VTKilarney
Well-known member
I have always applauded Stenger for being one of the first to the EB-5 party. The question is whether or not he will be there when it really gets going.
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Jay Peak bombshell
- Thread starter VTKilarney
- Start date
VTKilarney
Well-known member
I had no idea how much of downtown Newport is now behind a fence. I couldn't see any action happening.
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Can you imagine how Newport feels with all of it looking like this?
dlague
Active member
probably pretty good if it will look better when all is said and done. That block was an eye sore to begin with! Especially after Great outdoors moved.
VTKilarney
Well-known member
One more photo. 
It's a MASSIVE hole in an already small downtown commercial strip.
When I walked by a second time, I saw a couple of guys removing copper tubing, but nothing else.
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It's a MASSIVE hole in an already small downtown commercial strip.
When I walked by a second time, I saw a couple of guys removing copper tubing, but nothing else.
.
VTKilarney
Well-known member
It definitely will look better if it is built. As much as I hate to see historical buildings go, some of the buildings had seen much better days.
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from_the_NEK
Active member
You sure they weren't stealing it? That has been a problem at construction/abandoned building sites for a while now.
VTKilarney
Well-known member
They were being very open about it, although it was FAR from a sophisticated operation. Two guys and a pickup truck.
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BenedictGomez
Well-known member
That's EXACTLY what I was thinking!
As for the "DANGER construction site" warning, is there any construction going on? Looks more like, "DANGER Fence" from the photos.
VTKilarney
Well-known member
I missed an article on the AnC Bio EB-5 project that ran in the Caledonian Record on November 15th.
The article is somewhat confusing, but here is what it appears to say:
- An Act 250 permit was issued in September and other state permits were cleared.
- Peak CM was supposed to start construction on the last week of October, but were told to hold off "in part" because of a delay in Regional EB-5 Center approval.
- The Regional EB-5 Center (State of Vermont) is requiring an updated market analysis.
- Stenger has been working on the update since May. The update centers on the "material disclosures that must be made to investors".
- The reason for the original market analysis becoming out of date is stated to be that EB-5 projects are taking longer to be approved by the feds.
- Stenger says that he is not worried about state approval, and that construction could begin in a week. (note: the article was from 11/15)
- Jerry Davis, president of Peak CM, said he is worried that delays would put off the construction launch until spring. That would sideline about 100 construction workers with Northeast Kingdom firms which are the likely bid winners as subcontractors on the project. From the article: "It's really frustrating. We didn't see that coming," Davis said. "My concern is the jobs."
My theory is that the state has cracked down and does not want to leave itself open to liability. I'm not sure why it is taking so long to prepare a new market study, however. Stenger attributes this to the complex, and fast changing, biotech market. Who knows. Whatever the reason, it is apparently taking quite a while to deliver what the state is demanding.
The article is somewhat confusing, but here is what it appears to say:
- An Act 250 permit was issued in September and other state permits were cleared.
- Peak CM was supposed to start construction on the last week of October, but were told to hold off "in part" because of a delay in Regional EB-5 Center approval.
- The Regional EB-5 Center (State of Vermont) is requiring an updated market analysis.
- Stenger has been working on the update since May. The update centers on the "material disclosures that must be made to investors".
- The reason for the original market analysis becoming out of date is stated to be that EB-5 projects are taking longer to be approved by the feds.
- Stenger says that he is not worried about state approval, and that construction could begin in a week. (note: the article was from 11/15)
- Jerry Davis, president of Peak CM, said he is worried that delays would put off the construction launch until spring. That would sideline about 100 construction workers with Northeast Kingdom firms which are the likely bid winners as subcontractors on the project. From the article: "It's really frustrating. We didn't see that coming," Davis said. "My concern is the jobs."
My theory is that the state has cracked down and does not want to leave itself open to liability. I'm not sure why it is taking so long to prepare a new market study, however. Stenger attributes this to the complex, and fast changing, biotech market. Who knows. Whatever the reason, it is apparently taking quite a while to deliver what the state is demanding.
VTKilarney
Well-known member
BTW, remember back in early April when Stenger said that the Stateside second-phase (85 suites and cottages) was going to be delayed for six months in order to "ramp up" marketing efforts and to finalize permits? What is the status of this project?
BenedictGomez
Well-known member
A "market study" for what exactly?
VTKilarney
Well-known member
This is where the article is somewhat confusing.
Here are some quotes from the article (with other content in between some of them removed):
Approval won't be issued until Stenger and his partners investing in the Jay Peak Biomedical Research Park at the former Bogner site complete an update of the market analysis of their products that is offered to potential foreign investors.
Brent Raymond, director of the EB-5 Regional Center, said Thursday that he has been working with Stenger and partners since May on the update, which is the material disclosures that must be made to investors.
EB-5 projects like AnC Bio Vermont are taking longer to go through the federal review process. That means that the initial offering about AnC Bio became out of date, Raymond said.
The offering describes all the potential risks of investing in the product and services. Over two years' time, that could change, Raymond said.
