Middlebury’s Class of 2025 celebrates at graduation. Photograph: Todd Balfour/Middlebury School.
Addison County’s quiet economic system requires a re-examination
by Olga Peters, Vermont Enterprise Journal
Addison County’s economic system just isn’t all the time instantly obvious. This was one of many first observations Alex Armani-Munn made upon taking the helm of the Addison County Financial Improvement Corp. in February.
“If you drive round Addison County,“ Armani-Munn stated in a current interview, “you see a variety of these nondescript buildings that basically wouldn’t catch your consideration.“
Alex Armani-Munn, government director at Addison County Financial Improvement Corp. ACEDC picture
Nevertheless, behind the doorways of those seemingly unusual constructions — windowless corrugated metallic buildings, former garages or buildings that resemble grain storage — thrive numerous enterprises, together with woodworkers, machinists and producers.
“We’re a bit of smaller, a bit of quieter and don’t have as many initiatives (as different counties),“ famous Adam Lougee, government director on the Addison County Regional Planning Fee. “However between the faculty and the hospital and a pair large manufactures — to not point out the good little villages that now we have down right here, and the attractive surroundings — there’s nonetheless so much occurring.“
Phil Summers, government director of the Addison County Chamber of Commerce, said that the county possesses its personal distinct model and model.
“We need to stand alone because the centerpiece of the Champlain Valley,“ he stated. “We’ve bought probably the most shoreline on the lake of any county, and we’re happy with all that. And we’re happy with our farming group, Shire city and different small cities.“
Based on the U.S. Census Bureau, Addison County ranks fourth in landmass and seventh in inhabitants amongst Vermont’s 14 counties. The county’s prime industries are schooling, well being care and social help (29%); manufacturing (11%); retail (10.6%); building (9.6%); {and professional}, scientific, administration and administrative providers (8.8%).
Agriculture and forestry make use of 5.6% of employees. It’s not the most important sector by employment, nevertheless it represents a big a part of the county’s id.
In Armani-Munn’s expertise, the county’s agriculture sector is evolving. A rising variety of small, diversified farms are specializing in crops resembling produce and maple syrup.
“I feel Addison County is at an fascinating level in its evolution,“ he stated. “It’s staying rooted in agriculture whereas adapting to new calls for.“
The enterprise group is doing effectively, in line with some statistics. The variety of non-public companies has grown by nearly 400 since 2019. Regardless of the pandemic’s affect on the retail sector, the general variety of retail companies has remained steady since 2020.
Based on Armani-Munn, the enterprise group has generated greater than $1 billion in gross receipts yearly since 2021. Whereas that is a formidable combination quantity, Armani-Munn shares it with a caveat: Not each enterprise proprietor or worker on the particular person degree shares the rosy expertise the gross receipts may recommend.
Like the remainder of Vermont, Addison County faces a workforce and housing scarcity. In a current survey performed by ACEDC, enterprise homeowners cited a excessive value of doing enterprise and challenges in hiring and retaining employees as their prime issues.
As of March 2025, the county’s unemployment price was 2.7% and has remained beneath 3% since summer season 2021.
Roughly 40% of the workforce commutes into the county for work, with the price of housing cited as a motive for this commute.
“Twenty % of my operation workers, resembling eating services, lives in New York due to the challenges of reasonably priced housing right here in Vermont,“ stated David Provost, government vice chairman of finance and administration at Middlebury School.
Armani-Munn famous that, though it might appear paradoxical, one of many county’s strengths lies in its human capital.
“Now we have nice human capital when it comes to high quality, however once more it’s the amount that we battle with,“ he stated. “We simply want extra of these gifted, clever, enterprising folks.“
A Steady Economic system However Results Of Federal Funding Adjustments Stay An Unknown
Lougee waits for his lunch order whereas sharing his ideas on Addison County. The sounds of patrons and workers echo within the background.
Total, he stated, the county’s economic system is steady. It’s not fancy or flashy, however good all the identical.
The group’s finances is strong for this yr. ACRPC receives only some direct federal funds. Considered one of its bigger funds, the U.S. Environmental Safety Company Brownfields Grant, has remained untouched on the time this text was written.
Relying on how the federal authorities proceeds with funding the Federal Emergency Administration Company, the state’s emergency administration funding might be affected. Such cuts would vibrate all through the state’s emergency administration program, he stated.
