Middlebury’s Class of 2025 celebrates at commencement. Photo: Todd Balfour/Middlebury College.
Addison County’s quiet economy requires a second look
by Olga Peters, Vermont Business Magazine
Addison County’s economy is not always immediately apparent. This was one of the first observations Alex Armani-Munn made upon taking the helm of the Addison County Economic Development Corp. in February.
“When you drive around Addison County,“ Armani-Munn said in a recent interview, “you see a lot of these nondescript buildings that really wouldn’t catch your attention.“
Alex Armani-Munn, executive director at Addison County Economic Development Corp. ACEDC photo
However, behind the doors of these seemingly ordinary structures — windowless corrugated metal buildings, former garages or buildings that resemble grain storage — thrive various enterprises, including woodworkers, machinists and manufacturers.
“We are a little smaller, a little quieter and don’t have as many projects (as other counties),“ noted Adam Lougee, executive director at the Addison County Regional Planning Commission. “But between the college and the hospital and a couple big manufactures — not to mention the nice little villages that we have down here, and the beautiful scenery — there’s still a lot going on.“
Phil Summers, executive director of the Addison County Chamber of Commerce, stated that the county possesses its own distinct style and brand.
“We want to stand alone as the centerpiece of the Champlain Valley,“ he said. “We’ve got the most shoreline on the lake of any county, and we’re proud of all that. And we’re proud of our farming community, Shire town and other small towns.“
According to the U.S. Census Bureau, Addison County ranks fourth in landmass and seventh in population among Vermont’s 14 counties. The county’s top industries are education, health care and social assistance (29%); manufacturing (11%); retail (10.6%); construction (9.6%); and professional, scientific, management and administrative services (8.8%).
Agriculture and forestry employ 5.6% of workers. It is not the biggest sector by employment, but it represents a large part of the county’s identity.
In Armani-Munn’s experience, the county’s agriculture sector is evolving. A growing number of small, diversified farms are focusing on crops such as produce and maple syrup.
“I think Addison County is at an interesting point in its evolution,“ he said. “It’s staying rooted in agriculture while adapting to new demands.“
The business community is doing well, according to some statistics. The number of private businesses has grown by almost 400 since 2019. Despite the pandemic’s impact on the retail sector, the overall number of retail businesses has remained stable since 2020.
According to Armani-Munn, the business community has generated more than $1 billion in gross receipts every year since 2021. While this is an impressive aggregate amount, Armani-Munn shares it with a caveat: Not every business owner or employee at the individual level shares the rosy experience the gross receipts might suggest.
Like the rest of Vermont, Addison County faces a workforce and housing shortage. In a recent survey conducted by ACEDC, business owners cited a high cost of doing business and challenges in hiring and retaining workers as their top concerns.
As of March 2025, the county’s unemployment rate was 2.7% and has remained below 3% since summer 2021.
Approximately 40% of the workforce commutes into the county for work, with the cost of housing cited as a reason for this commute.
“Twenty percent of my operation staff, such as dining facilities, lives in New York because of the challenges of affordable housing here in Vermont,“ said David Provost, executive vice president of finance and administration at Middlebury College.
Armani-Munn noted that, although it may seem paradoxical, one of the county’s strengths lies in its human capital.
“We have great human capital in terms of quality, but again it’s the quantity that we struggle with,“ he said. “We just need more of those talented, intelligent, enterprising people.“
A Stable Economy But Effects Of Federal Funding Changes Remain An Unknown
Lougee waits for his lunch order while sharing his thoughts on Addison County. The sounds of patrons and staff echo in the background.
Overall, he said, the county’s economy is stable. It’s not fancy or flashy, but good all the same.
The organization’s budget is solid for this year. ACRPC receives only a few direct federal funds. One of its larger funds, the U.S. Environmental Protection Agency Brownfields Grant, has remained untouched at the time this article was written.
Depending on how the federal government proceeds with funding the Federal Emergency Management Agency, the state’s emergency management funding could be affected. Such cuts would vibrate throughout the state’s emergency management program, he said.