Stenger called the market offering a normal administrative update that is "pretty significant," especially in a complex market that is changing as fast as the bio-tech industry.
BenedictGomez
Well-known member
I'm so confused. I thought this was already fully approved?
Granted, if you recall, out of this entire EB-5 endeavor, the AnC Bio project was the #1 thing I was most skeptical about, for a number of reasons that I wrote about (probably 30 pages back) prior. So much so that my prediction was that it will likely never happen despite what Stenger/Q and the State of Vermont were saying, and if it does get built, it will fail. I still stand by that.
dlague
Active member
That would not be a first for the Newport area! Lots of promising companies had proposed to build there and then never happened.
VTKilarney
Well-known member
It looks like there is federal approval and regional center approval. Although I have no idea anymore which is the cart and which is the horse.
But no worries. Stenger said that construction could start as early as... well... today.
BenedictGomez
Well-known member
I just had an epiphany that is quite plausible.
I think it's possible that State of Vermont finally caught onto how completely absurd & fairytale-like this project is.
I think it's possible that State of Vermont finally caught onto how completely absurd & fairytale-like this project is.
VTKilarney
Well-known member
I've poked around to see just what the Vermont Regional Center approval is about. The only thing I have found is that the Verrmont Regional Center "pre-approves" projects so they can be marketed.
See, e.g.:
http://www.eb5investors.com/magazine/article/The-Public-Private-Prototype
http://mountsnoweb5.com/the-vermont-regional-center/
So it makes no sense to me why AnC Bio would be awaiting approval from the regional center if they were supposed to break ground in late October. But I am FAR from knowledgeable about these things, and could very well be mistaken. The Caledonian Record article says that the project was awaiting "final approval" from the regional center, so perhaps there is indeed a second approval that is required after the pre-approval. It's all quite muddy.
One way or the other, I really hope that the AnC Bio project goes forward. I had been under the impression that a lot of the housing that is going to be part of the construction in downtown Newport was for Korean nationals that were going to be employed at AnC Bio. If this is true, there may not be sufficient demand to justify the project in downtown Newport. With so much of the downtown behind a chain link fence, that would be awful news.
See, e.g.:
http://www.eb5investors.com/magazine/article/The-Public-Private-Prototype
http://mountsnoweb5.com/the-vermont-regional-center/
So it makes no sense to me why AnC Bio would be awaiting approval from the regional center if they were supposed to break ground in late October. But I am FAR from knowledgeable about these things, and could very well be mistaken. The Caledonian Record article says that the project was awaiting "final approval" from the regional center, so perhaps there is indeed a second approval that is required after the pre-approval. It's all quite muddy.
One way or the other, I really hope that the AnC Bio project goes forward. I had been under the impression that a lot of the housing that is going to be part of the construction in downtown Newport was for Korean nationals that were going to be employed at AnC Bio. If this is true, there may not be sufficient demand to justify the project in downtown Newport. With so much of the downtown behind a chain link fence, that would be awful news.
BenedictGomez
Well-known member
My thought is that State of Vermont did absolutely no due diligence, and is only now understanding how risky, experimental, and lacking in governmental approvals AnC Bio's business is, and not to mention the extremely limited marketable opportunities AnC currently has to earn revenue from product sales.
Lastly, I will bet you they haven't even signed a single 3rd-party biotech tenant yet (If anyone from VTDigger happens to read this train-wreck of a thread, that's a great question to ask). That will probably require either additional EB-5 handouts or taxpayer money (i.e. "free money" in one form or another) to "lure" another entity to northern Vermont.
Nothing new from me, I've said all the above from day one, but if I wind up being correct on that, it's going to be interesting to watch.
Lastly, I will bet you they haven't even signed a single 3rd-party biotech tenant yet (If anyone from VTDigger happens to read this train-wreck of a thread, that's a great question to ask). That will probably require either additional EB-5 handouts or taxpayer money (i.e. "free money" in one form or another) to "lure" another entity to northern Vermont.
Nothing new from me, I've said all the above from day one, but if I wind up being correct on that, it's going to be interesting to watch.
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VTKilarney
Well-known member
The GAO is going to audit the EB-5 program:
http://seattletimes.com/html/businesstechnology/2025210624_eb5auditxml.html
Here is one very disturbing quote from the article:
Poor data collection makes it impossible to verify that foreign investors’ funds actually created U.S. jobs.
There has also been evidence suggesting that New York City and other major metropolitan areas are more attractive to investors than Vermont. This article seems to back that up:
http://therealdeal.com/blog/2014/12/10/related-raises-record-setting-600m-through-eb-5-program/
http://seattletimes.com/html/businesstechnology/2025210624_eb5auditxml.html
Here is one very disturbing quote from the article:
Poor data collection makes it impossible to verify that foreign investors’ funds actually created U.S. jobs.
There has also been evidence suggesting that New York City and other major metropolitan areas are more attractive to investors than Vermont. This article seems to back that up:
http://therealdeal.com/blog/2014/12/10/related-raises-record-setting-600m-through-eb-5-program/
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