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October 3, 2003
HANCOCK. (AP) - A $640,000 loan from the Vermont Economic Development Authority will help keep a wood products manufacturer in business.
The loan for Vermont Hardwood Products Corp. will help it buy the 76-year-old Hancock plywood plant from Chesapeake Hardwood Products, which had planned to close the plant, said VEDA Managing Director Jo Bradley.
The Hancock loan was part of a $2.1 million package of loans for six projects.
Hancock Select Board Chairman James Leno said the VEDA loan was one piece of financial assistance needed to help secure the mill's survival.
Leno said Vermont Hardwood Products is made up of a group of investors from West Burke that have signed a purchase and sales agreement to acquire the mill from its Virginia owner. He said another key component of the deal involves the town applying for a state grant.
"They are asking the town to apply for a Community Development Block Grant in the amount of $750,000. The town would then loan that money to the company for the purchase of new equipment," Leno said.
Leno said the mill remains a significant taxpayer in a town of 400 with a limited tax base.
"The town of Hancock is 80 to 82 percent owned by Green Mountain National Forest, so we have a very small tax base," he said.
Leno said the town has already signed a letter in support of tax stabilization for the mill, if certain criteria are met.
He said that it's his understanding that the mill, which at one time employed 90 workers, would operate one shift and increase employment from the current 32 employees to 58 within two years.
VEDA also approved loan requests for Star Hill Dairy LLC of Woodstock, the Pond Ridge Motel on Route 4 in Woodstock, Beau Ties Ltd. of Vermont received a $208,000 loan as part of a $520,000 package to buy the Middlebury company's existing manufacturing facility; Vermont Ag Products of Middlebury and Commercial Aviation Services LLC of Shelburne.
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