Recently Governor Phil Scott signed three bills that will support the state’s economic and workforce development efforts. They expand worker recruitment initiatives, grow the emerging distilled spirits industry, and streamline infrastructure projects at state airports.
“This legislation represents the multi-faceted approach we must take to address our demographic challenges and grow our economy,” said Governor Scott. “These bills also demonstrate the incremental nature of this work. There is no quick fix; no one answer. We must continue to act on good ideas and try new approaches because every new worker, new job and new business moves us in the right direction.”
H.533 provides $2 million in funding to expand workforce recruitment initiatives, including incentives of up to $7,500 per family to new workers who move to the state to work for a Vermont company.
“The remote worker program garnered significant attention for Vermont and highlighted the draw that Vermont has as a location to live, work and play,” said Commerce and Community Development Secretary Michael Schirling. “These new incentive and recruitment strategies are the next step in attracting talented workers and families to Vermont, while continuing to support and train current Vermonters as the needs of employers evolve.”
Additionally, the legislation appropriates funds to the Department of Labor to work with training providers, employers, and other state agencies to help unemployed youth, New Americans, individuals in recovery and former offenders re-enter the workforce.
“Throughout the state, employers are struggling to meet their workforce needs,” said Labor Commissioner Lindsay Kurrle. “This bill builds on the important work of integrating our adult career and technical education programs into our postsecondary education system so we can more effectively respond to local and regional workforce demand.”
H.13 will help spirits producers continue their rapid trajectory and business success by amending tax thresholds that were barriers to growth, and by setting an industry-wide tax rate of 5% rather than the previous tiered approach based on revenues. The bill also amends licensing regulations to better align with the evolution of tasting rooms.
“Without this legislation, we would be contemplating closing our retail doors and opening out of state markets. Instead, we’re investing in Vermont,” said Caledonia Spirits owner Ryan Christiansen. “We’ve added several new hires this year and built a world-class cocktail bar within our 27,000 square foot distillery in Montpelier. The new distillery is less than two weeks from opening, so the timing couldn’t be better.”
S.162 streamlines permitting and paves the way for renewable energy projects, supporting new aviation technologies and businesses at the state’s airports.
“The state’s aviation and aeronautics industries are positioned to bring economic development benefits statewide,” said Transportation Secretary Joe Flynn. “Our 10 State airports have seen millions of dollars of investments over the past decade. The ability to offer a pre-permitted parcel of land to a potential investor at a state-owned airport is an incredible asset. With this new tool in our toolbox, we will advance the ready-to-build land for the development of new aircraft hangars, aviation business and aviation industrial development.”
Governor Scott was joined by members of the Senate Committee on Economic Development, Housing and General Affairs, as well as the House Committee on Commerce and Economic Development. Senator Randy Brock (R-Franklin) and Representative Michael Marcotte (R-Orleans) spoke on behalf of their legislative committees.
Benchmark Space Systems, a high-technology business in Burlington, has been awarded a $14,500 ThinkVermont Innovation Grant. This grant program is an initiative that responds to the growth needs of Vermont small businesses with 20 or fewer employees by funding innovative strategies that accelerate small business growth.
Founded in 2017 by Ryan McDevitt, Benchmark Space Systems is working towards a future where small satellites will increase access to space. Their products are designed with safety, reliability, and cost-sensitivity in mind. The company constructs two main propulsion systems: its B-125, which is compatible with many larger satellites, and its DFast, which is compatible with many small satellites.
“Benchmark’s unique products extend the operational lives of satellites while also reducing space junk and allowing them to de-orbit safely,” said Joan Goldstein, Department of Economic Development Commissioner. “This grant provides the company the ability to make critical investments in this technology that will further support growth of this emerging industry.”
With the average cost to build, launch, and manage a single small satellite over $750,000, extending the life and safety helps minimize costs. The company designed a system that will give customers a 90% increase in operational life. Specifically, its DFast system has the potential to more than double the life expectancy of a small satellite.
The company has received funding from LaunchCapital, a capital market company supporting entrepreneurs and start-ups. It has also received a Small Business Innovation Research (SBIR) Phase I award and has a contract with the U.S. Airforce. Recently, the company was awarded an SBIR Phase II grant and submitted a NASA Phase I application. Announcements for the NASA Phase I awards are scheduled for June 18.
The ThinkVermont Innovation grant will help them construct new test hardware to assist in the development of its newest micro propulsion system. The objective of this project is to develop a microbalance thrust stand that can be mounted within a vacuum chamber. This grant money provides funds to refine and improve upon its initial design.
Benchmark’s project ultimately will help leverage federal funding and support the growth of the aerospace industry in Vermont. The budget to construct this project is $29,440. The initial $14,940 came from a NASA EPScoR SBIR Phase (0) grant and the remaining $14,500 is through the ThinkVermont Innovation Grant Program.
The company also works with local colleges and universities to help train the next generation of engineers through mentoring and paid internships.
