Rutland: Economy

Major Industries and Commercial Activity

The thriving economy of the Rutland region is based on a balance of agriculture, tourist-related services, and small manufacturing businesses producing nontraditional durable goods. The region initially thrived on the basis of its high quality marble quarrying operations, and marble is still a key component to the local economy. In the early 2000s, however, local business leaders are seeking to further diversify the economic structure of Rutland by attracting firms in the high technology sector.

Rutland is the financial and commercial center of south central Vermont. General Electric Corporation maintains two plants in the region, and since the late 1960s a thriving electronics industry has developed.

Items and goods produced: food, wood, and marble products; scales; jet blades and vanes; stone-working machinery; home repair products

Incentive Programs—New and Existing Companies

Local programs

The Rutland Economic Development Corporation (REDC) offers a revolving loan fund to help new businesses relocating to the area or for the expansion of existing businesses. Loans of between $5,000 and $75,000 are available to qualifying firms. Housed at REDC, the Small Business Development Center (SBDC) provides free technical assistance to starting and growing small businesses. Operated through the Vermont State College System, SBDC links businesses with higher education, state and federal programs, as well as other businesses.

The Rutland Regional Chamber of Commerce informs business owners or prospective owners about tax incentives. They include payroll tax credits; credits for incremental payroll; Workforce Development Tax Credit for eligible employee training costs; Research and Development Tax Credit for eligible research and development costs; Investment Tax Credit for new capital equipment exceeding an annual threshold of $250,000; and an Export Sales Incentive.

State programs

The Vermont Economic Development Authority (VEDA) is a state-wide organization that provides low-interest loans, mortgage insurance, revenue bonds, and a loss reserve fund to encourage small business loans by participating banks. VEDA can make direct loans to manufacturing firms and other eligible loans under state statute for the acquisition of land, building and improvements, machinery and equipment, and working capital. VEDA also offers a training assistance program for new and existing businesses. These individually designed programs may include on-the-job, classroom, skill upgrade or other specialized training. The Vermont Manufacturing Extension Center (VMEC) provides assistance to Vermont's small and medium size manufacturers (under 500 employees).

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; incentives include assistance with 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 others.

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.

Vermont's program incorporates a strategic framework that emphasizes quality jobs and symbolizes the state's core values with regard to meaningful employment opportunity. The statute creates an innovative approval process for awarding tax incentives to both businesses and municipalities for economic development activity, especially companies that already call Vermont home, 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.

Job training programs

The Community College of Vermont (with a branch in Rutland) and Green Mountain College (in nearby Poultney) offer two and four-year associates degrees in dozens of career-oriented concentrations. Stafford Technical Center, a public educational center primarily aimed at providing technical and career training to 11th and 12th graders from 10 regional high schools, also provides adult diploma programs and specialized training programs for business and industry. The Vermont Department of Employment and Training offers an apprenticeship training program to help employers upgrade the quality of their workforce. The department also offers on-the-job-training programs that reimburse the employer for a significant portion of employer-provided new hire training.

Development Projects

The Rutland Partnership, a public private partnership for the revitalization of downtown Rutland, has created a master plan for the commercial heart of the Rutland region. Continuing efforts include complete renovation of the downtown plaza, new streetscaping, increased office and commercial space, and a renewed emphasis on the nineteenth-century character of the main streets.

Efforts had begun as early as the early 1990s to restore the long-neglected Playhouse Theater of Rutland, built in 1912 and once considered among the finest smaller performing arts theaters in America. The successful restoration of the renamed Paramount Theatre was completed in February 2000 and an Opening Night Gala in March 2000 honored the artisans and contributors who made the historic project possible. The Paramount Theatre has again assumed its role as an arts, cultural, and educational leader, and as a significant and valuable community resource.

In 2003 large-scale development, and some attendant controversy, came to Rutland with the opening of a Home Depot store on the site of the old Rutland Mall, which was demolished due the popularity of the newer Diamond Run Mall. Fears were calmed, however, as initial studies of the economic impact of the large discount hardware chain showed negative effects on existing smaller and family-owned businesses of a similar nature were minimal.

