News from APP/NMDC

Notes from APP and NMDC

Volume 1, Issue 46

April 26, 2013

In This Issue

No Default for Former Houlton Vodka Business

LEAD Membership Grows

Attracting Tourists

Loan review committee discusses former County business

CARIBOU -The loan review committee of the business finance department at Northern Maine Development Commission (NMDC) has decided not to invoke a default clause in the loan agreement of Northern Maine Distilling Company, the makers of Twenty 2 Vodka, following the company's announcement it is moving from Houlton to Brewer.

Meeting April 18, the committee made the recommendation, later approved by the NMDC Executive Board.

Scott Galbiati and his wife, Jessica Jewell, who founded the company in 2009, announced in March that they decided to move the business to Penobscot County.

Duane Walton, director of business finance, said the decision was based on several factors, including continued business ties to Aroostook County; local investors; the company, which has won numerous accolades for its vodka, is considered a local success story; and the possibility another business may occupy Northern Maine Distilling Company's former space near the Houlton International Airport.

"We are very happy with the success they have had and the notoriety they have gained," Walton said. "We would definitely prefer for them to stay in The County and expand but fully realize the bottom line is a controlling factor."

Galbiati, in a Bangor Daily News interview,said, "It was a difficult decision and we hate to do it. We see just on Facebook how much loyalty and love our customers have for us in Aroostook County, so its hard to leave."

Walton added his department's history with Galbiati and Jewell is a good example of how the Business Finance Department can help a startup company.

"They came to us with a grand plan, which was almost impossible to secure financing," he said. "In talking and counseling with them these exceptional entrepreneurs, using their engineering education, developed their own equipment and as a result we were able to give them assistance ($100,000 loan) with their down scaled business model."

Northern Maine Distilling Company also acquired investors and traditional financing to open the Houlton operation.

Walton said that despite the company's move to Brewer, Northern Maine Distilling Company is a good example of how the business finance department at NMDC can assist a fledgling company.

"As you are working on your business plan, we have expertise here to help you finish the plan," he said. "We'll act as a sounding board for what you want to do and help you put together in such a way so it can, if possible, be sold to a conventional lender or go out in raise funds to assist in the endeavor."

The business finance department at NMDC has earned a reputation for packaging sensible financing proposals that help area businesses get on the right financial track. The department has assisted more than 600 businesses procure some $160 million in public and private financing since 1977.

For more information, contact Walton at (207) 498-8736 or by email at dwalton@nmdc.org.

LEAD membership grows by 35 percent since January

AROOSTOOK COUNTY - Efforts to increase membership in LEADers Encouraging Aroostook Development appear to be working with a 35 percent jump in the first quarter of the year according to the organization's Executive Director Ryan Pelletier.

"We took a pretty aggressive approach at the beginning of the year to do outreach to potential members to spread the word about the benefits of LEAD membership," he said.

The outreach has resulted in more than 30 new members since January and Pelletier said the goal eventually is to have a membership of more than 200.

"We have received new members from all regions of The County - Southern Aroostook, the St. John Valley and Central Aroostook," added Pelletier. "We want to get more businesses to be engaged in this effort because it really is about serving the small business needs in Aroostook County."
Acadia Federal Credit Union is one of the newest LEAD members.

"Acadia FCU believes in collaborating with our business partners in advocating for increased economic development in the region," said David Desjardins, president and CEO Acadia Federal Credit Union. "I believe LEAD provides businesses and organizations in Aroostook County and opportunity to collectively encourage a business friendly climate here in Aroostook County."

LEAD President Jon McLaughlin, whose day job is as Executive Director of the Southern Aroostook Development Corporation, understands the value of collaboration and speaking with one voice.

"Owning and running a business in rural Maine is tough," said McLaughlin. "This is especially true given an area that is as geographically large as Aroostook and that has a culture as diversified as The County. LEAD brings businesses of all sizes together and gives them one unified voice in promoting issues that are important to the County in Augusta. No other county that I am aware of has such an organized group that speaks on behalf of the entire county. Alone County businesses can accomplish a few things. Together we can accomplish great things."

LEAD, a nonprofit corporation of community volunteers, was established in 1986 for the purpose of fostering and encouraging the balanced development of Aroostook County, which includes focus on the economy, jobs, image, partnerships, promoting new and existing businesses, natural resources and legislation. LEAD has more than two decades of achievement with the continued support of individuals and businesses committing their valuable time to improve the future of Aroostook County.

More information about LEAD can be found at www.leadaroostook.com. For membership information, contact Pelletier at 498-8736 or rpelletier@nmdc.org.

Aroostook County Tourism summit set for May 8

AROOSTOOK COUNTY - Aroostook County Tourism (ACT) will be hosting a Tourism Summit Wednesday, May 8 from 9 a.m. to 1:30 p.m. at the Caribou Inn & Convention Center.

Click on logo to register

"We have a variety of hot topics that will be discussed including Aroostook's marketing campaign, customer service and border crossing issues," said Leslie Jackson regional tourism developer Northern Maine Development Commission. "There will also be round-table discussions where people will be divided into small groups and encouraged to share their ideas about tourism and express any concerns or successes they have. I encourage anyone who is involved in tourism to please come and network with us."

Also on the agenda is a discussion of how big events, like the World Acadian Congress, IBU Youth/Junior Biathlon World Championship and Ride Aroostook, bring tourism dollars to the region.

"The Tourism Summit is an opportunity for individuals in the tourism industry to network with each other and discuss similar issues and concerns they are experiencing in their business," said Jim Bennett, ACT chairman. "Communicating with others in the industry creates new ideas and encourages people to work together to resolve some of the challenges and obstacles that many are faced with every day."

The summit is free and lunch will be served.

Aroostook County Tourism (ACT), a standing committee of the Northern Maine Development Commission, is dedicated to improving the economy of northern Maine through its tourism efforts. Working under the brand Aroostook "the Crown of Maine." ACT promotes some of the regions greatest assets like its pristine beauty, diverse culture, storied history and wonderful people to potential visitors from around the world.

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