Annual Report: January 1, 2012 December 31, 2012

NARRATIVE

Annual Report: January 1, 2012 – December 31, 2012

NortheastKingdom of VermontREAP Zone

Contact Information:

David Snedeker

Northeastern Vermont Development Association

36 Eastern Ave., Suite 1, P.O. Box 630

St. JohnsburyVT05819

Tel: (802) 748-8303

Fax: (802) 748-1223

Email:

Executive Summary:

In 2012, the Northeast Kingdom Collaborative Board and membership began by continuing its focus on implementing recommendations from theStrategic Plan for the NortheastKingdom. The recommendations in the plan were based upon the input of expert panelists and public feedback gathered at aseries oftopical forums held over 2009 and 2010.

As in many areas of the nation, Vermont’s Northeast Kingdomregioncontinues its slow economic recovery from the most recent recession and still faces difficultand uncertain economic times. The importance of the partnerships and collaboration that have yielded modest economic successes in infrastructure development, business planning, housing, and improved community facilities in our region over recent years cannot be understated. Continued collaboration will help to ensure sustainable, long-term improvements.

Economic challenges remain, but new development plans were announced in 2012 that will positively transform much of the region as they are completed. The Northeast Kingdom Economic Development Initiative, with multiple projects funded largely by a federal EB-5 visa investment program, will bring about significant developments in the communities of Jay, Newport, Burke, and Coventry. These developments are expected to create between 1500 – 3000 direct and indirect jobs in the region over the next 2-3 years. There is concern within some communities about the potential impacts of these projects, but many organizations from the NEK Collaborative are already actively working within communities to plan for the coming changes.

2012 proved to be another productive and interestingyearfor the Northeast Kingdom REAP Zone:

The Collaborative created a 12-month action plan focused on its organizational development.

Bob Whittaker, a Collaborative Board member representing Lyndon State College, attended the White House Forum on Regional Innovation in Rural Americain June. Representatives from the White House Rural Council and representatives from HUD, USDA, and EDA were informed of the efforts of the Collaborative in the NEK REAP Zone and offered some suggestions on how their organizations could help.

The Collaborative began planning for a next round of topical issues forums similar to those that helped to inform the organization’s Strategic Plan. The forums will begin in 2013 and include: Education/Workforce Development, Outdoor Recreation, and Housing/Real Estate.

The Collaborative planned and promoted with the VT Procurement and TechnicalAssistanceCenter regional HUB Zone meetings for Orleans and EssexCounties. HUB Zone participation and certification provides opportunities for businesses to secure government contracts. Although participation wasn’t great, repeat efforts may raise business awareness of the program.

Vermont’s Northeast Kingdom REAP Zone expired on September 30, 2012. Senator Leahy was working for reauthorization.

The Collaborative Annual Meeting occurred October 17, 2012. Carol Moore returned as Chair of the Collaborative Board, replacing outgoing Chair, Kenn Stransky.

The Collaborative realizes that the ultimate success of the Northeast Kingdom REAP Zone would not be possible without the support of USDA Rural Development, Vermont’s Congressional delegation (in particular, Senator Leahy), and our state, regional, and local partners. The Northeastern Vermont Development Associationcontinuedits required benchmarking and reporting rolefor USDA Rural Development. Collaborative Board members continued to graciously donate meeting spaces for meetings and events, as well as valuable administrativestaff time for the Collaborative meetings.

The Collaborative

The Northeast Kingdom Collaborative was formed in 1996to encourage the exchange of information, ideas, and opportunities to improve the quality of life in the local region. In 2012, the Collaborative and its members continued to do this through open and public discourse. In this way we learn about the issues facing rural communities in northern Vermont, and it is how we are able to jointly develop workable strategiesto help resolve those issues.

Over the years, Collaborative partners working together to implement collaborative strategieshave been able to stimulate millions of dollars in federal, state, private, and non-profit investment in the region. Collaborative leaders:

Endeavor to improve the economic viability, diversity, and competitiveness of the local economy to enhance its participation in state, national, and global markets

Enhance collaboration and the creation of partnerships among economic and community development organizations and programs

Stimulatedialogue among regional stakeholders to improve the sharing and enhancing of access to information

Supportcommunities by identifying their strengths, goals, problems, and opportunities, and building coalitions and networks to address the same

While focusing on strategies that address regional and local priorities, what the Collaborative does best is provide a neutral ground for the exploration, expansion, and leveraging of ideas and resources. During thesechanging and challenging times, the Collaborative leadership will remain focused on comprehensive and coordinated economic development planning and implementation for the betterment of the NortheastKingdom region of Vermont. For more information on the Northeast Kingdom Enterprise Collaborative and the efforts of its members and partners, visit the Collaborative website at: .

Most Significant Accomplishments:

Representatives from the Collaborative were able to participate in theWhite House Forum on Regional Innovation in Rural Americain June. Representatives from the White House Rural Council and representatives from HUD, USDA, and EDA were informed of the efforts of the Collaborative in the NEK REAP Zone and offered some suggestions on how their organizations could help.