“The state workplace, all the way in which all the way down to the regionals and the locals, are constructed off of federal {dollars},“ Lougee stated. “For instance, I don’t know whether or not we’ll get what I name our core planning funding from Vermont Emergency Administration this yr, as a result of they don’t know whether or not they’re going to get federal {dollars}.“
Addison County receives roughly $50,000 from the state as its core planning quantity.
“It might be none, it might be half, it might be some proportion. We simply don’t know but,“ Lougee stated. “It’s core to our work, nevertheless it’s not an enormous a part of my finances.“
Based on the Vermont Emergency Administration web site, since 2011 FEMA’s Hazard Mitigation Grant Program has awarded $36 million to Vermont communities. This grant program allows communities to implement long-term mitigation methods after a presidentially declared catastrophe.
In 2021, the Legislature accredited $4.6 million for the brand new state Flood Resilient Communities Fund, which dietary supplements the federal grant program. Lougee is unsure how communities will make progress on their mitigation work ought to federal funding shrink or disappear. Cities which have carried out mitigation work are experiencing much less extreme flood injury.
Pointing to the city of Ripton, Lougee famous that Tropical Storm Irene hit the small city of below 800 in 2011. He stated Ripton upsized its culverts and different infrastructure. The city hasn’t skilled the identical degree of injury since.
“I understand Irene was an distinctive storm, however they’ve fared comparatively effectively out of the current storms, and I’m hopeful that’s due to the enhancements that they made after Irene,“ he stated.
ACRPC workers proceed to replace future land use maps as a part of Act 181. These maps will decide how parcels of land in Addison County will probably be handled below Act 250.
The Legislature handed Act 181 final yr. The invoice introduces a number of reforms to Act 250 to extend housing improvement. Act 181 rewrites the allowing thresholds into tiers: 1A, 1B, 2 and three.
Based on a handout from the ACRPC, allowing thresholds will enhance — turn into simpler — for housing initiatives on properties designated 1A and 1B. This tier will pertain principally to cities and villages, particularly these with water and wastewater infrastructure.
The Act 250 allowing course of will stay principally the identical for properties designated as Tier 2. Areas catalogued as Tier 3 — forest and wildlife areas — will obtain the complete Act 250 course of. Rural landowners really feel involved a couple of Tier 3 designation, Lougee stated.
“The agricultural economic system in Vermont is essential, and it’s already falling behind, so landowners are involved about their capability to make use of their land and make a revenue off their land and whether or not or not they’ll simply fall farther behind a number of the city facilities,“ he stated.
Lougee reminded folks that Act 181 is behaving as designed.
“Any developer who’s going to do greater than 10 models [of housing] goes to discover a village heart or locations they don’t need to undergo Act 250. It simply makes good sense for them, and that’s what the legislation is designed to do. It was designed to create that incentive,“ Lougee stated.
“It’s good that Act 181 will permit downtowns and villages to develop,“ he continued. “Subsequent is increasing water and wastewater infrastructure in additional communities to help extra housing.“
Lougee is curious how the brand new Group and Housing Infrastructure Program may increase water and wastewater infrastructure in rural locations like Addison County. CHIP is a brand new housing funding program that the Legislature handed this session in Act 69. This system allows municipalities to fund public infrastructure like water, sewer, roads and sewer methods to help new housing improvement.
Communities continued their power upgrades by the Municipal Power Resilience Program by the state Buildings and Normal Companies. This system supplied funds to enhance the power footprint of municipally owned buildings resembling city halls, municipal workplaces and garages.
The 141-year-old City Corridor Theater in Middlebury not too long ago unveiled the completion of their long-awaited growth which incorporates a whole new wing, performing arts heart, and public plaza. Photograph courtesy THT web site.
Based on the BSG, 12 Addison County cities acquired awards starting from $163,800 to $484,034. Lougee added that these awards helped enhance the power footprints of 25 buildings.
“A variety of our group services have been fairly previous, so being able to replace them and possibly mix them with another cash to enhance them has been a very nice mission for us to work on with our municipalities this yr,“ he stated.
The group is updating its regional plan, with Lougee anticipating the revisions to be accomplished by June 2026.
It All Comes Again to Housing
Addison County is progressively increasing its housing stock. This summer season, Stonecrop Meadows in Middlebury completed constructing townhomes, that are a part of the brand new neighborhood’s homeownership choices. The event additionally options duplexes, and its rental flats are anticipated to be accomplished subsequent yr, in line with Stonecrop’s web site.
Summit Properties’ 30-acre improvement contains 250 townhomes, duplexes and flats. A portion of the primary section of housing is obtainable at lowered prices for income-eligible households.
