Comprehensive Economic Development Strategy _CEDS_ - Midcoast

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Comprehensive Economic Development Strategy _CEDS_ - Midcoast Powered By Docstoc
Midcoast Economic
Development District
Midcoast Maine

     Comprehensive Economic Development Strategy

                               Prepared by
                       The 2007 Midcoast Economic
                           Strategy Committee

                            Approval Pending

                              March 2008

                              Sponsored by

         Midcoast Council for Business Development & Planning

             Lincoln County Economic Development Office
                                Table of Contents

    I.     Background

    II.    Analysis of Economic & Community Development Problems &

    III.   CEDS Goals & Objectives

    IV.    Community and Private Sector Participation

    V.     Suggested Projects

    VI.    Vital Projects, Programs and Activities

    VII. Economic Clusters

    VIII. Plan of Action

    IX.    Performance Measures

    X.     Integration with State‘s Economic Development Priorities

    Appendix A, B, C, D: Community Participation

                                       Midcoast Maine

    From Brunswick to Waldoboro, the Midcoast District offers an array of retail, service,
tourist, cultural and educational options. The towns of Bath, Brunswick, Topsham, Waldoboro,
Wiscasset and Damariscotta comprise the major population centers. The Androscoggin River
runs feverishly through the Towns of Brunswick and Topsham, meeting with the Pejepscot; and
the Kennebec River spreads out and joins the Sassanowa , the magnets that made Bath ―the city
of ships‖. The rich history of the shipbuilding days is evidenced by the large sea captains‘
houses a topped with widow walks, and other remnants of the seafaring life. Today, one can still
enjoy the area‘s many harbors and inlets, such as Merrymeeting Bay and New Meadows Harbor,
and find marinas that service modern day vessels.
    Also part of the Midcoast District is the town of Harpswell, which boasts 150 miles of
rugged and remote coastline, more than any other town in the State. Harpswell‘s fishermen
continue the traditional work of their fathers and grandfathers, while watching their community
become a retreat for the rich and famous. Within a short drive, one can experience the
congestion of consumers in the downtown centers and development of Bath, Brunswick, and
Topsham and also the winding roads and ocean vistas of the Harpswell peninsula. The contrast
between Cooks Corner and places like Mackerel Cove make it necessary to employ a myriad of
innovations and investment in order to keep these varied communities vibrant and healthy. While
vast summer homes sprout up on Harpswell‘s wave-crashed crags, development up the peninsula
has seen the renovation and transformation of many of the mill and fort buildings. These quaint
complexes house business offices as well as local artisans, restaurants, gourmet shops and value-
added products. The Bowdoin Mill and Fort Andross are examples of revitalization that are alive
and thriving.

    To the northeast are the coastal towns of Wiscasset, Damariscotta, Boothbay and the
Pemaquid and South Bristol peninsulas, flooded with tourists and part-time residents during the
summer months, bringing economic support to the many retail and service-related businesses.
Fishing and other marine-related industries such as boat-building, aquaculture, clamming,
worming, etc., depend on location and access to the waterfront, and continue to fill an important
role in the local economy. The paradox of how to support the growing tourist industry in the area
while also maintaining the traditional qualities of coastal Maine life which attract many tourists
in the first place is one that requires a creative set of solutions. The Sheepscot, Medomak,
Damariscotta, and Marsh Rivers link the inland lakes and farmlands to the sea and house
ecosystems that are imperative to the vitality of many resource-based businesses. Inland from the
coast are the pastoral and unquestionably rural towns of Jefferson, Dresden, Alna, Somerville,
and others. Rambling old farmhouses and overgrown fields recall the subsistence farming of the
past on the fertile but rocky coastal and river plains. Some small farms have survived or have
been revived, and comprise an important sector ready for innovative economic development,
through cultural heritage tourism and the like.

    Midcoast Economic Development District

    I. Background
       This Comprehensive Economic Development Strategy (CEDS) for the Midcoast region of
Maine, which consists of Lincoln and Sagadahoc Counties, as well as the communities of
Brunswick and Harpswell, is an economic analysis of the region; vision, goals, objectives and
actions for economic development of the region, a list of prioritized economic projects and
performance measures to determine progress in meeting the economic goals.

        Many events since the submission of the last CEDS in 2002 have forever changed the
region and prompted communities into action. The Defense Department‘s decision to close the
Brunswick Naval Air Base (NASB), beginning g in 2008, will result in the loss of over 5000 jobs
and 135 million dollars annually from the local economy. Layoffs at the region‘s other major
employers, such as the Bath Iron Works (BIW) and the closing of other manufacturing facilities,
have also negatively impacted the regional economy. Such jobs losses affect other sectors of the
economy as well, particularly the service, construction and retail industries. The Midcoast must
also replace workers expected to leave the region in the next few years. Severe shortages are
already being experienced in the health care and education industries and are projected to grow
worse with these departures.

       These economic adjustment problems have spurred the two regional economic
development organizations into action. The Lincoln County Economic Development Office
(LCEDO) and the Midcoast Council for Business Development & Planning (MCBDP) have
worked closely together since the submission of the District‘s first CEDS in 2002. With the
awarding of a planning grant from the Department of Commerce‘s Economic Development
Administration (EDA) these offices have been able to increase their effectiveness in assisting
with identifying local economic opportunities and develop market-based strategies that will
increase private sector investment and job creation in the region. This document will serve to
explain the activities and programs in the MCEDD region for the last five years, as well as give a
comprehensive blueprint of the next five years as well.

         Closely following the Summary of Requirements published by the Economic
Development Administration for the CEDS, the offices of LCEDO and MCBDP formed a
Midcoast Economic Strategy Committee to prepare the CEDS. The Committee represents all
major economic and community interests in the region and held four public visioning meeting
throughout 2007 to review the CEDS process and contribute the information used to compile the
document. A private economic research and planning firm, Planning Decisions, was hired to
facilitate the visioning sessions and assist in the preparation.

        The CEDS will be submitted to the EDA for approval following the mandatory 30 day
public comment period and will be reviewed and updated annually by the Strategy Committee.
Questions about the CEDS can be directed to LCEDO at (207) 882-7564 or MCBDP at (207)


Economic Base Analysis

This section will provide an overview of the regional economy and will serve as a basis for
building an economic development strategy to be presented to the Economic Development
Administration (EDA) of the U.S. Department of Commerce. Because this is only the second
CEDS submitted to the EDA for review, this report is in may ways still an introduction of the
Midcoast region to the EDA. Following this analogy, the report will speak of the region as ―us‖,
and will be organized around providing answers to four questions.

Where are we?

This will consist of a description of the geography of the region, its population distribution and
its major transportation centers.

Who are we?

This will consist of a presentation of the basic demographic facts of the region and a brief
analysis of its sources of income.

What do we do?

This will consist of an examination of the sources of income and employment on the region by
major industrial category.

How do we do it?

This will consist of an examination of the structure of business in the region by size and labor
force characteristics

Problems and Opportunities

An overview of challenges and opportunities facing the Midcoast.

    1. Where are we? The Midcoast region

    The Midcoast region, although relatively small in size, is diverse and features much of what
makes Maine such a unique and special place. Comprised of Lincoln and Sagadahoc Counties, as
well as the towns of Brunswick and Harpswell, the region is over 700 square miles, with more
heavily populated communities in the west, agrarian communities in the north and east and
working waterfront and fishing communities all along its coast. Several of the region‘s larger
communities function as service centers for the smaller ones and feature most of the region‘s
largest employers.

    The Midcoast is extraordinarily diverse economically; it is home to the state‘s largest
industrial facility, Bath Iron Works, which has a long history of shipbuilding and is among the
state‘s largest employers, while also featuring some of its smallest and most rural municipalities.
The local economies of the region rely on a wide array of activities, from marine-based industry
and resources, to tourism, to agricultural production. It is also home to an ever increasing number
of retirees, who are drawn to the region by its beauty and high quality of life. There are 31
member municipalities, a township, a plantation and a gore spread. These towns are divided
among four separate state designated Labor Market Areas (LMAs); Brunswick, Boothbay,
Waldoboro and Augusta. Because there is not a single urban center for the region, many of its
demographic characteristics are unique.

Population Distribution

               Table 1 - Population Growth of MCEDD Communities 2000-2006

Town/City/Plantation                           2000                 2006               +/- %

Lincoln County                                 33,709              35,234              4.3%

Alna                                            675                  683               1.2%

Boothbay                                       2,977                3,255              9.3%

Boothbay Harbor                                2,336                2,338               0%

Bremen                                          790                  812               2.8%

                                               2,652                2,812               6%

Damariscotta                                   2,042                1,972              -3.4%

Dresden                            1,618    1,709    5.6%

Edgecomb                           1,096    1,228    12%

Hibberts gore                        1        1       0%

Jefferson                          2,398    2,563    6.9%

Louds Island Unorganized Twnshp.     2        2       0%

Monhegan Plantation                 75       72      -.04%

Newcastle                          1,756    1,970    13.3%

Nobleboro                          1,632    1,696    3.9%

Somerville                          509      537     5.5%

South Bristol                       897      869     -3.1%

Southport                           687      699     1.7%

Waldoboro                          4,914    5,090    3.6%

Westport                            746      821     10%

Whitefield                         2,276    2,234    -1.8%

Wiscasset                          3,630    3,871    6.6%

Sagadahoc County                   35,237   36,837   4.5%

Arrowsic                            478      513     7.3%

Bath                               9,208    9,184    -.2%

Bowdoin                            2,726    2,934    7.6%

Bowdoinham                         2,617    2,773     6%

Georgetown                         1,025    1,136    10.8%

Perkins Unorganized Twnshp.          -        1       ----

Phippsburg                         2,108    2,189    3.8%

Richmond                           3,297    3,421    3.8%

Topsham                            9,124    9,940    8.9%

West Bath                                       1,840                     1,817        -1.3%

Woolwich                                        2,814                     2,929        4.1%

Cumberland County                              26,414                 27,119           2.7%

Brunswick                                      21,184                 21,915           3.5%

Harpswell                                       5,230                     5,204        -.5%

       Chart 1 - Population Growth by Area 2000- Source: Maine State Planning Office, 2006

                           4.6%            4.8%



                              Source: Maine State Planning Office, 2006

     Chart 2 - Projected Population Growth by Area 2006-2015

           7.9%          8.7%



               Source: Maine State Planning Office, 2006

       Population growth in the region continues to be unevenly distributed. Urban centers
(Brunswick, Topsham, Bath, West Bath) grew by only 3.7%, while the rest of the region grew at
a considerably higher rate

                                    Table 2 – Population Growth in MCEDD Region

Municipality/County                                                  Percentage change 2000-20006

Bath/Brunswick/Topsham                                               3.7%

Lincoln County                                                       4.8%

Sagadahoc*                                                           5.7%

    *Growth percentage for Sagadahoc County does not include population figures for the City of Bath or the Town of

        This trend is expected to continue in a similar fashion. Growth rates, for the most part in
Maine seem to be highest in the outlying municipalities of service center communities. The
population distribution of the Midcoast region may shift even more dramatically in the coming
years as off-base military personnel, stationed at NASB are redeployed to other installations.
This process will begin in 2008 and complete in 2011. Because the communities in the
immediate vicinity of the base (Brunswick, Topsham, Bath) are currently home to the greatest
number of military families, they are expected to deal with the consequences of declining
population (shrinking tax base, declining school enrollments, etc.).

       2. Who are we? The people of the Midcoast region

   This section will focus on two major points of population: the slow rate of population growth
and its changing demographic composition

Population Growth

        The state of Maine continues to grow, but at a rate slower than the national average.
While population increases, the state is seeing the influx that the new residents tend to be retirees
and near retirees. Recent studies analyzing Maine‘s economy reveal that younger residents,
particularly those in the age range of 25-34 are leaving the state at an increasing rate.1 This trend

1   Charting Maine‘s Future: An Action Plan for Promoting Sustainable Prosperity and Quality Places , Page 7
is consistent with what has been experienced in the Midcoast region as well. This continued shift
in Maine‘s demographics will require the state‘s regional economies to adapt in many ways.
First, an educated and diverse workforce must be trained to meet the needs of existing
businesses, as well as start ups and out-of-state operations looking to relocate. Secondly, service
industries, and in particular health care and sectors that cater to the ever growing population of
retirees must be sufficiently supported to meet these demands this population will create.

          Chart 3 - Age composition of population (update from page 8 of 2002 CEDS)

                               Source; Maine State Planning Office 2006

                             Table 3 – Percentage of Population by Age

        Town/County              Median Age                    % 20-34               % 65+

     Lincoln                         42.6                         13.6                18.2

     Sagadahoc                       38.0                         17.1                12.3

     Brunswick/Harpswell             38.6                         21.3                15.5.

     Maine                           35.3                         17.9                14.4

                               Source; Maine State Planning Office 2006

   The population of the Midcoast regions is older than that of the state or the U.S. as a whole.
Both the Midcoast and Maine have smaller proportions of their populations in the young adult
years and larger populations in the post 65 years. These differences, moreover, have increased
over the past decade.

                       Chart 4 – Growth of Population over the age of 65

       United States                                            11.4%

       Maine                                                    12.4%

       Midcoast                                                 25.6%

       Brunswick                                                50.6%

       Sagadahoc                                                16.3%

       Lincoln                                                  21.6%

                               Source: Maine State Planning Office, 2006

Income and Employment

         Per capita income for the Midcoast region as a whole is 31,027, slightly below the Maine
state figure of $31,252 and 36% below the New England median income. Even more significant,
however, is the source of income.

                         Chart 5 - Per Capita Income Comparison - 2006

                    $                              $              $
                    3                              4              3
                    1                              2              4
                    0                              3              5
                    2                              1              8
                    7                              4              6

              Source: U.S. Department of Commerce, Bureau of Economic Analysis, March 2006

        The region has also seen the loss of jobs in well-paying manufacturing industries as some
operations have either closed or scale back operations. Recent examples of this can be seen with
the closing of the Osram Sylvania plant in Waldoboro and layoff at the Bath Iron Works.
Unfortunately, these jobs have not been replaced with those offering comparable pay and
benefits, but, instead, with lower paying jobs in service sectors. The stability of these jobs is also
very uncertain, given that many service industries have been identified as among those most
likely to be affected in the wake of the Air Base closing.

           Table 4 - Significant Layoffs & Closings in the MCEDD Region 2006-2008

Employer                                   # of workers                                             Date
Bath Iron Works                                 37                                                9/2006
Bath Iron Works                                 19                                                1/2007
Richmond News                                   not known                                         9/2006
Woolwich Chevrolet                              16                                                9/2006
Atrium Inn/Conv. Ctr.                           32                                               10/2006
Left of Center Artworks                         not known                                        12/2006
Northern Mattress                               not known                                         1/2007
True Value Hardware                             10                                                5/2007
Park View Adventist Hospital                    14                                                9/2007
Bath Iron Works                                 73                                                1/2008

            Source: Maine Department of Labor, Quarterly Report Western District, January 2008

The employment sectors identified in the BLRA‘s impact study to be the hardest hit by the base
closing employ the greatest number of the region‘s workers

             Chart 5 - Top 5 major industries, ranked by number of employees 2005


     Health Care

       Education                                                                              3,839

      Hospitality                                                                             2,570

                    0          1000          2000          3000          4000          5000

                    *Source Maine Department of Labor, Labor Market Information Services

       These five employment sectors alone, account for nearly 47% of the LMA‘s 33,100
workforce. The projected impact of the base closing, combined with continuing decline in
manufacturing jobs could potentially push the Midcoast unemployment rate well above state and
national averages.

        The Midcoast depends more on income derived from property (dividends, interest and
rent) than through earnings. This situation is of particular concern with a soft housing market,
expected to be exacerbated by the ―housing glut‖ the region will experience with the departure of
military families. These factors are likely to depress property values and rent levels, possibly for

       Employment opportunities in new and emerging industries could potentially replace those
highly desirable jobs lost in declining industries, provided that effective business retention and
expansion programs are properly utilized. These opportunities are more thoroughly discussed in
the next section.

3. What do we do? The jobs and workers of the Midcoast region

        Having examined the Midcoast‘s major sources of income, the next step in understanding
its economic base is to look in more detail at its sources of earned income, to ask, in effect,
―What do we do in the Midcoast region to earn our income?‖

      Chart 6 - Midcoast Economic Development District‘s Largest Employment Sectors

                               Total Employment Force - 33,100

                 Source: Maine Department of Labor, Labor Market Information Services

        The average weekly salary for Midcoast residents varies widely. For example, average
annual wages of Lincoln County and the Town of Harpswell residents is well below the regional
and state average, while Sagadahoc County‘s is well above. However, it must be remembered
that Sagadahoc is the smallest of all Maine counties, with a high percentage of its workforce
employed by Bath Iron Works. While salaries paid by this employer are well above regional and
state averages, the operation has laid off hundreds of employees, with more layoffs expected in
the future. A continued contraction in this industry will affect annual wage totals for Sagadahoc
and lower further those for abutting communities and counties.

                          Chart 7 - Average Annual Wage Figures 2006

                  Source: Maine Department of Labor, Labor Market Information Services

       The reliance upon traditionally lower-paying extraction industries (e.g. fishing, farming,
forestry) for employment in the communities of Lincoln County and Harpswell, does help to
explain the lower annual wage figures. The elimination of manufacturing jobs in the region also
account for a reduction as well, as many of these have been replaced by lower paying service
industry jobs.

       Consistent with state and national trends, the Midcoast continues to see a decline in
agricultural and manufacturing jobs. The loss of jobs in the manufacturing industry is of
particular concern, as they tend to ones with good pay and benefits. Two major employers in the
area, Osram Sylvania and Stinson Seafood have ceased operations entirely, while the largest
employer, Bath Iron Works has had to trim its workforce in response to fewer contracts. As a
result, the percentage of workers in service related industries has increased significantly,
allowing the region to maintain a rather stable rate of employment. Unfortunately, these jobs do
not offer a comparable pay rate or benefits as those lost and the economic forecast for the region
in the wake of the base closing predicts significant damage done to jobs in these sectors. This,
coupled with an expected drop off in population, will force many of these operations to identify
new markets, scale back operations or close all together.

