Montpelier: Economy

Major Industries and Commercial Activity

Montpelier's economy is dominated by state governmental activities. Approximately 2,300 state employees work in Montpelier—truly remarkable in a city of its size. The presence of state government has led to a large service and retail industry. Higher education and insurance, including the headquarters of National Life Insurance Company, which is among the nation's largest insurance providers, also are significant economic presences. Due to its position at the center of a popular East Coast resort area, as well as being the state capital, Montpelier supports a thriving tourism industry; the Sugarbush and Mad River Glen ski areas are known throughout the northeast. In the Central Vermont region, which includes Montpelier, are manufacturers known worldwide for the production of granite memorials, manufacturers of machinery and instruments for the semiconductor industry, an expanding food-processing industry including the headquarters of Ben & Jerry's Ice Cream, and many other small manufacturers.

Incentive Programs—New and Existing Companies

Local programs

The Central Vermont Economic Development Corporation (CVEDC), one of 12 regional development agencies in Vermont, assists new and existing businesses through programs such as mortgage loans, industrial revenue bonds, and low-interest loan guarantees. The CVEDC is one of just three U.S. Small Business Administration certified development companies in Vermont, and has helped bring more than $46 million in capital investment and 1,200 permanent jobs to the region since its inception in 1976. The City of Montpelier Planning and Development office guides entrepreneurs through the approval process. Through its Community Development Agency, the city administers a business development revolving loan fund, a handicap accessibility loan fund, and other economic development programs, including support of the Montpelier Downtown Community Association. The city also administers several successful housing renovation and home ownership programs to benefit persons of low and moderate income.

State programs

Vermont's tax incentive program offers incentives based on quality jobs. These tax incentives are available based on whether or not the proposed economic development meets certain guidelines, and whether a cost/benefit model analysis points to a positive net fiscal effect on Vermont's tax revenue. The cost benefit model and other functions of the program are mainly coordinated by the Vermont Economic Progress Council. Vermont's Downtown Development Act is an incentive to help benefit Vermont's downtowns with programs for rehabilitation of certified historic or older buildings, sprinkler system rebates, reallocation of sales tax on construction materials, downtown transportation, related capitol improvement fund, planning grant for qualifying for designation, and other state and federal incentives.

Vermont's Act Relating to Education, Taxation and Education Financing provides financial incentives to grow businesses that are the most comprehensive in the state's history. The statute awards tax incentives to both businesses and municipalities for economic development activity, with a special focus on small businesses. The state also offers sales tax exemptions on certain resources vital to industry, including electricity, building materials in excess of $1 million, industrial fuels, and heavy machinery and equipment.

Development Projects

The City of Monptelier and the State of Vermont, working jointly through the City-State Commission, developed the Capital District Master Plan in an effort to identify, encourage, and coordinate mutually beneficial development plans for the Capitol Complex, downtown Montpelier, and the Winooski River corridor. The plan presents recommendations and concepts for meeting the state's projected office space needs, establishing a greenway along the Winooski River, and considering numerous physical improvements to improve pedestrian and vehicular circulation and stimulate downtown redevelopment.

In 2005 the city released information on its Transportation Planning Project, with an eye toward reducing urban sprawl, encouraging alternative modes of transportation to the automobile, and making the city even more bicycle-friendly for both commuters and recreational bicyclists. Plans called for a new Winooski West Bike Path to meet with the existing Winooski East Bike Path at Stone Cutters Way, and in turn to connect with the Central Vermont Regional System that would eventually run all the way to East Barre. In 2002 voters approved $800,000 to be spent on turning the old Carr Lot train depot into a state-of-the-art transit center and public park.

Economic Development Information: Central Vermont Chamber of Commerce, PO Box 336, Barre, Vermont 05641; telephone (802)229-5711

Commercial Shipping

Montpelier is linked to major East Coast and Canadian cities by interstate highways and rail via the New England Railroad. The Burlington International Airport is located less than 40 miles away in Burlington, and corporate planes can fly to Montpelier via the Knapp State Airport in neighboring Berlin.

Labor Force and Employment Outlook

Vermont's labor force is described as productive and loyal with a low rate of absenteeism. Due to its position as the state capital and as a center for various service-oriented businesses, employment in Montpelier is dominated by professional and service-oriented jobs.