“At Benchmark Space Systems, we’re building hardware for small satellites, and the Think Vermont Innovation Grant is going to help us develop the new test capabilities we need to qualify the next generation of propulsion systems for our commercial and government customers,” said Ryan McDevitt, founder and CEO. “We’re excited to be a part of Vermont’s aerospace sector, and we’re looking forward to using these test capabilities to support the aerospace work being done at the local colleges, universities, and businesses.”
About the ThinkVermont Innovation Grant Program
The ThinkVermont Innovation Grant Program, proposed by the Scott Administration and passed in partnership with the Legislature, was created to respond to the growth needs of Vermont small businesses with 20 or fewer employees by funding innovative strategies that accelerate small business growth. The grant program allows the State to invest in projects with grants that can be accessed more quickly and with fewer restrictions than traditional federal initiatives. The overarching goal is to support innovative strategies that grow the economy and support vibrant communities while facilitating “testbed” approaches to create reproducible results throughout Vermont. For more information on the ThinkVermont Innovation Grant Program, visit https://thinkvermont.com/2018/10/25/innovation-grant-program/
Sawmills were East Burke’s first industry, bringing brave and adventurous souls to the northern reaches of Vermont to work, establish farms and, eventually, build the local school, church and meeting house that would become the village of East Burke. It wasn’t until the mid-1900’s that residents began to think about building a tourism industry around the area’s natural resources, including Burke Mountain and nearby Lake Willoughby. Today, brave and adventurous souls travel to East Burke to mountain bike down Sidewinder, a double black diamond on the 10,000 acre, world-renowned Kingdom Trails. But rather than displace the industry on which the town was founded, the trail network and resulting rise in tourism has deepened partnerships with the trail community, landowners, foresters, loggers, and mill owners who collaborate to keep the forest productive and healthy.
“Recreation is one of our forest products now,” said Matt Langlais, forester and president of the Kingdom Trails Association Board of Directors. “It’s an integral part of our working landscape and supports our local economy.” Langlais, an avid mountain biker, points out that the entire Kingdom Trail network began on logging roads. “The locals would go out and ride old skid trails and woods roads,” he said. “They then began to build single track trails with more flow to connect different areas and the Kingdom Trails were born.”
Local economic impact
Today, the network spans across 88 private woodlots, encompassing more than 10,000 acres, and attracts 100,000 visitors annually. “On average, an acre of forestland in Vermont produces $135 of wood value a year,” said Langlais. “The trail system brings in $1,000 per acre in local economic activity, and landowners still harvest the aggregated $135 in wood value every 10-15 years.” Langlais credits those tourist dollars with supporting local businesses, noting that the Kingdom Trails have an economic impact of $10 million a year, and that the area has seen 28 new businesses focused on trail users in the past 10 years. “All that money stays local, supporting small business.”
Mike Mathers, far left, grabs a beer with Kingdom Trails Executive Director Abby Long, center, and Caledonia County Forester Matt Langlais, right, at Mike’s Tiki Bar, which is owned by Mathers in East Burke. Photo Credit: Erica Houskeeper
Mike Mathers, owner of Dishmill Forest Products and Property Management, owns one of those local businesses. Located just behind the General Store, Mike’s log yard became a de facto parking lot for the thousands of mountain bikers that pour into town each season. “I watched all those bikers coming into town and thought that if I could somehow earn a dollar for every tourist, I could keep my sawmill profitable,” said Mathers. Not wanting to charge for parking, he built a three-sided structure off the side of his mill, filled a cooler with local beer, and hung up a string of tiki lights. Sure enough, the bikers were more than happy to find a cold beer at the end of the trail. Now an institution in town, Mike’s Tiki Bar is East Burke’s post-ride destination for tourists and locals alike.
Managing forests for recreation
The Dashney trails near the base of Burke Mountain, including Trillium and Moose Alley, were part of an active timber harvest by HB Logging over the past few years. Owner Heath Bunnell, a master logger and avid mountain biker, was careful to plan a harvest that would preserve the integrity of the trails. “We harvest in the winter, when the ground is frozen,” said Bunnell, “so it can be hard to know where the trails are running. It’s important to get everyone together in advance to create a clear plan.” Bunnell met with a forester and representatives of the Kingdom Trails Association to walk through the area and develop a plan that laid out very specific routes for the logging equipment. “We try to cross the trail once at a ninety degree angle instead of crossing at multiple points,” said Bunnell. “It makes clean up easier and lessens the impact on the trail. Aesthetically, people don’t want to see a big mess in the forest. They want clear view lines and clean trails.” For the Dashney area harvest, Bunnell cleared a few small areas off the trail where slash was deposited to create wildlife habitat for songbirds, grouse and small mammals. “The fact is, we live in an area where tourism is the number one business,” said Bunnell, “so we have to manage the forests here with that in mind.”