4. How do we do it? The Midcoast’s business structure

        The current business structure in the Midcoast is consistent with that of the state. The
Midcoast economy is powered by-and-large by small business, even with the large regional
employers factored in, the region‘s average number of employees per business is near the state
average. When Bath Iron Works is removed from consideration, the average is significantly
lower than the rest of Maine. In Lincoln County, for example the average number of employees
per business is 6.4, slightly more than half the state average of 11.9. And in Sagadahoc, the
figure, when BIW is omitted from calculation is 9.4.

                   Chart 8 - Number of employees per business by area, 2005

                  Source: Maine Department of Labor, Labor Market Information Services

         Over 60% of Maine businesses employ four or fewer people. Sagadahoc averages come
in just below that average, while Lincoln County is well above the average at over 67%. Two out
of every three employers in Lincoln County employ fewer than four people. Conversely, Lincoln
County has just about the state average of 18% of its employers in the five to nine employee
category and a much lower share of its employers in the ten to forty nine employee size category.
These findings are identical to those from the region‘s 2002 CEDS report and are unlikely to
increase as large scale operations continue to decline in the region.


        Housing in the Midcoast region has become increasingly less affordable as home values
increase much faster than earnings. This, combined with a marked increase in property taxes
levied by municipalities, has threatened to further exacerbate an already serious problem. The
Midcoast is an area valued by out-of-staters as an ideal location for a second home. Demand for
waterfront or near waterfront property has pushed property valuations in coastal communities,
such as Harpswell, well beyond the level of affordability for the average resident. This is
demonstrated in the following table.

                       Table 5 - Median Home Valuation in Relation to
                      Median Household Income in Midcoast Region 2000

Community/County         Median Home Price            Median Household             Valuation per Dollar
                                                           Income                      of Income

Maine                            $98,700                       $37,240                     2.65

Brunswick                       $135,000                       $40,402                     3.34

Harpswell                       $162,500                       $40,611                     4.00

Lincoln                         $119,900                       $38,686                     3.09

Sagadahoc                       $110,200                       $41,908                     2.63

                          Source – http:/ – 2000 fact sheet

         As indicated above, the affordability of homes in Lincoln County and the Towns of
Harpswell and Brunswick is considerably less than in Sagadahoc County and the State as a
whole. Harpswell is particularly affected as its valuation per dollar of income is nearly one-and-
a-half times the state average.


       The population of the Midcoast region is, on average, more likely to have completed a
degree in higher education than in other areas of the state. A quick comparison of percentages of
those with a Bachelor‘s degree reveals the following.

            Chart 9 - Percentage of Workforce with Bachelor‘s Degree or Higher - 2004

                         Source: Maine Department of Labor, Labor Market Analysis

5. Problems and Opportunities

        As the previous sections outlined the regional profile, current challenges, and changing
demographic and economic conditions of the Midcoast, this section will highlight the potential
opportunities to the area, as well as the potential problems and obstacles to their fruition. The
central facts of the Midcoast region are

        The demographic structure of the population continues to change

        The nature of businesses within the region tend to be small in size, but innovative and
         very adaptable to changing economic conditions

        The region continues to be a desirable location to retire and vacation to, but its average
         population continues to age as younger residents leave the area. This is consistent with
         what is experienced in other regions of Maine as well

        The closing of the Brunswick Naval Air Station (NASB) will have a significant impact
         on the region‘s economy, housing, social services, transportation, education, workforce
         development and the operation of local and regional government.

        The region is a popular vacation destination, due, in large part to its natural beauty. This
         identity must be maintained and conservation efforts must be carefully considered along
         with those promoting development


     2007       List of Problems/Opportunities/Recommendations

     1. Expand availability of training programs for workers (and potential workers), business
        managers and high school students

     2. Recognize retirees and retirement income as fundamental and growing base industry

     3. Address growing problem of affordable housing

     4. Develop greater value from the tourist industry

     5. Focus business creation and attraction efforts on the inter-industry connections(suppliers
        of and buyers from) the marine research industry already established in the region and to
        the Brunswick Naval Air Station

II. Issues and Opportunities for the Midcoast

       This chapter discusses the economic and community development opportunities and
challenges facing the District. Part 1 provides an overview. Part 2 inventories relevant economic
development studies and plans. Part 3 summarizes past, present and future investments.

Part 1: Overview

A. Two economies coexisting together

        Two economies coexist in Midcoast Maine. The first is an economy of small businesses,
serving local customers, paying relatively low wages. The second is an economy dependent
upon one major manufacturer, Bath Iron Works in Sagadahoc County, serving international
customers, paying high wages. BIW employs 5,800 workers – over a fifth of the jobs in Lincoln
and Sagadahoc Counties. The remaining 20,200 workers in these counties are employed by
2,600 firms (there is no information on business size for Brunswick and Harpswell).2 This is an
average of 7.7 workers per firm. Two out of three businesses in Sagadahoc and Lincoln
Counties have four or fewer employees.3

       The difference shows up in wages. The average annual wage in Sagadahoc County, the
home of Bath Iron Works, is $36,300 (in 2006). This is higher than the state average of $33,200,
and well over the Lincoln County average of $27,200. In fact, the Maine Department of Labor
reported several years ago that if the BIW payroll was removed from Sagadahoc County, the
average annual wage in that county would drop by $3,000.

         Two upcoming developments in the Midcoast economy, described below, make it
critically important to strengthen the performance and wages of the local small business
economy in the coming years.

2   2006 annual data on covered employment, Maine Department of Labor
3   County Business Patterns, U.S. Census, 2005 data
B. Two short-term job challenges in 2010-2011

     1. A lag in production and employment looming at Bath Iron Works

         Twenty years ago, BIW employed twice as many workers as it does today. It is
currently in the process of winding down the production of the Arleigh Burke (DDG 51) class of
AEGIS destroyers for the Navy; two ships are scheduled for christening in 2008, two in 2009,
and one in 2010. These will be the end of the production line for DDG 51 destroyers. The line
is being replaced by a new generation of combatant ships called the ZUMWALT (DDG 1000).
In February of 2008, BIW won a $1.4 billion contract to build one of the first two ZUMALT
warships. This ship is scheduled for delivery in 2014. While it is encouraging that BIW
remains competitive enough be chosen to build the first of the new generation of Navy warships,
there remains a gap in production in their shipbuilding schedule. The last of the DDG 51
destroyers is scheduled to ship out in 2010, and the first of the DDG 1000 ships is not scheduled
for launch until four years later, 2014. There is the potential for additional engineering and
design work at BIW in preparation for the new generation of ships, but this does not help the
production workers. In the meantime, BIW continues to invest in new facilities on the
waterfront, including a $40 million expansion of its 106-foot tall Ultra Hall, where ship sections
are assembled. The leadership at BIW and in the Maine‘s congressional delegation are working
hard to find work to fill in the production gap. If they are not successful, or are only partially
successful, BIW may face a significant employment decrease in the years after 2010. 4

     2. The closing of the Naval Air Station Brunswick (NASB)

         Unfortunately, just as this period of vulnerability for BIW arrives in 2010, the Naval Air
Station at Brunswick (NASB) next door is scheduled to close. The closure is projected to
remove around 2,700 active-duty military from the region, and eliminate around 600 civilian
jobs, by the year 20115. The Maine State Planning Office projects that the closure will reduce
overall employment in the Bath-Brunswick Labor Market Area to 5,500 under that which would
otherwise have been in 2011.

         Together, the closing of the Base and the potential layoffs at BIW create the possibility
of severe job losses in the midcoast region.

4 See The Impact of the BRAC-Ordered Closure of the Brunswick Naval Air Station, The Coastal Counties
Workforce Board, 2006, pp, 28-9
5 See Understanding the Impact: Closing Naval Air Station Brunswick, Maine State Planning Office, 2007,

page 18.
C. Encouraging signs in the area economy

         Even though BIW has declined in employment, the region as a whole has generally
maintained its overall employment. From 2001 to 2006, Lincoln and Sagadahoc counties lost
500 jobs (about 2%), even while there was a net increase of 285 new businesses, or 12%. The
latter is a sign that the entrepreneurial economy is strong.

        Boatbuilding and composite materials production in the area is strong and growing. In
East Boothbay, Hodgdon Yachts has completed a prototype 83-foot boat for the Navy that, if it
moved into production, could triple the yard‘s 80-employee workforce; and Washburn and
Doughty Associates has a backlog of orders for tugs, fishing, and research boats, and is looking
for land to expand. In Brunswick, Brunswick Technologies Inc., Harbor Technologies, and
Allied Composites, all are in an expansion mode. State government is actively helping this
sector with research and development activities and job training through the the North Star
Alliance Initiative.

        The retirement industry is strong. The area attracted a net in-migration of 3,300 people
between 2000 and 2006, most of whom are probably retirees. The Highland Green complex in
Topsham, Thornton Oaks in Brunswick, and St. Andrew‘s Village of Boothbay Harbor, are just a
few of the many retirement developments that have grown in the past ten years. Retirees have
brought with them new energy, income, and talent to the Midcoast.

        The retail sector has also grown. With new shopping centers and stores in Topsham and
Brunswick, the Bath-Brunswick area has experienced a 25% increase in sales from 2002 through
2007, from $514 to $643 million. Currently Brunswick is looking at a $25 million investment in
a mixed use development downtown at the site of the old train station called Maine Street

        There is a growing interest in the creative economy up and down the Midcoast. There
are 400 people employed in arts and entertainment in the Brunswick Labor Market Area, and
another 214 in Lincoln County. The presence of Bowdoin College and new retirees both serve to
foster the growth of this sector.

       Plans are underway to expand business park sites in Bath, Brunswick, and Topsham.

D. Long term challenges

        The major challenge to the region is demographic. Planning Decisions, Inc., projects
that the region‘s overall population will be stable overall between 2005 and 2015 – going from
99,300 to 99,700 – but that it will change dramatically in composition. Specifically, the number
of young people under the age of 20 will decline by 4,700, or 20%; the number of working-age
people (20 to 54) will decline by 3,300, or 7%; while the number of retirement-age people (55
plus) will increase by 8,400, or 30%. In general, growth in income for area businesses, local
governments, and the state require a growth in the number of people working and producing
products and services of economic value. Attracting young people to move to the area and start
businesses will be important to the region‘s future economic success.

                 Chart 10 – Projected Population Change in Midcoast 2005-2015

                      Projected change in population, Midcoast Maine



       25,000                18,800





                    Children                Working age                  Retirees

                                           2005         2015
                                    Source: Planning Decisions, Inc.

        It is hard to attract young people when housing is so expensive. Both Lincoln County
and the Brunswick labor market area communities have seen housing prices grow from around
$125,000 in 2001 to around $200,000 in 2005. During this same period, median household
incomes only grew about $3,000. Even though housing prices have stabilized in the last 18
months, they are still out of line with historical ratios to household incomes. This is an obstacle
to attracting young people to the area.

            Table 6 – Median Homes Prices Brunswick LMA, Lincoln County 2001-2006

                                   Bath Brunswick LMA                       Lincoln County
                                2001                2006                2001            2006
Median home price             $127,850            $199,000            $125,000        $202,333
Median Income                  $44,472             $47,742             $41,516         $44,566
Affordability index              0.95                0.73                0.93            0.69
                                         Source: Maine Housing

        The region is also less attractive to young people because it lacks a significant public
higher education presence. The University and Community College systems have small
programs at the Midcoast Center for Higher Education in Bath. There is also a promising Maine
Advanced Technology Center that has just opened on Industry Road in Brunswick. Still, only
63% of Lincoln County high school seniors, and 65% of Sagadahoc County seniors, planned to
go to an institution of higher education after graduation in 2005. This is lower than the state
average of 70% that year – of whom, it should be added, only 60% statewide followed through
and actually attended.6

       Workforce skills and attitudes have traditionally been a concern for employers in the
region. The last survey of employers conducted in Lincoln and Sagadahoc counties (1999)
found many dissatisfied with workforce reliability and skills.7 This reinforces the importance of
having a strong continuing education presence in the region.

        The availability of quality, reliable, affordable telecommunications and electrical
service has also been a longstanding concern among business people in the region.

        Transportation access to the Interstate system is good for some communities in the
region in Sagadahoc and Cumberland counties, but generally poor for Lincoln County towns.

        There is a lack of serviceable, accessible, available business park land in the area
according to local officials in several towns, and a Brunswick economic development analysis
done by Campbell and Associates. While there are proposals to add lots in many towns in the
area, there is also consideration being given to a regional approach like First Park in Oakland –
where communities come together, identify the very best spot for a business park in the region,
and jointly develop a first-class park there, sharing in both the costs and tax benefits.


7Business Park Demand and Economic Development, Lincoln and Sagadahoc Counties, Planning
Decisions Inc., 2000, page 30.
E. The opportunities

    The region has several major assets, three of which were highlighted by local officials
participating in discussions contributing to the plan, including:

        Location—the region is near to Portland, Acadia, and Augusta. It is close to beaches,
         waterfront, and rural areas. Proximity to other, more urban communities, offers access to
         jobs and arts and music.

        Quality of life—Brunswick was recently listed in a national magazine as one of top five
         places to retire. It‘s also good for families.

        Education—both K-12 and post-high school opportunities are a strength.

     While the closing of Naval Air Station Brunswick (NASB) creates a problem for the region,
it also provides assets.

            The airport will make available a first-class facility for business service in the

            The vacated housing, most of which is of recent vintage, will provide affordable
             housing that could prove appealing to the young people that the region needs to

            The establishment of the Midcoast Redevelopment Authority, as well as the
             continuing cooperation on the CEDS process, provides a regional framework and
             meeting place to work together on the challenges facing the area.

         Meanwhile, economic trends also present opportunities:

            higher gas and food prices, combined with a greater consumer awareness of healthy
             food issues, create opportunities for the local agriculture, fishing, and food
             processing sectors to expand and create new products

            the aging of the population creates additional markets for the expansion of the health
             and the retirement industries in the area.

Part 2: Economic Studies and Plans

       Part 2 includes summaries of two reports examining the impacts the scheduled closure of
the Naval Air Station at Brunswick in 2011 will likely have on the regional economy, and the
base reuse plans for both Brunswick and Topsham.

       With regards to regional economic development infrastructure, it includes a report on
business park demand for Lincoln and Sagadahoc Counties, a summary of the Maine broadband
development authority‘s annual report, and highlights from the 2005 regional transportation

      Several communities in the Midcoast Maine Economic Development District have
economic development plans, and plans for the City of Bath, the Town of Topsham, the Town of
Brunswick, and the Town of Wiscasset are also described in Part 2.

        In 2006, with funding from the Maine Department of labor, Coastal Counties Workforce,
Inc. hired Planning Decisions, Inc. and Career Prospects to prepare a ―community audit.‖ A
community audit is ―an assessment of the relationships between an area‘s economy, workforce,
workforce training system, and community service system.‖ The report, entitled The Impact of
the BRAC Ordered Closure of the Brunswick Naval Air Station: A Regional Community
Audit, focuses on the impacts the base closing will have on people: not only those who will lose
their jobs, but people who own businesses or work in the region.

        The audit finds that ―the indirect effects of the Base closing on the region‘s schools,
housing, retirement sector, and labor force (i.e., loss of military spouses) may turn out to be
greater than the direct effects of civilian job loss.‖ Specifically, the report states:

        In 2004, employment at NASB included 3,000 military; 1,400 reservists; and 700
         civilians (approximately 550 federal civilian employees; 100 contractors; and 60 private

        When the Base closes, almost all of military personnel will leave. Most of the civilian
         jobs will end when the base closes. Although some of the federal employees will relocate,
         and some contractors and vendors will have opportunities elsewhere in their companies,
         many will be looking for new jobs within the region.

        For every civilian who loses his or her job, 2 additional civilian workers in the region are
         expected to lose their jobs due to the loss of consumer spending. The military and
         civilians and their families spend approximately $80 million a year in the local
         economy—about 7% of taxable retail sales.

        Total job loss could total 5,000, but will be spread out over the region which has more
         than 130,000 jobs. The regional economy will not contract, but growth will slow.

        Area employers will lose 700 military spouses working in skilled jobs such as in health

    The audit describes the Bath-Brunswick economy as strong, but not well-balanced.
Unemployment is low and incomes are relatively high, but the area is heavily dependent on a
few employers, including Bath Iron Works (BIW). BIW has gradually downsized its workforce,
and is down from 12,000 employees in the 1980‘s to 5,600 in 2006. Without BIW, the median
income in the region would drop from $33,000 to $29,000. There is concern over the possibility
of additional layoffs if there is a production gap in between production contracts. The region also
has strengths in the construction sector, in retirement housing, and in retail sales—but
construction and retail sales are both ―responders‖ to rather than ―drivers‖ of economic growth.

     The audit describes both the strengths of and challenges to the Bath-Brunswick workforce.

        It is younger and better educated than the Maine average, and workers have a
         demonstrated interest in lifelong learning and continuing education. Low-cost housing
         will serve as an additional attractor to young workers from Southern Maine to move into
         the area.

        Research suggests that BIW workers and BNAS civilian workers have a high degree of
         interest in retraining and trying new occupational fields; these workers could be an asset
         in redeveloping the economy with up and coming sectors such as composites. But the
         education and training systems will take a hit when the Base closes. The local public
         schools will lose 10% of their students, and $1 million in school aid. Institutions will
         encounter an increase in demand for retraining services at the same time they experience
         a decline in budgets. The Brunswick Center of Southern New Hampshire University, for
         example, will lose 30% of its budget and several key staff.

        The Base closure may change the demographics of the region. Many young families will
         leave, and may be replaced by an older population with fewer children.

   Finally, the audit notes that the availability of land at the base; housing in the community;
and federal aid all offer significant long-term economic growth potential to the region.

