city of saco economic development plan economic... · 2019-08-18 · saco economic development plan...

CITY OF SACO

ECONOMIC DEVELOPMENT

PLAN

NOVEMBER 2010

ContentsChapter1‐ExecutiveSummaryChapter2‐TheRegionalEconomyChapter3‐CurrentPractices:SacoandRegionalEconomicDevelopmentPracticesChapter4‐CurrentPractices:FederalandStateEconomicDevelopmentProgramsChapter5‐StrengthsWeaknessesOpportunitiesThreatsAnalysisChapter6‐UpdatingMarketingMaterialsChapter7‐CommitteeFocus:TourismandUniversitiesChapter8‐Saco’sEconomicDevelopmentHistoryAppendix‐Minutes

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ExecutiveSummaryIntroduction EconomicdevelopmentinSacointhemodernerahasemphasized:(1)Increasingthenumberandqualityofjobsinthecommunity,(2)Diversifyingthemixoffirmsandjobstoavoiddependenceonsinglesectors,and(3)Increasingthenon‐residentialtaxbase.ThoughoccasionallymentionedexplicitlyintheComprehensivePlanandineconomicdevelopmentpoliciesanddocuments,thesegoalsareimplicitintheCity’spoliciesandpracticesofatleastthelastthreedecades. Thepursuitofthesegoalshasreliedheavilyonthetechniqueofbuildingandmarketingbusinessandindustrialparks.OthertechniquesemployedbytheCityinclude:‐Financingbusinessexpansion(throughBSAEDCandtaxincrementfinancing);‐DowntownrevitalizationstrategiessuchastheNationalMainStreetApproachwhichisimplementedthroughapublic/privatepartnershipcalledSacoSpirit;‐StrategicrealestateinvestmentslikethatatOldExit5whichledtotheconstructionofahotelandsportscomplex;and‐CapitalinvestmentssuchasthereconstructionofMainStreetandPepperellSquare,theconstructionoftheRoute1sewertotheCascade/ParkNorthDevelopmentandneighboringproperties,andtheAmtrakStation,andtheconstructionofdowntownparkinglots. Thisstrategicplanrevisitsthosegoalsandtechniquestodeterminewhethertheyaresuitablefortheseconddecadeofthe2000sandwhatnewgoalsshouldbedeveloped.Likewise,thetechniquestopursuethegoalshavebeenrevisedandenumeratedherein.Process Inhisinvitationtoparticipantsintheeconomicdevelopmentstrategicplanningprocess,MayorMichaudnoted:“Intheseunstableeconomictimes,itisimportanttocontinuallyassessourlocaleconomicclimateandtakewhateverstepsnecessarytopromotetherightkindofgrowthanddevelopment.Inforwardingthisobjective,IamconveninganAdHocStrategicEconomicDevelopmentPlanCommitteetoworkwiththecity’sEconomicDevelopmentDirectorincreatinganeffectivestrategiceconomicdevelopmentplanforthecity.” TheMayoridentifiedthefollowingtasksforthestaffandcommittee:Compileareportontheeconomyinregion;

• Compileareportoncity,regional,state,andfederaleconomicdevelopmentefforts;• ReviewreportsandcitypoliciesdevelopedintheComprehensivePlan,DowntownPlan,

HousingPlanandotherpolicies,budgetpractices,andordinances;• Conductalocaleconomicdevelopmentstrength,weakness,opportunity,andthreats

(SWOT)analysis;• Evaluatepossiblecityapproachesinkeysectors:industrial,office,hospitality,

downtown,andothers• DevelopafinalreportandmakerecommendationstotheCityCouncil.

SacoEconomicDevelopmentPlan ExecutiveSummary

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ThecommitteeappointedbytheMayor,includedhimself,BillJohnson(chair),LoriIrving,RogerJohnson,WillArmitage,DonLauzier,EdHodgdon,GlennBaker,CraigPendletonandRickMichaud.ThecommitteewasstaffedbyDevelopmentDirectorPeterMorelliandEmilyCross,internintheplanningdepartment. TheCommitteemetseventimesfromJulytoOctober2010.Itreviewedmaterialsfrommanysourcesincluding:

• ChartingMaine’sFuture:Anactionplanforpromotingsustainableprosperityandqualityplaces;TheBrookingsInstitution.

• IntroductiontoMaine’sInvestmentImperativeII:UnleashingthePotential;MaineDevelopmentFoundation.

• Maine’sWorkforceDevelopmentSystem:AGuidetoEducationandTrainingPrograms;MaineDevelopmentFoundation.

• MakingMaineWork:CriticalInvestmentsfortheMaineEconomy• ReportoftheConsensusEconomicForecastingCommission(February2010)• ComprehensiveEconomicDevelopmentStrategy;SMRPC(June2010)• MaineCompetitiveness:MovingtoaNewEconomicDevelopmentModel(December

2006)• SacoDowntownPlan(November2007)• SacoComprehensiveLandUsePlanUpdate,DraftEconomyChapter(2010)• Maine’sEconomicOutlook:ImplicationsforRealEstate;MEREDA(January2010)

(powerpointonly)• SacoIndustrialDevelopment1967‐1980;Huot

Vision Oneelementofmanycontemporarystrategicplanningeffortsisthedevelopmentofavisionstatement.Forinstance,theStateofMainenowrequiresthatlocalcomprehensiveplansincludea“vision”orastatementofwhatwewantthecommunitytobeinthefuture TheCityalreadyhastwoadoptedgoalswhichaddresseconomicdevelopmentexplicitly,andthecommitteenotedthese:CityCouncilVision:“OurvisionisahighqualityoflifeforSacocitizens.Centraltothisvisionisasustainableeconomythatoffersanopportunityforeveryonetohaverewardingemploymentandforbusinesstoprosper,nowandinthefuture.ThepeopleofSacobringthisvisionintorealitybyworkingtogetherandbuildingonourtraditionofhardwork,dedicationandingenuity.”PlanningandDevelopmentDepartmentmissionstatement:“AssuringhighqualityandmoresustainabledevelopmentinSaco.”


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Goals Thecommittee’sconsiderationofmanyaspectsofeconomicdevelopmentinthecommunity,outlinedinthisreport,leadtotherecommendationofthefollowingconsensusgoalsforeconomicdevelopmenteffortsinthecity:ToincreasethenumberandqualityofjobsavailableinSaco.Todiversifythemixoffirmsandjobstoavoiddependenceonsinglesectors.ToincreasethecommercialtaxbaseoftheCity.TostrengthenSaco’sroleasaservicecenterfortheregion,includingtheindustrial,commercial,office,healthandmedical,tourismandhospitality,educationandretail.TomaintainthevitalityofDowntownSacoandexpanditsroleasacommercial,office,retail,residentialandservicecenter.ToenhanceSaco’sroleintheSouthernMainetouristeconomyandexpandtherangeofactivitiesavailableinSacotomeettheneedsoftravelersandvisitors. ToworkcooperativelywithBiddeford,OldOrchardBeach,Scarborough,GreaterPortland,andregionalgroupstoimprovetheeconomyoftheregion.Toassurethatnewcommercialandindustrialdevelopmentoccursinawaythatisvisuallyandenvironmentallysoundandthatprotectsestablishedresidentialneighborhoods. Inordertoimplementthevisionandgoalsoutlined,thecommitteemakestherecommendationswhichfollow.Thefirstgroupisnewrecommendationsforthecity’seconomicdevelopmentefforts;thesecondisgrouprestateseffortsworthcontinuing.NewRecommendations

Updatemarketingeffortswithnewprofessionallyproducedbooklet,anattractivefolder,andrevisedMillBrookParkinformation.Thefolderallowstimelyandcustominformationtobeinsertedasneeded.

