Photo: At the the Black River Innovation Campus (BRIC) in Springfield in January, Senator Peter Welch was joined by Vin Fusca, Executive Director, BRIC; Chris Maggiolo, Director of Development, Operations and Finance; Caitlin Christiana, Director of Community and Culture; Matt Dunne, Director/Founder of Center on Rural Innovation (CORI); Tom Kennedy of Mount Ascutney Regional Commission; Bob Flint, Executive Director, Springfield Regional Development Corp.; and Jeff Mobus, Town Manager, Springfield. The project aims to revitalize Springfield’s town center by developing infrastructure to support technological innovation and prepare the coming generations of Vermonters for a modern workforce. Courtesy photo.
by Olga Peters, Vermont Business Magazine
Good. Solid. These are the two words used by many in Windsor County to describe the economy in 2024.
Not the most exciting descriptors, to be sure. Yet, after the one-two punch of the coronavirus pandemic and last year’s summer floods, residents are all too willing to settle for “good” and “solid” nowadays.
Jason Rasmussen, executive director of the Mount Ascutney Regional Commission, laughed when asked how he would characterize the county’s economy.
“In the middle of the summer, I may have had a little different answer, but mostly good,” he said. “I mean … you know … interesting times, right?”
Windsor County reports a median household income of $65,473; 8.7% of its residents live below the poverty line (compared to 10.4% statewide).
Still, Windsor faces many of the same challenges plaguing other Vermont counties: the high cost of living; a lack of affordable housing and child care services; workforce shortages; and difficulty accessing public transportation.
Challenges aside, county residents remain committed to building resilient communities where the economy works in their favor.
“I think it’s chugging along,” observed a hopeful Kevin Geiger, chief planner at the Two Rivers-Ottauquechee Regional Commission, an association of 30 municipalities in east-central Vermont working to enhance the region’s quality of life.
Tourism has returned to normal after last summer’s floods, downtowns appear vibrant and the region’s manufacturing sector is showing signs of rebounding, Geiger said.
Bob Flint, executive director of the Springfield Regional Development Corp., which serves as the “front door” for economic development in the 10 towns of southern Windsor County, said the area is beginning to reap the benefits of a three-year, $300,000 Working Communities Challenge grant, provided by the Federal Reserve Bank of Boston, to increase workforce participation by removing barriers to employment.
Flint said raising employer awareness of the obstacles facing their workers is a significant change to emerge through the Working Challenge process. Business owners now using terms like “sensitivity” and “empathy” when discussing issues such as child care, transportation and scheduling is part and parcel of that change.
In short, Flint added, employers are learning that a satisfied workforce is a stable workforce.
“It’s the idea that their employees are people and not interchangeable cogs, and that people have needs,” he said. “These things maybe would not have been business economic development terminology in the past, but I think it is now. And I think that’s cool.”
Believe in the Flood
Summer floods hit Windsor County’s mountain towns, like Ludlow and Cavendish, harder than those near the Connecticut River, said Rasmussen. Recovery is underway, but obtaining permits, signing contractors and acquiring funding continue to frustrate many residents and businesses.
The 40-mile-long Black River and the 27-mile-long Williams River remain “flashy” — a term describing rapid increases in water flow at the onset of a precipitation event — and are often changing course, Rasmussen added.
In his opinion, municipalities’ decision to upsize some infrastructure after Tropical Storm Irene in 2011 probably helped mitigate what could have been even more catastrophic damage during last summer’s floods. Still, there is more to do.
Planners at the county’s regional commissions expect more flooding in the future, and they are probing the challenges to resiliency. Money is one. Building, moving and maintaining infrastructure is another.
Towns are reassessing their water and wastewater systems, considering relocating homes and infrastructure to higher ground (such as Ludlow’s wastewater facility on the Black River) and reclaiming flood plains — nature’s way of slowing and storing flood waters.
Reading and Weathersfield have villages with either outdated septic systems or none at all and have hired engineering firms to identify cost-effective solutions. Rasmussen said the state has funded Ludlow’s investigation of its wastewater facility.
“I think, sometimes, we have to think long and hard about relocating things that are just experiencing repeated damages,” he said. “And that’s not cheap. So how do we pay for it?”
Flint said more federal and state funds would go a long way toward helping businesses remain viable now and into the future.
He said the state stepped in immediately last summer to provide grants to cover the physical damage many businesses experienced during the flooding. While much appreciated, those funds could not make up for the months of lost sales those businesses will likely never recoup, he added.
After Irene, both the Springfield Regional Development Corp. and the Brattleboro Development Credit Corp. were able to access U.S. Housing and Urban Development funds to support area businesses.
Flint believes in implementing even more widespread mitigation measures.
