Bennington Economic Development Fund Page 1 of 3 Revised: 06/16/15

Town of Bennington

THE BENNINGTON ECONOMIC DEVELOPMENT FUND Program Description

Purpose:

The Bennington Economic Development Fund (BED-Fund) is designed to foster development

activities in and around the town of Bennington, VT to fulfill the Town’s strategic economic

development plan. Economic development is often a broadly defined effort, consisting of many

different methods and strategies. This source of funding shall be used to collect data, collaborate

with development partners, explore and implement opportunities for job creation and assist with

the overall improvement of the economic climate within the Town.

Creating this fund positions Bennington to quickly advance opportunities in an ever-changing

market. This program will afford the municipality a level of agility that is highly beneficial in

government. Such nimbleness will enable positive economic outcomes.

The Bennington Economic Development Fund is designed to be an internal program that is used by

the municipality to participate in strategic investment opportunities - Incentivizing development

through the implementation of strategic programs and value-added partnerships.

Scope:

This fund shall be used to support two types of activities: local initiatives that have a direct impact

on the Town’s economic vitality, and ancillary initiatives that encourage local efforts.

For the purpose of this program, the funds shall be used to support efforts within the Town’s

furthest boundary line as identified in the Town Charter. While funds may be used to support

projects in surrounding towns or at the state level, there should be a direct correlation between the

initiatives and Bennington’s economic efforts.

The use of monies from this fund will be aimed at projects that have a significantly high return on

investment and that clearly meet and/or exceed the basic factors identified for achieving economic

success. Furthermore, this fund is not meant to be used for operational expenditures. It is designed

for large-scale initiatives that have the potential to profoundly impact the economic landscape of

Bennington.

Objectives:

The objective for the BED-Fund is to provide public investment in the local economy to facilitate

and leverage private investment, thus improving the quality of life for all Bennington residents.

Bennington Economic Development Fund Page 2 of 3 Revised: 06/16/15

The supporting objectives for this program include, but are not limited to projects or initiatives that

attract and retain key businesses and professionals, and that involve as many of the following as

possible:

1. facilitate public/private development partnerships

2. implement the Bennington Economic Development Plan

3. are innovative and creative

4. create multiple benefits for the community, e.g., increasing the number of jobs,

increasing incomes, promoting community development

5. demonstrate sustainability and profitability

6. involve strong local management and expertise

7. acquire/redevelop underutilized and/or vacant and blighted properties within the

Central Business District and Designated Growth Center

Fund Sustainability:

Initial funding for this program comes from a Community Development Block Grant that was issued

in the form of a loan to Abacus Automation and repaid to the Town. The expectation is that this

program will continue to be funded through designated revenue sources, as well as through

additional funds allocated by the Bennington Select Board. This should be done through annual

investment into the fund of a predetermined amount in order to sustain the program, and add to it

in a way that promotes increased reinvestment into local economic development projects.

Releasing Funds:

As a municipal program, distribution and monitoring of funds will be administered by the Office of

Economic and Community Development as prescribed by the Bennington Select Board.

Requests for funds will be developed by the Economic and Community Development Director in

conjunction with the Town Manager or his/her designee, and in collaboration with the Select Board

as appropriate.

All requests for funds will be presented to the Bennington Select Board in the form of a

memorandum generated by Bennington’s Economic and Community Development Director along

with any supporting documentation and furnished to the Bennington Select Board in executive

session. Any decision by the board on the request will be made in open session pursuant to Board

policy. Funding approval will require a majority vote.

To protect its investment, the municipality may also choose to provide funds in the form of a loan

until a time when a particular project is actualized. Additionally, the municipality may choose to

support a project as the gap, or secondary, financier instead of the lead investor.

In order for a project to be approved by the Select Board it must meet the following criteria:

1. Projects must create or retain jobs, and/or adaptively reuse vacant or underutilized

properties or parcels, or

2. Support the Town’s Economic Development Plan, and other planning documents

3. Be consistent with zoning bylaws, and

Bennington Economic Development Fund Page 3 of 3 Revised: 06/16/15

4. Be part of a larger funding scheme that includes non-municipal funders.

Expense Reporting and Evaluation:

Updates on projects and expenditures will be presented to the Select Board at regular intervals by

the lead on the project or as otherwise requested by the Select Board, and will not supersede any of

the Town’s financial policies or procedures.

In addition, key performance indicators and milestones will be established at the onset of each

project, which will be used to monitor on-going project performance. At the completion of each

project, Town staff will give a final presentation to the public at a Select Board meeting, which will

include a detailed description of the outcome, a financial accounting of the funds used, and the

expected impact/return on investment (ROI) that the project will have going forward.

Eligible Projects:

Potential projects may include, but are not limited to:

Research and creation of tools that are used to foster interest in property redevelopment

Programs that support the Town’s Economic Development Plan

Grants and/or loans that support development and redevelopment

Property purchases that foster development opportunities

Funding may not be used for:

Projects that do not support economic development efforts in Bennington

Payment to an individual or business for the repayment of any taxes, fees, or fines

Offsetting of any municipal budget shortfalls

Examples of Projects:

Bennington, VT – The acquisition of the former Alcaro Garage and transfer of ownership to

LaFlammes furniture to recondition the property.

St. Albans, VT – The purchase of specific parcels of land that could be part of a larger

redevelopment scheme. (i.e. new Ace Hardware and downtown hotel development)

St. Albans, VT – Providing a $50,000 façade grant and a $100,000 loan to the St. Albans

House for the redevelopment of the property.

Barre, VT – The creation of a Tax Increment Financing district to further the redevelopment

of the downtown streetscape and development of public and private offices.