Updatemarketingeffortswithanimprovedwebpresenceincorporatingmaterials

developedfortheprinteffortandwithothernewmaterials.


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AmarketingprogramofsufficientfrequencycouldhelptheCitycreateapositiveimageasabusinesslocation.Themarketingprogramcouldbeextendedwithanadvertisingbudgetlargeenoughtoallowafrequentcontinuouspresenceinselectedpublicationsreadbybusinessleaders.Pursuepossiblesourcesoffundingtoimplementtheprogram.

ThehealthoftheSacoeconomyiscloselytiedtotheeconomichealthoftheentire

region.Therefore,theCityshouldcontinuetoworkcooperativelywiththecitiesofBiddeford,ScarboroughandOldOrchardBeach,withGreaterPortland,andwithregionaleconomicdevelopmentorganizationssuchastheBSAEDCandSMRPCandtheChamberofCommercetofostertheeconomicprosperityoftheregion.

UNEhasamajorandgrowingpresenceinthecommunityandisstrategicallyinvolved

withthegrowinghealthandmedicalsectorsintheregion.Inaddition,itsstudentsareresidentsofthecommunityandcustomersforourbusinesses.TheCityshouldcultivateitsrelationshipwithUNEcontinuously,beginningwithSacoSpiritparticipatinginthefallstudentorientation.TheCityshouldworkwithUNE,SacoSpirit,theChamberofCommerce,andmerchantstoencouragetheadoptionoftheUNENor’easterDollarscashcardprogram.

UNE’sstrengthinvariousmedicaldisciplines,alongwiththegrowingpresenceof

SouthernMaineMedicalCenter,MaineMedicalCenter,VNS,andseveralorthopedicandphysicaltherapygroupsisevidentinSaco.Medicaluseshavebeengrowinggenerallyintheregion.Thecityshouldincludeinitseffortsafocusongrowthinmedicalandalliedfields.Makethisthefirsttargetedbusinessgroupforthevisitationprogram.

TheCityisalreadyrecognizedintherealestatecommunityforitsgenerallyefficient

permittingandforthedelegationofstatesitelawpermitting.Thepermittingprocesscouldbeenhancedbythepublicationofaguidetotheplanningandpermittingprocess,aswellasfurtherfeedbackfromusers.

Saco’scoreisattractivefordowntownliving.Additionalhousinginthedowntownmight

assistthecityinattractingyoungresidentsandwouldhelpprovideadditionalcustomersfordowntownbusinesses.ResidentialdevelopmentinthedowntownandSacoIslandshouldbeencouraged.

AnewpedestrianbridgeovertheSacoRiver,frommilldistricttomilldistrict,shouldbe

consideredbythetwocitiesandthemillsdistrictstakeholdersandconstructedifwarranted.

TheBiddefordSacoChamberofCommerceandIndustryhasmanyrolesinthe

community,includinganimportantroleintourism.TheChamberisnowworkingwiththestate’stourismregionprogramandlocaltourism‐relatedbusinesses,includinghotelsandthemeparks,topromotetourismintheregion.Collaborationandweekend


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packagesareamongthepossibleareasforimprovement.TheCityshouldsupporttheseChamber‐ledefforts.

ThereareadditionaltourismopportunitiesatCampEllisandthebeach.Fishing

excursionshavebeenidentifiedasanareatobeencouraged.Beachuseisanother.

Alackofsummerworkersfortourismorientedbusinesseshasbeenidentified.FuntownSplashtownUSA,otherswhoemploysummerworkers,theMaineDepartmentofLabor,andtheChambershouldorganizeasummerworkfaireachspringtohelpidentifypeopleinthecommunityforsummerwork.

Thelocalcreditunionsmayhaveaninterestinaconsortiumforsmallcommercial

lending.TheBSAEDChasworkedwiththemutualsavingsbankonaconsortiumandmightprovidethestructureforasimilarjointeffortforthecreditunions.

TheCityhasdevelopedagreenbrandinrecentyearswithitsenvironmentalinnovationsand“America’sfirstgreenAmtrakStation.”Thisgreenbrandhaspotencyandshouldbeusedinmarketingandpromotionalefforts.

Focusondevelopinganappropriateanchorfordowntowndevelopment,i.e.anamebrandthatwillattractcustomerstothedowntown.

TheEconomicDevelopmentCommissionchargeshouldincludearequirementthatit

prepareastrategicdevelopmentplanonabiennialbasisandthatitbeformallypresentedtothecitycouncilnolaterthan60daysafterthecouncilisswornintooffice.

ContinuingRecommendations:

ThebusinessvisitationandretentionprogramisaneffectivewaytolearnabouttheneedsofcurrentbusinessesinSacoandoccasionallytohearaboutexpansionandrelocation,andtodevelopleads.Thisprogramhasfocusedonbusinessesintheindustrialparksinthepast.Itshouldalsoincludesmalloneandtwopersonbusinesseswithgrowthpotential.Createandimplementavisitationprogramwithtargetedquestionstodetermineoverallhealthofcity/privatebusinessrelationships.

Severalcommercialrealestatebrokersmaintainrelationshipswithbusinessesinthe

regionandknowofcompanies’expansionplans.Thecityhasusedfrequentcommunicationandtheincentivesofarealestatecommissiontotapthisresourcetoidentifyexpandingbusinessesandotherleads,assistintheirrelocation,andtosellmanyofitsindustrialparklots.Theuseofthisimportanttechniqueshouldcontinue.


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BiddefordSacoAreaEconomicDevelopmentCorporation(BSAEDC)providesavaluableassettoSacoandtheregion’sbusinessesbyprovidingbusinessfinancingand,withSMRPC,brownfieldscleanuploans.Supportforthesehelpfulprogramsandorganizationsshouldcontinue.

TheCityhasmadesophisticateduseofTaxIncrementFinancing(TIF)todevelop

businessparks,toassistbusinessfinancing,downtownrehabilitation,andtosolveinfrastructureandutilityissuesforrelocatingorexpandingbusinesses.ThejudicioususeofTIFsshouldcontinue.

Thestate’sCommunityDevelopmentBlockGrant(CDBG)program,thefederal

EconomicDevelopmentAgency(EDA)program,andotherstateandfederalprogramshaveoccasionallyprovidedfundsforindustrialparkexpansion,downtownneighborhoodrehabilitation,revolvingloanfunds,anddirectloansandgrantstobusinesses.TheCityandtheBSAEDCshouldcontinuetopursuetheresourcesintheseprogramstoleveragelocalresources.

SacoIsland’sredevelopmenthaslongbeenencouragedbythecitywithflexiblezoning,

TIFs,realestatetransactions,thetransportationcenter,grants,andothersupport.Theredevelopmentoftheislandforbothhousingandoffice/commercialusesshouldcontinuetobepursuedbothforthedevelopmentitselfandforitspositiveimpactonthedowntown.

ThecitycodecreatesasystemwiththeEconomicDevelopmentCommissionandan

economicdevelopmentfundtobuildandmanagebusinessparks.Thissystemhasprovenitselfsince1985andshouldbecontinued.