In 2005 the Rutland Amateur Hockey Association was more than halfway to its goal of raising $3.3 million toward the construction of a new Rutland Regional Fieldhouse. Aside from hosting local youth and adult hockey leagues, the multi-use facility would be available for regional Vermont and New England hockey tournaments, bringing additional tourist dollars to the city. The proposed Fieldhouse will also attract additional meetings and exhibitions and other indoor sporting events.

Economic Development Information: Rutland Economic Development Corporation, 256 N. Main St., Rutland, VT 05701; telephone (802)773-9147. Rutland Region Chamber of Commerce, 256 North Main Street, Rutland, Vermont 05701; telephone (802)773-2747; fax (802)773-2772

Commercial Shipping

Strategically located between the markets of Boston, New York, and Montreal, Canada, Rutland County is on the shipping routes of major trucking firms, and more than 20 trucking firms are located in the area. The city is situated at the intersection of U.S. highways 4 and 7, providing east-west and north-south access and linking the region with interstates 89, 91 and 87. Railroad freight service is available throughout the area and a number of trucking companies offer services. The city is within easy reach of several major seaports and the Foreign Trade Zone at Burlington International Airport. All of the major national and international package delivery services operate in the city.

Labor Force and Employment Outlook

A small, progressive community with the cultural and recreational attractions of a much larger city, Rutland is the kind of city many of today's younger professional and high-technology workers seem drawn to. For that reason the city's economic picture remains bright. The Rutland region's work-force is viewed as among the most stable, mature, and educated in the Northeast. Once dominated by agriculture, today's working population is comprised of occupations from banker and lawyer to engineer and advertising agency and nearly everything in between. The local workforce is, in relative terms, middle-aged, most often married couples with children; own single family homes; have moderate to high incomes; are employed in professional, managerial or other white-collar occupations; with 79.4 percent as high school graduates (the national average is 75.2 percent). In a survey of Rutland area manufacturers, the high productivity and strong work ethic of employees was cited as the area's greatest business advantage. Stability and loyalty were also mentioned as characteristic of Rutland workers. It is projected that the 20- to 49-year-old age group will continue to grow.

The continued presence of General Electric Corporation is expected to provide the strength to maintain employment growth in the area. Analysts predict that most new jobs will be in non-manufacturing sectors, especially services and trade (nearly 30 percent of the local workforce in 2005).

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: 3.3% (April 2005)

Cost of Living

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

2004 ACCRA Cost of Living Index: Not reported

2004 ACCRA Average House Price: 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: Averages $2.73 per $100 of assessed value (2005)

Economic Information: Director of Community Development, City of Rutland, PO Box 609, Rutland, VT 05702; telephone (802)773-1800. Vermont Department of Employment and Training, PO Box 488, Montpelier, VT 05601-0488; telephone (802)828-4000

Rutland: Recreation

Sightseeing

Newly opened in 2004 and designed with site-sensitive structures by world renowned architect Peter Bohlin, the Vermont Institute of Natural Science's Nature Center in nearby Quechee won a 2005 Yankee Magazine Editor's Choice award in its annual Travel Guide to New England. Located next to one of New England's natural wonders, the Quechee Gorge, the Nature Center includes a state-of-the art Raptor Exhibit, displaying one of North America's finest collections of birds of prey, where visitors can come face to face with Snowy Owls, Peregrine Falcons, Red-tailed Hawks, Bald Eagles, and other birds of prey.

Rutland's restored Downtown Historic District contains many architecturally interesting buildings, some constructed of or embellished with local marble. Examples of these are the Opera House, the Gryphon Building, and Merchants Row. The Rutland Courthouse Historic District includes 85 residential, public, and religious buildings. Significant among these are the Italianate Revival-style County Courthouse, the U.S. Post Office, and the Queen Anne-style residences on South Main Street. Main Street Park, once the site of the courthouse jail, now teems with activity during the summer months. The Rutland Area Cultural Alliance offers guided tours of the historic downtown daily from July through mid-October.

