March 27, 2006; Rutland Vermont USA VT ; Motorcycle events news Vermont; Rutland business in the middle; By Bruce Edwards Herald Staff; Workers make a shift change at the General Electric plant on Columbian Avenue in Rutland.

It's rarely ever the best of times or the worst of times. That's how Bill McGrath sums up Rutland's economy. McGrath should know. As the executive director of the Rutland Economic Development Authority, McGrath has his fingers on the region's economic pulse. From McGrath's vantage point, Rutland never experiences the economic lows of some of parts of the state, like the Northeast Kingdom, nor the economic highs of Chittenden County — home to an IBM chip plant. Right now, McGrath sees a local economy that's doing quite well with a relatively low unemployment rate of 3.8 percent.

"It looks very good, McGrath said. "The only fault in the area is GE and that's not that bad." Faced with a decline in military engine orders, GE Aviation recently offered a voluntary retirement package to its long-time employees with the goal of reducing its 1,485-person workforce by up to 65 employees,
REDC is about to close on three lots in the Airport Park in North Clarendon. Two of the lots are situated in the existing industrial park while the third is part of the Phase II expansion across Route 7B. McGrath said there is also an option on a second lot in Phase II.

Despite that success, McGrath said that recruiting new industry to the area isn't easy. "It's difficult to recruit businesses to Vermont," he said. "One (reason) is we're on the tail end of the transportation system." To overcome that hurdle, he said REDC looks for companies with an existing Vermont connection.

"What we've done is we've looked for businesses with a connection to Vermont,' he said. "It works out much better with someone with connections to Vermont." "Rutland isn't the worst in the world but it's not the best."

However, he pointed out that that some companies, like GE, with no Vermont customers have thrived here, despite the lack of an interstate nearby. McGrath said that a lack of suitable industrial sites and the current labor shortage adds to the difficulty in attracting new business to the region. A major problem for employers, he said is "employers around the area are having a problem finding employees." He said employers are willing to train workers who lack the job skills if they have basic skills.

He said the labor situation would improve if young people would stay in the area instead of moving out of state to pursue job opportunities that either are limited or don't exist here.

Thomas Donahue of the Rutland Region Chamber of Commerce isn't as bullish on the local economy as McGrath. "The economy is stagnant and hasn't changed much from last year," said Donahue, the chamber's executive vice president. "Businesses are surviving but are not very successful."

"Nobody is really doing particularly well," he said. From Donahue's perspective, Vermont lacks a business-friendly environment. "Vermont has not presented the image that we're open for business and that's made it very difficult to attract new business, with no hope in sight for improvement." Donahue said that hurdle also affects existing businesses that may be reluctant to expand.

"I think there are some big issues that need to be addressed," he said. Those issues include reforming the permit process, not only Act 250, the state's land use law, but also to make workers' compensation more affordable for employers. The tourism industry took back-to-back hits this fall and winter, Donahue said. He said the fall foliage season was beset with rain for much of the time, hurting tourism-related businesses. That was followed by a winter with its own weather challenges with a lack of snow.

"We've had two back-to-back seasons that don't support the economy," he said. "So many businesses that have built themselves around tourism." Rutland's downtown has undergone dramatic changes over the past dozen years: Once an eyesore, the downtown shopping plaza has been completely renovated with new stores including a Price Chopper, a nine-screen cinema and one of the few downtown Wal-Marts in the country. The region and the core business district has also gotten a boost from the multimillion-dollar renovation of the Paramount Theatre as a performing arts center.

The Paramount has had the added benefit of serving as a magnet for new retail stores, especially along Center Street, according to Mary Anne Goulette of the Downtown Rutland Partnership. At the same time, Goulette said the retail climate could use some improvement. The lack of snow this winter that has kept skiers off the slopes has hurt business, she said. "There's a decrease in our foot traffic in general and that's a reflection that people don't have the time to spend shopping and a reflection of the weather."