MaintainingandimprovingdowntownSacoisanintegralpartofthecity’seconomic

developmentstrategy,andasharedresponsibilitywiththebusinesscommunityandSacoSpirit.TheCityshouldcontinuetosupportandworkcloselywithSacoSpirit.

TheCityhasworkedcloselywiththeDyerLibrary/SacoMuseumtocreateheritage

tourismattractionsandtours,suchasthecolorful“MainStreetWalk”panels,theNationalRegisterDistrictwalkingtour,thenewpermanenthistoryexhibitionatthemuseum,andtheforthcomingSaco3‐Dpanels.TheCityshouldworkwithcommunitygroupsonheritagetourismattractions.

TheBiddefordSacoAreaEconomicDevelopmentCorporationhasworkedwiththe

Chamber,SacoSpirit,andHeartofBiddefordontheBuyLocalprogram,whichhasthepotentialtoassistSacobusinesses.Supportforthisprogramshouldcontinue.

SincethereisalimitedsupplyofpreparedsitesinSouthernMaineforeconomic

development,theCityofSacoshouldcontinueitsbusinessparkprogramtoprovideacontinuoussupplyofsuitabledevelopmentsitesthatareservicedbypublicwaterand


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sewerage.Aspartofthiseffort,theCityshouldconsideracquiringandlandbankingsuitableparcelsforfuturedevelopmentsitesformanufacturing,distribution,research,largescaleofficeandsimilarhighqualityeconomicactivities,asthesesitesbecomeavailableonthemarket.

AttractingnewbusinessestoSacoandaccommodatingthegrowthofexisting

businessesrequiresthattheCitycontinuetofundanongoingeconomicdevelopmentprogram.

TheRouteOneCorridornorthoftheI‐195Spurcurrentlyplaysavarietyofeconomic

rolesandisthelocationofanumberofcardealershipsandcommercialrecreationalfacilities.ThisareaofferssignificantpotentialforthefuturecommercialgrowthoftheCityandshouldbereservedforawiderangeofretail,service,office,andlightmanufacturinguseswhichrequirealargeamountofareaandarethereforeinappropriateinthedowntown.

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TheRegionalEconomyNationalEconomicEnvironment InDecember2008,theNationalBureauofEconomicResearch(NBER)declaredthattheUnitedStateshadbeeninrecessionsinceDecember2007.Atthenationallevel,ahousingbubbleandabankingcrisisweremajormanifestationsofthedeeprecession.Bothwererelatedtosub‐primelending,whichhadbecomecommon,andledtolargenumbersofhousingforeclosuresinmanystates,higherunemployment,alargedropinmanufacturingoutput,andahugedropinconsumerdemand.Internationally,oilpriceswereveryhighin2008,althoughtheyhavestabilizedsince.StatewideEconomicEnvironment

InMaine,amajorsourceofinformationonthestate’seconomyisthe“ReportoftheConsensusEconomicForecastingCommission,”whichispresentedperiodicallybyacommitteeoffivestate,university,andprivateeconomists.TheFebruary1reportincludedtheseobservations:

“ThedeclineinthenationalandstateeconomicoutlookhascontinuedtoeasesincetheCEFCmetinOctober.Oilpricesremainbelowtheirmid‐2008peak,andhomesaleswereupinthethirdquarterof2009comparedtothethirdquarterof2008.Consumersentimenthasimprovedsomewhatinrecentmonthsandcoincidentindexesarecontinuingtoimproveformoststates. TheFebruaryforecastreflectsacontinuedstabilizationinnationalandstateeconomicactivity.TherevisedforecastmakesfewchangestoexpectationsofemploymentgrowthcomparedwiththeNovemberforecast:employmentlosseswillbottomoutinthesecondquarterof2010followedbyamodestrecovery.Employmentgrowthinthethirdquarterof2009wasslightlyworsethanexpected,andthefourthquarterof2009wasreviseddownwardsfromtheNovemberforecast.ThecommissionprojectscontinuedlossesinMainenon‐farmwageandsalaryemploymentin2009and2010(‐2.9%and‐1.3%respectively,onanannualaverageyear‐over‐yearbasis),followedbyarecoveryperiodstartinginmid‐2010.Itispossiblethattheunemploymentratemaycontinuetoriseevenasjobsarebeingcreatedaspeoplewhohadbecomediscouragedandleftthelaborforceduringtherecessionbeginsearchingforjobsagain...”

Unemployment

Saco

YorkCounty

Maine

USA

2009 6.9% 7.6% 8.0% 9.3%2008 4.2 4.9 5.4 5.82007 3.7 4.1 4.6 4.72006 3.5 3.7 4.6 4.62005 3.5 4.1 4.8 5.12004 3.3 3.9 4.6 5.52003 3.4 3.0 4.9 5.12002 2.9 2.7 4.6 4.42001 2.7 2.5 3.6 4.02000 1.9 2.5 3.5 4.0

Source:MaineDepartmentofLabor,DivisionofEconomicAnalysis&Research

SacoEconomicDevelopmentPlan TheRegionalEconomy

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“Theforecastforpersonalincomegrowthin2009and2010hasbeenincreasedslightly,while2011through2013hasbeenrevisedslightlydownward.TheCommissionprojectsgrowthinpersonalincomeinMainein2010.Personalincometypicallyrecoversbeforeemploymentgrowthoccursasbusinessesincreasehours,endfurloughs,andreinstateovertimebeforehiringnewemployees.” Thereportcontinues: “HomepricesinthePortland–SouthPortland–Biddefordmetropolitanareaweredown13%inthethirdquarterof2009comparedtothesameperiodlastyear.Thismakes14consecutivequarterswherepriceshaveremainedflat(<1%increase)ordecreased.”

ThecommissionleftitsforecastlargelyuntouchedfortheConsumerPriceIndex(CPI),ameasureofhouseholdinflation,revising2009upwards(from‐0.5%to‐0.4%).(stillnone)

Theforecastingcommissionindicatedthatitsreportisbasedontheanticipationofacontinuationofthestimulusprogram,whichhasproventobeaninaccurateassumption.

InadditiontotheConsensusForecastandtherecentstudieswithwhichhehasbeeninvolved,economistCharlesColganoftheMuskieSchooltoldtheBostonGlobe(May20)that,“Theoutlookhasbrightenedwithfourconsecutivequartersofoveralleconomicgrowthandthreesolidmonthsofemploymentgains…First‐quarter2010jobgrowthcametwoquartersearlierthanforecasted.ButMaineisnotexpectedtorecoverthe30,000jobsitlostduringtherecessionuntilearly2013.“RegionalandLocalEconomicEnvironment ForthepastyeartheregionaltransportationplanningagencyPACTShasbeenworkingwithSaco,Biddeford,andOldOrchardBeachonaregionaltransportationplan.AspartofthatplanthefirmofPlanningDecisionslastyearpreparedaneconomicanddevelopmentforecastforthetri‐cityregion.Theforecastisorientedtowardpredictingthelevelofgrowthsothattransportationplanningdecisionscanbemade.Asummaryfollows:

1.BasicAssumptionsabouttheEconomy

Itislikelytotakethreetofiveyearstoworkourwayoutoftherecessionandreturntopre‐recessionconditions.

Inthefivetotenyeartimeframe(2015‐2019),growthwillre‐emergebutitwillbeatamuchslowerratethanduringthe2000‐2008period.