“State incentivized mitigation and flood-proofing — which may or may not have a direct return on investment — is also in the public good,” he said.
Infrastructure is on Geiger’s mind. He was at the state emergency operations center in Waterbury when it was evacuated in summer. Again.
“There are infrastructure needs out there that are pretty big,” Geiger said.
Water and sewer system upgrades are top priorities for many communities. Woodstock, for example, was asked last year to take over the water system owned by the private Woodstock Aqueduct Co. The system, which serves more than 700 customers, has an extensive maintenance backlog.
“Places like that are going to need funding just to maintain the systems they have,” Geiger said.
The recent flooding taught Geiger that the weakest aspect of our resiliency starts with an overconfident perception of our flood response.
“Believe in the flood,” he said. “Expect it. Anticipate it. It’s going to happen. Earthquakes are surprises, floods are not.”
Business as Usual
In general, the business community is holding its own. Most businesses have reached an endemic equilibrium. One significant limitation is a lack of workers.
Members of the Upper Valley Business Alliance report growth. Manufacturing is hiring people at a steady pace, said the organization’s president, Tracy Hutchins.
“We’re very much a bi-state community in the Upper Valley,” she said.
The UVBA service area includes White River Junction, Norwich, Quechee and Woodstock in Vermont, and Lebanon, Hanover and Lyme in New Hampshire. The alliance serves 470 members, with one-third located in Vermont. It was formed after a 2020 merger between the Hanover and Lebanon chambers of commerce.
A vexing problem for the organization is that state funding rarely crosses borders. For example, recent funding from New Hampshire to support tourism could not benefit the group’s Vermont members, according to Hutchins.
Photo: Co-working space on the Black River Innovation Campus. Courtesy photo.
A current focus of the UVBA is helping businesses retain workers. As part of that effort, the organization supports groups like the Upper Valley BIPOC Network and Upper Valley Young Professionals.
A few years ago, members noticed that hiring efforts had successfully increased the number of workers of color. Retaining these workers, many of whom had relocated to the area, was less successful.
“They may love the area, but you can’t just hire somebody; you need to build community,” she said
According to Hutchins, many BIPOC workers said they felt isolated after moving to the Upper Valley.
“Our region is just different than some of the more urban areas in other parts of the country,” she said. “We don’t have the breadth of services or goods that somebody may be used to.”
The network holds multiple events designed to connect BIPOC workers and build community. The initiative is growing. Last year, UVBA launched a nonprofit to support BIPOC-owned businesses.
The alliance also supports a young professionals’ group for people between 18 and 40. The group is growing under the eye of a steering committee that plans events and welcomes new professionals to the area, she said.
The UVBA is also the fiscal sponsor of the MedTech Collaborative, which aims to promote and raise awareness of medical technology and how it affects the local economy. In November, UVBA will host the fourth Northern New England MedTech Conference, which drew more than 200 professionals in 2023.
Carol Lighthall, executive director of the Okemo Valley Regional Chamber of Commerce, which serves 12 towns in south central Vermont, recently described the local economy as “business as usual.” She said that despite flood waters whizzing through Ludlow and Cavendish, most businesses have recovered quickly.
The floods affected approximately half of the 12-town region. Disaster recovery efforts kicked in immediately and helped those affected, she said. As of February, Shaw’s grocery store had yet to reopen. Lighthall worked with FEMA to help business owners access support.
“Many businesses were able to reopen right away,” she said. “Others will take more time, and overall mitigation will be ongoing and critical to the region’s long-term health.”
With the help of the Vermont Community Foundation, the chamber raised approximately $500,000 in donations for individuals, families and businesses.
She said the small donations gave hope and a sense of connection to those devastated by the flood.
In Lighthall’s view, the flooding is an opportunity to become stronger and prepare for the future. Rather than individual towns taking on significant issues, such as disaster mitigation or housing, she would like more statewide planning that identifies regional solutions.
According to Lighthall, members have yet to report dips in their profits or customers.
Tourism and recreation drive the local economy, with retail, value-added foods and artisan products next in line. Ludlow sits within an hour’s drive of six ski resorts. Most of the towns in the rural area are small, with an average year-round population of approximately 2,000. During peak tourism times, the visitor and second homeowner population can rise to 20,000 in Ludlow, according to Lighthall.
“This represents opportunities and challenges related to staffing, housing, remote workers, etc.,” she said. “Our quality of life and business opportunities remain strong both for current residents and those drawn to the region.”
She believes the area could attract more remote workers. The chamber operates what Lighthall describes as a low-tech jobs website.
“People are curious about living here,” she said.
Terry McDonnell, owner of Artisans Park in Windsor, and his business partners operate a vertically integrated cannabis company called Stone Leaf. The so-called field-to-edibles business grows, processes and sells cannabis products.