Middlebury School donated the land for Stonecrop. This mission follows different current developments such because the Firehouse Residences in Bristol and Armory Home in Vergennes. Based on the state’s Statewide and Regional Housing Targets, Addison County requires 1,296 to 1,978 new models by 2030.
Vermont officers together with Gov. Phil Scott, U.S. Sen. Peter Welch, state Treasurer Mike Pieciak, VHFA’s Maura Collins, VHCB’s Gus Seelig, and housing commissioner Alex Farrell toss a shovel of filth throughout a groundbreaking ceremony for Stonecrop Meadows in Middlebury. The primary section of the 245-unit improvement added 80 properties to the state’s housing inventory this summer season. ACEDC picture.
Summers, a board member of the Rokeby Museum in Ferrisburgh, famous that the housing scarcity has hindered the group’s seek for a brand new government director. One candidate withdrew resulting from housing points, and he suspects one other did the identical.
The actual property adage “location, location, location“ holds true, and Vermont’s housing market can fluctuate considerably by location. The Addison County housing market has softened barely since Amey Ryan, proprietor of IPJ Actual Property in Middlebury, spoke with VBM final yr. Ryan states it stays a vendor’s market, and money affords are nonetheless prevalent, with patrons paying close to or barely above the asking worth. Nevertheless, patrons at the moment are requesting inspections once more, extra people are securing financing, homes are staying available on the market longer and lots of are seeing worth reductions.
Ryan believes a balanced market is mostly preferable.
“Half of our enterprise is patrons and half is sellers, so if the market stays balanced, then we’re good,“ she stated.
Ryan advises sellers to regulate their expectations from the high-priced pandemic gross sales. With rising rates of interest, patrons’ buying energy has decreased, main them to hunt higher offers. Based on Ryan, sellers who’re nonetheless fixated on costs from two years in the past are doubtless getting into the market at an incorrect worth level.
IPJ acts because the itemizing agent for Stonecrop Meadows and different new housing developments. The amount of listings retains the workplace busy, which signifies the county’s efforts to extend housing inventory are having an impact.
“I feel now we have a methods to go,“ Ryan stated. “The issue is they will’t construct homes quick sufficient. They don’t have the manpower to do it. The allowing course of is arduous.“
This yr, the Addison County Financial Improvement Corp. included housing in its annual working technique, alongside long-standing strategic objectives: entry to capital; workforce improvement and entrepreneurship; and organizational sustainability, resiliency and effectiveness.
“The whole lot comes again to housing.,“ Armani-Munn defined, “We’ve realized as a corporation that we can not assist companies begin, develop or thrive till now we have satisfactory housing and reasonably priced, accessible housing.“
Armani-Munn sees promise within the CHIP program, typically known as project-based TIF, as a robust instrument for housing improvement that he believes will most profit small municipalities. He helps utilizing TIF (tax incremental financing) districts and considers the CHIP program an efficient technique for growing housing.
Armani-Munn recommended state Sen. Kesha Ram Hinsdale for her position in eradicating limitations the Home had added to its model of the invoice, which he felt would have been unhelpful.
In Armani-Munn’s opinion, probably the most helpful features of the CHIP invoice embrace elevating the funding cap to $2 billion over the lifetime of this system; increasing this system to incorporate market-rate housing; and eradicating necessities for housing funded by this system to stay perpetually reasonably priced.
Given the pressures on Vermont’s housing market, resembling excessive rents and first properties being transformed into trip properties or short-term leases, it may be argued that Vermont residents are being priced out of their native housing market. Whereas the Home’s limitations may need eased a few of these points, Armani-Munn agrees these points exist however believes project-based TIF was not the suitable instrument to handle them.
He means that native ordinances are more practical in addressing challenges like short-term leases or hire will increase.
Camille Lyons, ACEDC’s initiatives and grants supervisor, concurs, stating that the project-based nature of CHIP is extra manageable for small communities.
“TIF districts already existed, however our small cities should not succesful, or shouldn’t have the workers, for a full district,“ she stated.
The Vermont Financial Progress Council is predicted to launch this system’s guidelines in November, with purposes anticipated to open in January. Armani-Munn hopes the state will allow financial improvement companies to manage the CHIP program for smaller municipalities, and ACEDC has already began constructing partnerships to take action.
“I get excited,“ he stated, “as a result of it’s one other instrument in our toolbox. It’s one thing tangible that we may use to instantly affect housing improvement.“
Lyons added that it’s difficult to coordinate massive infrastructure initiatives when a city is struggling to offer fundamental providers.