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Assumptions about Economy - 3-5 years: Return to pre-recession conditions. - 5-10 years: Growth slower than 2000-2008 period. - 10-15 years: Growth at 40-50% of pre-recession rate. - 15-20+ years: Growth at 60-75% of pre-recession rate.

Inthetentotwentyyeartimeframe(2020–2029),theforecastreflectsanassumptionthatgrowthanddevelopmentwilloccurataratethatishigherthanthe2015‐2019ratebutstillbelowthepre‐recessionrate

2.DevelopmentAssumptions

Plannedprojectscompletedasapprovedoverthenext20years.Includes:

• RedevelopmentoftheBiddefordMilldistrict• RedevelopmentofSacoIsland• DevelopmentoftheParkNorthprojectintheCascades/RouteOneareaofSaco• Anumberofsmallerdevelopments• Approvedprojectsnotyetunderdevelopmentorinplanningpipeline

Combiningtheeconomicanddevelopmentassumptionsresultsinthefollowingsectors:

RetailLandUse

TheconstructionoftheBiddefordCrossingdevelopmentandrelated“big‐box”developmentintheRoute111corridorinBiddefordhassaturatedtheretailspacemarketintheTri‐Communityareafortheforeseeablefuture.Whiletherewillcontinuetobesmallgrowthinthiscategoryoverthenexttwentyyearsasexistingoperationsupgradeandexpandandnewoperationsenterthemarket,thesewillbelimitedinscaleandwilllikelybelocatedwithinexistingcommercialdistricts.

Industrial‐OfficeLandUse

Activityinthiscategoryoflandusewillbestronglyinfluencedbythestateofthelocalandnationaleconomyandrelatedemploymentgrowth.Theforecastenvisionsmoderategrowthinthiscategorywithmostdevelopmentoccurringwithinestablishedindustrial/businessparkareasandthemajordevelopmentsalreadyinthepipeline.

Theoverallbasicforecastthrough2019issummarizedasfollows:

Saco: 1,425unitsofhousing 110,000squarefeetofretail,restaurant,andservice‐sectorcommercial 120hotelrooms 20,000squarefeetofentertainment‐relatedfacilities 650,000squarefeetoflightindustrial/warehousespace

OldOrchardBeach: 1,100unitsofhousing 90,000squarefeetofretail,restaurant,andservice‐sectorcommercial 50,000squarefeetoflightindustrial/warehousespace

Biddeford: 525unitsofhousing 1,200dormitorystyle(UNE/etc.)housing 150,000squarefeetofretail,restaurant,andservice‐sectorcommercial


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50,000squarefeetofcollegeathleticcomplex 100,000squarefeetofmedicalofficefacilities 500,000squarefeetoflightindustrial/distributionspace 250,000squarefeetofoffice/servicespace(EndPlanningDecisionsforecast)

RealEstateForecastforSouthernMaine

Muchoftheactivityoflocalgovernments,includingSaco,ineconomicpromotioninvolvesvariousinterventionsinthecommercialrealestatemarket.TheconstructionandsaleofpreparedbusinessparklotshasproventobeapowerfulcatalystforeconomicdevelopmentinSaco,BiddefordandGreaterPortlandsincethe1960s.Thereforetherealestatemarketisaparticularlyimportantareaforthiseconomicdevelopmentplantoconsider.

AmajormilestoneintheeconomicdevelopmentandcommercialrealestatefieldeachFebruaryistheMEREDA(MaineRealEstateandDevelopmentAssociation)annualforecastingconference.ThePortlandconferencefeaturesanalysisofthesouthernMainemarketbycommercialbrokers,economists,andappraisers.

Atthisyear’sconference,MuskieSchoolEconomistCharlesColganpredictedMaineemploymentgrowthbyMay.Mostindicatorsotherthanemploymentareimproving,andemploymentisalaggingindicator,hesaid.Whiletheeconomicforecastwasnotbad,itisunclearwhetherthelevelofimprovementanticipatedhascometopass.Thecommercialrealestateforecastattheconferencewasbleak.

IntheindustrialsectorGregHastingsoftheDunhamGroupwastheprimarypresenter.HeisalsothecommercialbrokerwhoweseethemostfrequentlyinSaco.“I’vebeendoingthisfor23years.Lookingbackat2009,itwasprobablyoneofthemostchallengingyearsI’vehadinmyindustrialcareer,”Hastingssaid.

“Theyearcouldreallybesummedupbyalackofdemandforproperties”hesaid.BuildingsalespricesintheSouthernMaineregionhavedroppedandleasepriceshavedroppedmore.Landpricesseemtohavedroppedslightly,buttherearetoofewsalestojudge.“Lowrentalratesaregoingtoreallyhindernewconstruction,”hesaid.“Newconstructionisnotreallyagoodoptionforcompanies,”whentherearebuildingstoberentedatgoodrates.


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EmploymentProjections

2000‐2009(+or‐20%) Category %Increase/Decrease

Manufacturing ‐30.6HealthCareandSocialAssistance 19.7

FinanceandInsurance 19.9FederalMilitary 22.5OtherServices,exceptPublicAdministration 25

FederalCivilian 28.1RealEstateandRentalandLeasing 30.4Information 34.5

EducationalServices 37.6AdministrativeandWasteServices 40.6TransportationandWarehousing 66.2

ManagementofCompaniesandEnterprises 96.2

2010‐2035(+or‐20%) Category %Increase/Decrease

Forestry,Fishing,RelatedActivities,andOther

‐37.4

WholesaleTrade ‐33.4FederalMilitary ‐29.1

Manufacturing ‐23.7ProfessionalandTechnicalServices 21.9OtherServices,exceptPublicAdministration 34.7

TransportationandWarehousing 38.5RealEstateandRentalandLeasing 41.8Arts,Entertainment,andRecreation 49.3

EducationalServices 61.4HealthCareandSocialAssistance 74.4

Hisannualreporton“significanttransactions”lastyearincluded11newbuildingsover50,000squarefeetinsouthernMaine,andthatwasaslowyear.Thisyearincludesonly6transactionsofbuildingsexceeding50,000squarefeet.Biddeford‐Sacohas“severalyearsofsupplyofavailablespace,”Hastingssaid.“It’sgoingtotakeacoupleyearstoworkthatmarket.Butactivityhaspickedupsoitwillbeagreatopportunityifyouareatenantorbuyer.”(FormoreextensiveexcerptsfromHastingspresentation,seetheendofthischapter.)