The cannabis is grown at a farm in the Northeast Kingdom, while the processing and retail are based in Windsor, McDonnell said. The company, which employs eight to 10 people, outsources the testing of product potency to a company in Colchester.
“The old days with somebody growing a couple plants in the woods that you smoke — that’s not what it is anymore,” he said. “It’s extremely sophisticated — very, very complex.”
Stone Leaf is a new venture for McDonnell, who purchased the land for Artisans Park approximately 25 years ago. Businesses at the park include SILO Distillery, Harpoon Brewery, Blake Hill Preserves, Great River Outfitters and Path of Life Sculpture Garden.
Stone Leaf is prospering and has a loyal customer base., McDonnell said, adding that the story of regulating the cannabis market in Vermont is fascinating.
“Everyone’s come out of the woodwork and is operating legally, paying taxes and having employees and W2s, and everything else,” he said.
He continued, “There are a lot of regulations and a lot of oversight. There’s a lot of testing. But I think people are playing by the rules and doing it right. It’s been a good outcome, in my opinion.”
Stone Leaf serves recreational customers and those with medical cards. He acknowledges that some of his views of the Windsor business scene are skewed. For him, business is extremely healthy. Workforce shortages? What workforce shortages?
Does he have a favorite product? McDonnell laughed.
“They don’t let me on the floor because I don’t use. So I’m like the worst person to ask about that,” he said.
The What, But Not The Why, In Real Estate Sales
Eric Johnston, managing broker of the Hanover, New Hampshire, office of Four Seasons Sotheby’s International Realty, believes closings are hallmarks of a healthy real estate market. That’s when money begins to enter the community, he said.
House sales benefit the economy beyond their initial sale. They also put money into the pockets of attorneys, carpenters, painters and appliance and home goods stores.
“The painter gets paid to do a new paint job on a house that just transferred,” Johnston said. “He’s going to go and buy something locally for his family, and that money stays in the community.”
Johnston’s territory covers primary and secondary home markets in Woodstock, Barnard, Killington and the Upper Valley. In his opinion, each community is a unique market.
According to 15 years of data, inventory and sales prices mark the most significant changes in the county’s market.
During the recession of 2009, there were 1,200 houses on the market. By 2013, that number had increased to 1,350. By contrast, during the peak of the COVID market just 103 homes were listed for sale. In 2023, inventory increased slightly, to 185.
The median sale price of a house in 2009 was $189,000, compared to $370,000 last year. A quick online search shows houses in Woodstock and the Upper Valley selling for over $1 million.
In general, pushing demand in Windsor County is a need for more inventory.
However, one trend Johnston is noticing is that asking prices have increased since last year while the actual sold prices have dropped. He sees this as a leveling off of the hyper-COVID market of 2021.
He is seeing more people living the work-from-home lifestyle. Anecdotally, Johnston is selling more second homes to young families who have an apartment in, for example, New York City. They enjoy the city’s activities part of the week and Windsor County’s ski areas the second half of the week, all while working remotely.
“It’s frustrating for some,” he said. “I have some buyers who still are trying to make a transaction of fair value. They’ve got budgets and goals, and interest rates have changed, and something comes on the market, and for whatever reason, they can’t compete.”
Johnston pointed out that while data can easily identify what type of housing is selling in a particular market — primary, secondary, condominium, etc. — it cannot capture the reasons behind those sales. For some, it’s wanting a bigger home to accommodate their growing family. Others may be looking for a better school district. Still others may be looking for a change of venue or lifestyle. In other words, housing sales can’t necessarily explain a lot about the community itself.
Houses that could serve a middle-income buyer, for example, might not be on the market, he said. A family who lives and works locally is unlikely to sell their home regardless of how much it has increased in value. They’re happy; their life is settled.
According to a study conducted for Keys to the Valley, an initiative by three municipal planning commissions to help solve the housing crisis in a 67-town region of the Upper Valley, a total of more than 10,000 units of new housing are needed on both sides of the Connecticut River to meet current demand.
The study also showed that adding this new housing would require public and private funds with many approaches.
As the next phase of Keys to the Valley got underway, the partners hired SE Group — a structural, civil and architectural design firm with offices in Burlington; Frisco, Colorado; and Salt Lake City, Utah — to identify sites in the region that could quickly and sustainably support housing, according to Rasmussen of the Mount Ascutney Regional Commission. The study will consider things like natural resources and access to municipal infrastructure. The hope is that by pre-vetting these sites, communities will have an easier time constructing new housing, he said.
Construction of Central and Main, a development of 25 residential apartments for low- and moderate-income families in downtown Windsor, is scheduled to begin this spring. The project is a partnership among the town of Windsor, Windsor Improvement Corp., the Windham Windsor Housing Trust and Evernorth.