While Center Street has just one retail vacancy, there are several around the corner along Merchants Row, including the former Eastman's store, which closed last year after more than 50 years in business. To survive in today's retail environment, Goulette said requires changing with the times. "There's more competition out there, not only with big boxes but the Internet, she said. "You need to change with the times. It's really important to capture your customer. It's how to recognize what's successful in business and how to make changes."

For downtown, she said that means continuing the trend of attracting specialty stores like Center Street Artisans that offer unique products.

Downtown will get a boost later this year as Rutland celebrates its railroad past with All Aboard Rutland (www.allaboradrutland.com). More than 50 local artists are painting wooden trains that will be displayed around downtown and then will be auctioned in October.

"That's going to expose a lot more people to Rutland," she said. "We're really expecting this to have a dramatic increase in retail sales."

Unseasonably mild weather this winter has hurt the ski industry, a major contributor to the state and local economies.

Skier visits at American Skiing Co. resorts in the East, including Killington and Mount Snow in Vermont, are down 3 percent so far this season.

"I'm seeing good business from the destination market at Killington," said Allan Wilson, Killington's general manager. "What I'm not seeing is as much day business."

Wilson's assessment of the local economy is general is one that faces several challenges, including higher costs to do business.

"There are tremendous cost stresses associated with the reality of life," he said. "That is anywhere from gas, energy costs, the 27 percent increase in water; it's medical."

Wilson predicted that increased costs "are going to cripple some small- and medium-sized businesses."

Because of competitive pressure, Wilson said raising prices isn't always possible to cover the increased cost of doing business which leaves a business with the other option of growing volume.

"I don't believe the region has been successful at growing volume," he said. "I believe the region has made a very valiant effort to bring businesses in … to run events like the Killington Classic or like what Killington is doing with the opening ceremonies in Rutland for the USAA nationals."

But Wilson said those efforts have fallen short.

"Where I think we need to head and the city needs to head is to look at where we're investing what I'll term the growth dollars," he said. "And are we investing them in the proper places?"

Those areas, Wilson said, include manufacturing, high-tech businesses and tourism.

"What return are we getting to those dollars," he said.

He questioned whether the region was spending enough to promote tourism as opposed to other sectors.

A case in point is the now-defunct Killington Classic motorcycle rally that drew thousands of tourists to the area. Because the promoter lost money, the event was canceled.

"He personally lost $39,000 last year but Rutland gained. Now the Rutland region is also going to lose," Wilson said. "So as a community how are we going to embrace this thing and make sure these entrepreneurs are making money?"

Contact Bruce Edwards at bruce.edwards@rutlandherald.com.

May 4 2006; BRATTLEBORO, Vermont Vt.;

Sheriff's departme24 wants biker lawsuit dismissed ; BRATTLEBORO, Vt. --The Windham County Sheriff's Department wants a judge to dismiss a lawsuit filed by a motorcycle club that argues a rally through southeastern Vermont planned for August 2004 was illegally prohibited.

Breaking News Alerts The department is arguing that its officers were entitled to governmental immunity from the lawsuit, department attorney Jeffrey Marlin said in court documents.

The "officials are entitled to qualified immunity when their decision was reasonable, even if mistaken," Marlin said. Marlin also argued the department didn't violate the rights of the bikers from the Connecticut-based Pathfinders Motorcycle Club, who were planning to hold the Red Fox Turkey Run, which was shut down by the deputies.

He said the deputies were "acting reasonably" when they enforced a new ordinance in the town of Jamaica that had not become law because town officials told them it was valid. "The issue is not whether, with the benefit of hindsight, the Sheriff's Department defendants were in error in deciding that the event qualified as a race within the meaning of the racing statute," he wrote.

"The question is whether reasonable officials, putting themselves in the defendant's shoes, could disagree regarding the appropriate measures to be taken based on the circumstances presented to Sheriff's Department defendants." Get the whole VT motorcyle news story here...