AnAppraiser’sTakeontheIndustrialParkSector

ThePortlandfirmofMainlandConsultantsuntilafewyearsagotrackedindustrialparkrealestatesales.ThereforeweaskedprincipalDirkThomasaboutthatfirmsrecentdataonsales.“Iwentthroughourdatabasetolookforsalesandfoundjustafew,allwerepriorto2008.Wedon'ttracktheparksanymorebutwehaveobservedthatfewlotshavebeensold.Astheeconomyenteredrecession,nocompanieswereexpandingandneedingnewermoremodernfacilities.Infact,existingbuildingwerebeingsoldforlessthanthecostofdevelopment.So,mosttransactionswereforimprovedpropertiesnotlotsfordevelopment.Sufficeittosaythataseconomicactivityslowednoincentiveexistedtoundertakenewoverhead.Couplethiswithadifficultfinancingenvironment,developmentofnewbuildingsinparksstopped,”ThomaswroteonJune3,2010.Longtermgrowthareas InCharlesColgan’sYorkCountyemploymenttrendforecast,hepredictsmoderategrowthintotalemploymentfrom2010to2035(10.2%),aswellasa13.5%increaseinprivatenon‐farmemployment.Theincreaseinemploymentfortheprivatesectoriscrucialforthegrowthintotalemploymentwithfeweropportunitiesanticipatedforemploymentinthepublicsectorfrom2010to2035. Oftheanticipatedtotalemployment,HealthCareandSocialAssistance(74.4%)andEducationalServices(61.4%)areanticipatedtobethefastestgrowingsectorsovertheforecastperiod.Inadditiontothesetwocategorieswithapercentincreaseexceeding50%,Colganpredictsmorethana20%increaseinemploymentforthe


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followingfivecategories:TransportationandWarehousing(38.5%);RealEstateandRentalandLeasing(41.8%);ProfessionalandTechnicalServices(21.9%);Arts,Entertainment,andRecreation(49.3%);andOtherServices,exceptPublicAdministration(34.7%). Accordingtothereport,therearealsoforeseendecreasesinemploymentforthefollowingfourcategories:Forestry,Fishing,RelatedActivities,andOther(‐37.4%);Manufacturing(‐23.7%);WholesaleTrade(‐33.4%);andFederalMilitary(‐29.1%).ColgandidtheforecastforacurrentGreaterPortlandtransportationstudy.MEREDARealEstateForecast GregHastingsoftheDunhamGroupisthecommercialrealestatebrokermostactiveinSaco’sbusinessparks.Thisrecentpresentationgiveshisviewofthelocalrealestatemarket.(Thetextexcerptsareaneartranscriptionoftheremarks.)SeelastparagraphforSaco‐Biddefordmarket.MaineRealEstateDevelopmentAssociation(MEREDA)SouthernMaineIndustrialandMarketReviewandForecast,January28,2010.

I’ve been doing this for 23 years. Looking back at 2009, it was probably one of the most challenging years I’ve had in my industrial career. The year could really be summed up by a lack of demand for properties. The industrial market, there just wasn’t any demand out there…very few residential deals happening in January and February. I was looking at Frank Montello’s monthly synopsis of industrial office and real estate sectors for June-July, Oct-Nov and Dec, less than 5 industrial transactions happening in each of those months.

Significant Available Industrial Properties list:

All available industrial properties, first 8 all the way to Saunders Way were on the market last year. Main St, Sanford in property has been vacant for years and there is talk by the owners of tearing it down just to sell the land. 65,700 sf in Scarborough on US Route 1 has been purchased and is being renovated for office use. 56 Milliken St (Riverside Industrial Park) Barber Foods building has been empty since they bought the building.

The last four properties (Spencer Dr, Drapo Dr, Rumery road) came on the market this year totaling to 750,000 SF in just those four properties. 700,000sf of mills pace Westpoint Stevens in Biddeford (big number for inventory), without it there is 1,500,000 SF of vacant space on the market in just these significant properties.


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The noteworthy points about the significant available properties are:

• How long these have been vacant: most an average of 2+ years will take a concerted effort to lease them and most will need to be subdivided for multiple tenants which create financial challenges for landlords.

• Of the 750,000 SF that came on the market in 2009, the majority of that space is available for sublease. The only hope is that the tenants will be able to subsidize rents to fill that space. Lease rates on these large spaces generally range from $2.75 to $3.25 SF triple net, subleased space is usually cheaper than that.

• Low rental rates are going to really hinder new construction. New construction is not really a good option for companies with such low rental rates available.

Current Sale and Lease Prices Buildings: Current sale and lease prices saw price drops across most of the sectors. Lease prices dropped significantly more than sale prices, due to supply and demand. Owners were reluctant to sell because of the low prices. No demand means no sales. Land: Saw a drop in land prices in 2009, less than a handful of industrial sales that happened last year, essentially no demand for new construction. 2010: There are great opportunities for tenants. Lease prices are low…can’t continue at these rates forever. Activity has picked up which will be good for landlords. Interest rates are still historically low, 5.75-6% for five year fixed, 7% for ten year fixed money.

Land prices have been dropping due to lack of demand should help stimulate new construction. Until a lot of cheap lease rates and available space absorbed then new construction will be on hold. Inventory is still growing and prices will begin to stabilize. Some markets, like the Biddeford-Saco market, have several years of supply of available space, with over 100,000sf of available space that will take a couple years to work that market. So it will be particularly tough in that part. But activity has picked up so it will be a great opportunity if you are a tenant or buyer.

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CurrentPractices:SacoandRegionalEconomicDevelopmentPractices Sacobeganitsprogramofbuildingindustrialandbusinessparksinthelate1970sandearly1980s.Thepatternofdevelopmentwhichbeganthenandcontinuesnowhasbeensuccessfulindiversifyingthetaxbaseandaddingjobstothelocaleconomy.Likewise,BiddefordandtheGreaterPortlandBuildingFundhaveutilizedthesameformulaandbuiltextensiveindustrialparks.TheSacoMethodofBusinessParkDevelopment ThekeystoSaco’spracticewereembodiedintheearlyandmid‐1980sinthecovenantstotheindustrialpark,inthedutiesassignedtotheEconomicDevelopmentCommissionintheCityCode,andinthecreationoftheEconomicDevelopmentFund.Theyhavebeenrefinedovertheyears.Staffingassistancetotheefforthasbeenprovidedinoneformoranotherthroughout.Grantstoconstructtheparksthatthecitywasunabletoobtainpreviouslybecamethenorminrecentefforts. WhileSacohascometotakethesepracticesforgranted,theywerecontroversialatfirst,andconsideredimpossibleinnearbyjurisdictions,suchasSanford,whereprivateconcernaboutcompetitionwiththeprivatesectorhasinhibitedtheconstructionofbusinessparks.TheolderSacoIndustrialParknowhasover1067jobs.ThenewerSpringHillParkhas341jobs. Themodelcallsforthecitytoacquireproperty,tobuildroadsandutilities,tosellthelotstobusinessestobuildplantsandoffices.Theselotsaresubjecttocovenantswhichattempttoavoidpollutingandnoxioususesandothercompanieswhichmightnotfitwellwiththeiranticipatedneighbors,tofavorcompanieswithhigheremployment,andtoespeciallyencouragecompaniesthatwillcreatehighertaxablepropertyvalueswiththeirbuildings.Thecovenantsalsoregulatetheappearanceofbuildings,byrequiringafrontfaçadethatismorethanasimplemetalbuildingandbyrequiringlandscaping.Otherprovisionsofthecovenantslimitspeculationbyrequiringthatbuildingsbebuiltwithinayearortwo,sothatlotswon’tbesoldwithoutbuildingsfollowingquickly.Thecovenantshavebeenrefinedforeachparkandarenowintheirthirdincarnation.BecausetheparksarealreadyapprovedbytheDEP,approvalsfornewbuildingscomequickly.WhytheMunicipalRole? Thereasonsforthismunicipalinterventioninthecommercialrealestatemarketaresimple.Sitesandbuildingsareneededtoattractcompaniesortoallowlocalcompaniestoexpand.Theplanning,financingandconstructionofbusinessparksisseldomfeasiblebytheprivatesectorbecausethebuild‐outislongandthesalespricesaretoolowtosupporttheprivatedebt.FortheCity,repaymentisthroughlotsalesandoccasionallyTIFpayments. SometimestheCityisbetterabletofinanceparksbecauseitissubsidizedbygrants,suchasthosefromtheEconomicDevelopmentAdministration,whichpayaportionofapark’scost.Theremainderisfundedthroughinternalfinancingorbondingatfavorablerateswithappropriatelylongtimeframes.SacohasbeentherecipientoftwooftheonlythreeEDAgrantsforindustrialparksinYorkandCumberlandCountiesinthelasttwodecades.Thefundingwas$590,000forSpringHilland$800,000forMillBrook

