Economic turmoil in Lamoille County

Aerial view of Stowe. Photo: Mark Vandenberg.

By Joey Choquette, Vermont Business Magazine

Businesses in Vermont have worked to regain their footing after a few years. What are businesses and charities in Lamoille County struggling with right now? And where have you seen more success?

The region is known for its popular tourist destinations, Stowe Mountain Resort and the Smugglers’ Northern Resort named after Mountain Pass. And while it’s well-known and well-photographed, the county boasts manufacturing and finance, higher education and entrepreneurship.

Located in the north central part of the state, Lamoille County includes a diverse mix of mountains and valleys, small towns and rural areas. According to the 2020 US Census, it covers more than 462 square miles, with an average of 56 individuals per square mile. There are 966 employers in the county employing an average of 10,894 people.

Tourism and medical services are the most popular industries in the county, followed by higher education and a mix of B2B businesses. Some of the largest employers in the area include Stowe Mountain Resort, Copley Health Systems, Contraband Knot Resort, Northern Vermont University and a mix of other nonprofit and for-profit organizations.

Photo: Smugglers Note is famous for being family friendly. Courtesy photo.

According to the 2020 Census, the median annual income for individuals living in Lamoille is $66,016. The average poverty rate is 8.7%.

CEOs of local business development centers, associations and business leaders weigh in on what the pandemic has taught them.

New developments in the county

Patrick Ripley, executive director of the Lamoille Economic Development Corporation and Lamoille Chamber of Commerce, said local economic diversity is key to the county’s growth.

Photo: Pat Ripley, Executive Director, Lamoille Economic Development Corporation and Lamoille Chamber of Commerce. Photo: LEDC

“While travel and tourism is currently a major contributor to our local economy, expanding beyond the hospitality sector is something we need to work on,” he said.

Like many areas of Vermont, Lamoille County is currently dependent on tourism dollars to thrive, Ripley explained.

“It looks like we will continue to expect this flow of money into the region for the foreseeable future,” he said. “My hope is that this trend will lead to better confidence among entrepreneurs who are thinking of moving to Lamoille County and setting up shop.”

Having this strong backbone, Ripley said, will benefit not only tourism-based businesses, but everyone who lives and works in the county.

“We hope this will bring more workers available in all employment sectors,” he said.

While there are many complex challenges to bringing more economic diversity to the county, Ripley noted, it’s worth pursuing.

“We have a strong manufacturing community in Lamoille County that can benefit from a strong local economy that supports more workers,” he said.

Tasha Wallis, executive director of the Lamoille County Planning Commission, is bullish about the county’s economic outlook, with its population expected to grow by 6 percent between 2010 and 2020.

Photo: Tasha Wallis, Lamoille County Planning Commission Executive Director. Photo: Kevin Goddard.

“Even before the pandemic, we were the second fastest growing county behind Chittenden,” she said.

With the Lamoille Valley Railroad nearing completion, Wallis believes there is room for more growth in the county.

“We feel that the recreational opportunities along the (railroad) line provide great opportunities for our community,” Wallis said. Restaurants, hotels and downtown businesses will be easier than ever to reach via LVRT.

New and ongoing investments in social service programs and local organizations provide further evidence that the county is well positioned for future growth. One example is Jenna’s Promise, a non-profit organization that supports individuals seeking recovery from drug addiction. The Jena Promise offers a community space, workforce development rooms, recovery residences and a recovery house. A coffee roaster and cafe provides a secure job opportunity for those in recovery.

Construction of affordable housing has also continued apace in the county. The Lamoille Valley Housing Partnership will open River Bend Apartments, a mix of 14 income-worthy apartments and six apartments for households facing homelessness in 2022. A second development by the housing partnership, Village Center Apartments, will open later this year. It includes 24 income-eligible apartments.

In Jeffersonville, Ben Waterman, manager of the recently formed property development company Lamoille Beaulieu, has plans to develop the now dilapidated and contaminated Jeffersonville Granary site.

“We plan to revitalize the commercial property and revitalize the agricultural heritage by creating a vibrant retail and value-added processing hub for at least four local food businesses,” Waterman said.

An anchor tenant operates a bakery/cafe, including milling grain for local agricultural businesses. Waterman Orchards, owned/operated by Waterman, also occupies a small portion of the new grain barn.

The project will support the existing Burger Bar restaurant. Other site improvements include converting a 2,600-square-foot portion of the building into a public green space, creating a new 300-foot public access walkway, parking improvements for 46 total spaces, stormwater infrastructure and a dedicated public outdoor gathering space, Waterman said.