Montpelier's workforce is well educated, with nearly 17 percent of its adult residents holding an advanced degree, 50 percent holding a college degree, and 88.4 percent as high school graduates. Workers are well paid compared to regional and state averages. Average household incomes are the highest in Washington County and among the highest in Vermont.

With a preponderance of its jobs in state government, utilities, and education, the economic base for the greater Montpelier region is very stable. But the true advantage is the region's relatively high number of small businesses; there are nearly 2,300 employers in the central Vermont region, plus an estimated 2,500 self-employed workers. The average business in the region employers fewer than a dozen people, which is an advantage because small businesses tend to react to change much more rapidly than larger corporations. Analysts predict that most new jobs in the near future will be in non-manufacturing areas, especially services and trade. Finance, insurance, and real estate should remain stable.

The following is a summary of data regarding the Burlington and South Burlington, Vermont metropolitan area labor force, 2004 annual averages.

Size of nonagricultural labor force: 113,300

Number of workers employed in . . .

construction and mining: 6,100

manufacturing: 15,300

trade, transportation and utilities: 22,000

information: 3,200

financial activities: 5,400

professional and business services: 10,000

educational and health services: 18,100

leisure and hospitality: 10,700

other services: 3,700

government: 19,100

Average hourly earnings of production workers employed in manufacturing: $13.65 (statewide average)

Unemployment rate: 3.1% (Statewide average, 2005)

Cost of Living

The following is a summary of data regarding several key cost of living factors in the Montpelier area.

2004 ACCRA Average House Price: Not reported

2004 ACCRA Cost of Living Index: Not reported

State income tax rate: 24% of federal tax liability (2005)

State sales tax rate: 6.0%

Local income tax rate: None

Local sales tax rate: None

Property tax rate: $2.65 per $100 of assessed value (2005)

Economic Information: Vermont Department of Employment & Training, PO Box 488, Montpelier, VT 05601-0488; telephone (802)828-4000; fax (802)828-4022. Department of Planning & Development, City Hall, 39 Main Street, Montpelier, VT 05602-2950; telephone (802)223-9506; fax (802)223-9524; email [email protected]

Montpelier: Recreation

Sightseeing

The Montpelier skyline is dominated by the gold dome of the State House, standing out in elegant relief against the surrounding green hills. Dedicated in 1859, the State House is constructed in the Grecian style of granite quarried in Barre; a statue of Ceres, the Roman goddess of agriculture, surmounts the dome; a marble statue of Ethan Allen, a Revolutionary War hero from Vermont, stands at the front entrance. The interior decor is Victorian, with a number of interesting details. Visitors may observe legislative sessions from January to April. Across the street is the Supreme Court Building, an example of modern architecture. On a hill off State Street a few blocks west of the capitol, Green Mount Cemetery was founded in 1854 and has been a memorial for the area's talented sculptors and prominent citizens.

Hubbard Park, behind the State House, offers a good view of the Worcester Mountains and the Winooski River Valley; the park was created through a gift of 125 acres to the City of Montpelier by John E. Hubbard in 1899. Since then several other parcels have been added to the park which now consists of 185 acres and roughly 7 miles of hiking and skiing trails, numerous picnic areas, a soccer and baseball field, a small pond, a sledding hill, and a 54 foot observation tower. The observation tower offers spectacular views of from the highest point in the city.

World War II mementos from the USS Montpelier are on view at the second floor of Montpelier City Hall. Architecture buffs may enjoy a stroll through the Vermont College campus, where many fine examples of Victorian architecture are preserved. Montpelier has the largest historic district in Vermont, and walking tours are offered by the Montpelier Heritage Group, the local historical society and preservation organization.

Rock of Ages Quarry in Barre, producer of one-third of the country's memorial granite, offers visitors a surreal view of a working quarry. Nearby Waterbury is home to Ben & Jerry's Ice Cream Factory, which offers tours year-round. The world-famous Cabot cheddar cheese is produced in nearby Cabot, Vermont, where factory tours are available. Wanderers will discover several historic covered bridges throughout the region.