SacoEconomicDevelopmentPlan Saco/RegionalEconomicDevelopmentPractices

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Becausetherevenuefromlotsalesseldomexceedsthecostofconstruction,atleastwhenthecostofconventionalfinancingisfactoredin,theCity’sabilitytoplanforlongertimelinesisessential.Inaddition,theCityreceivesbenefitsoveralongertimeframe.Beyondtheperiodofplanning,construction,finance,andinitialsalesanddevelopment,thecityreceivesalongterm“annuity”intheformofpropertytaxesandincreasedemploymentinthecommunity.VeryfewprivatebusinessparkshavebeendevelopedinsouthernMaine.TheEnterpriseParkinScarboroughisoneofthefewnearby.Itdidwellinitsearlyyears,buthasbeenveryslowtosellinrecentyears.InSacoaportionoftheParkNorthdevelopmentisabusinesspark. Sometimesthecovenantshaveledtodifficultchoices.ThefirstpotentialpurchaserintheSpringHillParkwasaYorkCountybasedfishwholesalerandprocessor.Afteravigorousdebate,theEconomicDevelopmentCommissiondeterminedthatthefirmmightnotbecompatiblewithitseffortstosellthenext23lots. TheCityCodedelegatesthesaleoflotstotheEconomicDevelopmentCommission,basedonpricessetbytheCityCouncil.TheCommissionalsoreviewsthebuildingdesignandsiteplantoassurecompliancewiththecovenants.BuyersandbrokershavegenerallypreferreddealingwiththeEDCratherthandealingwithpoliticalbodies,asrequiredinsomenearbycities. Twomethodsforlotsaleshavebeenthemostreliable,althoughothertypesofmarketinghavealsobeentried.First,initsbusinessvisitationprogram,theCitystaffvisitswithlocalcompanies,businesspeople,currentindustrialparktenants,andothers,andassessestheirrealestateneeds.Thereareveryfewmovesorexpansions,butwegetashareofthem. Second,theCitycultivatescommercialrealestatebrokerswhoarefrequentlyapartofanysitesearchorrealestatedeal.TheCitymaintainsanopenlisting,availabletoanyfirmorbroker.Thebrokersreceiveaninepercentcommission(eightpercentinSpringHill)foranysuccessfullotsaleintheparks.ThiswasverysuccessfulintheSpringHillsaleseffort,whichwaswelltimedforanexpandingeconomyintheearly1990s.Threetofivelotsweresoldeachyear. Athirdwayofmarketinglotsmightbecalled,allother.Inadditiontotheleadsgeneratedfromvisitationsandbrokers,manyleadsaregeneratedbynetworkinginthecommunity,byreferralsfromtheBSAEDCortheChamber,byreferralsfromcolleaguesinnearbycommunitiesorstateofficials,andgeneralcommunitycontacts. SaleshavebeenveryslowinthenewerMillBrookPark.SimilarmethodstothosewhichweresuccessfulinSpringHill,haveyieldedonlyonelotsaleintheslowereconomy.Likewise,theonlyprivatebusinessparkinSaco,Chamberlain’sParkNorth,hasnotsoldanylotsinthepastfewyears.Areviewoftheregionaleconomysectionindicatesthatthereislittlebusinessexpansionintheregioninrecentyearsandmanybuildingsonthemarketareavailableatbargainpricesforthefewbusinesseswhichareexpanding.Thesearebetterdealsforbuyers.

BrokerGregHastings,themostactivecommercialbrokerinSacowhomadeoverhalfofthesalesinSpringHill,saidatarecentconference:“Newconstructionisnotreallyagoodoptionforcompanies,”whentherearebuildingstoberentedatgoodleaserates.

“Somemarkets,liketheBiddeford‐Sacomarket,haveseveralyearsofsupplyofavailablespace,withover100,000squarefeetofavailablespacethatwilltakeacoupleyearstoworkthroughinthatmarket.Soitwillbeparticularlytoughinthatpart,”Hastingssaid.

Inadditiontotheoldervacancies,newbuildingsarehavingtroublefindingtenants.AnewbuildinginElliotChamberlain’sCascadesdevelopmenthasdrawnnotenantssinceits


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completionseveralmonthsago,andthesolebuildingintheMillBrookBusinessParkisonlypartiallyoccupiedafterayear.

IndustrialParkLotSales2008ToPresent

Location ParkName SaleDate PriceSACO 11MILLBROOKRD MILLBROOKBUSINESSPARK 4/4/08 $123,84072INDUSTRIALPARKRD SACOINDUSTRIALPARK 7/7/08 $215,000GORHAM 11CYRDRIVE NEWPORTLANDPARKWAY 2/26/08 $99,90016CYRDRIVE NEWPORTLANDPARKWAY 10/20/09 $99,90029CYRDRIVE NEWPORTLANDPARKWAY 3/12/10 $120,00054OLDECANALWAY OLDECANALPLACE 12/1/08 $154,955SCARBOROUGH 700TECHNOLOGYWAY ENTERPRISEBUSINESSPARK 3/24/08 $175,00011LINCOLNAVENUE SCARBINDUSTRIALPARK 2/24/09 2,200,000WESTBROOK EISENHOWERDR FIVESTARINDUSTRIALPARK 4/11/08 $‐75EISENHOWERDR FIVESTARINDUSTRIALPARK 6/12/09 $720,000

BIDDEFORD None

SOUTHPORTLAND None

SANFORD None

SACO,PARKNORTH None

Inadditiontodirectsalestoendusersandworkingwithbrokers,theCityhastriedseveralothermarketingapproaches.TheStateofMainein1999‐2001providedmarketingmoneytargetedforadvertising,directmailandtradeshows.TheBiddefordSacoAreaEconomicDevelopmentCorporation,incooperationwiththetwocities,designedexcellentmarketingmaterials.Itmadetwolargedistributionsofatotalof19,000packagestoNewEnglandhightechcompanies.ThiswasaccompaniedwithseveraladsinMassHighTech,thebestregionalpublicationforexpandingcompanies.Responsetotheadsanddirectmailwaszero.Anaccompanyingprogramofattendingtradeshows,yieldedahandfulofleads,butnosales,althoughthetradeshowmethodseemsabitmorepromising.Amorerecenttargetedmailingtodozensofsolarorientedbusinessesalsodrewnoresponse.

ThestaffhastestedadvertisinginMaineBizandthePortlandPressHeraldwithsimilarpoorresults.TheCitystaffisconvincedthatonetimeadvertisingisnoteffective.Perhapsaprogramofimageadvertising,repetitiveandinseveraldifferentmediacouldhavesomelongtermimpact.LewistonandAuburnappeartohavebenefittedfromusingthisapproach.TheChambermadeatentativestartonsuchaprojectwithitsbrandingprogramtwoyearsago,butthatappearstohavestalled.Theeconomicdevelopmentmarketingeffortonthecity’swebsiteisdated,andisoverdueforanupdate.