Number of Homes For Sale vs. Sold vs. Pended — Last 15 years (Yearly)
Source: Four Seasons Sotheby’s International Realty
Maintaining Balance at Mt. Ascutney Hospital and Health Center
Mt. Ascutney Hospital and Health Center, which serves the central Vermont towns of Windsor and Woodstock, and surrounding communities in Vermont and New Hampshire, is one of the largest employers in the area. Founded in 1933, it comprises the 35-bed Mt. Ascutney Hospital in Windsor and the Ottauquechee Health Center in Woodstock, both of which are affiliated with the Dartmouth Health system.
The institution has received many accolades and awards over the last several years, including:
Excellence in Worksite Wellness Award from the Office of the Governor.
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Most Wired Hospital from the American Hospital Association.
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Best Practice recognition from the National Rural Health Association.
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Level 3 status designation from the National Committee for Quality Assurance.
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Guardian of Excellence Award from Press Ganey.
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Foster G. McGaw Prize for Excellence in Community Service.
According to interim CEO Win Brown, budget margins at the facility are tight but healthy. Surveys rank staff satisfaction as high. And the hospital has developed a few niche departments, such as eye surgery.
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But Brown shares this positive information with a caveat: People are struggling.
Despite an increase in wages, staff requests to Dartmouth Health’s emergency support fund have increased. The fund provides quick money to staff members needing help covering expenses such as an electric bill or rent.
Hospital personnel have also reported an uptick in the demand for behavioral health services. MAHHC plans to hire two new clinicians, but the backlog of patients needing help is enormous, Brown said. Pediatric staff are seeing more young families struggling with complex socio-economic issues.
The community health team works diligently to cover needs not typically considered health care, such as transportation and housing. They undertake this nonclinical work because stressful gaps in people’s lives negatively impact the community’s overall public health.
MAHHC has multiple expenses regarding employee benefits and infrastructure. That is balanced against the fact that its staff helps keep people healthy, and as a large employer, the hospital helps fuel the economy.
“We are kind of a social fabric, and a lot falls on our shoulders when other pieces of the continuum struggle,” Brown said.
There is a shortage of nurses and primary care providers, Brown said.
Hospital leadership is trying to decrease dependence on “travelers” or temporary nurses or doctors. Instead, Brown said, the facility is developing programming to train local workers.
If someone lives locally already, they’re more likely to stay, he said.
Regarding COVID, Brown said the hospital has entered the endemic phase of the virus. It is a part of the community, and the hospital manages to its rhythm. Staff monitor COVID numbers and, when they reach a certain level, require everyone to wear masks. When the numbers drop again, mask requirements go away.
“We have been trying to strategically grow where we can and not grow where we don’t need to strategically where someone nearby can provide those services,” he said. “And we’ve been tending to our knitting, really, because it’s a highly regulated industry. The margins are very thin, and we want to make sure that we’re really good at what we can do well.”
Ice Cream Truck It
As a train pulled away from White River Junction during our interview, Geiger gazed at Bridge and Main, a 17-unit affordable housing development constructed several years ago. At the time, it cost approximately $220 a unit to build. Geiger said the unit price today would be closer to $520.
“It’s hard for the average person to buy the average house anymore,” he said.
Geiger believes the housing market isn’t broken or going through a unique period. It’s doing what the housing market has always done: make money.
“If a town shut off the sewer and water, people would go berserk,” he said. “Well, somebody shut off housing, and we’ve got to get this thing going again.”
He believes that every level of the Vermont community needs to rethink how to address their common struggles. One approach is introducing new levers for communities to pull, such as special taxation districts. Communities can pool their resources, such as multiple towns hiring a town nurse, bulk purchasing heating oil or designating a town housing helper.
Spending money upstream usually saves more money downstream, he added. For example, a town nurse has the potential to spot health issues when they are small and less expensive to manage. A housing helper could develop a multitown plan that bulks together predevelopment efforts or walks individuals through installing an accessory dwelling unit.
Ultimately, Geiger said the state and municipalities need to simplify systems and policies so that people can easily access them. He refers to this as the Ice Cream Truck approach.
Just as an ice cream truck travels through one’s neighborhood with a selection of frozen treats, so should state and municipal services meet people where they live and be easy to consume.
Here’s how it can work if, say, you want to install solar panels on your house: Make one call to the housing helper; a truck shows up, and workers install the panels. Or if you want to build an ADU: Make a call to discuss design and budget with the housing helper, who then lines up funding, contractors and an install date. Done.
“We want people to build housing? Let’s not make it hard,” Geiger said.
Olga Peters is a freelance writer from Windham County