Arts and Culture

Thousands of tourists visit Central Vermont each year, allowing the development of cultural activities in Montpelier beyond what would be expected in an area its size. The Montpelier Theater Guild, a long-time local theater troupe that was recently resurrected after a several-year intermission, offers theater productions at Montpelier's Union Elementary School Auditorium. The Lost Nation Theater presents professional theatrical performances at the City Hall Arts Center. The Onion River Arts Council presents performances by touring companies in a variety of disciplines, including theater, dance, music, and readings at City Hall and at the elegant Barre Opera House. The finest in world cinema, past and present, is offered at the Savoy Theater, while contemporary films run at the Capitol Theater.

Music lovers enjoy the Vermont Philharmonic's season of concerts performed at the Barre Opera House. Band concerts are held on the State House lawn from June through August, and concerts from a variety of musical genres are presented on Sunday afternoons at Bethany Church. The Montpelier Chamber Orchestra Society has offered unique training and performing opportunities for talented string players in the Central Vermont area since the early 1990s.

The history of Vermont is interpreted through exhibits at the Vermont Historical Society Museum in Montpelier. The T. W. Wood Art Gallery, which celebrated its centennial year in 1997, and the Vermont College Art Center offer permanent exhibits by Thomas Waterman Wood, a Civil-War era artist, as well as changing exhibits by New England artists. The Artisans Hand gallery on Main Street features the handcrafted work of more than 125 local artisans.

Arts and Culture Information: Onion River Arts Council, 43 State Street, Montpelier, VT 05602; telephone (802)229-ARTS; toll-free (800)639-1383

Festivals and Holidays

The State House lawn is the scene of a variety of celebrations during the summer months, such as the Vermont Dairy Celebration in June, and Victorian Ice Cream Social. The Vermont Quilt Festival in nearby Northfield is one of the nation's oldest quilt events, featuring quilt displays, classes, and a merchant's mall. The Vermont Festival of the Arts in the nearby Mad River Valley goes on for three weeks in mid-summer with culinary events, art exhibitions, musical performances, and children's events. Each September brings the Granite Festival in Barre and the Celebrate the Winooski Parade and Festival in Montpelier. Winter brings the Kids' Fest in January and February, a series of six weekly live performances. Sugaring season, which usually begins in March, is celebrated at various locales in the area.

Sports for the Spectator

Burlington, Vermont, less than hour's drive from Montpelier, is home to the Vermont Grizzlies minor league baseball team, which plays at Red Oak Park. The Grand Prix Tennis Tournament is held in nearby Stowe in early August.

Sports for the Participant

One of the principal attractions to life in central Vermont is the easy accessibility to nearly limitless outdoor recreation. Because of this the region attracts outdoor enthusiasts and encourages active, healthy lifestyles among the people who live there. In 1997 Montpelier initiated the first major Central Vermont bicycle and pedestrian paths. The paths provide unrestricted access to the riverbanks and views of the river and both downtown and rural areas of the city. There is excellent mountain biking in the Green Mountains throughout the region. Swimming is available at the Recreation Field pool, at a beach in nearby Wrightsville, or at any of a number of smaller lakes in the area. Winter events include sledding, cross country skiing, and snowshoeing at Hubbard Park, and ice skating outdoors or at a local indoor rink. Montpelier is located within 25 miles of four major ski areas, including Sugarbush, Stowe, and Mad River Glen; there are also dozens of lakes and streams for fishing and canoeing, mountains, golf courses, tennis courts, bowling alleys, and other recreational attractions. The Green Mountain National Forest covers much of the area.

Shopping and Dining

Downtown Montpelier offers a variety of specialty shops, such as The Artisan's Hand, a cooperative craft shop featuring works by Vermont artists, and Bear Pond Books, stocking a good selection of New England titles. Salaam Boutique has trendy fashions from local designers. The Vermont Trading Co. has natural fiber clothing, and Onion River Sports features quality outdoor clothing and gear. Morse Farm, a few miles away, specializes in maple syrup, fresh produce, and cheese. Bragg Farm Sugarhouse and gift shop, in nearby East Montpelier, offers films and tours about maple sugarmaking, as well as tasty food specialties and unique gifts. The Hunger Mountain Co-Op at Stone Cutters Way features local and regional beers and wines.

