Cannondale reaches agreement on state loan
Cannondale Sports Unlimited’s parent company, Dorel Industries, has reached a revised agreement with the state Department of Economic and Community Development, an amendment to the agreement under which it received a $3-million state loan in 2013.
Under the terms of the 10-year loan at 2% annual interest, the company was to retain its original 143 jobs and create 75 more, for a total of 218 jobs — an average it was to maintain for 12 months — to be in good grace with the terms of the loan.
Aug. 1 was the deadline for Dorel to show it had met the terms of the loan 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, and then there was a delay. Now, the DECD reported Dec. 5, an amendment has been signed.
Under the amendment, the company is now required to retain 140 full-time jobs and create 41 full-time positions. It must maintain an average of 181 jobs for a year prior to Aug. 14, 2019.
The company can get $1 million of the loan forgiven if it maintains 181 jobs for 12 consecutive months and the 41 jobs that are created have an average salary defined in the agreement. This specific salary information is not disclosed under Freedom of Information law.
It is known that Dorel laid off 50 workers in its leisure division in June 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. If the company could keep those job levels, $2 million of the loan was to be forgiven. If not, the company was to have paid a penalty for each job missing in the equation.