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Why General Dynamics Will Leave Burlington

Burlington, Vermont - October 17, 2009

The defense contractor General Dynamics confirmed Friday that it will move out of Burlington when its current lease expires at the end of next year. But the company won't be going far -- just to nearby Williston. And that's a relief for its 450 Vermont employees.

General Dynamics says it will relocate in vacant space on the Williston campus of IBM. The delay gives the owners of the property and the City of Burlington some time to find a new business tenant.

Burlington Community & Economic Development Director Larry Kupferman told Channel 3, "Certainly, losing a major employer is always troubling, but we think that there's some opportunity here to have other businesses look at this site."

Kupferman says General Dynamics currently occupies about 120,000 square feet. It's not clear if that large an area would be split up into smaller units. "Whether they are 120-thousand square feet, one tenant or not, is another matter to be determined," Kupferman said. He added that several businesses have done well in Burlington in spite of the recession.

A source close to General Dynamics told us that the move makes sense financially because the IBM location is cheaper in terms of the lease and commercial-rate electric power. It means 450 fewer people will be working and spending in Burlington. But state officials are relieved that the move is not out of Vermont.

Lt. Gov. Brian Dubie said, "The fact is, the jobs that are located here in Burlington and now are going to be in Williston, Vermont, could be located anywhere in the world. These are engineering jobs."

Dubie founded an association that promotes aerospace-related business like General Dynamics in Vermont. He says the quality of the workforce was a big factor. He said, "I'm grateful that at the end of the day, General Dynamics looked at the workforce they had and ultimately made a decision that staying in Vermont is the right decision for them. And that's based on, I'm sure, economics. But it's also based on quality of life."

The state as a whole wins as a result of General Dynamics decision to stay in Vermont, even though Burlington loses one of its largest employers.

Andy Potter - WCAX News