   In 2007, the Maine State Planning Office released a report examining the direct and indirect
impacts of the base closure through the use of the economic model, REMI (Regional Economic
Models, Inc.). The report, Understanding the Impact: Closing Naval Air Station Brunswick,
examines the total effect of the Base closure at the state level, without considering the mitigating
impacts of redevelopment.

    The report states that the impacts of the Base closure will be felt most in communities
immediately adjacent to the Base and in communities where base workers live. The Brunswick
Labor Market Area (LMA), which includes Brunswick, Bath and Topsham, will bear the brunt of
the impact with roughly 85% of the employment and 75% of the population impacts.
        The Brunswick LMA will have approximately 5,500 fewer jobs under the higher impact
         scenario. 60% of these jobs are direct job losses; in addition, fewer jobs will be created
         because of a slowdown in economic growth. For example, while some businesses may
         lay off workers, others might not lay off existing staff but will hire fewer additional
         workers during the transition period.

        The most heavily impacted private sector industries will include retail, construction, food
         services, and local government.

        Population impacts of the Base closure will also be concentrated in the Brunswick LMA,
         which will lose up to 5,600 people, or 7% of its forecasted 2012 population.

    Based on its findings, the report offers the following guidance for helping the economy
recover following the Base closure:

     1. Most of the direct impact will come from lost spending of households supported by Base
        jobs, which underscores the need to repopulate the area with new households. The
        availability of commercial and industrial real-estate and affordable housing will be

     2. Without the base, the region will be more susceptible to economic shocks during the
        recovery period, and it will need to leverage its assets to diversify its industrial base
        against them.

     3. Studies show that most communities recover from major base closures, and some
        experience long-term growth. But the transition‘s challenging for individuals, businesses
        and communities with direct ties to the Base, and swift economic recovery hinges on
        early planning, leadership, coordination of key stakeholders and full community

     4. Redevelopment efforts must be cognizant of prevailing market forces and should
        capitalize in the region‘s unique strengths and assets.

    According to the Brunswick Naval Air Station Master Reuse Plan (Matrix Design Group,
2007), ―only 51% of the total base property has been allocated for development (approximately
1,630 acres); and, 49% (approximately 1,570 acres) of the base has been dedicated to a variety of
active and passive areas for recreation, open space, and natural areas.‖

     The adopted base reuse plan includes the following land use districts:

        Airport Operations (500 acres, 16% of total land area) includes the two existing 8,000-
         foot long runways, taxiways and adjacent buffer zones

        Aviation-related Businesses (230 acres, 7% of total land area) is an area dedicated
         primarily to aviation-related business, industry, transportation and distribution,
         technology employment and other uses that rely on, or directly benefit from, proximity to
         airport facilities and operations; such uses could include general and corporate aviation,
         aircraft maintenance / repair / overhaul, aviation related manufacturing, and government
         and aerospace research and development.

        Professional Office (120 acres, 4% of total land area) is an employment center serving
         corporate and professional office needs of the area; primary uses in this district will
         include administrative, corporate, and professional offices (e.g. law, medical, insurance,
         architectural, engineering, finance, and real estate), and similar office uses.

        Community Mixed-Use (175, 5% of total land area) is a centralized area that encourages a
         compact pedestrian-oriented mix of community-related uses such as neighborhood-scale
         retail, professional offices, business and support services, restaurants, hotels and
         conference centers, health and fitness centers, day care centers, civic and cultural uses
         (e.g. churches, libraries, and museums), parks, and government buildings.

        Business and Technology Industries (190 acres, 6% of total land area) is a high-tech
         employment center that will accommodate large scale technology uses, including
         technology-based research and development, energy parks, laboratories, light
         manufacturing, and warehouse and distribution uses.

        Education (200 acres, 6% of total land area) includes university and college-level
         academic, administrative and support facilities.

        Residential (215 acres, 7% of total land area) includes a variety of housing types (single-
         family attached / detached, multi-family apartments, assisted / senior housing, and
         retirement / second homes) in a compact, pedestrian-oriented setting.

        Recreation/Open Space (510 acres, 16% of total land area) provides areas for a variety of
         commercial and public outdoor active and passive recreational opportunities such as
         public parks, sports fields, golf courses, public gardens, bicycle trails, and equestrian

        Natural Areas (1,060, 33% of total land area) is intended to preserve, maintain and
         enhance existing natural areas; as such, only those uses that will not significantly alter the
         environment and/or will provide opportunities to experience the environment will be
         considered: pedestrian trails, nature and interpretive centers, environmental education,
         and other non-intrusive outdoor passive recreation and educational uses.

    The reuse plan notes that the transportation demands associated with redevelopment of the
facility, as well as the ability of the existing transportation systems to accommodate these
demands, are paramount considerations. Off-site and on-site capacity-related improvements in
the plan include:

        The creation of a new connector spur and interchange that will connect to US Route 1
         west of the present interchange at Cook‘s Corner

        New secondary points-of-access onto the adjacent street systems at Bath Road / Gurnet
         Road / Harpswell Road

        New east / west connector linking Gurnet and Harpswell Roads

        The widening of Bath Road

        The creation of a new network of pedestrian / bicycle trails

    The reuse plan finds that current operations at BNAS generate total employment of 4,863;
total annual wages of roughly $115,000,000; and an average annual wage of roughly $24,000. It
estimates (assuming a full build-out of the entire site over a period of 20 years) that the reuse will
generate total employment of 13,800 workers; total annual wages of $732,390,000; an average
annual wage of roughly $53,000; total annual income taxes of $40,849,000; and total annual
commercial and residential property taxes of $19,011,000.

    The Topsham Annex facility opened in 1957 as the Topsham Air Force Station; when the Air
Force closed the radar facility, BNAS obtained use and responsibility for the property. Most
recently, the Annex functioned as a general support facility for BNAS and included 177 units of
base housing, a commissary, a training facility, office space, and a fire station. The 74-acre
Topsham Annex is now scheduled for closure along with the Brunswick Naval Air Station. The
Topsham Annex Reuse Master Plan (Matrix Design Group, 2007) describes the land use plan
for the Annex.

   Zoning districts within the Town of Topsham include five categories: village, mixed-use,
commercial, industrial, and residential. The Topsham Annex is located in the ―Upper Village‖
zone which is one of the three village zones that generally make up the core of Topsham along
Main Street (Route 201). The overall goal of the village zones is to provide, enhance, and

maintain a dense, mixed-use pedestrian-scaled village ―feel‖ that incorporates a mix of
housing types, small retail establishments, and strict parking, design and landscaping guidelines.

     The plan divides the Annex into four distinct areas, each with a separate land use:

     1. Business & Community uses planned for the 14-acre Military Triangle area are
        envisioned to include a mix of office, commercial, retail, light industrial, and other
        similar activities that are consistent with adjacent uses, as well as community and civic
        uses, such as governmental, cultural, human services, and educational functions that take
        advantage of the proximity of the two schools and nearby residential neighborhoods

     2. The Parks & Recreation area planned for the undeveloped portion on the western side of
        the Housing Area is intended to provide a mix of active and/or passive recreation and
        open space uses that are coordinated with and complement the adjacent athletic facilities
        owned by SAD 75

     3. The northern part of the Housing Area (north of Can Am Drive) has been designated for
        medium-density residential uses: up to four residential units-per acre, whether those units
        be renovated existing units or new construction. The housing in this area is envisioned as
        single-family detached dwellings and/or two family (duplex) attached homes

     4. The southern part of the Housing Area (south of Can Am Drive) has been designated for
        higher-density residential uses: up to eight units-per-acre, whether those units be
        renovated existing units or new construction. The housing in this area is envisioned as
        multi-family attached housing such as apartments, town-homes, or condominiums.

    The reuse of the Annex property will require improvements to infrastructure, including
sewer, water and stormwater systems, intersections and roadways, and metering systems for
electricity and natural gas.

    According to the plan, reuse of the non-residential buildings at the site could create between
121 and 187 permanent jobs. In general, the redevelopment of the Annex could require between
$18 million and $40 million worth of investment. Overall, the business and commercial
properties are expected to require $3.7 million in investment, or about $53 per square foot. The
tax base generated by these facilities is expected to be between $70 and $100 per square foot, for
an estimated $4.7 million - $7 million addition to the existing tax base. The projected tax revenue
from residential redevelopment at the Annex is expected to be between $28.1 and $46.7 million.
This will depend on the overall value of the units created, which will likely be worth between
$125,000 and $250,000 each.

    Redevelopment of the residential area in the Annex will also result in an increased permanent
population in the Topsham community. Topsham averages 2.6 people per household, so using a
reasonable estimate of 245 new housing units, the town‘s population could increase by 636.

    Phone and cable companies have not expanded broadband service into many rural Maine
areas because there is no profit from such an investment. In 2005, 17,000 (14%) Maine
households did not have access to basic broadband service (Broadband Access Infrastructure
Board Report, 2005). ConnectME, Maine‘s broadband development authority, was created in
2006. It is funded through a 0.25% surcharge on all in-state retail communications bills.
According to the 2008 Annual Report on the Activities of the ConnectME Authority , in 2007
ConnectME awarded $800,000 in grants to expand broadband service to 50 communities (14,400
households and businesses). The focus of the grants was on rural, unserved areas. One of the
communities that received a grant was Somerville, in Lincoln County.

ConnectME‘s 2008 Annual report describes 5 models for communities looking to access
broadband service:

     1. community owned/operated

     2. community initiative and partnership with provider

     3. provider owned with community partner

     4. private provider

     5. cooperative

    The report states that over the past two years, broadband ―take rate‖ or market penetration in
Maine increased from 31%to 39%, an 8% increase (the term ―take rate‖ refers to the number of
people signed up for broadband service). In an effort to further encourage broadband service
expansion, Maine State Law 36 MRSA 2018 (passed in 2007) authorizes sales and use tax
reimbursement for machinery and technology for use in advanced technologies infrastructure.

   The 2005 Regional Transportation Assessment (Midcoast Council for Business
Development and Planning) identifies the following major travel corridors in the

     Midcoast Maine Economic Development District:

        Route 1: Brunswick to Waldoboro

        Route 24: Harpswell to Topsham with links to BNAS, Route 1 and I-295

        Route 196: link between Route 1 and 1-295 and to Lewiston/Auburn

        Route I-295: north and south Interstate highway

        Route 27: Boothbay to Dresden, access to Route 1

        Route 32: links eastern Lincoln County to the Augusta area

     Region-specific issues/goals/broad priorities in the report include:

        More people using the same roads

        People moving from cities to rural areas, resulting in more frequent and longer trips to
         work and shop

        Higher rate of population growth on coast than in the rest of Maine

        Increased delays

        Insufficient planning—some communities with no long-range plans

        Little public transportation

        Increasingly elderly population

        Strip commercial development that results in curb cuts, turning vehicles, reduced speed
         limits and more accidents.

        Little likelihood the state or municipal governments will have the resources to fix
         problems caused by strip development and congestion

    In 2007, Brunswick commissioned an evaluation of the three major economic strategies
being considered by the town in the face of the Base closure: 1) infill development in the
designated growth zone; 2) early conveyance of NASB property that would be suitable for
business development; and 3) the development of a new business park in West Brunswick.

    The result of the evaluation, entitled Brunswick Economic Development Strategy (2007)
reports that early conveyance of BNAS property is not a viable option in the required timeframe,
and that infill development is important but not be enough to yield the desired job creation and
replace valuation loss. The report concludes that Brunswick needs to invest in a business park,
and should begin the process as soon as possible.

   The report‘s market analysis of the opportunity presented by the development of a business
park includes the following:

        Demand for additional industrial and commercial sites will likely be generated primarily
         by expansion and relocation of small to mid-size companies located within the area

        As Brunswick‘s remaining affordable sites have been absorbed over the past few years, it
         is clear that the demand for sites is not being met

        The availability of business park sites in the greater Portland area is rapidly diminishing.
         The market data explains the success of Lewiston Auburn and Saco parks

        Absorption analysis in the defined market area (Oakland to Biddeford) found that
         between 8 and 10 acres of business and industrial land will sell in Brunswick every year,
         and 7500 to 12000 sq ft of office space and 20,000 to 25, 000 sq ft of industrial space will
         be absorbed. The report thus states that the total amount of average annual commercial
         development that Brunswick can expect to absorb is between 27,500 and 37,000 sq ft.

     Other findings in the report include:

        Brunswick is strategically located as the gateway to the Midcoast region and near to both
         Portland and Augusta

        More people commute into Brunswick (15,660) than commute out (9,810)

        Brunswick‘s population growth is stable compared to other regions, but is projected to
         growth at a slower rate (3%) than other regions over the next 5 years

        Its population has a higher percentage of both college-age and older persons (65 and
         older) than other regions

        The median household income is slightly lower than other regions

        Brunswick‘s labor force has declined since 2000, in contrast to increases in other regions

        Historically, the unemployment rate in Brunswick is higher than the surrounding area but
         lower than the state; employment has declined 1% in Brunswick between 2001 and 2006
         (most likely the result of BIW downsizing)

        Despite recent job losses, the number of businesses has increased by 5% between 2001
         and 2006

        Brunswick‘s strengths as indicated by its location quotient are in health care, educational
         services, information, arts and entertainment, real estate, retail trade, utilities and the
         accommodations and food service sectors.

        Brunswick‘s weaknesses were in manufacturing, wholesale trade, transportation and
         warehousing, and construction sectors.

        These last two suggest that Brunswick would have more demand for commercial, flex
         space or office type development as compared to more traditional industrial, warehousing
         or manufacturing development

    Three documents describe the town of Topsham‘s current economic development efforts.
The first, the 2007 Topsham Economic Development Study (Eaton Peabody Consulting Group
and Jeffrey Donohoe Associates) presents an analysis of Topsham‘s tax base. The study finds
virtually no land available for industrial use. Its recommendations include:

        Increase non-residential uses, especially industrial: rezone for industrial, maintain retail
         within a retail district, and create an industrial/business park zone to support 2 million to
         5 million square feet of development

        Invest in public infrastructure (sewer and water) near existing infrastructure; consider
         establishing a connection between Route 201 and Interstate 295 in the northern portion of
         the development core, and creating a service road west of I-295 (through the northwest
         quadrant) to move traffic from Route 201 to the north and Route 196 to the south

        Consider public-private investments, like Tax Increment Financing Districts (TIFs)

        Align any new business and industrial site/park locations with Topsham‘s Military
         Redevelopment Zone (part of the state‘s Pine Tree Zone program, the MRZ offers
         qualifying businesses the opportunity to reduce or even eliminate state taxes for up to ten
         years and includes areas in Brunswick, Bath, Topsham, Harpswell, Bowdoinham,
         Richmond and West Bath).

    Topsham Development, Inc. (TDI) is a public-private nonprofit organization comprised of
local business leaders and developers, residents and town officials. TDI leads many Topsham
economic and community development efforts, and concepts in its 2006-2007 Economic
Development Workplan include:

        Identify locations and develop a strategy to implement a new business park

        Establish an interchange at US Rt 295/ME Rt 201 to improve traffic movements along
         Main St/196

        Study town‘s industrial zone to identify whether this area will work as an industrial park.
         Work to secure land necessary to establish an industrial park.

         The goal of the Topsham Main Street Plan (2007) is a pedestrian friendly, mixed-use
         village along Main Street.

        In the Lower Village, the town should promote, and provide incentives for, mixed-use

        In the Middle Village, residential and historic character should be preserved

        Development in the Proposed Village Center (currently the Commercial Corridor) should
         strengthen its mixed-use and village scale identity

        Limited Industrial, Civic Mixed-Use, and North Main overlay zones should be created:
         the Industrial to allow more flexibility for existing businesses while minimizing impact
         on adjacent uses; Civic Mixed-Use as a pedestrian oriented zone that protects the
         integrity of the school campus; and North Main as a transitional zone between Main St
         and the limited industrial zone.

     The City of Bath is currently working on an economic development plan.

     Bath Iron Works is the city‘s largest employer. The shipyard was recently awarded a $1.4
billion contract to build the first ship in the Navy‘s next class of destroyers, DDG 1000, or
Zumwalt; the ship is scheduled for delivery in 2014. Seven other DG 1000s are planned
(Northrop Grumman received the contract for the second). The new contract won‘t have an
immediate effect on the shipyard‘s workforce, but it is important for the program to remain on
schedule to minimize any production gap. With 5,800 employees, BIW remains one of Maine‘s
largest employers, but 73 workers were laid off as recently as January 2008 (Portland Press
Herald, 2/15/08).

    Bath is currently considering an economic stimulus package designed to create jobs and
stimulate downtown development. The plan would set up TIF districts encompassing the
downtown, the Wing Farm Business Park, and part of a $40 million expansion at BIW. The
shipyard‘s TIF would not return money to the business but would instead be used by the city for
downtown improvements. The city will also consider issuing a $2 million bond to buy land to
expand the business park (MaineBiz, 1/29/08).

     The Wiscasset 2006 Comprehensive Plan (amended 2008) summarizes several of the town‘s
     recent economic plans.

    Wiscasset is in a transition period from primary dependence on a single taxpayer to and era
of expanding and diversifying the tax base.

    Maine Yankee closed in 1997. The Wiscasset Regional Development Corporation,
established in 2002, received a $1 million earmark for the site‘s redevelopment. In 2003, voters
approved spending up to $2.6 million to buy the land, build roads, and install utilities. In 2004,
the town applied for and received Pine Tree Zone designation, to qualify businesses that locate
within the zone for favorable state tax advantages. Today, the redevelopment of the 400 acre site
includes a high tech business/manufacturing campus; a marina, slips and boat storage; and high
end condos and cottages.

