PROJECT SUMMARY
Preserving Industrial Capacity and Regional Employment through Strategic Real Estate and Financial Engineering
In the final quarter of 2018, Neenah Paper announced it would shut down its Brattleboro facility, terminating 100 jobs and liquidating a fully equipped 219,000 sq. ft. paperboard plant. As the region’s designated RDC (Regional Development Corporation), Brattleboro Development Credit Corporation (BDCC) swiftly intervened. The potential loss of $6 million in annual payroll and a critical industrial asset catalyzed an extraordinary public-private partnership, rooted in BDCC’s mission: to retain and grow high-quality jobs in Southeastern Vermont.
MISSION-DRIVEN RISK AND RESPONSE
BDCC’s core strategy is to stabilize and grow the regional economy by maintaining and enhancing the area’s industrial base. Recognizing the urgency, BDCC engaged Neenah within 48 hours of the closure notice and identified Long Falls Paperboard (LFP) as a viable purchaser within days. With Neenah’s hard deadline to sell or shutter by December 31, 2018, BDCC’s Board authorized aggressive action including placing $500,000 of organizational capital at risk and leveraging its statutory ability to acquire property while avoiding environmental liability through the RDC Exemption Program (BRELLA).
INNOVATIVE TRANSACTION DESIGN
The LFP deal required a novel structure to separate real estate ownership from operational assets. BDCC acquired the land and buildings for $1 million while LFP purchased all equipment and inventory separately. This structure preserved the operating business, avoided a fire-sale liquidation, and maintained the integrity of a 100-job manufacturing operation.
Financing was layered, combining:
$3.4 million in loans from
$500,000 in state and WCEDP bridge funds (leveraged by BDCC)
$3.25 million in private equity from LFP
BROWNFIELD CHALLENGES AND SOLUTIONS
The real estate transfer was complicated by potential environmental liabilities, an area in which BDCC demonstrated both sophistication and capacity. BDCC led Phase I and II Environmental Site Assessments and entered the Vermont BRELLA program to manage remediation under the liability exemption. The Vermont Department of Environmental Conservation (DEC) was an essential partner, coordinating rapid review of existing permits and guiding environmental compliance throughout ownership transition. BDCC successfully secured a $500,000 EPA Cleanup Grant leveraging further private investment to address existing site contamination, resulting in a successful clean up and certificate of completion.
EXECUTION AT THE SPEED OF BUSINESS
The speed and complexity of this transaction cannot be overstated. From deal identification to closing, BDCC managed over 15 separate partners and program streams in less than 60 days. This included permit transfers, environmental due diligence, capital stack assembly, lease negotiation, and risk mitigation planning. State partners, including the Department of Economic Development, DEC, and VEDA, worked with uncommon urgency, aligning permitting, finance, and regulatory support to make a year-end close possible.
RESULTS AND IMPACT
The outcome was immediate and significant:
100 jobs retained, securing ~$16 million in payroll
39 acres and a 219,000 sq. ft. industrial site preserved for productive use
Avoided facility decommissioning and equipment liquidation
Model partnership between private operators, state and local government, and a mission-driven development organization
The work continued beyond acquisition. BDCC managed the ongoing brownfield cleanup, absorbing financial and reputational risks while safeguarding public interest. As LFP weathered COVID-era headwinds in 2020–21, BDCC maintained ownership and lease structures until a recapitalization in late 2021 allowed BDCC to transfer full control to LFP—without default or foreclosure.
The Long Falls Paperboard project is a prime example of BDCC’s capacity to manage large-scale, multi-party, multi-layered transactions that combine real estate, finance, environmental remediation, and workforce preservation. By taking mission-aligned risk, BDCC preserved a cornerstone employer, demonstrated effective stewardship of public and private capital, and reinforced the value of local capacity in executing complex economic development initiatives.