Cannondale in discussions with state
Cannondale Sports Unlimited’s parent company, Dorel Industries, is in talks with the state Department of Economic and Community Development to amend the agreement under which it received a $3-million state loan in 2013.
Aug. 1 was the deadline for Dorel to show it had retained 143 jobs and added 75 jobs since moving from Bethel to Wilton.
The state DECD had been auditing the company’s reports since Aug. 1 to determine if the goal had been met, but now there is a delay.
“The job audit has been postponed because we are in discussions with them on an amendment to the agreement. That’s where things stand,” said Jim Watson, a spokesman for the DECD.
It is unknown when the discussions will be complete, Watson said.
It raises questions because Dorel laid off 50 workers in its leisure division in June of 2013.
The loan was created to encourage Cannondale to stay in the region after it began outgrowing its facility in Bethel. Wilton is where the company began decades ago. Under the terms of the 2013 state loan of $3 million over 10 years at 2% annual interest, the company must retain its original 143 jobs and create 75 more for a total of 218 jobs — an average it must maintain for 12 months — to be in good grace with the terms of the loan.
If the company can keep those job levels, $2 million of the loan will be forgiven. If not, the company must pay a penalty for each job missing in the equation.
The company did not return a telephone call seeking comment.