By Guy Page

Seven Vermont communities will receive a combined $7.6 million of federal funding from the Northern Border Regional Commission (NBRC), including a $1 million grant for a regional development organization to buy the ‘pit’ in downtown Newport, according to a statement issued by Gov. Phil Scott’s office.

The Pit, AKA the Main Street Development Lot, is a relic of the EB-5 scandal, in which foreign investors under the federal EB-5 program lost virtually all of their money in a Ponzi scheme. Two businessmen, including Jay Peak owner Bill Stenger, were sentenced for fraud. Stenger was sentenced to 18 months in prison in 2022. As reported by WCAX in 2022, nine buildings were demolished in 2015 in anticipation of construction of a large office, restaurant, retail and hotel ‘Renaissance’ complex. 

But the property remained vacant following what became known as the Kingdom Con Ponzi scheme. It went into bankruptcy receivership, to be sold, as with the other affected properties. The grant recipient, according to Gov. Scott’s press release, is the Northeastern Vermont Development Association (NVDA). The NVDA serves 55 northeastern municipalities as their regional development and planning commission. 

The United States EB-5 visa, employment-based fifth preference category or EB-5 Immigrant Investor Visa Program was created in 1990 by the Immigration Act of 1990. It provides a method for eligible immigrant investors to become lawful permanent residents—informally known as “green card” holders—by investing substantial capital to finance a U.S. business as long as it creates at least 10 new, full-time jobs for Americans and work-authorized immigrants.

In the wake of the EB-5 Vermont scandal, the federal government sought to shut down the Vermont program. The Scott administration preferred a more gradual “wind-down”. Federal legislation, the EB-5 Reform and Integrity Act, renewed the program in 2022.

The State of Vermont also received $3 million for water, sewer, transportation and streetscape improvements and $625,000 to buy a Newport railyard. 

When evaluating potential projects, the Catalyst Program considers project readiness, economic impacts, impacts on Vermont’s skilled workforce, project location, regional input and priorities, and the project’s transformational nature, according to a statement from the office of Gov. Phil Scott. The spring, 2026 awardees are:

Canaan Fire District #2

Project Location: Essex County

Grant Amount: $545,572.21

Total Project Amount: $689,117.26

Project: Replace 800 feet of failing distribution main, install new valves and hydrants.

City of Newport                                                                                  

Project Location: Orleans County

Grant Amount: $3,000,000

Total Project Amount: $3,750,000

Project: Replace and upgrade water and sewer lines, implement downtown transportation and streetscape improvements.

Northeastern Vermont Development Association         

Project Location: Essex County

Grant Amount: $500,000

Total Project Amount: $1,000,000

Project: Acquisition of the ‘pit,’ a long-vacant property in downtown Newport.

Swanton Village

Project Location: Franklin County

Grant Amount: $1,638,329
Total Project Amount: $3,833,194

Project: Implement critical stormwater and parking improvements in the downtown.

Town of Danville

Project Location: Caledonia County

Grant Amount: $444,955
Total Project Amount: $556,194

Project: Construction of a multi-use parking lot in Danville Village featuring 28 parking spaces, easy access to transit, and safe connections to the business block.

Vermont Agency of Transportation

Project Location: Orleans County

Grant Amount: $500,000
Total Project Amount: $625,000

Project: Acquisition of the 52-acre Newport Railyard, which includes an office building, grain depot, maintenance shed and 11 railway sidings.

Vernon Advent Christian Home
Project Location: Windham County

Grant Amount: $1,000,000
Total Project Amount: $5,594,663

Project: Replace the skilled nursing facility and rehabilitate its assisted-living capacity in Vernon. The campus maintains 119 licensed elder care units and supports 100 full-time jobs.

The Northern Border Regional Commission is a Federal-State partnership in Maine, New Hampshire, Vermont, and New York designed to stimulate economic growth and inspire collaboration to improve rural economic vitality across the four-state NBRC region. NBRC grants are made with input from the State of Vermont and its three members of Congress.

Feature photo of the Pit in Newport credit Reddit.