The Vermont Marble Exhibit in Proctor attracts more than 100,000 visitors annually, who enjoy a view of the country's largest marble production center; also featured are a geological display, a sculptor-in-residence, a movie, and a gift shop. Near Proctor, Wilson Castle, a 32-room nineteenth century stone chateau on a 115-acre estate, is furnished with elaborate Oriental and European artifacts, stained glass, and wood paneling.

Rutland bills itself as "Heart of the Maple World," and many sugar houses in the area are open to visitors. The New England Maple Museum in nearby Pittsford houses one of the largest collections of antique maple sugaring artifacts in the world. Hathaway Farm in Rutland is locally famous for its massive and extremely challenging Corn Maze.

Arts and Culture

Rutland's Crossroads Arts Council presents performances including classical music, opera, dance, jazz, theater, and family events at a variety of locales throughout the area.

The Rutland Historical Society Museum, housed in the Old Nickwacket Fire House, interprets the history of the area through its collection of tools, clothing, artifacts, and photographs. The Chaffee Center for the Visual Arts, formerly a private home and now listed on the National Register of Historic Places, displays traditional and contemporary paintings, sculptures, crafts, and photographs, and hosts two art festivals annually. Moon Brook Arts Union Gallery in the Opera House showcases the works of area artists. Contemporary art can also be found at the Night Owl and Farrow galleries. The Norman Rockwell Museum displays more than 2,500 pictures as well as Rockwell memorabilia, covering more than 60 years of the artist's career.

Arts and Culture Information: Crossroads Arts Council, 5 Court Street, Rutland, VT 05701; telephone (802)775-5413

Festivals and Holidays

The Killington Music Festival holds a variety of different musical events during the ski resort's off-season. There is a Fireworks Extravaganza each July 4th on the Vermont State Fairgrounds. Thousands of visitors are attracted to Rutland in early September for the Vermont State Fair, featuring a rodeo, races and other contests, and a midway. The second week in October is peak foliage season in the area and many communities hold festivals and country fairs. For 15 years the city has celebrated a New Year's Eve First Night Rutland party with music, arts, magic, family fun, and fireworks at midnight.

Sports for the Participant

Rutland is perhaps best known to visitors for its proximity to outstanding ski resorts. Pico Peak, one of the country's few major ski areas dating back to World War II, is 9 miles east of the city; the Killington ski area is located 15 miles east and is arguably the northeast's best ski area, with 212 trails, 6 high-speed quad lifts, a new heated 8-seat lift, and the brand new K1 Gondola. Okemo Mountain in Ludlow has 112 trails. More than 56,000 acres of national forest and many state parks in the area offer year-round recreational opportunities of all kinds, and an 18-hole golf course is available at the Rutland Country Club. Rutland is situated just 10 miles from the Green Mountains National Forest. Long Trail, the south-north hiking route from Massachusetts to Canada which is part of the Appalachian Trail System, passes near there.

Shopping and Dining

The Downtown Rutland Partnership, a public private partnership for the revitalization of downtown Rutland, has created a master plan for the commercial heart of the region. Efforts completed include a complete renovation of the downtown plaza, new streetscaping, restoration of the Paramount Theater, increased office and commercial space and a renewed emphasis on the 19th century character of the main streets. Clusters of specialty shops are located throughout downtown Rutland. North and South Main streets feature many interesting and unusual stores, such as Creative Hands, offering the work of Vermont craftspeople, and Charles E. Tuttle Company of Rutland and Tokyo's Antiquarian Books, stocking one of the largest collections of used and rare books in New England as well as books on Oriental art. Rutland's two market towns, Oakham and Uppingham, are the main shopping centers. Nearby Stamford is also very popular and warrants a visit. Other major shopping areas include the Diamond Run Mall, a 450,000-square-foot facility whose anchor stores include K-Mart, Sears and JC Penney. Downtown's Rutland Shopping Plaza has a Price Chopper Superstore, Movieplex 9, Wal-Mart, and other shops.