    Wiscasset‘s Waterfront Master Plan (2002) recommends preserving the working waterfront.
The plan describes commercial fishing, including worm digging, as important to Wiscasset,
giving employment and contributing to the town‘s character. The plan makes two major
suggestions regarding new development:

        In the village waterfront, new development should be small in scale; large-scale
         development (including heavy commercial and light industrial) would be appropriate at
         Mason Station

        Mixed uses are appropriate between Main St, the Creamery Pier, and Town landing, and
         ideal mixed uses would meet the year-round needs of residents and relate in some way to
         the working waterfront (ie food stores, laundries and hardware stores)

Part 3: Investments

       Part 3 summarizes part, present and future investments in the Midcoast Maine Economic
Development District, including highlights from the Maine Department of Transportation‘s
Biennial Capital Work Plan for FY 2008-2009 and a list of Community Development Block
Grant awards made in the region in 2006 and 2007.

      The Maine Department of Transportation Biennial Capital Work Plan: Fiscal Years
2008-2009 lists projects designated for funding. Among the major projects for this region are:

                     Table 7 – Community Projects in the MCEDD Region

     Community         Location                      Description                  Funding
     Harpswell         Bailey Island Bridge          Bridge deck replacement      $9,962,575
                       I-295 North                   Highway resurfacing          $5,846,500
     Boothbay          Barters Island Rd             Bridge replacement           $5,052,946
     Harpswell         Cundy‘s Harbor Rd             Highway rehabilitation       $900,000 *
     Bath              Rail Station                  Parking for rail station     $500,000
                                                     Construction of A/C
     Wiscasset         Wiscasset Airport                                          $300,000 *
                                                     parking apron for tiedowns
                                                     To expand Explore Maine
     Regional          Planning Study                                             $250,000
                                                     to Boothbay
     Brunswick         BNAS Redevelopment            Transportation assessment    $150,000
     Wiscasset         Wiscasset Airport             Master Plan Update           $150,000 *
     Brunswick         Safe Routes to school         Sidewalks                    $70,000
                                                     Construction of lot near
     Brunswick         Park and ride                                              $40,000
                                                     rail station
     Wiscasset         Wiscasset Airport             Rotating beacon              $25,000 *
                                     * Local funding match required

Maine's Community Development Block Grant (CDBG) program ―provides funding and
technical support for projects that achieve local community and economic development
objectives, while principally benefiting low-moderate income persons.‖

In 2006 and 2007, twenty-one CDBG Grants were awarded to communities in the Midcoast
Maine Economic Development District. They were:

Community             Year   Description                         Grants/Loans
                             Storm Drainage improvements
                             in the PI Target Area composed
                             of Darrah Street area and the
                             Baker/Gardiner Street area.
Richmond              2006   Construction includes a cross       $421,500
                             country line and railroad
                             crossing in the Darrah Street
                             area and improvements along
                             the railroad in both areas
                             Replacement of water lines on
                             three streets in scattered South
Bath                  2006   End locations and replacement       $301,500
                             of sewer on two of those three
                             Complete renovation of
Monhegan Plantation   2007                                       $300,000
                             Monhegan's only wharf
Bath                  2006   Kennebec Tavern & Marina            $300,000
Bath                  2007   AMS LLC d/b/a Gagne Foods           $300,000
                             The Business Assistance grant
Richmond              2006   funds will assist Naturally ME      $201,800
                             with operating capital.
                             Continue feasibility study reuse
Brunswick             2006                                       $197,000
                             of Naval Air Station
Bath                  2007   Marnee's Cookies                    $150,000
                             Business façade program with
Richmond              2007                                       $150,000
                             some streetscape improvements
Bath                  2007   AMS, LLC dba Gagne Foods            $100,000
                             Midcoast Council for Business
West Bath             2007                                       $50,000
                             Development and Planning
West Bath             2006   Tedford Shelter                     $41,000
                             Coastal Maine Botanical
                             Gardens to provide free
Boothbay              2007   admission/access to gardens for     $40,000
                             LMI, elderly, and disabled
Westport Island       2006   Historic preservation               $15,600
                             Feasibility study to outfit a
                             Kronosport vehicle with solar
Wiscasset             2007   panels, in conjunction with         $15,000
                             funding from the Chewonki
                             Expand program services of Big
Bath                  2007   Brothers/Big Sisters for children   $14,000
                             from LMI families
                             Bath and West Bath
Bath                  2006                                       $12,500
                             multijurisdictional feasibility
                        and planning study for the
                        expansion of Wing Farm
                        Business Park.
                        Culinary arts/nutrition
Waldoboro        2007   education; reuse of AD Gray     $10,000
                        To study the redevelopment of
Harpswell        2006                                   $10,000
                        the George J. Mitchell Field.
Lincoln County   2007   Lincoln County - CDBG TA        $9,000

III. CEDS Goals & Objectives

       Analysis of the original CEDS goals of 2002

        The Midcoast Economic Development District‘s Economic Strategy Committee held four
visioning sessions throughout the summer and fall of 2007. Part of the Committee‘s charge, was
to analyze the Goals and Objectives of the 2002 Comprehensive Economic Development
Strategy document to see what, if any, changes needed to be made. Between 2002 and 2006,
additional goals were added to the MCEDD CEDS and while the fifteen identified goals seem to
ably address the economic and community development goals of the District, it was also thought
that the new five year plan offered an excellent opportunity to consolidate and update the old
goals and present them in a format that was both easier to understand and more concise.

       The original goals as they appeared in the 2002 CEDS were –

       Goal A – Grow Small Business Entrepreneurship

       Goal B – Develop/Redevelop Commercial Property and Infrastructure

       Goal C – Support and Strengthen Marine Related Industries

       Goal D – Expand Research and Development Activities

       Goal E – Expand Tourism Season and Strengthen Tourism Industry

       Goal F – Strengthen Traditional Industries such as Farming, Forestry and Arts

       Goals G – Build a Skilled and Educated Workforce

       Goal H – Invest in City, Town and Village Centers

       Goal I – Create Affordable Housing

       Goal J – Create an Efficient Transportation Infrastructure

       Goal K – Develop a Strong Telecommunications System

       Goal L – Support and Capitalize on Targeted and Dominant Industries

       Goal M – Coordinate/Strengthen Regional Capacity for Economic Development

       Goal N – Balance Development & Growth

       Goal O – Support Health Care

       Committee Discussion and Amendments to CEDS Goals

        The first visioning session discussed the relevance and validity of each goal from the
2002 CEDS. All were seen as important and significant. However, it was determined that many
of the goals could be categorized under broader headings so that those close in purpose, scope
and goal could be grouped together. Research into the formats used by Maine‘s other EDD‘s in
their CEDS revealed that most had consolidated Goals, numbering no more than 4 or 5, with
objectives listed underneath each one that addressed specific ongoing or proposed activities. The
Goals and Objectives of these EDDs were analyzed at the visioning sessions as well to use for
comparison. Although no action was taken on modifying the goals during the first visioning
session, the list was given out to the Committee to review and members were asked to bring
suggestions for changes or amendments to the second meeting, where this would be discussed in
greater detail.

       The discussion of the consolidation of the CEDS goals continued at the second visioning
session. Through the suggestions and recommendations of Committee members and staff, a
working framework developed, comprised of four major categories. They are:

I.     Community Development

II.    Economic Development

III.   Education and Workforce Development

IV.    Infrastructure/Transportation

         The fifteen identified goals form the 2002 CEDS were then grouped under these headers
and in some cases slightly reworded. The final framework looked like this (original Goal letter is
listed in parenthesis) –


       Objective 1 – Invest in City, Town, and Village Centers (H)

       The Midcoast region is fortunate to have many communities with vibrant downtowns.
       Main Streets and village and town centers are an essential part of the region‘s
       attractiveness, quality of life and tourism vitality. Several regional communities have
       already begun or are developing plans to revitalize downtown areas. Many of them
       feature working committees of volunteer citizens and are also members of the Maine
       Street Maine coalition, which seeks to promote programs and initiatives that will improve
       town centers and support business development, particularly small and locally owned
       operations. Many excellent examples of these activities can be found in the MCEDD
       Actions & Priorities and Activities sections.

        Objective 1a – Create Affordable Housing (I)

       Affordable housing is an issue of great concern throughout the state of Maine, and in
       particular, the Midcoast region. Year-round residents must now compete with wealthier
       retirees and seasonal buyers for available housing. This has had the effect of pushing the
       costs of homes out of the reach of those who are in greatest need. Affordable housing is
       seen as a particular issue for young people, workers, people with disabilities and people
       of modest incomes. Recognizing the severity of this problem, MCEDD has partnered
       with local housing authorities, the Maine State Housing Authority and Habitat for
       Humanity, among others to develop strategies and projects that address this need. The
       partners, in addition to area home builders, also recognize the importance of utilizing the
       latest in green energy practices in the construction of homes. The Midcoast region is
       poised to be among the first areas in the state to incorporate these technologies in the
       creation of affordable workforce housing.
                The availability of affordable housing is seen as vital in attracting, developing
       and maintaining a diverse workforce from which area businesses may draw.

     Objective 1b – Balance Development and Growth with Protecting Rural Character,
     Natural Resources, and Traditional Communities (N)

     The Midcoast region of Maine is home to some of the state‘s most magnificent
     beaches, nature preserves, woodlands and other natural areas. Many of the area‘s
     local economies rely on the dedicated stewardship of local governments, businesses
     and citizens to preserve the balance between supporting economic activity and the
     preservation of these unique and wonderful locations. Economic activities within and
     among the MCEDD communities are focused along the principles of ―Smart
     Growth‖. These principles encourage that these activities be consistent with what
     have been the traditional strengths of the communities. Because so many of them
     have relied on tourism (and more recently have seen a tremendous increase in eco-
     tourism activity) the preservation of Maine‘s quality of place is more necessary now
     than ever in ensuring this economic driver remains a force in local economies.
     MCEDD is fortunate to have the services of two regional planners who work closely
     with member communities to address issues, as they relate to this. By recognizing the
     delicate approach necessary to balancing continued economic growth with protecting
     rural character, natural resources and traditional communities and employing tactics
     such as Smart Growth principles that address these issues, the Midcoast is well
     positioned to meet this challenge successfully.


          Objective 1 – Grow Small Business Entrepreneurship (A)

          Because there are a great variety of small business types in the region, the strategy to help
          them must also be multi-faceted. Recent challenges experienced in the local economies,
          along with more severe ones forecasted for the future, make it absolutely essential that
          preventive strategies and programs be put in place that help minimize the impact current
          and future economic downturns could have upon local and small businesses. For
          example, the closing of the Brunswick Naval Air Base is predicted to remove 135 million
          dollars from the local economy8. Many industry sectors identified as likely to suffer the
          most, such as retail, construction and service/hospitality are ones in which the majority of
          businesses are locally owned and operated. The offices of MCEDD are fortunate to
          employ the resources and expertise of state and federal offices that assist business and
          economic activity. These offices include the Small Business Development Center, The
          Procurement Technical Assistance Center and the state‘s Department of Economic and
          Community Development‘s Business Development Specialist. Other strategies include;
          assisting family-owned businesses to work out ―succession‖ strategies, helping women-
          owned businesses in building peer-to-peer networks, making available affordable
          financing and expanding business services that support small business networks.

          Objective 2 – Support and Capitalize on Targeted and Dominant Industries (L)

          The last five years have seen the economic forecast for the Midcoast region shift
          dramatically. Since the publication of MCEDD‘s 2002 CEDS, the Brunswick Naval Air
          Base has been identified as a base the Defense Department will be closing, beginning in
          2008. Once seen, along with the Bath Iron Works (BIW) as one of the more important
          economic drivers in the region. The base will cease operations in 2011, necessitating a
          swift and comprehensive reaction to mitigate any economic downturn. Several existing
          and potential industries in the region offer significant promise to help in the recovery of
          the local economy and some long-term advantages for the region have already been
          recognized. Like many other areas in the state and country, the Midcoast region has seen
          the decline of well-paying manufacturing jobs, as many of these operations have stopped
          or reduced operations.

8   Source: Maine Dept. of Labor, The Impact Realignment of the Brunswick Naval Air Station, 2005

     Objective 2a – Strengthen Marine Related Industries (C)

      Shipbuilding – With a 400 year history of boatbuilding in the Midcoast region, there
     may be no more traditional industry than this. In addition to the large operations of BIW,
     there also exist several small and medium scale boatbuilding operations that produce an
     incredible variety of ships and bats. Recognizing this traditionally strong industry, the
     state has enacted an initiative that seeks to expand the scope and operations of these
     businesses and develop industry clusters to capitalize on internationally recognized
     industry dominance in this field. Several of these companies have been awarded
     lucrative, long-term contracts that will require that they expand their current operations.
     The State‘s North Star Alliance program, developed to identify and grow regional
     clusters, recognizes shipbuilding, along with composites technology and precision
     manufacturing, as a vital industry cluster in the region.

     Composites – The emergence of the composites industry in the Midcoast region could
     very well prove to play a huge role in the future of the regional economy. Advances in
     composites technology, such as the closed molding process, have enabled it to be used in
     many capacities previously unexplored. As new markets and uses are found for
     composites, the need for workers to help these businesses keep pace with demand is
     expected to grow significantly. Composites technology is also a complimentary sector to
     shipbuilding and other marine manufacturing, which will serve to strengthen those
     industries as well and make them more competitive.

     Objective 2b – Expand Research and Development Activities (D)

     The Midcoast region has seen significant progress made in the expansion of research &
     development facilities. Along with higher education and workforce development, R&D is
     seen as one of the most important economic development tools and the presence of
     research labs, such as Jackson Labs in Boothbay Harbor and the Advanced Composite
     Training Center in Brunswick exemplify this focus. This region will be further helped on
     the state level, as a bond in November was approved by the voters, making available
     funds for the expansion of R&D activities in this region and others.

     Objective 2c – Expand Tourism and Strengthen Tourist-Related Activities (E)

     With a variety of natural attractions, a rich cultural history, excellent dining and
     accommodations as well as a burgeoning arts scene, the Midcoast region is poised to
     attract visitors from around the world and during all seasons. MCEDD‘s activities in this
     capacity are greatly supported by the regional Chambers of Commerce, who work
     diligently to actively promote this region to potential visitors. There is no argument that
     the Midcoast region relies on tourism related activities as much as any other part of
     Maine for its local economies. Efforts in the region will continue to focus on increasing
     the level of tourism activity and its season.

     Objective 2d – Strengthen Other Traditional Industries such as Farming, Forestry, and
     Arts and Crafts (F)

     While many of these traditional industries have been on the decline, some of them have
     recently leveled of and in some cases, reversed trends of loss. The protection and
     expansion of these sectors of the economy are seen as vitally important to preserving the
     Midcoast ―quality of place‖, making this economic objective very closely tied in with the
     Community Development goal of 1b as well. Several of these traditional industries have
     been identified as being very suitable for cluster development. Businesses in these sectors
     have traditionally been important sources of income and employment in the area.
     Marketing and promotion are needed to keep these businesses viable in the future.

     Objective 2e – Support Health Care (O)

     The in-migration of retirees to the Midcoast region has dynamically changed the
     demographics of the region. Perhaps the industry most likely to experience a significant
     demand on its services is health care. This event, coupled with ever increasing costs and a
     shortage of health care workers creates potential issues regarding effective availability
     and delivery of services. Consolidation efforts among neighboring hospitals, undertaken
     in an effort to address these concerns have been successful thus far. MCEDD will be
     working closely with officials from this sector to ensure that issues such as cost,
     workforce availability and deliver do not disrupt this most essential of community

     Objective 3 – Coordinate and Strengthen Regional Capacity for Economic
     Development Planning (M)

     The last five years in the Midcoast region of Maine have seen significant progress made
     in the strengthening and coordinating of economic development planning in the region.
     2002 saw the MCEDD region submit its first Comprehensive Economic Development
     Strategy to the Economic Development Administration and its subsequent recognition as
     Maine‘s sixth Economic Development District. Since that time the Midcoast Council for
     Business Development & Planning (referred to as the western office in this document),
     the regional economic development office for the towns of Brunswick, Harpswell and
     Sagadahoc County and the Lincoln County Economic Development Office (referred to as

     the eastern office), the regional economic development office for Lincoln County have
     worked diligently to promote the programs and activities outlined in the CEDS.

     A MCEDD Board of Directors, comprised of representatives from all aforementioned
     communities and counties, effectively coordinates the economic and community
     development activities of the region through its Executive Committee. MCEDD has been
     awarded a planning grant by the EDA for the last two years, which has allowed the
     offices to greatly increase its involvement and scope of activities in the Midcoast region.
     Strong leadership on the Board and tremendous cooperation among local municipal and
     county officials has encouraged tremendous progress recently and MCEDD has identified
     a number of regional economic development projects that it will submit to the EDA for
     funding consideration.

     The current state administration has heavily emphasized taking a regional approach to
     economic development and the western MCEDD office hosts one of several Business
     Development Specialists from the state Department of Economic & Community
     Development who are stationed throughout the state.

     The synergistic effect of these efforts will likely allow MCEDD to deliver its programs
     and services with even greater effectiveness and assist communities, businesses and
     organizations in need more than ever before.


     Objective 1 – Build a Skilled and Educated Workforce from Preschool to Adult (G)

     Perhaps the greatest hindrance to solid long term economic development is the lack of an
     educated, diversely skilled workforce available to new or existing businesses from which
     they may recruit their workers. Spouses and family of military personnel assigned to the
     Brunswick Naval Air Base, comprise a significant portion of the Midcoast regional
     workforce. The presence is particularly strong in education, health care and other
     professional services. These industry sectors continue to grow at a rapid rate,
     necessitating that a framework for workforce development and training be put in place
     that will supply these operations with new workers to keep pace with increased demand
     as well as replace those likely to be lost. MCEDD has worked closely with the Coastal
     Counties Workforce Board, to meet this challenge. Other regional partners include the
     Midcoast Center for Higher Education, the Advanced Composites Training Center and
     Women Work & Community.

     Educational opportunities must be made available to the region‘s graduates that will
     provide them with the necessary skills to enter the workforce and contribute to the local
     economy. Additionally, lifelong education and workforce retraining programs must be in
     place for people of all ages looking to re-enter the workforce or transition from one
     industry to another.

