WARREN - AVTECH, a multi-million dollar computer technology company based out of Newport, has signed a purchase and sales agreement to buy the Cutler Mills property on Child Street and plans to move its entire operation, and about 25 employees, to downtown Warren. The firm's owner, who started AVTECH on a shoestring budget two decades ago, estimates the company will bring about $25 million in recyclable revenue to the area yearly.
If the sale goes through, AVTECH will move from Newport to Warren in March. It's a marked change in plans for the high-tech firm, which for two years had been seeking to purchase and renovate the Sheffield School in Newport but gave up as city approvals and other regulatory hurdles took longer than expected.
"It was an emotional drama. Because the press covered the process, people thought it was a done deal. But it wasn't. We only won the right to bid on the property," said AVTECH founder and president Mr. Sigourney.
He said Newport officials were saddened by the news last week that the company would be moving to Warren, but the East Bay area could use the economic uplift.
"It's a huge loss for (Newport), but it means Warren can benefit," said Mr. Sigourney.
Cutler Mills is a better option than the school because it has about 49,000 square feet of room in the mills, enough growing room for his 25 full-time employees and the additional 10 he expects to hire in the coming months. The mill is about 15,000 square feet larger than the school.
East Bay Chamber of Commerce President Betty Pleacher said the business will not only supplement the tax base, but will also add to the economy by bringing in more professional workers. She does not foresee any downsides to AVTECH's presence.
"Whenever you bring in employees and have more coming [to visit the company] throughout the month, they go to the Coffee Depot, have lunch everyday here in the downtown area, go to retail shops, buy antiques... That's helping our economy and will be an economic boost to us," said Ms. Pleacher.
Growing Business
Founded in 1988, AVTECH is one of the largest worldwide manufacturers of environmental computer and network monitoring equipment, selling in 140 countries. The equipment is specifically designed for company computer rooms and data centers. AVTECH's products are used to monitor environmental conditions that could potentially damage computer systems in many of the world's most secure data centers and are installed in almost every branch of the US government, according to company literature. A growing business.
In the past year, AVTECH has seen a 200 percent increase in profits, and the average employee's yearly compensation is about $50,000.
"There aren't a lot of those kinds of jobs," said Mr. Sigourney.
He said the employees he hires tend to be stable, young professionals with families who give back to the community and support the area financially, making them ideal tenants for a mixed-use area with residents living nearby.
"My employees are invested in the community. They typically work from nine to five; it's a family-oriented business. We're pretty quiet neighbors," said Mr. Sigourney.
He said the building's location is advantageous to the company because of potential company locations close-by. Even if room in the Cutler Mills building becomes too tight, Mr. Sigourney said he would consider moving part of the company into Parker Mills down the street or into 30 Cutler Mills, the sister mill property.
"I hope we continue to grow. We'll consider all these place's options," said Mr. Sigourney.
Cutler Mills Tenants' Future
Mr. Sigourney said he plans to allow all the first floor mill tenants to stay, since AVTECH will be using the second and third floors of the mill. That includes Fab Goldberg's Basically British Tea Room, of which he and his wife are regular customers. In fact, he said, Ms. Goldberg's campaigning for the property was one of the reasons he decided to seriously look into buying the mill, which owner David Wescott put on the market several months ago.
Ms. Goldberg said when Mr. Wescott was looking to sell, he wanted to find an owner that would be able to keep the integrity of the building.
"[Mr. Wescott] didn't want it to be developed into condos so it's a win-win situation," said Ms. Goldberg.
She will be one of the designers hired to revamp the mill space.
Besides being able to enjoy a daily scone at Basically British, Mr. Sigourney wanted to keep the current tenants in their spots to add vibrancy to the building.
"It fits in with the culture. We want to be able to entertain our re-sellers at a tea room or visit nearby studios," said Mr. Sigourney.
The only tenant not staying is the Rhode Island Fencing Academy and Club located on the third floor, one of the spaces the company plans to move into.
"It's unfortunate they'll have to leave but I'm sure they'll find a new space," said Mr. Sigourney.
Jane Bergmark, owner of the Yoga Loft, is one of the first floor tenants that will be allowed to stay. While she said she's sad to see the fencing academy go, she thinks AVTECH's move to Warren is great for the town and will add a great financial base.
"We've been needing something like this. I hope we can offer something to the company as the company offers something to the community. Yoga is all about community service," said Ms. Bergmark.
Future Construction
Under terms of the purchase and sale, AVTECH would purchase the property for $1,735,000, and plans are to put at least an additional $1 million into the site to make necessary upgrades. Plans are to renovate while also adding a separate meeting room. It would serve as a showroom for the technology products and a meeting room that would be available for public use.
"If the chamber of commerce or a non-profit wants to use it, then they can," said Mr. Sigourney, adding that all renovations will respect the mill's character and historical value. He wants to add a copper top to the chimney, solidify the foundation of the building and put more flowers along the exterior.
"We want to make it a beautiful place that people can't stop talking about."
As for the Cutler Mills Market site, he wants to put in another small market such as a deli.
There are still regulatory hurdles to clear before the sale is consummated, but Mr. Sigourney said he's optimistic.
"The project is a big thing and there are some things to work out, but we'll get through them."
WARREN - AVTECH, a multi-million dollar computer technology company based out of Newport, has signed a purchase and sales agreement to buy the Cutler Mills property on Child Street and plans to move its entire operation, and about 25 employees, to downtown Warren. The firm's owner, who started AVTECH on a shoestring budget two decades ago, estimates the company will bring about $25 million in recyclable revenue to the area yearly.
888.220.6700
Sales@AVTECH.com
AVTECH Software, Inc.