The Rutland region offers a wide variety of shopping experiences. Of unique interest are the Haunted Mansion Book-shop in Cuttingsville, located across from an unusual cemetery and now filled with antiquarian books; a genuine general store, herb farm and retail shop; and several arts, crafts, and antique shops.

Rutland has attracted distinguished chefs who prepare sophisticated fare with French, Austrian, and Belgian accents. For those seeking something less formal, several area restaurants serve traditional New England fare in informal settings. The Rutland region also supports many country inns whose restaurants are open to the public. Of note is the Fair Haven Inn in nearby Fair Haven.

Visitor Information: Rutland Region Chamber of Commerce, 256 N. Main St., Rutland, VT 05701; telephone (802)773-2747; toll-free (800)756-8880; fax (802)773-2772; email [email protected]

Rutland: Education and Research

Elementary and Secondary Schools

The Rutland City Public School district is comprised of 3,000 students in six schools and three special programs, supported by a staff of about 500. In 2002 Rutland voters passed a $4.3 million school bond issue which, after an additional $2.3 million in state contributions, provided $6.6 million for improvements to school buildings, fields, and a community track facility. In addition to elementary, middle, and high schools, the district's Stafford Technical Center is a public educational center serving students in grades 11 and 12 from the 10 regional high schools in the Rutland area. It offers an evening adult education program and adult diploma programs.

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

Total enrollment: 3,000

Number of facilities

elementary schools: 3

junior high/middle schools: 1

senior high schools: 1

other: 1 technical school

Student/teacher ratio: 13.3:1

Teacher salaries

average: $40,812 (statewide Vermont)

Funding per pupil: $10,306

Several private and parochial schools also operate in the Rutland area.

Public Schools Information: Rutland City Public Schools, 6 Church Street, Rutland, VT 05701; telephone (802)773-1900

Colleges and Universities

Rutland is home to the College of St. Joseph, a small private business, liberal arts, and teachers' college with a 2005 enrollment of about 500 students. The Community College of Vermont, the second largest college in the state, has classrooms at Howe Center in Rutland and offers associate degrees in self-designated concentrations. Other colleges in the area are Castleton State College, Green Mountain College, Middlebury College, Vermont Law School, St. Michael's College, and Vermont Technical College. All area colleges serve as a resource for local industries and work with manufacturers to meet their training needs.

Libraries and Research Centers

The Rutland Free Library holds more than 87,000 volumes within its 24,000 square foot facility on Center Street. The library initiated humanities and reading/discussion programs in the state, creating a model that has been used by the American Library Association and others. Its Nella Grimm Fox Room hosts regular cultural events, and the Vermont Room contains genealogical items.

Rutland is also home to the Southeast Regional Library, which has 60,000 volumes. Central Vermont Public Service Corporation's library specializes in energy, business, management, and electrical engineering. Other libraries in the region include one at the Rutland Regional Medical Center, containing medical and health information. The Community College of Vermont houses a small collection, and libraries are available at the College of St. Joseph in Rutland and Castleton State College, approximately 13 miles from Rutland. Each of these institutions opens its doors to the public.

Public Library Information: Rutland Free Library, 10 Court Street, Rutland, VT 05701; telephone (802)773-1860; fax (802)773-1825; email rutland–[email protected]

Rutland: History

Various Native American tribes knew the Otter Creek Valley where Rutland now stands primarily as a place to fish and hunt beaver. The first description of the creek's falls was recorded in the journal of James Cross, a fur trader, in 1730. Otter Creek served as a junction on the military road connecting the Champlain forts to the north with the Connecticut Valley during the French and Indian War, and settlement was not attempted until that hostility ceased. The first grantee of a patent to settle the territory was John Murray of Rutland, Massachusetts, who was responsible for the name of the town. The first actual settler was John Mead, who brought his wife and ten children there in 1770. Mead built a gristmill and sawmill, and Rutland soon became an active frontier community. Fort Rutland was built in 1775, and in 1778 the city became the headquarters for state troops during the American Revolution.

