Springfield companies receive VEGI awards for expansion projects

Springfield Regional Development Corp. and the Vermont Economic Progress Council announce that two Springfield companies recently received Vermont Employment Growth Incentive awards to support their planned expansion projects.

Vermont Packinghouse received initial approval for an estimated incentive of $576,909, including a Labor Market Area enhancement, given its location in an economically distressed area of the state. The performance-based award would support the company’s plans to expand its production capacity and employment in its North Springfield facility in Precision Park.

The incentive will help Vermont Packinghouse support local farmers and a healthier New England food system by continuing to fill a vital gap in the region’s meat-processing infrastructure.

ImageTek Manufacturing also received initial approval for its VEGI application, with an estimated incentive of $429,850, including the LMA enhancement. The company plans to expand to a second location in Precision Park, adding employees and equipment as it increase its lines of business.

Both incentives will be paid out over a five-year period, if application targets are maintained.

SRDC Executive Director Bob Flint said that he had been working with both companies for several months. “We appreciate the support for Vermont Packinghouse and ImageTek Manufacturing with these awards, potentially totaling over $1 million. These businesses have been important employers in the region for some time and we are pleased to have assisted with their expansion plans, including facilitating these VEGI applications.”

The VEGI program provides incentives from the State of Vermont to encourage prospective economic activity that is beyond a business’s organic growth—growth that would not occur, would not occur in Vermont or would occur in a significantly less desirable manner without the incentive. The value of each payment is calculated by the Vermont Department of Taxes based on the revenue return generated.