas or Florida. But the medical center's reputation for quality health care and the semi-rural environment of Bennington have lured new doctors, more than replacing those lost.

Quality of life, including a good school system, is key to choosing a practice and moving one's family to a new area, doctors say. Thomas Gallagher, who came in August from a New Jersey school system to take over as Southwest Vermont Supervisory Union superintendent, concurs. "If schools are viewed as strong and positive, people will move into an area and pay top dollar for homes. The difficulty is when schools become a source of controversy, making the area less attractive."

The issues of education and the economy were so entwined in Bennington this year that one was seldom mentioned without the other. When Gallagher took office, four school districts--Mount Anthony Union, Bennington, Shaftsbury and Pownal--were without budgets, teachers' contract negotiations had stalled, and towns were in a dilemma about setting tax rates and sending out tax bills.

He said, "The question is: did budgets go down because people couldn't afford any more, or do the schools need to reestablish credibility? We need to let people know they are getting the best education for the dollar. Local districts need to put a tremendous pressure on the state to relieve taxes and find an equitable means of funding education. But we can't rely on the state, we have to look at spending practices and listen to what people want."

But budgets didn't pass until: the SVSU board imposed a teachers' contract that froze salaries at the present rate except for step increases; budgets were cut to the point of risking essential programs; the community felt tapped out in raising funds for school athletics not funded by budgetless districts; Bennington had completed a property reappraisal; and people realized they should pay 1994 taxes before the end of the calendar year.

"The people were just tired," Gallagher said. And the financial burden is real. Gallagher said 10 percent of students in the SVSU are from families living below the federal poverty level.

Bennington has pockets of poverty and a mill town history, but it is also a college town, harboring Bennington College, one of the most prestigious and expensive--$25,800 a year--liberal arts colleges in the country, as well as Southern Vermont College and the Community College of Vermont. Like many private schools, Bennington College has been plagued by rising costs and a shrinking student body. Bennington's solution--called cutthroat and dictatorial by many, and the focus of national attention--was to fire one-third of the faculty, eliminate tenure and revamp curriculum in the hopes of staying financially afloat and attracting new students.

"Will Bennington be successful in its reorganization? If not, there will be job losses. We have cut spending as much as possible. The problem now is filling the empty seats," William Morgan, college business manager, said.

Bennington College has a $17 million annual budget, mostly in salaries that, because the majority of staff and faculty members live within the county, are pumped back into the local economy. The college presently employs 250 people and has about 420 students. Bennington without Bennington College? Unthinkable.

WILL POWNAL GAMBLE ON GAMBLING?

But if one wishes to speculate about the future, there's the proposed casino resort at the race track in Pownal, a prospect that could alter the character of the "Peaceful Valley" forever. Eric Nelson of Nelson Associates and others in Las Vegas want to invest up to $25 million in the inactive track, now owned by John Tietgens of Clarksburg, MA. Nelson has proposed an entertainment resort including horse racing, gaming, concerts, restaurants and a motel. He said the resort would provide up to 1,500 jobs --about 800 full-time.

But first several things have to happen. On November 8 Pownal votes on a nonbinding ballot article that asks if the people would approve horse racing and gaming at the track. (The results will be known before this article is published.) If Pownal votes "no," Nelson will rethink the situation, he said. If Pownal votes "yes," Nelson will send draft legislation to Montpelier, seeking to allow gaming only at the Pownal race track rather than in the state as a whole.

As of this writing, Pownal people appear to favor gaming on the basis of new jobs in a town that was badly hurt by the track closing and by closing of the Pownal Tanning Company and a General Cable plant in the 1980s. The town of about 3,500 people has never recovered its tax base.

Any proposed legislation will face opposition from the governor as well as some Bennington County legislators--depending on election results. Governor Howard Dean has said he would veto any legislation to allow gaming. Speaker of the House Ralph Wright (D-Bennington) and Senator Mary Ann Carlson (D-Bennington) oppose casinos in the state. Other legislators say they are open-minded or need more information.

But regardless of election results, the gaming vote and turmoil at Bennington College, the overall economic picture in Bennington appears to be more positive than it has been since the beginning of the recession.

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