     MCEDD is also a strong supporter of the State‘s Opportunity Maine program, a first-in-
     the-nation tuition reimbursement program that offers workers or their employers tax
     credits to be applied to help pay off student loans. MCEDD sees the value in these and
     other programs and views education and training as two of the most essential economic
     development tools available.


     Objective 1 – Develop and Redevelop Commercial Property and Infrastructure (B)

     The region has a number of properties and facilities currently unused, some of them of
     considerable size. The renovation and successful marketing of these properties to
     businesses looking to relocate to the region could potentially play a significant role in the
     economic development and job creation efforts of the region. Many of these locations
     offer opportunities for several businesses of similar sectors to ―cluster‖ together and
     further develop identified specialty industries in the region. However, proper renovation
     and aggressive marketing of these sites are essential to business expansion taking place in
     these locations.

     There is also significant need for the development of new business parks for the region as
     well. Several communities in the region are exploring possible development of such
     facilities, either separately or in partnership with neighboring communities. These efforts
     are also representative of a regional philosophy which recognizes the need for
     cooperation and combined efforts in the area when it comes to economic development,
     and more specifically, business attraction.

     Objective 2 – Create an Efficient Infrastructure of Transportation (J)

     The region lacks a major highway, a major public airport and passenger rail service
     currently. It also suffers from tourist seasonal traffic jams. However, efforts are under
     way to address these and other transportation issues facing the region. Efforts to address
     the road congestion and road quality issues are already under way in the Route 1
     communities, who have been working with the State‘s Department of Transportation on a
     major bypass project. The feasibility and cost of passenger rail service expansion from
     Portland north to Brunswick is already being considered. The proposed reuse plan of the
     Brunswick Naval Air Station includes plans for a regional airport of significant size.
     Some of these proposed solutions (such as bypass roads) would have major
     environmental and aesthetic impacts. It is important that the region develop a
     comprehensive approach that encourages the use of alternative transportation modes.
     MCEDD has partnered with organizations dedicated to such efforts, such as Coastal
     Trans and hopes to expand public transportation and its use to the area.

     Objective 3 – Develop a Strong Telecommunications System (K)

     Like many other region in Maine, the Midcoast faces challenges in improving and
     expanding its telecommunications system. The lack of high speed internet, for example,
     is seen as a significant barrier, not only to businesses seeking to relocate to the region, but
     also to locally owned operations that are dependent upon such technology to identify and
     tap into national and international markets. A strong investment in improving the
     telecommunications available would send a strong message to business that the Midcoast
     is serious about making this region technologically competitive with others.

     Summary –

     The Economic Strategy Committee felt that the four major pillars would serve as the
     major categories for the 2008 CEDS document, with the specific objectives for each
     listed below. The final format, as seen above, was unveiled at the fourth and final
     visioning session. The Committee agreed that this was a marked improvement upon the
     former model and more consistent with those used by the other Maine EDDs. The
     consolidation and reorganization of the CEDS Goals and Objectives will improve the
     operations of the MCEDD district by creating a more efficient organization of the goals
     and objectives for the region as a whole.

IV. Community and Private Sector Participation

1. The CEDS Visioning Committee

The process of authoring the Comprehensive Economic Development Strategy (CEDS) was a
multi-stepped endeavor that benefitted greatly from the work of the CEDS Visioning Committee.
The Committee was comprised of leaders in both the private and public sector, representing a
vast array of interests, sectors of the economy and social issues and concerns. Four meetings
were scheduled, beginning in June of 2007 and were facilitated by Planning Decisions Inc..
Some members of the Committee were members of the 2002 group, which had put together the
District‘s first CEDS, but many were new.

Meeting 1 – June 26th West Bath
The first meeting concentrated on explaining the CEDS and its importance in developing and
implementing a region-wide economic development strategy, as well as giving an overview of
the region‘s demographics, geography and economic status. The meeting focus then shifted to
discussing the unique character and qualities of the Midcoast region, the economic drivers and
where the committee envisioned the Midcoast 5-10 years from now. The meeting concluded with
a request that Committee members consider who was missing from the meeting that should be
brought to the table.

Meeting 2 - August 21st Bath
The second meeting began with the Committee focusing on drafting a Vision Statement from
which to refer to as work continues on drafting the CEDS. Different statements were presented to
the Committee and the editing process began. Participants worked diligently to rework and edit
the language of the proposed statements to craft one comprehensive statement that was
representative of the region.
The second focus of the meeting was to analyze and discuss the Goals from the 2002 CEDS that
had served as the platform for all MCEDD activities. These, along with a Projects List were
submitted to the Committee to review and comment on for the next meeting. Participants were
asked to email to MCEDD staff a project description form, detailing any projects not included on
the handout.

Meeting 3 – September 11th, Wiscasset
Meeting number 3 began with a discussion regarding revisions made to the proposed Vision
Statement. The Committee worked paragraph by paragraph to make necessary changes. The
second order of business had the group revisiting the Goals presented at the second meeting. The
Goals were consolidated under 3 main pillars. The group agreed that further work would be
necessary on this subject and turned their attention to the Projects list. A master list was
compiled, based upon the project forms submitted and the existing projects already mentioned.

Meeting 4 – September 25th, Wiscasset
The final of four meetings was held intended to adopt a final visioning statement, agree upon the
Goals and review the final project list. The group identified four pillars and reorganized the
existing goals, with some modifications. Clarifications and amendments were made to several
projects listed. Challenges facing these projects were discussed in detail (financing, real estate
etc.). The Committee agreed that work upon the CEDS would be ongoing and those on the
Committee were invited to continue their efforts going forward.

The mission of the CEDS Visioning Committee was achieved. A diverse panel of participants
worked diligently and collaboratively to craft a comprehensive vision statement, relevant and
inspiring goals and objective and a detailed list of community projects of all scale and scope.
It is hoped that these efforts will be reflected in the final document. Their efforts are greatly
appreciated and this Comprehensive Economic Development Strategy would not have been
possible without their efforts.

2. CEDS 2007 Visioning Committee Member List

     1) Ann Angell - Miles Hospital*
     2) Hank Berg – Taction*
     3) Rudy Graf - The Science Source*
     4) Bo Gallop - Morris Farm
     5) Cerina Leeman - Damariscotta Chamber
     6) Jen Merritt - Waldoboro Business Association*
     7) Mary Bowers - Great Salt Bay Sanitation District
     8) Erin Cooperrider - Community Housing
     9) Marianne Pinkham - Senior Spectrum
     10) Wynn Levine – Independent*
     11) Lynn Thompson - Watershed Ceramics*
     12) Diane Walsh - Waldo Theatre
     13) Interim Director - Bigelow Labs*
     14) Laura Honey - Fishermen's Wharf*
     15) Steve & Maureen Hassett – Custom Composites Technology*
     16) Steve VonVogt – U.S. Windblade*
     17) Jim Howard    - Priority Group*
     18) Harriet Mosher – Five Rivers Arts Alliance
     2. CEDS 2007 Visioning Committee Member List (continued)

     19) Dan Daggett - Bowdoinham Federal Credit Union
     20) Joe Byrnes       - Holiday Inn, Bath*
     21) Mike Bourret - Coastal Counties Workforce Incorporated
     22) Kristi Eiane     - Harpswell Town Administrator
     23) Kelly Ellsworth – Habitat for Humanity
     24) John Wasilseki – The Highlands*
     25) Steve Levesque – BLRA
     26) Rick Emery – Sunnybrook Village*

*denotes private sector. As per EDA guidelines, Committee must be 51% private sector.

V.      Suggested Projects

 Project Description           Location/Lead                                           Jobs
                                Organization       Duties/responsibilities           Created
CEDS Planning Grant –      Region wide/MCEDD   Apply, administer and
EDA funded district                            implement grant, all reporting      1 FTE
grant to update and                            duties
implement CEDS
Brunswick Business         Town of,            Determine location for proposed     350 +
Park                                           park, feasibility etc.

Infrastructure for I-295   Town of,            TBD                                 TBD

Wing Farm Industrial       Bath, West Bath     Continued expansion of park.        300+
Park Expansion, West

Topsham Technology         Town of,            Proposed high-end business park     350+
Enterprise Park                                for the town.

Topsham Lower Village      Town of,            Town efforts to redevelop
Revitalization                                 downtown area.

Etonic Mill                Richmond            Ongoing redevelopment of Mill
Redevelopment                                  Property. 2 current tenants, with
(RBMC)                                         another proposed.

Redevelopment of           Town of Waldoboro   On-going
Osram Sylvania Facility

 Project Description            Location/Lead       Duties/responsibilities         Jobs
                                 Organization                                     Created
North End Kennebec       Bath, City of           TBD                             TBD
Waterfront (2 Town

Prototype Shipbuilding   Bath, City of           TBD                             TBD

Bath Downtown            Bath, City of           TBD                             TBD
(Prawer Block & Coal

Boothbay Rte 27 Sewer    Town of Boothbay;
& Water Extension to     Boothbay Region Water
Boothbay Industrial      District

Bath Downtown Water      City of,                TBD                             TBD
Street redevelopment
multi-use commercial

Master plan for Maine    Town of,                Town continues with             250+
Street Station in                                development of this multi-use
Brunswick                                        complex.

Family Focus Building    Bath                    TBD                             TBD
Damariscotta             Town of Damariscotta,
Downtown                 Damariscotta Planning
Revitalization           Advisory Committee,
                         Damariscotta Region
                         Business Alliance

 Project Description             Location/Lead         Duties/responsibilities          Jobs
                                  Organization                                        Created
Restoration of Historic   The Alewife Initiative,
Fish Ladder               Towns of Newcastle and
Regional Bikeway &        Bath, Brunswick,          Proposed multi-community bike   TBD
Walkway Plan              Topsham                   path.

Business facade           Bath                      TBD                             TBD
improvement program

Elm and Front Street      Bath                      TBD                             TBD

Rehab of Fort Andross     Brunswick                 TBD                             TBD

Update Topsham Main       Town of,                  TBD                             TBD
Street Vision Plan

Waterfront Performing     Topsham                   TBD                             TBD
Arts Center

Business Rte. 1 Sewer     Town of Damariscotta,     Identify and secure funding     None
Extension                 Great Salt Bay Sanitary                                   directly.

Point East Maritime       Point East - Natural
Village and Mason         RE/sources/Wiscasset
Station Dock & Rail

 Project Description         Location/Lead             Duties/responsibilities                Jobs
                              Organization                                                  Created
Mitchell’s Field         Harpswell                 Town has developed re-use plan       TBD
Redevelopment                                      for property, including housing,
                                                   light commercial and
Harpswell Housing        Harpswell                 TBD                                  TBD

Waldoboro River Walk     Waldoboro

Culinary Institute at    Waldoboro Culinary Arts   Commission feasibility study on      TBD
former AD Gray School,   Project Citizen           center for culinary arts and food    (5-25)
Waldoboro (Waldoboro     Committee, Town of        entrepreneurship, negotiate
Downtown                 Waldoboro                 around disposition/fate AD Gray
Redevelopment                                      or other viable site if study data
Project)                                           prove feasibility or project;
                                                   identify funding, implement
                                                   business plan
Waldoboro                Waldoboro
Environmental Business   Environmental Business
Park                     Park/Waldoboro

Sea Street Water Main    Boothbay Region Water     Oversight of implementation (to      8
Project                  District/Dirigo           begin this fall)

Mostly Maine Project     Edgecomb

East Waldoboro           Town of Waldoboro,        Just an idea)
Business Park, Rt.1      Lincoln County
                         Planning/East Waldoboro

 Project Description         Location/Lead             Duties/responsibilities                Jobs
                              Organization                                                  Created
MaineHealth Hospital     Maine Health/Miles
(Miles Memorial-St.      Memorial Hospital and St.
Andrews expansion)       Andrews

Bowdoinham Arts          Town of,                    Community led effort led effort    TBD
Center                                               to establish arts center in town

Bowdoinham Farmer’s      Town of,                    Seasonal farmer’s market in        TBD
Market                                               community

Richmond Façade Grant    Town of,                    Town led effort to improve upon    TBD
                                                     business facades in downtown

Allied Composites        Town of,                    Center has opened and it           TBD
Center, Brunswick                                    offering classes currently

Land for Brunswick’s     Town of,

Rt 1 Corridor to BNAS    Regional                    Proposed infrastructure            TBD

Brunswick Rt 1 Master    Town of,                    TBD                                TBD
Plan Study

Gateway 1                Region wide/DOT,            Ongoing

Whitefield Town Office   Town of,                                                       None
and Multipurpose
Community Center

 Project Description         Location/Lead      Duties/responsibilities        Jobs
                              Organization                                   Created
Expansion commuter      Regional             TBD                           TBD

Holbrook Wharf,         Town of,             TBD                           TBD

Welcome Center          Regional             TBD                           TBD

Chocolate Church        City of Bath,        TBD                           TBD

MDOT Infrastructure     MCEDD Region         TBD                           TBD

Lincoln County Scenic   LCEDO, LC Planning   Convene corridor committee,   0 direct;
By-way                                       develop route, develop and    perhaps
                                             submit proposal to MDOT       collateral
                                                                           jobs created
                                                                           over the long
                                                                           term due to
                                                                           visibility and

VI. Vital Projects, Programs and Activities

Projects                                                    Source of         Priority

Farm to School Program- Lincoln County has                  Businesses        A
pioneered an effort to make local, fresh food available
in the public school system and to educate children         Grants
about good nutrition and the importance of farms in our     Schools
communities. Farm to School will continue to work
with local farms to increase direct purchase foods in the   CDC
cafeteria, and in March there will be a statewide farm to
                                                            National Farms
school conference in an effort to expand and replicate
                                                            to       School
the program throughout Maine.

Maritime Culture Initiative- The Lincoln County Pending                       A
Economic Development Office is working with Maine
Maritime Museum, CEI, and the Tourist Board to
spearhead a maritime culture initiative. This initiative
will coordinate the efforts and activities of those
preserving Maine‘s maritime culture along the coast in
order to promote cultural heritage tourism, highlight
maritime and related history, and support present-day
marine/maritime industry sectors. A grant proposal has
been submitted to Preserve America to support initial
marketing and media development.

Cultural Heritage Map- The creation of a cultural County                      A
heritage map for Lincoln County will encourage
tourism based on local history and resources. Town
historical societies will coordinate to designate
important landmarks and buildings for inclusion in the
map project.

The Alewife Initiative- Red Door Media has produced Unknown                   A
Closing the Loop which documents the cultural,
ecological, and economic importance of the alewife
fish ladder in the Damariscotta Mills. Construction to
restore the ladder began in 2006.

Culinary Arts and Food entrepreneurship Initiative          CDBG,       state A
– A study of the viability of developing culinary arts      planning grant,
education and a food entrepreneurship center is             Town,       local
underway in Waldoboro                                       business

Damariscotta Planning Advisory Committee                    Orton              A

Maine Street Station, Brunswick – This project was          Private            250+
scored highest in the EDA project review meeting, held      investment,
by MCEDD in spring of 2007. This multi-use complex,         EDA,
to be located in Brunswick‘s downtown will include          other funds
retail, commercial and residential space, as well as a
train station for the expanding passenger rail service.
This project seeks to remediate and redevelop acreage
in the downtown,

Wing Farm Industrial Park – A multi-municipal               Private            150+
project between the Town of West Bath and the City of       investment,
Bath, Wing Farm will begin an expansion this year.          TIF,
The park is marketed towards companies offering high        CDBG,
paying skilled jobs to the region‘s workers. The
communities are preparing an EDA application.

Brunswick Business Park – This park would host              Private            700
technology companies offering high paying skilled jobs      investment,    ,
to regional workers. The park would attract companies       TIF,
within industries identified as cluster industries in the   EDA
Midcoast region

Etonic Mill Redevelopment, Richmond – The                   CDBG,              TBD
ongoing redevelopment of the mill has attracted its         Private
third company to the property and will offer high wage      investment,
jobs to regional workers. Additional expansion              TIF

opportunities exist as well.

Mitchell Field Redevelopment, Harpswell – The TBD                     TBD
town has developed a reuse plan for the property that
includes housing, light commercial and recreational
uses. Harpswell is currently looking into funding
opportunities for the project.

Topsham Technology Enterprise Park – The town is         EDA,         TBD
in the process of developing a comprehensive plan that   Private
would develop a high tech business park, that would      investment
provide high paying, skilled jobs to regional workers.   other

VII. Economic Clusters

        The establishment and growth of industry clusters has been recognized by local, state and
federal economic development organization‘s as a key strategy in improving and expanding
economies, both locally and regionally. Capitalizing on industries that have been traditionally
strong and dominant in the Midcoast region, MCEDD hopes to further develop these clusters,
while actively promoting new and emerging clusters that may show significant promise in the
future. This section will serve to give an overview of these clusters and detail what is being done
to promote their expansion.

       Regional clusters typically share attributes that make them identifiable to developers. In
recognizing existing and potential clusters in the region, MCEDD referred to these criteria.

Clusters typically

       -   Are of large scale, involving numerous companies within a single industry or several
           closely related industries

       -   Have a strong presence in regional, national or international markets

       -   Feature a well developed industry infrastructure; this can include major companies,
           plants or facilities, supporting industries, suppliers, transportation networks, etc.

       -   Possess a large well trained labor force with specialized skills that provide
           competitive advantages to the region

       -   Support institutions, including educational institutions, research facilities, extension
           services and trade associations that actively strengthen the industry and make it more

       -   Feature strong networks and in-depth industry knowledge within the industry,
           supporting institutions and related professional industries such as law firms,
           accounting firms, insurance firms and financial institutions

       Industry clusters with these attributes are also characterized by high degrees of
innovation, with new products, processes or services being introduced at a relatively rapid rate.
Competition between firms within the cluster is high, with the result that these firms are more
competitive in larger national and global markets.