Investments in the REAP Zone:

FY2012Northeast Kingdom REAP Zone USDA funding highlights include investments in the form of grants, loans, and loan guarantees totaling $14,321,014:

$2,833,250 Municipal Infrastructure (water and wastewater)

$ 69,300 Community Facilities

$3,097,557 for Rural Housing initiatives

$ 575,778Rural Business Enterprise Grants

$ 133,825 Rural Business Opportunity Grants

$ 7,611,304Housing Loan guarantees

Community Participation:

The Northeast Kingdom Collaborative Board has individual and organizational representatives from each of the three-county REAP Zone area – Caledonia, Essex, and OrleansCounties. Collaborative membership is open to anyone and tends to be representative of the region. In 2012, Collaborative members continued to work on implementing the recommendations of the 2010Strategic Work Plan. The Economic Development update for 2012 is included with this report.

Also in 2012, the Collaborative Board re-examined the organization’s mission and purpose to see if they were still valid, and crafted a draft Developmental Plan that both identifies the audiences the Collaborative hopes to reach and suggests roles and responsibilities for Collaborative Board members. The goal is to maintain / develop community-based regional objectives and guide financial and technical resources toward the achievement of those objectives.

Partnerships and Alliances:

Within the Northeast Kingdom REAP Zone area partnerships and alliances are the norm. This remains important for sharing resources and developing creative solutions, especially the tough economic climate today.

TheCollaborative is a voluntary association based upon partnerships between local and regional organizations, institutions, businesses, and individuals. The following is a list oflongstanding Collaborative Board members, each of which partners with a variety of other businesses, state agencies, and local communitiesand other organizations working within the NortheastKingdomregion:

LyndonState College (LSC)

Northern Communities Investment Corporation (NCIC)

University of Vermont Extension (UVM)

NortheastKingdom Travel & Tourism Association (NEKTTA)

NortheastKingdom Community Action (NEKCA)

Vermont Agency of Human Services (AHS)

Northeastern Vermont Development Association (NVDA)

Rural Edge / Gilman Housing Trust, Inc. (GHT)

Newport City Renaissance Corporation (NCRC)

Northeast Kingdom Learning Services, Inc. (NEKLS)

There are also Collaborative members - community and state agencies, civic organizations, businesses, interest groups, and individuals that are not named here. The list of potential partners and alliances is great, and the success of the Collaborativeand the regionhas and will continue to depend upon communication and cooperative partnershipsmoving forward.

Problems/Obstacles:

The Northeast Kingdom REAP Zone expired on September 30, 2012 and there are no longer set-aside funds available to REAP Zone applicants. The NEK REAP Zone was reauthorized as part of a short-term continuing resolution.

An ongoing problem within the REAP Zone is a lack of consistent communication and coordination among the organizations working toimprove the region. Given that the Collaborative is a diverse group of organizations and individuals, it is natural that individual members may be focused on their own work plans, timelines, and budgets. This probably means that we areless effective in our efforts to address longstanding issues and problems within the region.

Anotherrecurring problem within the REAP Zone relates to progress reporting (This problem was also noted in previous years). Information is not being provided in a manner that would better demonstrate within the USDA online Benchmark and Reporting System the progress and positive impacts being made by the Collaborative and its partners within the REAP Zone. Requiring applicants to provide information on funds being leveraged, project measures, and quarterly project progress reportsto USDA and NVDA (or any other organization maintaining the benchmark system) would improve this.

In 2012, a number of significant development initiatives proposed / planned for the region have raised some concerns as to whether the people and communities within the region are prepared for significant potential changes. Some people view the developments as a good problem to have. There are perceptions by others that nothing is being planned for to deal with the impacts of these large developments, while still others see duplicative and overlapping efforts to gather community input and develop action plans to ready for the developments.

Solutions:

The Collaborative Board continues to work oncommunication and coordination issues. The Collaborative website is one tool that can help with this when members post to the website. Board and regular members are able to utilize the Collaborative Listserve. The organization is also considering the use of social media such as Linked In and Facebook for additional communications.

The Collaborative Board believesthecontinued focus on coordinated economic development planning and implementationthrough partnerships is the best way to improve the quality of life for everyone in theNortheastKingdom. There are recommendations and goals within the organization’s Strategic Plan that will facilitate economic development in the region.

As suggestedin other years, a discussion of project ideas and progressreporting on individual efforts toward implementation of the Strategic Planby Collaborative members at regular Board meetings could reduce duplicative efforts and result in new partnerships or a better use of resources.

NVDA will develop an internet reporting tool for efforts related to the Northeast Kingdom Economic Development Initiative. It is hoped that groups or organizations working on any identified impact area such as workforce development, housing, or transportation, etc. will use the tool so that others in the regional community are aware of what is being planned.

Best Practices:

The public nature and inclusiveness of allCollaborativeforums and events, including its planning processes and regular Board meetings continues to prove its value for gaining information and exchanging ideas. Public and open dialogue has been a longstanding best practice and will continue to be in the future.

Progress reporting on the 2010 Strategic Plan for the Northeast Kingdomis voluntary, but the commitment that organizations have shown to implement the plan’s recommended strategies and then report on them for Collaborative partners is a best practice that we hope will continue.

Plans/Prospects for the Future (2013 and beyond):

The Collaborative and its member organizations will continue to focus on implementing recommendations from the 2010 Strategic Plan for the NortheastKingdom. This was a two-year plan, so updates will be needed in the near future.

The Collaborative will move forward with another series of issues forums in 2013 similar to those that were conducted for informing the Strategic Plan. These forums will address Education / Workforce Development, Outdoor Recreation, and Housing / Real Estate.

The Collaborative will host a panel discussion / community forum in Burke to both inform the community on the development plans and learn the concerns of community members so that they may be addressed.

Audited Financial Report:

There are no finances to be audited.

DUE JANUARY 30, 2013