Upper Valley economic report: Traffic jams a welcome sign

Vermont Business Magazine, Aug 01, 1995 by Muzeroll, Phyllis A

It's got fast food, stores, hotel rooms. restaurants, interstate ramps, plans for future development and growing traffic. No, it's not Route 12-A in West Lebanon, NH, also known as the strip, it's the section of Route 5 that passes through White River Junction, and it's one of the fastest growing areas in the Upper Valley.

State figures show that as many as 12,000 cars a day travel the exit leading off I-91 onto Route 5 in Hartford. And developers, it would appear, are ready to take advantage of that growing traffic pattern.

The corner of Route 5 and Sykes Avenue recently saw the opening of a McDonald's franchise, the first national fast food purveyor to hit White River Junction. Many in the area contend that it is just a matter of time before other chains will follow. The new Golden Arches is located on the site of the former Lums Family Restaurant. That building was demolished to make room for McDonald's.

According to Herb Hansen, executive director of the Hartford Development Corp, the economic picture in the Valley is looking very good these days, much better than a year ago. "Our unemployment is very low," he said. "The difficulty is that we have lots of jobs that don t pay very well. But in terms of employment where people are looking to augment a family income, opportunities abound."

Hansen agreed that with the arrival of McDonald's, townspeople can expect more such chains to be opening soon.

"It's pretty much a given that when McDonald's comes into an area, Burger King and Wendy's are not far behind. In fact, it's a not very well kept secret that Burger King will probably be coming in across the street from McDonald's."

Hansen also said that there is talk The Country's Best Yogurt, among others, will be opening a franchise at an expected food court at the Tally House Restaurant, an area often simply referred to as the bus station because of the Vermont Transit Bus Terminal located there.

Perhaps the largest proposed construction project for the area is the 94-room Hampton Inn slated to be built on Route 5, next to what is now the former Howard Johnson Lodge. Rutland developer John Russell is the mover behind the $5 million project. An idea that has been around for several years, plans for the facility were redesigned from a four-story structure to a three-story building, finally putting to rest objections that included traffic congestion, Act 250 concerns and numerous zoning protests from Gordon Brown, owner of the Howard Johnson Lodge located on an adjoining piece of land.

Brown himself has added a new look to his Route 5 business -- he has just recently dropped the Howard Johnson affiliation to become a Best Western facility. The Hampton Inn is expected to include an upscale chain restaurant, something along the lines of a Red Lobster or Olive Garden, Hansen said.

The Hampton Inn will probably be finished in time for a spring opening, Hansen projected, joining not only the new Best Western, but a Super Eight Motel, Comfort Inn and a Holiday Inn in the area. The region, he said, could comfortably accommodate the added hotel rooms.

"We're a gateway, not just to Killington, but to Stowe, unlike Rutland. This is a much better place to get access to places like the Montshire (Museum), Dartmouth-Hitchcock, theaters. There's a lot to do in this area."

Sykes Avenue is bound to see an increase in traffic, like Route 5. A new Texas Bar-B-Que restaurant has opened, a nearby Toyota franchise will be expanding into a larger site on the roadway and the new naval reserve training center, under construction behind the US Postal Service Distribution Center, is expected to open this fall.

The downtown area is also welcoming the opening of the City Lights Cinema, a new movie theater featuring an eclectic selection of films.

Hansen said traffic growth is not the only change taking place in the region. "There are more small, high-tech firms coming in, medical supply businesses, those kinds of companies. We're attracting more technical-oriented types of people who come and decide they like it and want to live here. We're not trying to compete with Hanover or Woodstock; we have a place here where families can grow up and still find opportunities."

Another area of explosive growth, Hansen added, will be the southern part of Route 5, I-91 o the Hartland border. This is the last area that's really available for industrial development.

ACROSS THE RIVER

Across the river in New Hampshire, the economic picture is bright, too, reported Jim Wechsler, executive director of the Lebanon Chamber of Commerce.

"Things are very good," he said. "The economy has recovered from the mini-recession and we're in an upswing. Sales are good, things look strong. The job market is getting very tight, to the point where employers are feeling the pressure when they look for people; some are even having to offer a higher pay. The unemployment rate for the past month was 1.5 percent for the Lebanon-Hanover area. Experts say that a rate of 2 percent is considered full employment, so we're very pleased."