      Capitalizing on existing clusters to help in developing complementary clusters is a key
component in the long-term economic strategy of the region.

Existing Clusters in the MCEDD Region

        Recognizing the importance of pro-actively addressing the anticipated economic issues
that will arrive with the base closing, economic developers in several communities within the
MCEDD region came together to develop long-term strategies that could be employed to
strengthen local and regional economies, offset the projected economic downturn from the base
closure and creative a business environment that would be viewed as an attractive location to
companies looking to relocate, expand or initiate operations. These discussions led to the
formation of an official alliance of communities. A central component of this strategy would be
the recognition that inter-local agreements between communities must exist to prevent them
having to compete against each other for businesses and jobs. This approach is undeniably
progressive for a part of the country long known for its independence and reluctance to embrace

        The mission of this Alliance is to approach cluster development, and economic
development from a regional perspective. The four stage process, adopted from the EDA‘s
Cluster Based Economic Development: A Key to Regional Competitiveness called upon these
economic development officials to assess both their communities and the region as a whole to
identify industries which may be seen as having the greatest potential for cluster development.

        The list that follows details those clusters which are seen to be dominant and/or emerging
in the region. The Alliance has already begun the process of identifying ―stakeholders‖ for these
respective industries and will be enlisting their support in future efforts of determining a
collaborative strategy.

     1. Composites

     Present Condition

         The Midcoast region has long been recognized as one the nation‘s leading location for
     composite technology and manufacturing. The Town of Brunswick has been actively
     developing its composites cluster for quite some time and actively recruiting private
     companies, as well as educational institutions to relocate to the region. In 2007, the Southern
     Maine Community College, in partnership with the town government, private industry and
     the Maine University System, opened the Maine Advanced Technology Center (MATC). The
     Center offers classes to both new and incumbent workers in the composites industry, relying
     on the latest technology in the industry, producing a highly skilled workforce, available to
     companies. There exits a very strong link between this cluster and that of boatbuilding.
     Although not all boatbuilding operations employ the use of composites, those who do enjoy
     the significant advantage of an internationally recognized industry sector in their own

     Marketing/Expansion Potential

         The development of the composites cluster in the Midcoast region has seen rapid
     acceleration as new technological advancements in the industry have significantly expanded
     uses and applications for composites. Once fairly limited to boatbuilding and other marine
     related activities, developments in materials and the emergence of the ‗closed-molding
     process‘ have allowed innovative companies within the region to develop products in
     markets previously unexplored. With a demonstrated buy-in and investment from local,
     regional and state government, as well as educational and training centers being opened by
     higher education institutions, the region is well poised to build on its international reputation
     for composites.

          Job growth in the composites industry holds great promise for replacing the high wage
     jobs in the region that were lost in recent years. The table below demonstrates this and while
     it indicates that total employment in the sector is down, the region and state have seen
     growth, both in wages and number of establishments that far outpaces the national averages
     for this sector.

        Table 8 - State, National Figures for job growth, establishments and wages 2001-2005

                                                                             Composites &
                      MAINE                     Total Private Sector
                                                                           Advanced Materials


                       2001                             43,232                      81

                       2005                             45,189                      90

                2001-05 % change                         4.5%                     10.6%


                       2001                            496,432                     1,447

                       2005                            495,554                     1,297

                2001-05 % change

                              Average Annual Wages

                           2001                                  $       28,397                   $        28,744

                           2005                                  $       32,106                   $        36,247

                  2001-05 % change                                    13.1%                            26.1%

                Specialization Ratio

                           2001                                        1.00                             1.76

                           2005                                        1.00                             1.73

                   UNITED STATES


                           2001                                      7,733,520                         2,850

                           2005                                      8,308,128                         2,799

                  2001-05 % change                                     7.4%                            -1.8%


                           2001                                   109,321,800                         180,636

                           2005                                   110,634,500                         167,651

                  2001-05 % change                                    1.2%                             -7.2%

                              Average Annual Wages

                           2001                                  $       36,159                   $        49,021

                           2005                                  $       40,499                   $        54,547

                  2001-05 % change                                    12.0%                            11.3%

     Source: Battelle analysis of BLS QCEW data from IMPLAN, Policy One Research Inc.

     Note: Figures in Red denote specialized industry location quotients. Figures in Blue denote positive employment growth
     during the 2001 to 2005 period.

     2. Marine Trades/Boatbuilding

     Present Condition

         The shipbuilding industry in the Midcoast region has seen significant expansion and
     contraction within the industry over the past several years. Layoffs at the shipbuilding
     operation Bath Iron Works, also the region‘s largest employer, represent the contraction felt
     in the industry. A reduction in contracts, combined with increased competition from
     international shipbuilding operations, has led to what many in the industry view as a
     permanent scaling back of operations at the facility.

         However, on a whole, boatbuilding in the region is doing rather well. Wooden
     boatbuilding operations in the region are experiencing unprecedented growth. Demand for
     smaller vessels, yachts and other pleasure craft have necessitated that many companies
     search for suitable real estate for expansion. Two local companies in particular, boatbuilders
     Washburn & Doughty and Hodgdon Yachts have had to deal with the logistical issues of
     expanding their facilities to meet increased demand from customers.

         While boatbuilding operations have traditionally been a fractured group, new technology
     and the outreach efforts of the State‘s North Star Alliance to provide funding for training,
     offer great potential to these companies. However, it is important that these operations who
     use employ composites in their manufacturing process embrace the new closed-molding
     process to be in compliance with Maximum Achievable Control Technology (MACT)
     Standards, set by the EPA and Maine‘s Department of Environmental Protection.

        Marketing/Expansion Potential

         While the availability of suitable real estate to expand operations is certainly an issue of
     huge concern to these operations, a second but equally important once would be the presence
     of skilled and trained labor pool from which to gain new employees. There are concerns
     among smaller operations that money spent on training employees only makes these workers
     more enticing to larger operations. However, there is little argument that the knowledge and
     application of new and emerging technologies in the industry is essential to future growth
     and expansion.

         A weak U.S. dollar has led to increased interest among foreign boatbuilding operations,
     particularly in Europe, who are looking to contract out certain elements of their boat
     production. Operations which already possess the capability and capacity for handling such
     enormous contracts, will be well poised for continued growth well into the next decade.

     3. Precision Manufacturing

     Present Condition

          While manufacturing jobs continue to decline, both nationally and locally, significant
     opportunity exists for companies in the precision manufacturing sector. The Maine Advanced
     Technology Center (MATC) offers students and existing workers training in complex
     precision manufacturing trades, such as precision metalworking. The program is the first of
     its kind in the state, and represents an investment on the part of Maine‘s higher educational
     system in training workers for jobs in high growth industries.

     Marketing/Expansion Potential

         The educational and training opportunities offered at the MATC could bode very well for
     local operations looking to expand and also be deciding factor for companies considering
     relocation. The availability of a trained and adaptable workforce, combined with successful
     efforts at developing technology and business parks in the region could play intrinsic roles in
     growing this niche cluster in the coming years.

     4. Food production

     Present Condition

         The Midcoast region is well known for its diverse agricultural aquacultural and specialty
     foods operations. Farmers in these communities produce high quality produce, meat and
     dairy, whose reputation has driven demand. Small scale and specialty operations produce a
     wide array of products; baked goods, wine and beer, gourmet foods, among others. It is these
     high quality offerings which help to give Maine its ―label‖. Whether unique to their region or
     simply a better made product, these goods have found markets both nationally and
     internationally. Maine and the Midcoast region are fortunate in that their geographic location
     almost enables the finished products to market themselves.

     Marketing/Expansion Potential

         The potential for expansion in this industry cluster is enormous. Many of these operations
     are complimentary in nature given that much of what is produced by local farmers, fishermen
     and others are ingredients in many of the specialty foods produced by local companies.
     Innovative programs in the region, such as the Farms-to-Schools operation, which links local
     food producers with local school districts, has not only opened new markets, but has also
     improved the diets of schoolchildren as well. Several MCEDD service center communities
     are also popular tourist destinations and thus, are perfect conduits for making these products
     available to vacationers from around the world. These markets can be maintained and even
     expanded through a collaborative and focused marketing campaign that utilizes the internet
     to continue to reach these consumers.

     5. The Creative Economy

     Present Condition

         The definition of the term ‗Creative Economy‘ is nebulous and ever-changing. Regional
     leaders have used this term as an umbrella to include all arts (visual, music, writing, theater
     etc.), craft production (furniture, specialty items, toys, etc.) and tourism, among others. These
     industries have a long and well established tradition in the region and unique arts and crafts
     economies have played an intrinsic role in making the Midcoast region on of the most
     traveled to destinations in Maine. Historically comprised of single person or very small scale
     operations the Midcoast arts community has greatly benefitted from the establishment of the
     Five Rivers Arts Alliance, which promotes the arts of the region and advocates for their
     consideration in economic and community development endeavors.

     Marketing/Expansion Potential

         The continued growth of the arts community and tourism in the Midcoast are dependent
     upon each other and, therefore inextricably linked together. It is tourism activity that has
     traditionally brought customers to the shops, studios and performance halls of local artisans.
     Conversely, it is the high quality merchandise and performances showcased, that has helped
     to develop a strong tourism industry for the region as a whole. Promotion of the Midcoast
     region has always stressed the unique physical beauty of the region and its charm. The arts
     community has always been very representative of this notion, but now also finds itself, with
     the marketing power of the internet, to be able to be able to reach an international audience
     that does not necessarily have to physically go to the Midcoast to experience the Midcoast

     6. Green Energy/ Construction

     Present Condition

         The emergence of renewable energy technology and energy efficient construction and
     building practices will play a huge role in the future of economies of all scale. Rising energy
     costs, increased environmental awareness and concerns over pollution have motivated both
     the private and public sector to take a serious look at the development of new energy
     practices which are sustainable and cost effective. This is particularly true in the northeastern
     U.S. where skyrocketing oil prices have strained household, business and public sector

     budgets to the breaking point. Energy costs are significantly affecting the economy and with
     no relief in sight, companies must look towards renewable technologies. New England also
     possesses the oldest housing stock in the country. Many of these homes have insufficient
     insulation and heating and cooling systems, consequently making them more expensive. As
     this housing is replaced, an opportunity to employ highly energy efficient construction
     techniques and heating and cooling systems will become the industry standard, driven by
     consumer demand.

     Marketing/Expansion Potential

        The impetus for serious study into the practicality of alternative energy and green
     construction practices is driven by state initiatives aimed at reducing the state reliance on
     foreign oil. Potential energy sources within the state, such as wind, solar, wood and bio-
     diesel hold great future promise, but must have investment from the private sector to truly
     make a significant impact.

         The Brunswick Local Redevelopment Authority‘s plan for the redevelopment and reuse
     of the Brunswick Naval Air Station (BNAS), identifies the development of renewable and
     alternative energy as a key component of the plan. In fact, the Plan allocates a specific
     location for a Renewable Energy Park, which could prove to be an attractive location for
     research and development companies in the industry.

        Consistent with those figures found in the composite industry, while the overall
     employment numbers for the Environmental Services and Alternative Energy field are down,
     wages are up as indicated in the table below. Growth in the number of establishments is
     consistent with national figures, as average annual wage figures.

       Table 9 - State, National Figures for job growth, establishments and wages 2001-2005

                                                                 Environmental Services
                  MAINE                  Total Private Sector
                                                                      & Alt. Energy


                    2001                                43,232                        252

                    2005                                45,189                        264

     2001-05 % change                                    4.5%                        4.8%


                    2001                               496,432                       1,877

                    2005                               495,554                       1,743

     2001-05 % change                                   -0.2%                       -7.1%

                                      Average Annual Wages

                    2001                          $     28,397             $       38,078

                    2005                          $     32,106             $       42,511

     2001-05 % change                                   13.1%                       11.6%

     Specialization Ratio

                    2001                                  1.00                        0.87

                    2005                                  1.00                        0.81



                2001                                   7,733,520                         35,273

                2005                                   8,308,128                         37,262

         2001-05 % change                                7.4%                            5.6%


                2001                               109,321,800                          474,414

                2005                               110,634,500                          480,458

         2001-05 % change                               1.2%                             1.3%

                  Average Annual Wages

                2001                               $       36,159                  $            47,682

                2005                               $       40,499                  $            53,613

         2001-05 % change                               12.0%                            12.4%

             Source: Battelle analysis of BLS QCEW data from IMPLAN, Policy One Research Inc.


       Capitalizing on the strength and synergistic qualities of existing clusters in the
Midcoast region, MCEDD and regional partners will continues to grow and develop
these industries while identifying new and emerging clusters as well. Proposed
technology and business parks, along with the future redevelopment of the naval air
station, will play a significant role and facilitating growth and expansion in the region.
The further strengthening of relationships between regional education entities and the
business community will allow the Midcoast to train and produce a workforce capable
of helping to increase economic growth. The implementation of these programs and
projects, along with a strong collaborative relationship between communities will go a
long way towards minimizing and even preventing the economic downturn forecast for
the region.

VIII. Plan of Action


CD 1 –      Invest in City, Town, and Village Centers

        Work with the Waldoboro Business Association and local businesses and retailers to take
         an historic inventory of downtown Waldoboro for recognition and renovation; creating a
         River walk tourist destination for arts and creative economy development.

        Working with Boothbay Harbor Opera House on Phase II of a CDBG for historic

        Working with Town of Damariscotta for survey to complete necessary preliminary work
         for infrastructure rehab on Business Route 1.

        Topsham continues its focus on developing more of a village center. Projects include: the
         recent completion of a new town hall, a river walkway and amphitheater.

        Begin construction in Maine Street Station (Maine St. Station – 250 new jobs,

        Support City of Bath in its efforts to develop waterfront and revitalize sections of its

        Support the City of Bath in its efforts to implement a business façade improvement
         program using CDBG grant funds.

        Support Town of Brunswick in its efforts to develop a master site plan for the Maine
         Street Train Station, which may also include the development of a train station for
         commuter and/or passenger rail service.

        Support Town of Topsham in updating its Maine Street Vision Plan and developing a
         master plan for the 100-acre parcel on Interstate 295.

        For Lincoln County downtown revitalization, please see Goal A, where systematic
         business retention and expansion strategy is outlined.

     CD 1a –    Create Affordable Housing

        The CEI Housing Department and local housing authorities will work to foster housing
         creation along with job creation.

        Habitat for Humanity to complete 1 home in Brunswick, 1 in Bremen, 1 in Bowdoinham
         and begin construction on 1 duplex in Bristol. Rehab projects on five homes of low
         income families will also begin.

        Habitat for Humanity plans to open a recycling/retail store, where building materials
         and furniture can be donated, salvage, restored and sold inexpensively to help support
         the housing construction program.

        Tedford Shelter will continue working on two supportive housing projects, Evergreen
         Woods in Bath, for families and Everett Apartments in Brunswick, for single adults,
         construction will start in fall 2006, to be completed by the end of fiscal year 2007.
         Projects to be occupied by June-July 2007. Backed by combined funds of 2,621,496 from
         HUD, Maine Housing, and private sources, the projects will provide many jobs to the
         local economy during their construction phase and contribute 14 units of new affordable
         permanent housing stock to the areas housing resources upon completion. Brunswick
         Housing Authority will provide eight (8) project-based subsidies to the Everett site to
         make the housing affordable. Tenant based subsidies will be used for the same purpose at
         the Bath site.

        Tedford will hire a facilities manager to be completed by September 2006. Funding for
         this position comes from a CDBG grant submitted on Tedford’s behalf by the Town of W.
         Bath. Progress will continue on two initiatives that will assist homeless citizens of the
         Mid Coast in achieving stability and engaging in the community.

        Tedford will start a Family Mentoring Program - Will provide a mentor to homeless,
         recently homeless, or at-risk households. The mentor will be a volunteer, trained to
         support and be a listener to those in need and may be able to provide skill building basics
         in the areas of budgeting and other daily living skills. The program is a collaboration of
         the Brunswick Area Interfaith Council (BAIC), Tedford Shelter, and Sweetser. Funding
         sources will be sought to fund a part-time coordinator for the program. We hope to serve
         the first households in the fall of 2006.

        Tedford will start a Supportive Employment program – Tedford has been leading a
         Supportive Employment round table that is developing a residential supportive
         employment model, based on the Lodge concept developed by Dr. George Fairweather.
         The program, if operated, will provide supportive housing and jobs to formerly homeless
         persons who have had significant barriers to maintaining steady employment in the past,
         often as a result of mental illness. Participants in the planning include; Tedford Shelter,
         Sweetser and the Bath Career Center. Funding mechanisms to kick off a pilot project are
         currently being explored with potential start-up planned for 2007.

        CEI intends to work with communities, non-profit organizations and private developers
         to support the development of affordable housing as opportunities arise in the Midcoast
         area. CEI continues to mobilize capital to invest in affordable housing development.

        The Brunswick Housing Authority will be developing a 15 unit single family home
         subdivision in the Town of Harpswell.

        The Brunswick Housing Authority will sell a 50 unit family rental complex in an area that
         is a prime location for commercial development and use the proceeds to purchase 50
         units of NASB housing scattered throughout Topsham and Brunswick.

        The Brunswick Local Redevelopment Authority (BLRA)will be very active in the creation
         and support of affordable housing in the region. They will be working with the
         Department of Housing and Urban Development to assure acceptance of the homeless
         public benefit conveyances and legally binding commitment proposals for Brunswick and

     CD 1b –    Balance Development and Growth with Protecting Rural Character, Natural
                Resources, and Traditional Communities

        Through Farm 2 School, Maritime Heritage, Geo Tourism

        Develop and expand the Androscoggin River Bike Path from Brunswick to Topsham and
         Bath in order to complete this regional bikeway/walkway linkage.

        The Town of Brunswick is planning to implement smart growth principles for Maine
         Street Station and for rural Brunswick.

        Promote region’s rural character and sense of place through Artscape (regional arts
         calendar), Five Rivers Arts Alliance website, and other communications.