“The state office, all the way down to the regionals and the locals, are built off of federal dollars,“ Lougee said. “For example, I don’t know whether we will get what I call our core planning funding from Vermont Emergency Management this year, because they don’t know whether they’re going to get federal dollars.“
Addison County receives approximately $50,000 from the state as its core planning amount.
“It could be none, it could be half, it could be some percentage. We just don’t know yet,“ Lougee said. “It’s core to our work, but it’s not a huge part of my budget.“
According to the Vermont Emergency Management website, since 2011 FEMA’s Hazard Mitigation Grant Program has awarded $36 million to Vermont communities. This grant program enables communities to implement long-term mitigation strategies after a presidentially declared disaster.
In 2021, the Legislature approved $4.6 million for the new state Flood Resilient Communities Fund, which supplements the federal grant program. Lougee is uncertain how communities will make progress on their mitigation work should federal funding shrink or disappear. Towns that have implemented mitigation work are experiencing less severe flood damage.
Pointing to the town of Ripton, Lougee noted that Tropical Storm Irene hit the small town of under 800 in 2011. He said Ripton upsized its culverts and other infrastructure. The town hasn’t experienced the same level of damage since.
“I realize Irene was an exceptional storm, but they’ve fared relatively well out of the recent storms, and I’m hopeful that’s because of the improvements that they made after Irene,“ he said.
ACRPC staff continue to update future land use maps as part of Act 181. These maps will determine how parcels of land in Addison County will be treated under Act 250.
The Legislature passed Act 181 last year. The bill introduces several reforms to Act 250 to increase housing development. Act 181 rewrites the permitting thresholds into tiers: 1A, 1B, 2 and 3.
According to a handout from the ACRPC, permitting thresholds will increase — become easier — for housing projects on properties designated 1A and 1B. This tier will pertain mostly to cities and villages, especially those with water and wastewater infrastructure.
The Act 250 permitting process will remain mostly the same for properties designated as Tier 2. Areas catalogued as Tier 3 — forest and wildlife areas — will receive the full Act 250 process. Rural landowners feel concerned about a Tier 3 designation, Lougee said.
“The rural economy in Vermont is important, and it’s already falling behind, so landowners are concerned about their ability to use their land and make a profit off their land and whether or not they’ll just fall farther behind some of the urban centers,“ he said.
Lougee reminded people that Act 181 is behaving as designed.
“Any developer who is going to do more than 10 units [of housing] is going to find a village center or places they don’t have to go through Act 250. It just makes perfect sense for them, and that’s what the law is designed to do. It was designed to create that incentive,“ Lougee said.
“It’s good that Act 181 will allow downtowns and villages to grow,“ he continued. “Next is expanding water and wastewater infrastructure in more communities to support additional housing.“
Lougee is curious how the new Community and Housing Infrastructure Program might expand water and wastewater infrastructure in rural places like Addison County. CHIP is a new housing funding program that the Legislature passed this session in Act 69. The program enables municipalities to fund public infrastructure like water, sewer, roads and sewer systems to support new housing development.
Communities continued their energy upgrades through the Municipal Energy Resilience Program through the state Buildings and General Services. The program provided funds to improve the energy footprint of municipally owned buildings such as town halls, municipal offices and garages.
The 141-year-old Town Hall Theater in Middlebury recently unveiled the completion of their long-awaited expansion which includes an entire new wing, performing arts center, and public plaza. Photo courtesy THT website.
According to the BSG, 12 Addison County towns received awards ranging from $163,800 to $484,034. Lougee added that these awards helped improve the energy footprints of 25 buildings.
“A lot of our community facilities were pretty old, so having the ability to update them and maybe combine them with some other money to improve them has been a really nice project for us to work on with our municipalities this year,“ he said.
The organization is updating its regional plan, with Lougee anticipating the revisions to be completed by June 2026.
It All Comes Back to Housing
Addison County is gradually expanding its housing inventory. This summer, Stonecrop Meadows in Middlebury finished building townhomes, which are part of the new neighborhood’s homeownership options. The development also features duplexes, and its rental apartments are expected to be completed next year, according to Stonecrop’s website.
Summit Properties’ 30-acre development includes 250 townhomes, duplexes and apartments. A portion of the first phase of housing is available at reduced costs for income-eligible families.