The presence of New England Culinary Institute offers a unique advantage to the hospitality industry in Montpelier. The institute maintains three restaurants, including the celebrated Chef's Table restaurant, a bakery, and a catering service, offering nouvelle cuisine and other items prepared by students. The GoldenDomer Brewery offers tastes of the latest brews. Conoscenti and Giasole offer Italian and Mediterranean cuisine. J. Morgan's is a steakhouse right near the railroad tracks. McGillicuddy's is an Irish pub and Thrush Tavern claims the best burger in town. The area offers scores of other dining opportunities ranging from fast-food to elegant restaurants and charming country inns.

Visitor Information: Central Vermont Chamber of Commerce, PO Box 336, Barre, Vermont 05641; telephone (802)229-5711; email [email protected]. Vermont Department of Tourism and Marketing, toll-free (800)-Vermont

Montpelier: Education and Research

Elementary and Secondary Schools

The management of the Montpelier public schools is vested in a Board of School Commissioners, which appoints a superintendent. According to the superintendent, test scores of public school students in Montpelier are above state and national norms, and 80 percent of high school graduates go on to college. Each school building is supplemented by an Educational Support Team that assists with academic remediation, behavioral support, and motor and language development. Preschool special education and at-home or daycare education is coordinated through the Essential Early Education System.

The following is a summary of data regarding the Montpelier public schools as of the 2004–2005 school year.

Total enrollment: 1,077

Number of facilities

elementary schools: 1

middle schools: 1

high schools: 1

Student/teacher ratio: 18:1

Teacher salaries

average: $38,636

Funding per pupil: $9,353

Public Schools Information: Superintendent of Schools, Montpelier School District, 58 Barre Street, Montpelier, VT 05602; telephone (802)223-9796

Colleges and Universities

Montpelier is home to Vermont College, which offers a full range of undergraduate majors, coeducational military lifestyle at the Northfield Campus, nationally renowned adult degree and creative writing programs, a nursing program, and the state's only school of architecture at its 35 acre Montpelier campus. In 2001 the 1,000-student Vermont College was acquired by Union Institute and University, which also maintains a campus in Brattleboro, Vermont. The Community College of Vermont is also located on the Vermont College campus and offers associate degrees and other educational services to approximately 900 students annually. Norwich University's adult degree program is also operated from Vermont College. The New England Culinary Institute, with 400 students, offers an Associate's degree in Occupational Studies and a Bachelor's degree in Service and Management. The school occupies a four-acre Main Street campus. In addition to the main campus, the school owns and operates the Chef's Table and the Main Street Bar & Grill restaurants and the La Brioche Bakery & Cafe downtown. In 2004 the New England Culinary Institute was named Best Cooking School by the International Association of Culinary Professionals. Woodbury College, which offers programs in mediation, paralegal studies, prevention and community development, and psychology is also located in Montpelier. More than half of the seventeen colleges in the Vermont Consortium of Colleges are within 90 minutes of the city.

Libraries and Research Centers

The Kellogg-Hubbard Library, privately endowed in 1894, houses a collection of more than 69,000 items in its Adult Library; its Children's Room offers a collection for ages up to 14.

The Vermont Historical Society Library in nearby Barre holds more than 50,000 volumes on Vermont history, Vermontiana, and New England history and genealogy, as well as photographs and maps. The library's manuscript collection offers letters, diaries, business records, and personal papers documenting the lives of ordinary Vermonters, including a special Civil War collection and documents tracing Vermont's history with the underground railroad. The Historical Society also maintains a museum in Montpelier.

The State of Vermont Department of Libraries has extensive microfiche and software as well as 220,000 volumes on current state and federal statutory law. The Nature Conservancy of Vermont conducts research on rare plants and animals.

Public Library Information: Kellogg-Hubbard Library, 135 Main St., Montpelier, VT 05602; telephone (802)223-3338; fax (802)223-3338; email kellogg–[email protected]

Montpelier: History

Montpelier was settled relatively late in comparison to other Vermont towns. The first permanent settler was Colonel Jacob Davis in 1789. In 1791, the year Vermont entered the union, Montpelier organized itself as a town. It is not known why a town notable for an unusually large number of whiskey distilleries chose the name of a French town notable for wine and brandy, and there are various theories about why Montpelier was chosen by the state legislature in 1805 as the permanent state capital. The theories range from Montpelier's central location to promises of land and money. Some local historians hold that topography explains the development of Montpelier, as four branches of the Winooski River come together there to form what is generally regarded as Vermont's most important river. Since in Vermont roads follow rivers, they explain, the coming together of many roads caused it to become a meeting place for both government and commerce.