“Building renovations include a new, open-air, 700-square-foot, three-story pavilion facade as a retail facade, renovation of a 6,000-square-foot retail and food processing space, and major roof energy efficiency upgrades and replacements,” he said.

There are also plans to upgrade to 3-phase power, complete the installation of a commercial kitchen and provide disabled access and toilets. All are built above Vermont’s commercial building energy standards.

“We are looking for opportunities to install solar panels and heat pumps on the roof, which will move the building further towards net zero,” said Waterman. “The entire property will be completely transformed, making it highly economically viable, welcoming, safe and enjoyable for the local community.”

Challenges in Lamoille County

Still, challenges remain. More affordable housing is also needed in the region, and smaller communities like Wolcott and North Hyde Park need improved infrastructure.

“This has some growth in some of our communities,” Wallis said.

Transportation also remains an ongoing challenge.

“Public transportation is limited and we don’t have an interstate,” Wallis said.

As Stowe continued to grow, it faced its own transportation problems. Especially during the skiing season, he struggles with traffic jams. A traffic study was recently approved by the city and will be conducted for a year to determine how to improve the situation. The study is estimated to cost $80,000 by South Burlington engineering and consulting firm Stantec.

Ripley Like much of the state, Lamoille County is struggling with housing and labor shortages.

“These two factors, among others, are intertwined. While we have strong numbers that show that the pandemic has not limited the demand from travelers coming to our region and that those travelers are still willing to pay, businesses have unfortunately been unable to increase this flow of dollars because they have not been able to adequately operate their businesses,” said Ripley. he said.

He referred to this as a “complex issue” with many reasons.

“A lack of affordable labor housing may be to blame in the first place, but there are other contributing factors, such as access to affordable childcare and transportation,” Ripley said. “If we can address these challenges and get workers into the jobs that are available, good things will happen not only for businesses, but for all Lamoille County residents.”

Carrie Simmons, executive director of the Stowe Area Association, agreed. “Workforce development and housing, along with transportation, will continue to be challenges that impact our region and others across the state,” Simmons said.

Photo: Carrie Simmons, Stowe Area Association Executive Director. Photo: SAA

Businesses are also feeling the pinch.

“Over the past 12 to 18 months, inflation has been putting pressure on our business,” said Steve Clokey, vice president of marketing at Smuggled Not Resorts. “In many cases, it will be difficult to pass the increase on to the consumer, so we end up losing margins. Wage costs have also increased significantly over the past year due to staffing needs and the ongoing labor shortage.”

“Smugglers’ Note is partnering with international student staffing agencies to fill entry-level elevator jobs, food and beverage and other essential positions, bringing us close to 100 percent of positions,” Clokey added.

Additional government investment in infrastructure is key to boosting the region’s economic prospects, Clokey said.

“Quality road systems and infrastructure improvements can directly benefit from any increase in tourism,” he said.

Recovering from covid-19

Like many areas that depend on tourism dollars, local businesses have wondered what the post-pandemic outlook might be. Do visitors return?

“We’re excited to see increased tourist dollars coming to Lamoille County as the epidemic subsides,” Ripley said. Travel opportunities eased after the outbreak, he said, as travelers quickly returned to Lamoille County despite any concerns.

Simmons Stowe is also running back, and then some. The region recorded its highest decline in 2022.

“September occupancy was 57% — about the same as pre-pandemic levels,” Simmons said. “And October saw the single highest occupancy levels of any month, with an average occupancy rate of 78.5% – up nearly 20% from 2019.

Winter tourism was also strong in Stowe. “It was the second best performance in the last 10 years,” Simmons said.

Smugglers note. Photo courtesy of Vermont State Parks.

Shoulder seasons, too, experience a significant increase in visitors. Simmons’ typically quiet months of April, May and November all saw better-than-expected occupancy rates. April rates increased by 4.5%, May rates increased by 12.8% and November rates increased by 6.8%.

Looking ahead, Ripley said the county’s businesses can rest assured that their marketing and service efforts will be rewarded by travelers looking to spend both time and money in the Green Mountain State.

“My hope is that confidence will help usher in more economic growth in the region and beyond,” Ripley said. Best of all, economic development is not limited to hospitality and other tourism-related businesses.

Lamoille County is vibrant and full of talent and opportunity. Although, like the rest of the province, it has its challenges, the area offers a variety of activities – from world-class ski resorts to cross-country skiing, hiking, biking and more.

In addition, a healthy manufacturing industry, higher education and medical facilities are providing the county with significant and sustained economic growth.

Joy Choquette is a freelance writer from northern Vermont.