“Municipalities come to us when they’re restricted, so we act as that extension,“ she stated. “It’s more durable to increase city workers should you’re already on restricted assets.“
Ryan feels that Vermonters spent too a few years rejecting housing proposals.
She laments, “Now that individuals are saying sure, it prices thrice as a lot to construct once they may have began to construct 20 years in the past, after we knew we had a housing scarcity.“
Ryan additionally highlights the neglected concern of substandard, unhealthy housing out there.
“Whether or not it’s substandard for them or substandard for me, that doesn’t matter. It’s housing that’s usually not wholesome for folks to be residing in,“ she stated.
Typically, dilapidated properties don’t promote until a purchaser has the means to demolish them or undertake an entire renovation. Whereas specializing in new housing is essential, Ryan advocates for higher consideration to bettering present housing by grant packages or different incentives that assist folks keep wholesome properties. This would supply sellers with a greater asset to checklist available on the market in the event that they select to promote.
Workforce
Based on Armani-Munn and Lyons, Addison County’s obtainable workforce is inadequate to fill present job vacancies. Moreover, 34% of the working inhabitants (aged 16 and above) is over 60, elevating issues about mass retirements impacting a number of companies.
With state funding, ACEDC is piloting a program to reinforce office accessibility for people who’ve struggled to attach with appropriate employers. In June, ACEDC was certainly one of two organizations to obtain funding by the state’s Workforce Growth Program, which the Legislature accredited in 2022. The Vermont Division of Labor web site describes this two-year initiative as aiming to strengthen regional workforce methods by bettering collaboration amongst employers, educators and group companions.
This technical-assistance grant contains funding for a full-time coordinator to conduct analysis and outreach. Lyons defined that as a part of the grant, ACEDC recognized three populations with low workforce participation: younger folks aged 16 to 24, adults with no highschool diploma and folks residing with disabilities. The group recognized manufacturing and human providers as two job sectors that would considerably profit from this system.
Whereas the county’s general workforce participation price is roughly 82%, the speed for adults with disabilities is beneath 50%. Armani-Munn identified that this represents 300 to 500 people not working every month.
“If it have been as straightforward as simply having a job honest or posting jobs on-line, then these folks can be working,“ he stated. “However we all know it’s extra sophisticated than that.“
The coordinator will help ACEDC in growing an motion plan to attach potential employees with jobs. As soon as employed, the Vermont Division of Labor will make use of the brand new coordinator, who will probably be primarily based in Addison County. Lyons described this initiative as fostering a collaborative group amongst companions, employees and employers.
Lyons expressed pleasure in regards to the grant’s timing, as it would bolster ACEDC’s ongoing efforts. The group has informally operated a countywide, month-to-month Workforce Alliance Group, and she or he hopes the coordinator’s hiring will present the alliance with extra construction.
Whereas the Workforce Growth Challenge continues to be in its nascent levels, Lyons famous that the three recognized populations — particularly folks with disabilities — face challenges connecting with employers keen to accommodate their job necessities. She hopes to implement an “employer of high quality certification“ to assist talk what a superb employer seems like. As of July, the coordinator interview course of was ongoing, and Lyons anticipated asserting a brand new rent quickly.
Tamara and Joey Boise reduce the ribbon on the Cyclewise growth and addition of the Indian Bike model in New Haven in February. ACEDC assisted with a BGS Constructing Group grant used to resite a storage constructing to make room for the Indian showroom. ACEDC additionally partnered with the Nationwide Financial institution of Middlebury and VEDA to finance the growth. Courtesy images.
The Chamber’s Recent Look
Summers expresses optimism concerning the county’s economic system, noting that companies seem like bettering. Chamber members additionally share this cautious optimism, acknowledging issues in regards to the workforce, housing, baby care, well being care and different county-wide points.
“Nonetheless, I hear extra good than I do damaging, however I feel that’s principally as a result of the damaging stuff has simply been within the setting for therefore lengthy it doesn’t even appear that damaging anymore,“ Summers stated. “It’s only a drawback that now we have to proceed to attempt to clear up.“
Reflecting on pandemic-era conversations, he remembers an environment of disarray and uncertainty, with no consensus on the workforce scarcity, costly housing and demographic shifts. He believes communities have since come to grasp these challenges.
Nevertheless, 5 years later, indicators from the federal authorities have launched new anxieties for native companies, primarily a major drop in Canadian guests. In comparison with the primary quarter of 2024, inquiries to the chamber’s web site from Canada have decreased by 70%.