Among the city's early notables was the Reverend Samuel Williams, brilliant scholar, author of the first history of Vermont, and founder in 1794 of the Rutland Herald, Vermont's oldest continuously published newspaper. Between 1800 and 1880 Rutland's population grew from 2,124 to 12,149 people, surpassing for the first and only time the population of Burlington, the largest community in the state. This explosive growth is attributed to the arrival in 1849 of the railroad and the resulting boom in the marble industry, which had been operating on a small scale since the early nineteenth century. Colonel Redfield Proctor is credited with transforming the marble business into one of the country's greatest industries, bringing prosperity to Rutland and power to Proctor. In 1886 Proctor succeeded in convincing the state legislature that two new townships should be created from the original town. The new townships of Proctor and West Rutland, largely owned or controlled by the Proctor family, contained some of the richest marble deposits in the world; thus did Rutland lose its title as Marble City (in 1993 a long chapter in the city's history sadly came to a close when the Vermont Marble company closed its quarry operations in Proctor).

The city continued to prosper, however, largely due to the Howe Scales company, which moved there in 1877. The opening up of the ski industry in the 1930s added considerably to Rutland's prosperity, as did the decision in the 1960s of General Electric Corporation to build two defense contract plants in the area. City leaders have been engaged since the 1960s in the renovation of the downtown core, and the modern city exists as a retail trading and industrial center as well as the gateway to two famous ski resorts. Rutland's tree-lined streets and Victorian mansions add to the charm of this vigorous small community.

A small, progressive community with the cultural and recreational attractions of a much larger city, Rutland is the kind of city many of today's younger professional and high-technology workers seem drawn to. For that reason the city's economic picture remains bright.

Historical Information: Rutland Historical Society, 96 Center Street, Rutland, VT 05701; telephone (802)775-2006

Rutland: Communications

Newspapers

The Rutland Herald, the oldest newspaper in the state and frequent winner of journalism awards, is published every morning. Rutland Business Journal, a monthly, publishes a special section on new businesses, a calendar of events, and local business news.

Television and Radio

One television station broadcasts from Rutland; others are available from nearby communities. Three FM radio stations operate within town, while broadcasts from a variety of radio stations from neighboring towns and cities provide a broad spectrum of programming.

Media Information: Rutland Herald, 27 Wales Street, PO Box 668, Rutland, VT 05701; telephone (802)747-6121; fax (802)775-2423. Rutland Business Journal, 110 Merchants Row, Rutland, VT 05701; telephone (802)775-0650

Rutland Online

City of Rutland. Available www.rutlandcity.com

Rutland Business Journal. Available www.businessvermont.com/rbj

Rutland Downtown Partnership. Available www.rutlanddowntown.com

Rutland Economic Development Council. Available www.rutlandeconomy.com

Rutland Free Library. Available www.rutlandfree.org

Rutland Herald Online. Available www.rutlandherald.com

Rutland Public Schools. Available at rutlandhs.k12.vt.us

Rutland Region Chamber of Commerce. Available www.rutlandvermont.com

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

Vermont Department of Tourism and Marketing. Available www.travel-vermont.com

Vermont Historical Society. Available www.vermonthistory.org

Vermont Life Magazine. Available www.vtlife.com

Vermont Small Business Development Center. Available www.vtsbdc.org

Selected Bibliography

Moore, William, The Story of a Young Man's Tramp Across Three States; Cooking His Meals and Camping Along Three Hundred Sixty Miles of Road in New Hampshire, Vermont, and New York (New York: Markey Press, 1911)

Shaughnessy, Jim, The Rutland Road (Syracuse, NY: Syracuse University Press, 1997)

Smith, H.P., History of Rutland County, Vermont, with Illustrations and Biographical Sketches of Some of Its Prominent Men and Pioneers ( Syracuse, N.Y.: D. Mason, 1886)