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CurrentTaxBaseandTaxBaseGrowth

ThefollowingtablesdisplaythechangesintheCity’staxbasefrom1994‐2009:

1994 1999

Value($)PercentofTotal Value($)

PercentofTotal

Commercial&Industrial 175,045,236 24.9 206,895,989 25.2 Residential&Other 525,708,895 75.1 612,985,265 74.8 AssessedValue $700,754,131 100.00% $819,881,254 100.00%

2004 2009

Value($)PercentofTotal Value($)

PercentofTotal

Commercial&Industrial 351,296,743 19.9 515,297,345 25.1 Residential&Other 1,411,856,811 80.1 1,537,375,720 74.9 AssessedValue $1,763,153,554 100.00% $2,052,673,065 100.00% BeyondBusinessParks‐OtherActivitiesandPractices WhilethedevelopmentofindustrialandbusinessparkshasbeenoneofSaco’smostsuccessfulstrategies,theCityisactiveinmanyotherareasofeconomicdevelopment.TwentyyearsagothetwocitiesandtheChamberdeterminedthatsmallbusinesslendingneededadditionalattentionandcreatedtheBiddefordSacoEconomicDevelopmentCorporationasaresponse.Ithasmadeover$5millioninloansintheregionsince1994andisakeycomponentofSaco’seconomicdevelopmentefforts. In1998,thecitypreparedadowntownplananddeterminedthataneworganizationshouldbecreatedtoemploythetrademarkedMainStreetMethodofdowntownredevelopment.Asaresult,SacoSpiritwasfounded,againbyprivate‐publicpartnership,andhashadakeyroleindowntowndevelopmentsince. Thenextsectionsofthereportdescribethecitiesothereconomicdevelopmentpractices,andprofiletheBSAEDC,SacoSpiritandotherlocalandregionalpartnersineconomicdevelopment.SitingandGovernmentalAssistance Inadditiontodirectlyprovidingsitesinitsbusinessparks,thecity’sdevelopmentstaffoftenhelpsbusinessesfindprivatesitesinSaco.Thisoccursinthebusiness,commercial,office,andindustrialsectorsbecauseeachtypeofbusinesshasuniqueneedsandeachbusinessownerhasparticularpreferences.Cityinitiatedbusinessparkscannotmeetalltheneeds. Expandingandrelocatingbusinessesfrequentlylackexpertiseinpermittingandzoningmatters.Thedevelopmentandcodesstaffareoftenabletoprovideinformalguidance,takingthemysteryoutofthesystem.Furthermore,thePlanningDepartmentispreparingaDevelopmentProcessGuide/Manualtoassistpermitseekers.


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ExpandingbusinessesareoftenunawareoffinancialresourcesandpermittingissuesattheStateandFederallevel.TheCityfrequentlyhelpsthebusinessnavigatethesewaters.TaxIncrementFinancing(TIF) TaxIncrementFinancing(TIF),isalocaleconomicdevelopmentprojectfinancingtoolthatdesignatesageographicareaasamunicipaldevelopmentdistrict.TheCityhastheoptionofusingtheincrementaltaxesthatresultfromthecommercialinvestmentandcorrespondingincreaseinpropertyvaluetoconstructinfrastructurefortheproject,toreturntothedeveloperintheformofacreditenhancementagreement,ortofinanceothereligiblelocaleconomicdevelopmentprojects.TheSacoIslandTIF,forinstance,hasbeenamajorsourceoffundingfortheMainStreetrehabilitationandfortheAmtrakStation. Coupledwithaprivatepartnership,theTIFcanbeapowerfultool.ElliotChamberlainhasconstructedanearly$3millionsewerextensionthatwillservenotonlyhisParkNorthproject,buthundredsofRoute1acresaroundhisproject.TheCityhaswantedtobuildthesewerfortwodecades,butcouldnotfundit.Chamberlainfrontedthemoneyandwillberepaidfrom50percentofthetaxrevenuesfromhisdevelopment,whichthecitywouldnothavereceivedotherwise. SomeotherTIFs:TheSpringHillTIF,FirstlightTIF,TransparentAudioTIF,SacoPlazaTIF,Incon/FranklinFuelsTIF,ParkNorthTIF,IndustrialParkRoadTIF.InfrastructureAssistance Occasionallybusinesses,locatingorrelocatingwithinthecity,havespecialneedsrelatingtosewers,roadsorotherinfrastructure.Thecityisfrequentlyabletoassistthebusinessesinsolvingthese.AtSacoPlaza,wheretheRamadaInnisnowlocated,additionalsewercapacitywasneededinordertobebuilt.TheCitywasabletoassistbyusingTIFfinancinginordertoimprovethesewer.TheIMAXTheaterfacedmajorroadreconstructioncostsdemandedbyMaineDepartmentofTransportation(MDOT)andthecitywasabletohelpbyusingTIFfunding.


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BusinessVisitationProgram Inadditiontotheoccasionalstaffvisitstolocalindustries,fromtimetotimeamoreformalvisitationprogramisundertaken.Thishasbeenasourceofreferralsandexpansioninformation.EconomicDevelopmentFund TheEconomicDevelopmentFund,createdunderCityordinancetofundtheconstructionofbusinessparksandothereconomicdevelopmentactivities,isnowchieflyfundedbyTIFproceedsandtheincomefrombusinessparklotsales.Inthepast,UrbanDevelopmentActionGrant(UDAG)repaymentsandCommunityDevelopmentBlockGrant(CDBG)repaymentswereusedtobuildthefund,butneitheroneiscurrentlyavailable.InternalBorrowingforInfrastructure Inter‐fundborrowingisthemovementofrevenuefromonefundintoanother.Thisgenerallytakesplacewhenafundisnearingazerocashbalancebutstillhasexpensestopay.Revenueisborrowedfromanotherfundtomeetshort‐termneeds.Generally,inter‐fundborrowingistiedtoTIFs,impactfeesorlotsales. TheCityhasusedinter‐fundborrowingtofinancetheSpringHillIndustrialPark,theMillBrookIndustrialPark,andtheTransportationCenter.InthecaseoftheSpringHillIndustrialPark,revenuewasborrowedfromthegeneralfundandmovedtothedevelopmentfundinordertoconstructtheindustrialpark.Thegeneralfundwasthenpaidbackusingtherevenuegeneratedfromsellingthelots,aswellasTIFrevenuesfromtaxationofthenewbuildings.ThishasbeenapowerfultechniqueforeconomicdevelopmentprojectsinSaco.Tourism TheCityhasbeeninvolvedinheritagetourismforseveralyears.TheseeffortsrevolvearoundtheSacoMuseumandtheCity’sNationalRegisterhistoricdistricts,andwereencouragedbyformermayorMarkJohnston.Previousprojectsinclude:theMainStreetWalk,whichinstalledtwelvecolorfulhistoricpanelsalongMainStreetfromtheAmtrakStationtoSacoMuseum,accompaniedbyatourbrochure,andaHistoricDistrictWalkingTour.In2009,theCityobtainedgrantfundingof$37,500fromthePreserveAmericaprogramandhelpedtoobtain$10,000fromtheMaineHumanitiesprogram,inordertosupportalocalhistoryexhibitattheSacoMuseumandAmtrakStation.ThisexhibithastransformedtheMuseumbyprovidingforthefirsttimeapermanent,systematicoverviewofSacoareahistory. Anupcomingheritagetourismproject,calledSACO3‐D,willinstallthreedimensionalhistoricimagesofSacoataprominentMainStreetlocation.Inotheraspectsoftourism,theCityisactiveinmaintainingseveralparkingareasatthebeach,andwaterfrontfacilitiessuchasapierandboatramps.TheMaineTourismOfficeconsidersnaturetourismandheritagetourismasinterrelated.SacoTrailsmaintainsasignificanttrailsystemintheCity.TheCity’sgrowingtrailsystem,includingthemuchanticipatedEasternTrail,andaforthcomingSacobirdingbrochureshouldbeconsideredadditionaleffortsinthisregard. Meetingswithstateofficialshaveencouragedaregionalapproachtotourism.TheBiddefordSacoChamberofCommerceandIndustryhasexpressedarenewedinterestinthisactivityandisnowparticipatinginthestate’stourismregionalprogram,MaineBeaches.The


