Vermont Resort Pulls in Big Foreign Investments

He is expanding the Jay Peak ski resort, which he co-owns, but he is also building a biomedical research firm and a window manufacturing plant, extending the runway at the local airport and rehabilitating much of the nearby town of Newport, where he lives. There, he is developing the waterfront, adding the town’s first hotel and a conference center and rebuilding an entire downtown block. He is also creating what he says is the largest indoor mountain bike park in the world and a state-of-the art tennis center.

The price tag for the entire project, which Mr. Stenger says will create 10,000 direct and indirect jobs over several years, is $865 million.

But even more unusual than the size of the undertaking is the method by which Mr. Stenger and his business partner, Ariel Quiros, are financing it. They have tapped into a federal program that gives green cards, or permanent residency, to foreigners who invest at least $500,000 in an American business — the reward for the investment is a chance at United States citizenship.

Mr. Stenger has already attracted 550 foreign investors from 60 countries to put up $275 million for the first phase: a hotel here at the Jay Peak ski complex, an indoor water park the size of a football field, an ice hockey arena, condominiums, restaurants and stores.

The second and third phases, now under way, require 1,000 additional foreign investors to put up $500 million to overhaul Newport and to develop the nearby Burke Mountain ski area.

Mr. Stenger and Mr. Quiros are putting up $90 million themselves. But even at $785 million, this is one of the single biggest projects in the country financed under the investor program.

Congress created the visa program in 1990 to help stimulate the economy. Because of a cumbersome process and complaints of fraud and corruption, it was long underused.

But a confluence of events in recent years has led to its rather sudden revival: the program was improved; the financial crisis of 2008 made it hard for developers to get loans from commercial banks; and foreign nationals, especially in China, were accumulating vast wealth and were eager for their children to study and live in the United States.

In 2006, the government issued just 802 of these EB-5 visas to investors and their families; this year, it granted 7,818.

The program is now growing so rapidly that in the next year or two the number issued will probably reach the annual limit of 10,000. For the first time in the program’s history, applicants may be turned away.

Mr. Stenger, 64, who began his career as a ski instructor, and Mr. Quiros, 56, who spent years in the import-export business and already owned thousands of acres here, began leveraging the visa program five years ago, in the early stages of its revival. Along with state officials, who monitor and audit their projects, and Senator Patrick J. Leahy, a Democrat who has championed the program in Washington, the two men have sought to make Jay Peak a national showcase for the investor program.

Mr. Quiros said these projects would have been impossible without it.

“It’s too hard to get money of this magnitude,” he said, “especially with the economic situation that exists today.”

The immigrant investors do not have to get involved in the business, though it must create or save at least 10 jobs, and they can live anywhere they want.

One potential investor in Jay Peak is Steve Green, 49, an Englishman who has had a successful career in banking and reinsurance and has lived in Bermuda for 25 years.

“The reason to explore this and potentially to do it — and I’m more than 50-50 inclined to do it — is that it would give me an opportunity to relocate in the United States, keep a small home in Bermuda, spend the majority of my retirement in the United States and confer those rights on my children,” he said in a telephone interview from Bermuda.

Mr. Green said his hesitation about investing here stemmed from uncertainty over what kind of financial return he would get. “There is a substantial risk that you don’t get anything back,” he said.

Investors must put up $1 million for a visa, but if they invest in a rural area or one with high unemployment, that is reduced to $500,000.

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Foreign Automakers See Potential in Russian Market

Even as G.M. is scaling back elsewhere in Europe, the company is ramping up production in Russia, a country that is becoming a bright spot for G.M. and much of the rest of the automotive industry.

Trickle-down oil wealth and the spread of easily accessible auto financing are lifting sales, which rose by 40 percent in the first half of this year compared with the same period a year ago. G.M., Ford, Volkswagen, Nissan and Renault are all opening new plants, or intend to do so soon.

The new G.M. line in this picturesque town, an old center of the Russian car industry on the Volga River, will manufacture 30,000 Aveo sedans a year. Cars, held up on jacks, move along the assembly line and end up in a brilliantly illuminated inspection room, where every inch is carefully examined; the factory is trying to get defects down to G.M. standards. If all goes well, production will start in January.

The site is one of half a dozen facilities that G.M. runs in Russia, where the Detroit carmaker intends to invest $1 billion over the next five years. The money is a good bet today, analysts of the Russian market say, for the same reason that politics here recently got a jolt with street protests: the Russian middle class is rising, and becoming a force in both commerce and public life.

“I would put Russia in the same breath as China,” Timothy E. Lee, the head of G.M.’s international division, said at a groundbreaking ceremony for a plant in St. Petersburg last summer, which will make midprice sedans.

Russians are snatching up foreign-branded cars. The Hyundai Solaris was the best-selling vehicle in Russia last year. And Hyundai, Nissan and Renault all did well in the first 11 months of this year, with sales increases ranging from 11 to 23 percent.

Over all, Russian sales are now approaching three million cars annually, according to the Association of European Businesses, a group that tracks sales here as part of its efforts to promote trade between Russia and the European Union.

Russia is projected to surpass Germany and become the largest car market in Europe in 2014. It is already nipping at Germany’s lead. In August, Russians bought more cars than Germans did, before sales tapered off in the fall.

International car companies say the best way to benefit from the growth is through investing heavily in Russian manufacturing, elbowing aside local brands.

Russia’s automobile industry survived the financial crisis not through subsidies, though these were handed out, but through a willingness to embrace foreign manufacturers — even if that hurt homegrown brands like the Lada and the Volga, the model once made in the plant here.

Russians have shown little nostalgia for their own cars.

“I’m glad they’re gone,” said Nikolai Chernyshov, a 34-year-old lawyer, as his family spilled out of a Ford Focus at a shopping center. He has not shed a tear, he said, for the Lada he once drove.

“No matter what effort we put into making them better, they never got any better,” he said.

The Volga, an overpowered slab of steel, was once the vehicle of choice for K.G.B. agents. It even had an ominous nickname, the Black Raven. But the cars often broke down, diminishing their cachet.

Last year, the last Volga rolled out of the Gorky Automobile Factory, clearing enough floor space for three foreign manufacturers — G.M., Volkswagen and Mercedes — which collectively now employ about 5,000 people.

“We are only helped by being brutally honest with ourselves,” said Bo Andersson, a former G.M. executive hired in 2009 to manage the transition.

“It’s a shame we lost the Volga,” Aleksandr Kazanin, a worker here, said. “But we’re still here. We kept our jobs.”

Avtovaz, the maker of Russia’s other main brand, the Lada, is also charting a future based on a strategy of forming joint ventures with foreign car companies — in its case, Nissan of Japan and Renault of France.

Just this month, the French-Japanese alliance formalized an agreement to buy a controlling stake in Avtovaz from the Russian government, bringing all of the country’s car industry under foreign management or ownership for the first time in the post-Soviet period.

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