        Community Housing Coalition – working to create awareness about housing needs in
         region and to provide education on local tool for supporting affordable housing. May
         hold some sort of public session in Fall 2008

        Sagadahoc Region Rural Resource Initiative – will continue to promote the conservation
         of open space in the 12-town MCBDP region. Conservation Blueprint to be published
         and shared with towns in 2008-2009. Public event likely in Fall 2008. Intend to promote
         protection of farmland and woodlots.

        (MCBDP staff) Participate in.and promote Gateway 1 Strategic Plan for Route 1: plan to
         be developed by end of 2008. State and towns to sign MOUs to implement plan.
        (MCBDP staff work with towns to )Undertake three discrete pedestrian planning

                    -   Plan for a walkable village and school in Bowdoinham
                    -   A Walk to School plan in another town
                    -   Scope out converting gas pipeline corridor in Harpswell to a trail

        CEI administers the state’s Working Waterfront Access Program and Farms for Maine’s
         Future Program, two programs which provide targeted assistance to natural resource
         industries with a goal of preserving rural character and traditional industries.

        The Town of West Bath will participate in Sagadahoc Regional Rural Resource
         Initiatives (SRRRI)

        The Brunswick Local Redevelopment Authority’s (BLRA) Reuse Master Plan calls for
         setting aside close to 1100 acres of land on the NASB property designated as a natural
         areas district in order to preserve, maintain and enhance existing natural areas for the
         overall long term benefit of area residents and the natural environment. Only those uses
         that would not significantly alter the natural environment and/or would provide
         opportunities to experience the environment would be considered, including pedestrian
         trails, nature and interpretive centers, summer camps, environmental education and
         other non-intrusive outdoor passive recreation and educational uses.

        MRRA has submitted applications to the Maine Technology Institute (MTI) and
         Economic Development Administration (EDA) to conduct a feasibility study for the
         envisioned Renewable Energy Center. We are requesting $200,000 from each agency and
         will provide cash and partner match in the amount of $355,000.
         This study will provide a strong model of the feasibility and economics of a distributive
         energy park for co-generation, district heating and cooling energy delivery. This could
         serve as an important model and prototype for the state and region.

        Work with the Navy on conveyance issues including, an economic development
         conveyance and an airport public benefit conveyance through the Federal Aviation
         Administration at Brunswick.


ED 1 –      Grow Small Business Entrepreneurship

        Work with, CEI, Small Business Development Center, Business Maine Centers for
         Women, Work and Community and other service providers and to expand the
         Creation/Expansion and Retention outreach program visiting with local businesses for
         assessment and training and funding needs.

        The Maine SBDC @ CEI intends to continue to provide free business counseling to new
         and existing businesses in the MCBDP service area at or above levels achieved in the
         past. The Maine SBDC @ CEI expects to see the BusinessFirst model grow and mature
         and result in the better provision of business counseling services to the MDBDP service

        Support the newly opened Brunswick Composite Training Center.

        Establish Allied Composite Manufacturing Center.

        Continue to train and find space for the creative economy worker/owner.

        Expand the MCBDP Alliance for the region.

        Maine Centers for Women, Work & Community (WWC) will offer Microenterprise
         training and Technical Assistance. Offerings include:

                            -   Art to Business: Building the Business Side of your Art – two
                                sessions – target - 20
                            -   New Ventures business plan training – target 15
                            -   Introduction to Business – 4 – 6 sessions target – 25
                            -   Business to Business Networking – 9 meetings
                            -   Special topic workshops delivered via distance learning – 3
                            -   Individual consultation/assistance – 45 entrepreneurs

        Support the State’s North Star Alliance initiative, which offers support to composite,
         boatbuilding and precision manufacturing companies in the region.

        Score will conduct free counseling sessions for those interested in starting a small
         business and for those in business and in need of assistance. Weekdays, 9 – 12.

        Score will also hold low-cost workshops covering How to Start A Business, Writing A
         Business Plan, Marketing and Sales, Buying A Business, and Web Marketing. Weekly.

        Five Rivers Arts Alliance will publicize training opportunities for artists, entrepreneurs
         and small businesspeople. (especially Women, Work & Community, Maine Business
         Works, Chamber and CEI classes and resources)

        Southern New Hampshire University-Maine will continue to provide specific coursework
         in entrepreneurship and small business management in an evening format accessible to
         working people, including small business owners.

ED 2 –      Support and Capitalize on Targeted and Dominant Industries

        Through the Farm 2 School program, WIRED/Composites/Boat building collaborative,
         Waldoboro River walk initiative.

        MCBDP will serve on the newly established Governor’s Advisory Council. This Council
         will act in an advisory capacity and will serve as an additional means for communication
         and collaboration between local and statewide interests as it relates to the re-use of the
         Naval Air Station in Brunswick.

        Support the efforts of the Midcoast Boatbuilding Alliance to expand economic
         opportunities and capacity for boatbuilding in the region in order to create a viable and
         sustainable industry cluster.

ED 2a –      Strengthen Marine Related Industries

        Continue to Work with Maine Department of Tourism, Maine Historic Society, Maine
         State Historic Preservation and Coastal Enterprises, Inc. and help facilitate creating a
         designation commission and development plan for a Maine Maritime Heritage Area.

        Support local municipalities and the maritime industry in identifying and accessing
         economic development funding for maritime activities, such as the Mason Station Dock
         and Rail Restoration in Wiscasset and the proposed marine railway supported by the
         Town of Boothbay and Hodgdon Yachts.

        Participation in the North Star Alliance Initiative program.

        Through a contract with the Maine SBDC, CEI is delivering targeted technical assistance
         to composites and marine-related industries through the North Star Alliance.

        Coastal Counties Workforce Inc. is a partner in Maine’s North Star Alliance Initiative
         (NSAI). CCWI’s main NSAI activity is acting as a conduit between marine trades
         businesses and education providers to assist employers access a pipeline of skilled
         workers and connect employers to education and training opportunities for their current
         workforce. NSAI efforts will continue for at least one more year as part of the WIRED
         grant. Following the completion of the WIRED program, CCWI will work with the larger
         NSAI steering committee to continue many of the employment and training efforts
         targeted to marine related employers.

        In addition to participation in the NSAI initiative, CCWI is also supporting the marine
         trades industry through a partnership with the Southern Maine Community College
         (SMCC) at the Brunswick Advanced Training Center. Thanks to a 2.2 million dollar
         grant awarded by the United States Department of Labor, SMCC opened MATC
         provides composite, precision manufacturing technical training to entry level and new
         workers as well as industry professionals. The Center will support 100 companies and
         2,500 workers. CCWI saw the grant as primary building block for establishing new
         resource and opportunities in the region.

        The Southern Maine Community College’s Bath campus will expand its course offerings
         at the Maine Advanced Technology Center in Brunswick for composite applications in
         the boatbuilding and other related industries.

ED 2b –      Expand Research and Development Activities

        Redevelop the Times Record into a training center (Composite Training Center – 40 new
         jobs, 1.1 m).

        Develop last two lots of Business Park into a composite manufacturing center (Allied
         Composite Manufacturing Center $5.3m).

        Expand research capabilities of Bigelow Laboratory for Ocean Sciences in Southport
         Island through development of an Ocean Sciences Research and Education facility on its
         65-acre site in Boothbay Harbor.

        Continue providing technical assistance to companies seeking grants from the

        Small Business Innovation and Research program through the Maine SBDC at MCBDP.

        The Brunswick Local Redevelopment Authority (BLRA) will develop a plan to create a
         northeastern center of excellence for an integrated R&D, manufacturing, testing,
         business incubation and productive operation of green energy technology products and

ED 2c –      Expand Tourism and Strengthen Tourist-Related Activities

        Work with Opera House, Waldoboro Downtown and River walk, and Maritime Heritage
         collaboratives to develop destinations.

        Continue to support the Midcoast Chamber Council in its efforts to promote the region as
         a year-round tourist destination, such as regional website development and extensive
         brochure distribution.

ED 2d – Strengthen Traditional Industries such as Farming, Forestry, and Arts and

        Continue to work with local farming communities, foodservice businesses, local school
         districts, Healthy Maine Partnership, and local culinary establishments with Farm to
         School project initiatives promoting sustainable agriculture, consumption of locally
         grown food, culinary education initiatives, food security and distribution to food pantries.

            Convening a statewide stakeholder gathering, to develop Farm 2 School initiatives in
             other communities throughout the State.

            Five Rivers Art Alliance (FRAA), will sponsor a publicity writing workshop (led by
             Charlene Williams through Maine Tourism Office) to help artists and entrepreneurs
             improve their own publicity skills. One of the biggest challenges identified by the
             creative industry was the need for increased promotion. As a result of the forum
             series, FRAA plans to improve marketing and publicity for the arts & cultural sector
             in the midcoast region through:

             -   Develop and publish a replacement for the Bath-Brunswick Cultural Map &
             -   Work more closely with the Chamber and with the Office of Tourism to promote
                 regions creative assets.

            -   Improve Five Rivers website as a resource for the region’s creative sector (and
                improve resources and as a resource for opportunities, workshops, business
                training, etc. for artists).
            -   Explore additional marketing opportunities that would benefit the region’s
                creative sector, including cooperative advertising opportunities, representation at
                trade shows, other publicity opportunities.
            -   Improve Five Rivers core programs.
            -   Continue to meet and collect feedback from the sector.
            -   Use Artscape (regional arts calendar) as means to promote local cultural
                event/destinations to residents visitors
            -   Work with Office of Tourism, other cultural nonprofits to promote region’s cultural
                assets through cooperative avenues

            -   Improve core programs: ArtWalks, Arts Downtown & All Around, Family Arts Festival,
                Arts Nights at the Library that promote local artists and appeal to visitors.

     ED 2e –    Support Health Care

        Continue to support healthy lifestyles, and good nutrition through the Farm 2 School
         program expansion statewide and through collaboration as a regional partner in peer
         exchange for “Farm” issues.

        Continue to support health care providers in the region in their efforts to maintain a
         healthy workforce and work with local communities in the development of assisted living

        In 2007, Miles Health and St. Andrews Hospital will undertake a feasibility study
         following the Summer 2006 announcement of their proposed merger and listening
         sessions to gather community input into the process. LCEDO will work with Great Salt
         Bay Sanitary District and Miles Health to support placement of infrastructure needed for
         proposed hospital merger and assisted living facility, including access to EDA/CDBG

     ED 3 –   Coordinate and Strengthen Regional Capacity for Economic Development

        Continue to work with local and regional planning boards, town managers and
         selectmen, Chambers of Commerce, CEI, MCEDD partners, EDA, DECD, DOT, DOE
         and non-profits to procure and allocate necessary resources to promote the identified
         economic clusters: composites/boat building, food production, creative economies and
         green construction.

        Support the efforts of the NAS Brunswick and Topsham Local Redevelopment Authorities
         in their efforts to develop a base reuse plan.

        Continue to facilitate the MCBDP Alliance in its efforts to work together to increase
         economic opportunities and to market the region as a great place to do business. The
         committee representatives are members of municipal and regional economic development
         agencies, real estate developers, commercial realtor, and non-profit community
         development organizations.

        Provide support to the Town of West Bath’s newly created business/economic
         development committee as they begin to develop strategies to address economic issues
         and identify opportunities.

        Review and modify existing quantitative measures for this goal to develop a more
         representative measurement to demonstrate accomplishments.

        Lincoln County’s economic development office will continue to partner with DECD,
         MCBDP (through MCEDD), and continue to help public and private sectors, lend
         support to grassroots and municipal planning and economic development initiatives to
         maximize regional capacity, assisting with fundraising and strategic operation.


EWD 1 – Build a Skilled and Educated Workforce from Preschool to Adult

        Working on a feasibility study for the establishment of a culinary arts education centered
         to be housed at the A D Gray school in Waldoboro; tying in with Farm 2 School -- early
         education through to certificate programs, resulting in the promotion of culinary-related
         employment and business ventures.

        Working with DOC, DECD, Wired/Composites coalition and local businesses to develop
         and expand training and skills building in the boat building industry.

        Support the Brunswick Advanced Composite training center.

        Work to expand Family Focus’s public pre-K beyond Phippsburg Elementary to other
         school within School Union #47.

        Complete planned activities related to Kellogg foundation grant. Explore possibility of
         creating cooperative structure to benefit child care providers and develop a business
         plan for its implementation.

        Complete the renovation project at 2 Davenport Circle facility.

        Strengthen University College’s efforts to continue to attract local scholarship support.

        Outreach efforts will focus on partnering with local business and non-profits to attract
         local workers to higher education opportunities.

        LCEDO will continue to help Healthy Kids! (HK!) expand its presence and secure
         funding to expand and innovate programming.

        Women, Work & Community will offer workforce development trainings throughout the
         coming year and include:

             -   2 sessions of Financing Your Future (money management training) – target 20
             -   2 sessions of Career Planning – target 20
             -   Individual assistance as needed (107 individuals were served in FY 07)
             -   Job search, resume workshops planned throughout the year, often in partnership
                 with others.

        The University College of Bath Brunswick’s work plan includes the following activities:

             -   Efforts will continue to attract local scholarship support. We have just received notice of
                 $15, 000 of funding through the Davenport Fund to support scholarships for local Bath
                 area residents. We applied for funding through the Morse High School Scholarship Fund
                 but are application was not successful this year. We will reapply in the next year.

             -   Outreach efforts will continue focus on partnering with local businesses and nonprofits to
                 attract local workers to higher education opportunities.

             -   A University College at Bath/Brunswick advisory board will be recruited.

             -   We will increase promotion of the Maine Aspirations Program through distribution of a
                 new brochure to local high school juniors and seniors and their parents. This program
                 provides early access to college study to qualified high school juniors and seniors.

             -   We will collaborate with the local college transitions programs to provide a seamless
                 access to prospective college students who are in need of increasing academic skills
                 prior to beginning college.

        Southern New Hampshire University-Maine will continue to provide courses leading to
         associate, bachelor and masters degrees and certificates in business and management
         that are affordable, accelerated and held in an evening format that is convenient for
         working people.
         Southern Maine Community College’s course offering at the Maine Advanced
          Technology Center in Brunswick for composite application

         The State of Maine has received a grant from the U. S. Department of Labor’s
          Employment and Training Administration to retrain workers targeted as being vulnerable
          to losing their jobs in the wake of the closing of NSAB. The focus of the grant is to
          develop a demand driven workforce development strategy with significant involvement
          from business and industry. Key partners for this effort include; Maine Department of
          Labor, Maine Department of Community and Economic Development, TechMaine,
          Information Technology Association of America, Midcoast Regional Redevelopment
          Authority, IBM and Coastal Counties Workforce. Long term accomplishments of this
          collaborative approach include:

             -   Attracting IT outsourcing to Maine

             -   Increase viability of existing IT companies in Maine

             -   Improve workforce skills to meet existing and future IT demands


I/T 1 –      Develop and Redevelop Commercial Property and Infrastructure

         Working diligently with local town officials, commercial real estate brokers and local
          business association to redevelopment the Osram Sylvania plant.

         Continue to support local municipalities and private businesses in identifying and
          accessing economic development funding for commercial property and infrastructure
          projects, such as the Brunswick Business Park, the Richmond Business and
          Manufacturing Center, Maine Yankee I Park and the Topsham Fair Mall as listed in the
          CEDS Project Priority List.

         Begin redevelopment of the Atrium into a commercial center to compliment Cooks
          Corner. $15 million dollar project, resulting in 135 new jobs.

         Explore potential for creation of a Pine Tree Zone for MCEDD service area; which
          would include Richmond.

         Assist Richmond with the implementation of a downtown TIF district.

         Continue to support local municipalities and private businesses in identifying and
          accessing economic development funding for commercial property and infrastructure

         Administer and promote the newly created Military Redevelopment Zone program for the

         Redevelop Washburn Lumber property.

         Bath has developed a comprehensive Capital Improvements Plan. Activities include:

             -   A $500,000 project to improve the area in the downtown from the Railroad

                 Station to the Sagadahoc Bridge. This will include parking and safety

                 improvements. Pathways, landscaping, pedestrian-scale lighting, and other

                 pedestrian amenities.

             -   Planning for a riverside pathway along the Kennebec in the downtown. This is
                 programmed as a $25,000 planning study.
             -   Planning and feasibility studies ($20,000) pertaining to the former YMCA
                 building located in the downtown. The study is design to determine if the building
                 is suitable for rehabilitation, but if not how best to dismantle it, making the site
                 suitable for redevelopment.
             -   A $2,000,000 project to expand the Wing Farm Business Park.
             -   Planning and final design for a roundabout at the State Road – Congress Avenue
             -   Landfill cell expansion and gas mitigation.
             -   Sewer pump station upgrades.
             -   Richardson Street and Western Avenue street, sewer, and water improvement.

         The Town of West Bath will continue to work in partnership with the City of Bath to
          develop the Wing Farm Industrial Park.

I/T 2 –      Create an Efficient Infrastructure of Transportation

        Work in process as a member of a newly formed coalition to move forward with efforts to
         enhance the mobility of local residents as a result of the Community Transportation
         Association of America having selected our region as a site for transit planning.

        Working with the Town of Damariscotta to rehab portions of the water and sewer
         infrastructure on Business Route 1.

        Continue to support the Maine Department of Transportation’s Gateway One project, a
         comprehensive study on how to preserve Route 1 from Brunswick to Bucksport, through
         data collection, steering committees, workshop and meeting logistics and information
         dissemination through e-mail and newsletter activities.

        Continue to provide transportation planning services to local municipalities through
         MCBDP and Lincoln County Planner in the form of access management technical
         assistance and education and technical assistance for the transportation elements in
         municipal comprehensive plans.

        Expand the regional needs assessment for the Mid-coast region in partnership with the
         Maine Department of Transportation. The assessment seeks to identify strategic
         investments for the Mid-coast region.

