Editor’s note: This article is by Howard Weiss-Tisman, of the Brattleboro Reformer, in which it was first published Aug. 5, 2015.
[B]RATTLEBORO — When Brattleboro Development Credit Corp. Executive Director Adam Grinold found out earlier this year that one of the region’s largest employers was contemplating a move outside of Vermont he wanted to know right away what could be done to stop the plan.
Grinold found out in April that G.S. Precision, the region’s largest precision machine shop, needed to expand and was looking at parcels away from the Exit 1 Industrial Park where the business has been located since 1985.
Now Grinold is trying to work out a deal between BDCC, the town and G.S. Precision to convince the business to stay in Brattleboro.
“We are leading efforts to identify and assemble a number of appropriate federal, state and local supports that would accommodate a decision by G.S. Precision to expand in Vermont,” Grinold said in response to questions about the closed door negotiations that have been going on. “As with any large private sector development project, many details are still being worked out and agreements negotiated. Further BDCC comments on this project can be expected as specific details and agreements are finalized.”
G.S Precision was founded in 1958 and the company manufactures precision machine parts for the airline, aerospace, medical, fiberoptic, automotive and other commercial industries.
In 2014 G.S. Precision acquired the Keene, New Hampshire-based Knappe and Koester Inc. and the company today has about 500 employees. G.S. Precision is moving ahead on a project to construct a new 54,000-square-foot manufacturing facility in West Chesterfield, New Hampshire, that is expected to bring about 200 jobs to the area.
A representative from G.S. Precision declined to comment on the pending deal.
Grinold said he found out earlier this year that G.S. Precision was looking to add about 100 jobs to its force, and that the company did not think it would be possible to expand at its current home in the Exit 1 Industrial Park.
Brattleboro officials have been brought in on the complicated and sensitive negotiations and a three-way deal is in the works that would have the town committing to developing two additional sites at the Exit 1 Industrial Park if G.S. Precision agrees to remain in Brattleboro.
The town is contemplating a $2.6 million development agreement with BDCC that would expand two additional serviced lots at the Exit 1 industrial park.
Under terms of the agreement the town would extend water and sewer lines and extend John Seitz Drive by about 1,900 feet to reach the two new sites on about 48 acres within the Exit 1 Industrial Park.
The two sides are already talking with the Vermont Economic Development Authority about securing a loan, and the project will also be funded with a direct BDCC investment.
The project could also be backed with a $1.3 million grant from the Economic Development Administration through the Public Works and Economic Adjustment Assistance grant program.
That grant is highly competitive, according to a memo Town Manager Peter Elwell wrote to the Selectboard members in early July, but the region’s recent loss of high paying jobs at Vermont Yankee could give officials at the regional Economic Development Administration office in Philadelphia incentive to approve the grant.
The project, however, hinges on G.S. Precision’s decision to commit to stay and expand in Brattleboro.
“For the EDA to approve the grant and allow the project to move ahead as described there must be an operation and maintenance plan for the new infrastructure, and BDCC must receive final confirmation that G.S. Precision will purchase one of the new sites,” Elwell wrote in his memo. “G.S. Precision is expecting to formalize its plans later this summer.”
The proposed deal would have G.S. Precision agreeing to build a new manufacturing facility on the larger of the two parcels, and moving into the new factory before July 1, 2017.
If all of the pieces fall into place the town will assume public ownership of the infrastructure improvements.
If G.S. Precision does not build its new facility the town has no obligation to take over ownership of the improvements.
“The benefits from the project are many,” Elwell wrote. “Brattleboro’s grand list will experience significant growth as a result of this project and the area will benefit from expanded employment by a known manufacturer that has a long history of offering high wage compensation to its employees.”
The Selectboard was poised to approve the agreement last month but the proposed deal was pulled back at the last minute.
Elwell refused to comment on the ongoing talks, saying only that BDCC was trying to work out all of the details before the town signs on to the infrastructure improvements.
“BDCC asked the town not to approve the development agreement until the various parties had an opportunity to refine certain other details of the project,” he said.
It is not clear if the pending deal in Brattleboro might affect the West Chesterfield project.