Anecdotally, innkeepers have reported cancellations from Canadians who’re unwilling to journey to the U.S. Luckily, a rise in home journey has allowed most lodging institutions to fill these vacancies, as fewer Individuals are touring abroad this summer season, in line with Summers. Regardless of this, he calls the scenario a “large bummer.“
The chamber has launched a revitalized web site and a recent rebrand, which started earlier this yr and included the primary new emblem and colour palette in 15 years. The emblem options three iconic county buildings: the Nationwide Financial institution of Middlebury, Bristol’s Holley Corridor and the Vergennes Opera Home. Summers explains that the group aimed to tell apart itself from comparable entities like ACEDC and the county’s three downtown organizations.
Summers additionally celebrated the continued success of the chamber’s digital journal. Upon his arrival 4 years in the past, he changed the normal e-newsletter with a full-color e-magazine, which members get pleasure from. What began as a 15-page publication has grown to 50 pages, that includes occasions, companies and city profiles. Based on Summers, the journal boasts an open price of 58% and a mean learn time of two and a half minutes..
Rising New Residents
Reimagine Addison County is the chamber’s equal of the state’s GROW Vermont program, which stands for Grants for Relocation Outreach Work. This state initiative goals to draw and preserve new residents to assist reverse the state’s demographic tendencies.
Lisa Grover, the outreach and relocation coordinator, manages this system. She assists potential residents by answering their questions, serving to them discover housing and jobs, and connecting them with individuals who can help their adjustment to their new communities.
The chamber organizes mixers for brand new residents to attend and ask important questions, resembling who handles driveway plowing or cope with surprising conditions. Summers stories that roughly 40 to 50 people inquire about relocating every month.
He shared a narrative a couple of younger man from Ohio who took a bus to make the transfer in July, and one other household who purchased a former inn as a result of they couldn’t discover housing. Every particular person has their very own distinctive motive and story for shifting, whether or not it’s associated to the local weather, political ambiance or a childhood want to return after visiting.
Based on Summers, round seven households have moved to the county thus far. He hopes the state will lengthen the grant for an additional two years, as supporting individuals who need to relocate could be a prolonged course of, usually beginning with an inquiry and progressing by telephone calls, answering questions, offering useful resource lists and extra conferences.
Summers famous that Grover has devoted vital effort and time to this system over the previous yr, and it’s now yielding constructive outcomes. He additionally emphasised the significance of retaining new residents as soon as they’ve moved to the realm, which is at the moment a spotlight for the chamber.
Summers has heard of latest residents leaving the county resulting from difficulties discovering housing, and likewise of individuals of colour who felt that Vermont was not a welcoming setting for them.
“We try to satisfy with individuals who have simply moved right here within the final yr to be able to acclimate them to the county in order that they keep,“ he stated.
A Individuals-Centric Method
Armani-Munn adopts a place-based and people-centric method to financial improvement. He believes that as an alternative of making an attempt to draw massive firms to relocate, communities ought to deal with enhancing their attraction and growing facilities that draw gifted people.
“As soon as you’ll be able to create that vital mass of expertise or convey these gifted folks to your group, the companies will comply with. That funding will comply with,“ he stated.
Armani-Munn feels that Addison County’s distinctive high quality of life, partaking communities, out of doors leisure alternatives and memorable folks match this mannequin.
Armani-Munn grew to become government director at ACEDC in February, having beforehand held comparable positions in Colorado and New York.
“I don’t imply to be harsh, but when I’m being solely sincere, whenever you work in financial improvement, the final place you need to work is Vermont,“ he stated. “It’s not a simple state to work in financial improvement. The price of residing and the prices of doing enterprise are extraordinarily excessive. The incentives which are provided should not precisely aggressive.“
He emphasised that Vermont wants to acknowledge the need of progress, not for the sake of growth itself, however to protect the standard of life it’s famend for.
“If we will’t develop appropriately, we’re going to lose what now we have.“ The Stonecrop Meadows housing mission was a key think about persuading him that Addison County was a spot the place he may thrive. In contrast to smaller communities he had noticed previously that resisted change, Stonecrop represented a collaborative effort between a supportive group and native and governmental companions who constantly sought methods to enhance. He displays, “Okay, it is a group that isn’t going to only spin its wheels and pull its hair out stressing about housing or speak about how dangerous it’s and simply to shoot down each alternative it has to construct that housing. This can be a group that’s keen to truly act on it and to tackle a giant mission and do the exhausting work.“
Olga Peters is a contract author from Southern Vermont.
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