Heath Bunnell, a master logger and avid mountain biker, was careful to plan a timber harvest that would preserve the integrity of the Dashney trails near the base of Burke Mountain. Photo Credit: Erica Houskeeper
Part of our DNA
And yet, the first business visitors see driving into East Burke is the Timber Resource Group (TRG) on Route 114, a concentration yard where logs are aggregated throughout the winter for eventual transport to mills. As mountain biking season starts up in the spring, Craig Owen, manager of TRG, estimates the yard holds 2.6 million board feet, all of which will be moved out by the end of June by log haulers like Ben Morrison of Morrison Trucking. Further out of town, retired logger Oscar Perkins meticulously stacks 100 cords of firewood into neat walls visible from the road, one of which encompasses an old bike painted bright red. Oscar’s daughter, Heidi, is the organizer of Rasputitsa, a 40 mile mountain bike race held every April in East Burke. “You can’t separate the logging from the biking community,” says Langlais. “The forests are part of our DNA here. We work where we play and play where we work.”
Ben Morrison of Morrison Trucking in Sutton gets ready to transport logs from Timber Resource Group in East Burke to Quebec. Photo Credit: Erica Houskeeper
Langlais hopes that the symbiotic relationship between the recreation and forest economics that has developed in East Burke can be a replicated in other parts of the state. Growing interest in sports such as mountain biking and backcountry skiing, and expanding trail networks such as the proposed Velomont Trail that aims to connect Vermont’s six Mountain Bike Association chapters, and work underway in Stowe to build new trails and connect existing trail systems, create opportunities for dialogue. And there is plenty of evidence that those conversations are starting to happen. The clean up of Cady Hill Forest in Stowe, which was devastated by the wind storm last fall, relied heavily on local loggers and foresters working with the Stowe Trails Partnership and Stowe Land Trust to reopen some trails this spring. “Forests and tourists can have a symbiotic relationship here in Vermont,”says Langlais. “Whether it’s board feet, miles of smiles, or both, our recreation and forest products economies depend on forests staying as unfragmented, non-parcelized blocks of healthy forest– that’s the point of common interest.”
Vermont Violins is expanding in-house production capabilities to include high-quality face plates and scrolls that are currently purchased offshore. To meet new production needs, five incumbent and one new hire will be trained on upgraded equipment to allow for this transition. The grant funds will help pay for training in the CAD/CAM design software, instrument set-up and tone adjustment needed for new equipment, as well as support social media marketing plan efforts.
“As we pursue a new line of work, manufacturing high quality violins and violas under the label, V. Richelieu, we face the challenge of learning high-level CAD and CAM programing along with an entirely new focus on national brand marketing,” said Vermont Violins co-owner Oren Kronick. “This grant will make it possible for us to take on these new challenges and make Vermont a source for American made instruments offered at affordable prices. It is wonderful to work in a state that supports small businesses in this way and where ‘Made in Vermont’ is more than just marketing, but a way of life.”
“We are excited to see Vermont Violins expand its production process and marketing efforts,” said Department of Economic Development Commissioner Joan Goldstein. “This grant will help its unique product reach a growing customer base not only in Vermont, but nationally as well.”
About Vermont Violins
Vermont Violins’ mission is to foster music in the community and its customers. The company is dedicated to promoting the study of myriad stringed instruments, including violins, violas, celli, and bass. Aside from its products and services, the company donates a significant amount of its profits towards the presentation of music in the community. Primarily focusing its donations on schools and performance series, recent donations have gone to the Vermont Youth Orchestra, and the Green Mountain Youth Symphony. Oren Kronick and wife Kathy Reilly established Vermont Violins in Montpelier, VT in 1994. Today, they also have locations in Burlington, VT and West Lebanon, NH.
The $121,985 VTP grant will support online learning and hands-on training of new and existing employees at NuHarbor’s Vermont headquarters. Training will span a variety of skillsets and software, including Splunk, software used for searching, monitoring, and analyzing machine data for security use cases.
The VEGI program provides performance-based cash incentives to Vermont businesses linked to future job and payroll creation and capital investment. NuHarbor will receive up to $202,644, paid out over the next nine years if annual performance targets are met and maintained. The value of each payment is determined by the net revenue return generated for the State.
“These training and incentive programs support growth of new and existing Vermont businesses while expanding our workforce and helping Vermonters expand their careers,” said Governor Scott. “Cybersecurity is an important sector and advancing the skills of employees at businesses like NuHarbor is critical to Vermont’s economic future.”
Since its inception in 2014, NuHarbor has experienced a steep growth trajectory, with high demand for its services and continuous job creation in Vermont.
“Cybersecurity is a moving target. Our employees need to stay up to date with current threats and data trends. Because of this, skills in other IT and tech jobs don’t always line up with the work we do. No matter their previous experience, we provide each new employee with at least three months of intensive training,” said NuHarbor Managing Director Justin Fimlaid. “Because of the Vermont Training Program and the Vermont Employment Growth Incentive, NuHarbor is expanding our workforce in Vermont: we’re moving to a larger office space and ramping up hiring.”
About NuHarbor Security
Many businesses in America struggle to secure their own organizations. NuHarbor exists to help secure all organizations and ease the complexity of cybersecurity. Working throughout the U.S. since 2014, NuHarbor helps clients design, implement and sustain Information Security, Compliance and Risk Management programs. Learn more about our services at nuharborsecurity.com.