Middlebury College donated the land for Stonecrop. This project follows other recent developments such as the Firehouse Apartments in Bristol and Armory House in Vergennes. According to the state’s Statewide and Regional Housing Targets, Addison County requires 1,296 to 1,978 new units by 2030.
Vermont officials including Gov. Phil Scott, U.S. Sen. Peter Welch, state Treasurer Mike Pieciak, VHFA’s Maura Collins, VHCB’s Gus Seelig, and housing commissioner Alex Farrell toss a shovel of dirt during a groundbreaking ceremony for Stonecrop Meadows in Middlebury. The first phase of the 245-unit development added 80 homes to the state’s housing stock this summer. ACEDC photo.
Summers, a board member of the Rokeby Museum in Ferrisburgh, noted that the housing shortage has hindered the organization’s search for a new executive director. One candidate withdrew due to housing issues, and he suspects another did the same.
The real estate adage “location, location, location“ holds true, and Vermont’s housing market can vary significantly by location. The Addison County housing market has softened slightly since Amey Ryan, owner of IPJ Real Estate in Middlebury, spoke with VBM last year. Ryan states it remains a seller’s market, and cash offers are still prevalent, with buyers paying near or slightly above the asking price. However, buyers are now requesting inspections again, more individuals are securing financing, houses are staying on the market longer and many are seeing price reductions.
Ryan believes a balanced market is generally preferable.
“Half of our business is buyers and half is sellers, so if the market remains balanced, then we’re good,“ she said.
Ryan advises sellers to adjust their expectations from the high-priced pandemic sales. With rising interest rates, buyers’ purchasing power has decreased, leading them to seek better deals. According to Ryan, sellers who are still fixated on prices from two years ago are likely entering the market at an incorrect price point.
IPJ acts as the listing agent for Stonecrop Meadows and other new housing developments. The volume of listings keeps the office busy, which indicates the county’s efforts to increase housing stock are having an effect.
“I think we have a ways to go,“ Ryan said. “The problem is they can’t build houses fast enough. They don’t have the manpower to do it. The permitting process is arduous.“
This year, the Addison County Economic Development Corp. included housing in its annual operating strategy, alongside long-standing strategic goals: access to capital; workforce development and entrepreneurship; and organizational sustainability, resiliency and effectiveness.
“Everything comes back to housing.,“ Armani-Munn explained, “We’ve realized as an organization that we cannot help businesses start, grow or thrive until we have adequate housing and affordable, accessible housing.“
Armani-Munn sees promise in the CHIP program, sometimes called project-based TIF, as a strong tool for housing development that he believes will most benefit small municipalities. He supports using TIF (tax incremental financing) districts and considers the CHIP program an effective strategy for increasing housing.
Armani-Munn commended state Sen. Kesha Ram Hinsdale for her role in removing limitations the House had added to its version of the bill, which he felt would have been unhelpful.
In Armani-Munn’s opinion, the most useful aspects of the CHIP bill include raising the funding cap to $2 billion over the life of the program; expanding the program to include market-rate housing; and removing requirements for housing funded through the program to remain perpetually affordable.
Given the pressures on Vermont’s housing market, such as high rents and primary homes being converted into vacation homes or short-term rentals, it can be argued that Vermont residents are being priced out of their local housing market. While the House’s limitations might have eased some of these issues, Armani-Munn agrees these issues exist but believes project-based TIF was not the appropriate tool to address them.
He suggests that local ordinances are more effective in addressing challenges like short-term rentals or rent increases.
Camille Lyons, ACEDC’s projects and grants manager, concurs, stating that the project-based nature of CHIP is more manageable for small communities.
“TIF districts already existed, but our small towns are not capable, or do not have the staff, for a full district,“ she said.
The Vermont Economic Progress Council is expected to release the program’s rules in November, with applications anticipated to open in January. Armani-Munn hopes the state will permit economic development corporations to administer the CHIP program for smaller municipalities, and ACEDC has already started building partnerships to do so.
“I get excited,“ he said, “because it’s another tool in our toolbox. It’s something tangible that we could use to directly impact housing development.“
Lyons added that it’s challenging to coordinate large infrastructure projects when a town is struggling to provide basic services.