The town carried on a thriving trade during the early nineteenth century, attracting craftsmen, factories, sawmills, and ironworks. Nearby Barre's quarries attracted granite workers and sculptors from Italy and Sweden; stonecutters from Spain settled in Montpelier. The coming of the railroad in the mid-1800s stimulated business and brought in the first tourists. At the same time, Dr. Julius Dewey, father of Spanish-American War hero Admiral George Dewey, decided that selling life insurance would be more lucrative than practicing medicine and founded the National Life Insurance Company, now one of the oldest life insurance companies in the world. Following the Civil War of 1861–1865, resort hotels such as the Pavilion in Montpelier attracted visitors from throughout the country, further stimulating Montpelier's economy. The first state publicity service in the country was established in Montpelier in 1891, hurrying the flow of tourism. When the first rope tow in the country powered by a Model T engine was rigged up in Vermont in 1935, the ski industry was born. Montpelier is located near three of Vermont's largest ski areas.

In March 1991, ice floes acting like a dam altered the course of the Winooski River, sending much of it rushing through downtown Montpelier and leaving some areas under six feet of water. Damage was estimated at tens of millions of dollars. Montpelier, in many ways a classic small town, saw its ambitious plans for a riverfront and office park development take shape when construction began in 1997 on the Winooski Riverfront Redevelopment Project. Besides adding acres of parkland, including several hiking and cross-country ski trails, the city has developed some pocket parks. At the dawn of the new millennium Montpelier quietly enjoys its reputation as one of America's most livable cities, with a strong local economy, easy access to beautiful natural surroundings, and minimal growth.

Historical Information: Vermont Historical Society, Pavilion Building, Montpelier, VT 05602; telephone (802)828-2291

Montpelier: Communications

Newspapers and Magazines

Newspaper readers in Montpelier are served by the Times-Argus, published weekdays in the evening and in the morning on weekends. Seven Days Newspaper is a weekly covering Vermont news, views, and culture. Magazines published in Montpelier include Vermont Life, self-described as the "most beautiful magazine in the world," American Journal of Art Therapy, and Organic Farmer.

Television and Radio

Television viewers in the Montpelier area may choose from three network affiliates and a public television station. Cable television is supplied by Adelphia Entertainment. One FM radio station broadcasts from Montpelier. A variety of radio formats emanate from surrounding communities, including Burlington, although signals can be unpredictable depending on location due to interference from the Green Mountains.

Media Information: Times-Argus, 540 N. Main St., PO Box 707, Barre, VT 05641; telephone (802)479-0191. Vermont Life, 6 Baldwin St., Montpelier, VT 05602; telephone (802)828-3241

Montpelier Online

Central Vermont Chamber of Commerce. Available www.central-vt.com

City of Montpelier Home Page. Available montpelier-vt.org

Kellogg-Hubbard Library. Available www.kellogghubbard.lib.vt.us

Montpelier Public Schools. Available fc.mpsvt.org/∼mps

Seven Days Newspaper. Available www.sevendaysvt.com

State of Vermont Department of Economic Development. Available www.thinkvermont.com

Times-Argus. Available www.timesargus.com

Vermont Department of Tourism & Marketing. Available www.1-800-vermont.com

Vermont Life Magazine. Available www.state.vt.us/vtlife

Vermont Lodging and Restaurant Association. Available www.visitvt.com

Vermont Newspapers and Magazines. Available www.vtliving.com/newspapers

The World (Central Vermont's online newspaper). Available www.vt-world.com

Selected Bibliography

Beardsworth, Gary, Recipes from the Moon: More Recipes from the Horn of the Moon Cafe (Ten Speed Press, 1995)

Lager, Fred, Ben & Jerry's: The Inside Scoop: How Two Real Guys Built a Business with a Social Conscience and a Sense of Humor (Three Rivers Press, 1995)

Thompson, Daniel P., History of the Town of Montpelier, From the Time It Was First Chartered in 1781 to the Year 1860. Together with Biographical Sketches of Its Most Noted Deceased Citizens (Montpelier: E. P. Walton, printer, 1860)