        Support the Town of Topsham in developing a connecting corridor between Route 201
         and Route 196 to migrate current and anticipated future traffic problems at a retail
         complex and the commercial district on the west side of Interstate 295, so as to enable
         further development.

        Continue to provide transportation planning services to local municipalities through
         MCBDP and Lincoln County Planner in the form of access management technical
         assistance and education and technical assistance for the transportation elements in
         municipal comprehensive plans.

        Solicit funding from the Federal Aviation Administration to develop an Airport Master

        Work with the Maine Department of Transportation to develop a transportation
         improvement plan for Bath Road and access to and from the base and US Route 1 in
         Brunswick and improvements to the intersection of Route 201 and 196. Work with the
         Maine Department of Transportation to plan for the funding, permitting and construction
         of highway, road, sidewalk and public transportation improvements related to the
         redevelopment of BNAS in Brunswick and Topsham, including, but not limited to Mill
         Street, Pleasant Street, and the Topsham by-pass.

I/T 3 –      Develop a Strong Telecommunications System

         Coordinate/broker services of SBDC’s e-commerce technical assistance.

         Continue working with telecommunication providers and local communities to address
          barriers to effective communication throughout the region.

         Review and modify existing quantitative measures for this goal to develop a more
          representative measurement to demonstrate accomplishments.

         MRRA has been asked to partner with the State of Maine and its workforce and
          technology partners for the successful implementation of the Workforce Investment Act
          Grant from the US Department of Labor. Our goal is to increase the viability of existing
          information technology (IT) companies in Maine and attract those businesses that are
          expanding to locate in Maine and perhaps on the base property. To accomplish this goal
          we are proposing to conduct the following tasks as part of this project:

             -   Task 1: IT Infrastructure and Site Analysis at NASB - Conduct a survey of the
                 broad ban capacity and advanced information technology systems at NASB that
                 could serve civilian IT network needs.
             -   Task 2: Inventory of IT Business Opportunities. Utilizing the information from
                 Task I and working with the Maine Department of Labor and the Technology
                 Association of Maine determine the business opportunities to attract information
                 and technology businesses that could capitalized on the IT infrastructure already
                 in place at NASB.
             -   Task 3: Identification of Potential IT Technology Businesses. Given the business
                 opportunities identified in Task II, work with the Maine Department of Labor and
                 the Technology Association of Maine to evaluate the attractiveness of Maine and
                 the mid coast region to host IT technologies businesses at NASB.
             -   Task 4: Survey of IT Businesses. Utilizing information from Task III,
                 survey those firms and determine the feasibility and interest in locating an
                 operation at NASB.
             -   Task 5: Implementation Strategies. Develop a strategic plan with specific
                 tasks and a timeline to attract and locate IT businesses to the base.

IX. Performance Measures

I.    Community Development

CD1 – Invest in City, Town and Village Centers

      Number of efforts started or on-going that addressed revitalizing downtowns.

      Evaluation Criteria:

      5–8            (excellent)

      1–4            (good)

      0              (poor)

CD1a – Create Affordable Housing

      Number of communities involved in addressing affordable housing issues in the region.

      Evaluation Criteria:

      5 –8           (excellent)

      1–4            (good)

      0              (poor)

CD1b – Balance Development & Growth with Protecting Rural Character, Natural
Resources and Traditional Communities

      Number of State approved Comprehensive Plans.

      Evaluation Criteria:

      5 – 10         (excellent)

      1–4            (good)

      0              (poor)

II.   Economic Development

ED1 – Grow Small Business Entrepreneurship

      Number of new jobs created

      Evaluation Criteria:

      5 1+ new jobs created        (excellent)

      26-50 new jobs created       (good)

      0-25 new jobs created        (poor)

      Amount of new capital investment

      Evaluation Criteria:

      $2,000,001 +                 (excellent)

      $1,000,000-2,000,000         (good)

      $0-1,000,000                 (poor)

      Number of clients/businesses receiving technical assistance

      Evaluation Criteria:

      Within 6 – 9 months          (excellent)

      Within 10 – 12 months        (good)

      12 months +                  (poor)

ED2 – Support and Capitalize on Targeted and Dominant Industries

      Level of employment (e.g. construction, healthcare, marine resources, manufacturing)

      Evaluation Criteria:

      Increase       (excellent)

      Same           (good)

      Decrease       (poor)

      Number of business expansions (capital investment, employment, operations)

      Evaluation Criteria:

      Increase       (excellent)

      Same           (good)

      Decrease       (poor)

ED2a – Strengthen Marine Related Industries

      Working waterfront – number of programs/services started/expanded to assist industry

      Evaluation Criteria:

      Increase,      (excellent)

      Same,          (good)

      Decrease,      (poor)
      Boat building & related industries – number of programs/services started/expanded to
      assist industry

      Evaluation Criteria:

      Increase,        (excellent)

      Same,            (good)

      Decrease,        (poor)

      Marine research – number of programs/services started/expanded to assist industry

      Evaluation Criteria:

      Increase,        (excellent)

      Same,            (good)

      Decrease,        (poor)

ED2b – Expand Research & Development Activities

      Number of new jobs in R & D Industry Sector

      Evaluation Criteria:

      10 – 25 new jobs          (excellent)

      1 – 9 new jobs            (good)

      0 new jobs                (poor)
ED2c – Expand Tourism and Strengthen Tourist Related Activities

      Level of tourism attraction activity

      Evaluation Criteria:

      Increase        (excellent)
      Same           (good)

      Decrease        (poor)

      Restaurant and lodging sales generated in September through May as a percentage of
      annual sales.

      Evaluation Criteria:

      Increase        (excellent)
      Same           (good)

      Decrease        (poor)

ED2D – Strengthen Other Traditional Industries such as Farming, Forestry and Arts and

      Number of industry workshops, trainings etc.

      Evaluation Criteria:

      Increase        (excellent)

      Same           (good)

      Decrease       (poor)

ED2e – Support Health Care

      Number of people trained/employed in allied healthcare profession

      Evaluation Criteria:

      Increase       (excellent)

      Same           (good)

      Decrease       (poor)

      Number of programs/services started and/or expanded to support this industry

      Evaluation Criteria:

      Increase       (excellent)

      Same           (good)

      Decrease       (poor)

ED3 – Coordinate and Strengthen Regional Capacity for Economic Development Planning

      Level of Employment in Economic Development Planning

      Evaluation Criteria:

      Increase       (excellent)

      Same           (good)

      Decrease       (poor)

III.   Education and Workforce Development

EW1 – Build a Skilled and Educated Workforce from Preschool to Adult

       Number of graduates

       Evaluation Criteria:

       41+            (excellent)

       21 – 40        (good)

       0 -20          (poor)

       Number of companies assisted

       Evaluation Criteria:

       21+            (excellent)

       11-20          (good)

       0-10           (poor)

       Number of on-going training efforts

       Evaluation Criteria:

       10+            (excellent)

       5-9            (good)

       0-4            (poor)

IV.   Infrastructure/Transportation

IT1 – Develop and Redevelop Commercial Property and Infrastrucutre

      Rate of increase of commercial space added in industrial parks.

      Evaluation Criteria:

      300,001 + sq. ft.            (excellent)

      100,001 – 300,000 sq. ft.    (good)

      0 – 100,000 sq. ft.          (poor)

IT2 - Create an Efficient Transportation Infrastructure

      Number of communities involved in Maine DOT‘s Gateway1 project.

      Evaluation Criteria:

      7 – 10         (excellent)

      4–6            (good)

      1–3            (poor)

IT3 – Develop a Strong Telecommunications System

      Number of towns with access to high speed Internet services

       Evaluation Criteria:

       Increase       (excellent)

       Same           (good)

       Decrease       (poor)

X. Integration with State‘s Economic Development Priorities

         The MidCoast Economic Development District recognized the importance of developing
programs and services which are in harmony with the established priorities of the State. This
synergistic approach allows both entities to maximize available resources and effectively deliver
its services to the targeted population. The State views the success of its six economic
development districts as vital to the economic development of the state and as a natural conduit
for reaching businesses, communities and citizens with their economic and community
development programs. In recent years the state has developed and implemented several
progressive and effective economic development programs.

       Maine‘s Department of Economic and Community Development (DECD) and
MCEDD have worked very closely with each other to promote several initiatives in the service
region. These include:

         Office of Business Development (OBD) – This office assigns business development
specialists throughout the state to provide technical assistance and assist in economic expansion
activities. The regional representative for the Midcoast is headquartered in MCEDD‘s southern
regional office in Bath. The OBD specialist has worked closely with MCEDD staff in both
regional offices to promote economic development and promote programs that support business
attraction, retention and expansion in the service region. The strength of this relationship has
allowed MCEDD staff to be aware of and effectively implement Maine‘s economic development
initiatives. Additionally, it has enabled MCEDD to communicate to State officials the challenges
and concerns that are specific to the region.

       The advantage of this communication between state and local offices has led to success in
the promotion of these programs in the MCEDD region:

        Pine Tree Development Zone (PTDZ) – This ambitious tax incentive program, offered to
qualifying businesses, allows communities to designate specific locations as Pine Tree Zones to
encourage business attraction, expansion and retention activities. Eleven communities in the
MCEDD region have designated nearly 900 acres for development under the Pine Tree Zone
program. Much like other areas of the state, the MCEDD region has enjoyed great success in
promoting economic development with the Pine Tree Zone program.

        Maine Small Business Development Centers (SBDC) – These centers provide no-cost
counseling to small and mid-sized businesses seeking information on management assistance,
training, resources and information. Assistance is also provided to entrepreneurs wishing to start
a business, providing consultation in; start-up and acquisition, market plan development, market
research and identifying sources of credit and financing. The SBDC offices also offer trainings
and seminars on a variety of small business topics.
         There are two SBDC offices in the MCEDD region, one in the southern regional office
in Bath and one in the Lincoln County town of Wiscasset.

        North Star Alliance – The North Star Alliance program is part of a statewide initiative,
funded by a federal WIRED grant, focused on developing industry clusters in areas of traditional
strength or great potential. The Midcoast region has a long and rich history in the boatbuilding
industry that reaches 400 years. In addition to the traditional wooden boat building operations,
other companies, utilizing steel and composite technologies have also met with great success.
Another industry ―cluster‖ is the composites industry itself. New technology in this industry has
enabled companies to meet virtually every demand for products. These two industries, along
with precision manufacturing, have been recognized as industries which are already strong in
Midcoast Maine and may become dominant on a national or perhaps international scale if
properly invested in and expanded. The state has developed the Northstar Alliance program to
meet this challenge and create economic opportunities for these industries. The Southern office
of the MCEDD region hosts the office of the regional NorthStar Alliance representative.

        Community Development Block Grant – This economic and community development
program is funded on the federal level by Housing and Urban Development (HUD) and
administered on the state level by the Department of Economic and Community Development
(DECD). MCEDD has aggressively pursued these funds for communities for myriad projects,
including, business assistance, public infrastructure, planning activities, public service projects
and affordable housing. Both regional offices of the MCEDD region are certified to provide
technical assistance on CDBG issues to member communities, businesses and non-profits. The
grants and low interest loans made available through this program have and will continue to play

a vital role in the economic development of region for years to come.
Creative Economy – Both the State of Maine and the Midcoast region view the support and
promotion of the creative economy as vital in maintaining and growing Maine‘s arts community
and supporting tourism, retail activities and the local economies of the state‘s cities and towns.
The term ―creative economy‖ is one that defines a broad segment of culture, production and the
arts. The Midcoast region has a rich history of artists, writers, musicians, architects and others
who have played a vital role in crafting and sustaining the unique and fascinating identity for the
region. The continued contributions from these communities are necessary to ensure that the
region maintain that identity and is able to effectively promote it, both within and outside of the
Midcoast region.

         DECD/Governor’s Strategic Plan – Maine's economic strategy must embrace four
fundamental economic drivers: (1) the creation of a fair and stable business environment to
attract investment to Maine; (2) investment in people; (3) a clear focus on key sectors of the
state's economy; and (4) building infrastructure

II. Investment in people
Creating an educational system that moves students from K thru 16 and beyond is now more than
a goal; it is a plan in the making. Our objective is to have 60% of our high school seniors go on
to college by 2006, and 70% by 2010.

III. A Clear Focus on Key Sectors of the Maine Economy
3. Precision and Niche Manufacturing
The state has a long and honorable manufacturing tradition. As our manufacturing sector
matures, we must be creative and flexible in developing the manufacturing jobs of the future.
This will involve support for research, development of cutting-edge technology and a highly
skilled workforce. It will also require innovative financing and participation from the Finance
Authority of Maine and DECD.

IV. Tourism
This traditional industry is vital to Maine's economic future. Already, tourism accounts for 15%
of Maine's gross state product - compared to 5% for the nation, and 6% for the rest of New
England. Tourism leverages our magnificent natural resources in a way that, for the most part, is
environmentally friendly. We will: continue to work with local agencies to promote different
areas of Maine; work with our higher education institutions to provide degree programs in
hospitality; and expand our marketing efforts, utilizing "single image" branding to promote our

V. Cross-Cutting Issues: The following issues cut across the four targeted areas outlined above.
1. Entrepreneurship

We must continue to improve our efforts to promote entrepreneurial enterprises. Critical to this
will be the Maine Technology Institute, the state's incubator program, and the state's education
system. We will also continue to promote the Small Enterprise Growth Fund and the Maine Seed
Capital Tax Credit.

2. The Creative Economy
Our society is just beginning to understand the importance of this new sector. Highly educated
and mobile, creative economy workers have much to offer Maine, and our natural heritage makes
the state an obvious destination for them. Maine is a leader among the states in trying to
understand and nurture this new force, and the Blaine House Conference on the Creative
Economy, scheduled for May 2004, will be an important forum.

The Maine Creative Economy Council‘s strategy for Maine includes:

                Cultivating a creative mindset

                Investing in research and the development of new technologices

                Supporting industries‘ efforts to develop and/or exploit higher-value business and
                 marketing strategies

                Attracting and retaining creative workers

                Strengthening the creative abilities of all Maine workers – present and future

2. Small Business Support
Maine is a state of small business: approximately half of Maine people work for businesses of 20
and fewer employees and over 90% of Maine businesses have 20 and fewer employees. Our
system of support for this vital sector must be one-stop and user-friendly. The business-
permitting process is especially onerous for these thinly staffed enterprises and must be

        The Governor’s Energy Efficiency Summit April 2008: The summit will present and
discuss how best to reduce energy costs and improve business operation. The summit will
include an expo with displays of energy-efficient technologies and services for business energy

Quality Places/Open Space –
In March 2007, Governor Baldacci appointed the Council of Maine‘s Quality of Place. Specific
recommendations include:

      1. Regional landscape conservation.

      2. Revitalization of our communities, our village centers, our creative economy, and our
         built environment.
                Adopt a Strong State Community Preservation and Development Policy
                Provide Communities with Development Assistance
                Enhance Historic Preservation Tools
                Enact the Maine Community Preservation Act
                Create the Maine Intrastate Trail System

      3. Asset-Based Development Strategy a bold new ―bottom-up‖ approach to Maine
         economic development, called ―asset-based development.‖
             A Local-Regional Approach to Development: Use a locally driven, broadly
                participatory structure to identify key assets and to design and implement
                strategies to preserve and promote these assets
             State Incentives and Support: Establish a state grant program to assist with the
                preparation of regional asset-based development strategies
             State Coordination: Establish a permanent state-level Maine Quality of Place
             Implementation Funding: Provide reliable funding to implement regional and
                statewide asset-based development strategies
             State Support: Organize state programs and agencies to incentivize and support
                bottom-up, asset-based development efforts
             Workforce Development: Align Maine‘s workforce development system and
                programs with Quality of Place opportunities

Maine Office of Innovation – Science and Technology Action Plan for Maine 2005

Key Objectives:
Maine‘s investments in R&D will stimulate and sustain consistent, competitive growth for
Maine‘s economy.
   1. Support and advocate for focused state R&D investments at levels that keep Maine
      competitive, nationally and internationally, in Maine‘s targeted technology areas:
           Biotechnology
           Composite
           Environmental
           Marine and Aquaculture
           Information
           Precision Manufacturing
           Agriculture and Forestry
   2. Target state R&D investments to those strategic areas or clusters within the state‘s
      technology-intensive industrial sectors with the greatest potential to support jobs and
      competitive businesses.

Stimulate a robust R&D enterprise by boosting academic R&D capacity, developing an
educated, technically skilled workforce, broadening the impact from the nonprofit research
institutions and increasing private sector R&D activity in key strategic areas important to Maine.
    1. Using a portion of state funding (Objective 1.1), create the equivalent of a virtual Tier I1
         statewide research enterprise, encompassing research universities, institutions and private

         companies, that attracts scientific participation in basic research from the national
         research community.
      2. Develop research universities and institutions that are hubs for entrepreneurial activity.
      3. Build strategic alliances and research collaborations between and among Maine‘s
         research institutions, universities, entrepreneurs and companies.

Maine‘s Legislature and key policy makers recognize, advance and celebrate Maine‘s R&D
investments and strategic priorities.
    1. Legislators are informed through frequent, precise, interesting reports.
    2. Accurate and reliable information, data and analysis on Maine‘s innovation-based
       economy are developed and provided, promoting understanding and informing policy at
       the state and federal levels.

Maine‘s unique R&D assets and their significance to Maine‘s economy are used to draw new
business and investment to the state of Maine.
   1. Market Maine‘s Science and Technology strengths and assets to existing Maine students
       and businesses .
   2. Maximize the benefits of Maine‘s proximity to leading centers of innovation and
       innovative businesses in the United States and Canada.

Foster growth of research intensive companies through a comprehensive network of services and
   1. Public and private funding sources are developed that support early stage research-
        intensive business development targeted to the capital gap between R&D funding and
        cash flow positive.
   2. Build a critical mass of entrepreneurial management assistance that enables the growth of
        research-intensive businesses in Maine.
   3. Develop appropriate statewide business support to shepherd research-intensive businesses
        throughout their unique business lifecycle.