“Municipalities come to us when they are limited, so we act as that extension,“ she said. “It’s harder to expand town staff if you’re already on limited resources.“
Ryan feels that Vermonters spent too many years rejecting housing proposals.
She laments, “Now that people are saying yes, it costs three times as much to build when they could have started to build 20 years ago, when we knew we had a housing shortage.“
Ryan also highlights the overlooked issue of substandard, unhealthy housing in the market.
“Whether it’s substandard for them or substandard for me, that doesn’t matter. It’s housing that is generally not healthy for people to be living in,“ she said.
Often, dilapidated properties don’t sell unless a buyer has the means to demolish them or undertake a complete renovation. While focusing on new housing is important, Ryan advocates for greater attention to improving existing housing through grant programs or other incentives that help people maintain healthy homes. This would provide sellers with a better asset to list on the market if they choose to sell.
Workforce
According to Armani-Munn and Lyons, Addison County’s available workforce is insufficient to fill existing job vacancies. Furthermore, 34% of the working population (aged 16 and above) is over 60, raising concerns about mass retirements impacting several businesses.
With state funding, ACEDC is piloting a program to enhance workplace accessibility for individuals who have struggled to connect with suitable employers. In June, ACEDC was one of two organizations to receive funding through the state’s Workforce Expansion Program, which the Legislature approved in 2022. The Vermont Department of Labor website describes this two-year initiative as aiming to strengthen regional workforce systems by improving collaboration among employers, educators and community partners.
This technical-assistance grant includes funding for a full-time coordinator to conduct research and outreach. Lyons explained that as part of the grant, ACEDC identified three populations with low workforce participation: young people aged 16 to 24, adults without a high school diploma and people living with disabilities. The organization identified manufacturing and human services as two job sectors that could significantly benefit from the program.
While the county’s overall workforce participation rate is approximately 82%, the rate for adults with disabilities is below 50%. Armani-Munn pointed out that this represents 300 to 500 individuals not working each month.
“If it were as easy as just having a job fair or posting jobs online, then those people would be working,“ he said. “But we know it’s more complicated than that.“
The coordinator will assist ACEDC in developing an action plan to connect potential workers with jobs. Once hired, the Vermont Department of Labor will employ the new coordinator, who will be based in Addison County. Lyons described this initiative as fostering a collaborative community among partners, workers and employers.
Lyons expressed excitement about the grant’s timing, as it will bolster ACEDC’s ongoing efforts. The organization has informally operated a countywide, monthly Workforce Alliance Group, and she hopes the coordinator’s hiring will provide the alliance with more structure.
While the Workforce Expansion Project is still in its nascent stages, Lyons noted that the three identified populations — especially people with disabilities — face challenges connecting with employers willing to accommodate their job requirements. She hopes to implement an “employer of quality certification“ to help communicate what a good employer looks like. As of July, the coordinator interview process was ongoing, and Lyons anticipated announcing a new hire soon.
Tamara and Joey Boise cut the ribbon on the Cyclewise expansion and addition of the Indian Motorcycle brand in New Haven in February. ACEDC assisted with a BGS Building Community grant used to resite a storage building to make room for the Indian showroom. ACEDC also partnered with the National Bank of Middlebury and VEDA to finance the expansion. Courtesy photos.
The Chamber’s Fresh Look
Summers expresses optimism regarding the county’s economy, noting that businesses appear to be improving. Chamber members also share this cautious optimism, acknowledging concerns about the workforce, housing, child care, health care and other county-wide issues.
“Still, I hear more good than I do negative, but I think that’s mostly because the negative stuff has just been in the environment for so long it doesn’t even seem that negative anymore,“ Summers said. “It’s just a problem that we have to continue to try to solve.“
Reflecting on pandemic-era conversations, he recalls an atmosphere of disarray and uncertainty, with no consensus on the workforce shortage, expensive housing and demographic shifts. He believes communities have since come to understand these challenges.
However, five years later, signals from the federal government have introduced new anxieties for local businesses, primarily a significant drop in Canadian visitors. Compared to the first quarter of 2024, inquiries to the chamber’s website from Canada have decreased by 70%.
Anecdotally, innkeepers have reported cancellations from Canadians who are unwilling to travel to the U.S. Fortunately, an increase in domestic travel has allowed most lodging establishments to fill these vacancies, as fewer Americans are traveling overseas this summer, according to Summers. Despite this, he calls the situation a “huge bummer.“
The chamber has launched a revitalized website and a fresh rebrand, which began earlier this year and included the first new logo and color palette in 15 years. The logo features three iconic county buildings: the National Bank of Middlebury, Bristol’s Holley Hall and the Vergennes Opera House. Summers explains that the organization aimed to distinguish itself from similar entities like ACEDC and the county’s three downtown organizations.
Summers also celebrated the continued success of the chamber’s digital magazine. Upon his arrival four years ago, he replaced the traditional e-newsletter with a full-color e-magazine, which members enjoy. What started as a 15-page publication has grown to 50 pages, featuring events, businesses and town profiles. According to Summers, the magazine boasts an open rate of 58% and an average read time of two and a half minutes..
Growing New Residents
Reimagine Addison County is the chamber’s equivalent of the state’s GROW Vermont program, which stands for Grants for Relocation Outreach Work. This state initiative aims to attract and keep new residents to help reverse the state’s demographic trends.
Lisa Grover, the outreach and relocation coordinator, manages the program. She assists potential residents by answering their questions, helping them find housing and jobs, and connecting them with people who can support their adjustment to their new communities.
The chamber organizes mixers for new residents to attend and ask essential questions, such as who handles driveway plowing or how to deal with unexpected situations. Summers reports that approximately 40 to 50 individuals inquire about relocating each month.
He shared a story about a young man from Ohio who took a bus to make the move in July, and another family who bought a former inn because they couldn’t find housing. Each person has their own unique reason and story for moving, whether it’s related to the climate, political atmosphere or a childhood desire to return after visiting.
According to Summers, around seven families have moved to the county so far. He hopes the state will extend the grant for another two years, as supporting people who want to relocate can be a lengthy process, typically starting with an inquiry and progressing through phone calls, answering questions, providing resource lists and additional meetings.
Summers noted that Grover has dedicated significant time and effort to the program over the past year, and it is now yielding positive results. He also emphasized the importance of retaining new residents once they have moved to the area, which is currently a focus for the chamber.
Summers has heard of new residents leaving the county due to difficulties finding housing, and also of people of color who felt that Vermont was not a welcoming environment for them.
“We are trying to meet with people who have just moved here in the last year in order to acclimate them to the county so that they stay,“ he said.
A People-Centric Approach
Armani-Munn adopts a place-based and people-centric approach to economic development. He believes that instead of trying to attract large companies to relocate, communities should focus on enhancing their appeal and developing amenities that draw talented individuals.
“Once you can create that critical mass of talent or bring those talented people to your community, the businesses will follow. That investment will follow,“ he said.
Armani-Munn feels that Addison County’s exceptional quality of life, engaging communities, outdoor recreational opportunities and remarkable people fit this model.
Armani-Munn became executive director at ACEDC in February, having previously held similar positions in Colorado and New York.
“I don’t mean to be harsh, but if I’m being entirely honest, when you work in economic development, the last place you want to work is Vermont,“ he said. “It’s not an easy state to work in economic development. The cost of living and the costs of doing business are extremely high. The incentives that are offered are not exactly competitive.“
He emphasized that Vermont needs to recognize the necessity of growth, not for the sake of expansion itself, but to preserve the quality of life it is renowned for.
“If we can’t grow appropriately, we’re going to lose what we have.“ The Stonecrop Meadows housing project was a key factor in persuading him that Addison County was a place where he could thrive. Unlike smaller communities he had observed in the past that resisted change, Stonecrop represented a collaborative effort between a supportive community and local and governmental partners who consistently sought ways to improve. He reflects, “Okay, this is a community that isn’t going to just spin its wheels and pull its hair out stressing about housing or talk about how bad it is and just to shoot down every opportunity it has to build that housing. This is a community that’s willing to actually act on it and to take on a big project and do the hard work.“
Olga Peters is a freelance writer from Southern Vermont.
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