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Chamber’sstaffingoftheAmtrakStation,alongwiththevolunteerprogramintheevenings,shouldalsobeconsideredatourisminitiative.Grants GrantsfromFederalorStatesourcescanbeusedtofinanceeconomicdevelopmentprojects.Unlikeloansorbonds,grantsdonotneedtobepaidbackandrelievelocaltaxpayers.Theplanninganddevelopmentdepartmenthasbeenverysuccessfulinobtaininggrantsforeconomicdevelopmentanddowntownimprovementprojects.Amongthem:$800,000 MillBrookPark EDA$590,000 SpringHillPark EDA$400,000 SaundersElectronics CDBG$800,000 Amtrakplatformetc. Fed.Transportation $500,000 MainStreetrehab MunicipalInvestmentTrustFund$300,000 Temple,Pleasant CDBG$30,000 ShakerHillkitchenequipmentCDBG$500,000 Riverfront(millyard) State$47,500 Localhistoryexhibition PreserveAmericaandMaineHumanitiesInter‐MunicipalCorporation InadditiontoworkingcloselywiththecityofBiddefordontheBSAEDC,SacohasworkedwithBiddefordonanumberofothereconomicdevelopmentprojects.OfficialsfrombothcitieshaveservedjointlyonaMillRedevelopmentCommittee.BothcitiessupportedtheNationalRegisternominationfortheMillDistrict,whichthemilldevelopersconsideradvantageoustotheirprojects.ThetwocitiesarecurrentlyworkingonthepedestrianbridgetoprovidealinkbetweenthetwoMillDistricts.BiddefordSacoAreaEconomicDevelopmentCorporation(BSAEDC)(preparedbyWillArmitage)OrganizationalStructure BSAEDCisaPrivateNon‐Profit501(c)(3)createdin1992bytheCitiesofBiddefordandSaco,andtheBiddeford‐SacoChamberofCommerce&Industry.Atinception,theorganizationhad1full‐timeemployeeandwasgovernedbya9memberBoardofDirectorsanda5memberLoanCommittee.OriginallyfoundedtoserveastheOne‐Stop‐ShopforEconomicDevelopmentactivitiesinbothcommunities,theorganizationrefocuseditsmissionin1994oneconomicdevelopmentfinancing.Astheorganizationgrewandexpandeditsprogramofferings,theboardofdirectorssizeandcompositionwasmodified.In1999BSAEDCbecametheforthorganizationtobecertifiedinMaineasaCommunityDevelopmentFinancialInstitution. Today,BSAEDCisgovernedbyan11memberBoardofDirectors:2CityofBiddefordappointees;2CityofSacoappointees;1ChamberofCommerceappointee;3BiddefordElectedDirectors;


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3SacoElectedDirectors;A7memberLoanCommitteeandisstaffedbyafull‐timeExecutiveDirector,afull‐timeLoanOfficerandapart‐timeOfficeAdministrator.MissionStatement: BSAEDCpromotessustainable,long‐termeconomicprosperityfortheBiddeford‐Sacoarea.TheCorporationisacatalystforcooperation,teamwork,andmutualsuccessthroughthe:CreationandretentionofqualityjobsforthepeopleofBiddeford‐Sacotargetingthelowtomoderateincomepopulation;anddevelopmentandpromotionofpolicies,projectsandprogramsthatwillaccommodateandcapturenewinvestmentinBiddeford‐Saco.ThisMissionisaccomplishedchieflythroughbusinessfinancing.Inaddition,aresourcecenterismaintained,andspecialprojectsareundertaken.Financing: BSAEDCadministers5RevolvingLoanProgramstotaling$3.7Mwithanadditional$1.5MavailablethroughaBankparticipationLineofCreditwithBiddefordSavingsBank,KennebunkSavingsBankandSaco&BiddefordSavingsInstitution.Alltotaled,BSAEDChasapproximately$5.2Mavailableforlending. Overthelast18years,BSAEDChaslentalmost$3milliontolocalbusinessesinSaco,whichhasleveraged$24millioninprivatesectorinvestmentintothecommunityandcreatedorretainapproximately1,100jobs.Currently,BSAEDChas15activeloanstotalingalmost$1.3million,whichhasleveragedalmost$8millioninprivatesectorinvestmentandcreatedandretainedover220jobsintheCityofSaco.

ActivePortfolio

#ofLoans $Disbursed $LeveragedJobs

Created/Retained15 $1,253,403.82 $7,820,000.00 221

HistoricalPortfolio

#ofLoans $Disbursed $LeveragedJobs

Created/Retained44 $2,976,032.49 $23,806,135.00 1,100.5

ResourceCenter: BSAEDCactsasaclearinghouseforlocalstateandfederalbusinessassistanceprograms,jobtrainingandcapitalattraction.TechnicalassistanceisprovidedthroughtheMaineSmallBusinessDevelopmentCenter;MaineProcurementTechnicalAssistanceCenter;andMaineCenterforWomen,Work&Communitytobusinessesseekingcounselingandfinancialassistanceforthepurposeofstarting,locatingorexpanding.SpecialProjects: BSAEDCworksinconjunctionwiththecitiestopromoteandmarketthecommunity.Thishasincludedthedevelopmentofprintedmaterialsformailingandcollaborativeadvertisements


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inprintedmedia.Additionally,BSAEDChashostedanAnnualBreakfastwithspeakersofeconomicinterest.BSAEDCalsocollaborateswiththeChamberandbothdowntownorganizationsforeducationalprogramsandevents.Mostrecently,thishasincludedthecreationoftheBiddeford‐SacoBuyLocalprogrampromotingourlocalbusinessesandeducatingourresidentsonhowtheycansupportourlocaleconomy.SacoSpiritandDowntownDevelopment SacoSpiritisSaco’sNationalMainStreetaffiliatewhichfollowsthenationalfour‐partapproachtodowntownrevitalization.TheapproachisbasedonfourcommitteesworkingwithaMainStreetmanageronthefollowingissues:design,organization,promotions,andeconomicrestructuring.TheCityCouncilhasappropriated$25,000eachyear,inrecentyears,tosupportSacoSpirit’sdowntownefforts.TheCityworkscloselywiththegroup. TheCityhasinvestedmorethan$3millioninMainStreetimprovementsoverthelastfiveyears,includingthereconstructionofsidewalksandstreets,theundergroundingofoverheadutilities,andotherchangesindesign,infrastructure,andphysicalcondition.Additionalmunicipalinvestmentsinthedowntownincludethe$2.4millionSacoTransportationCenter,theAmtrakstationwhichservestheDowneasterandhousestheBiddefordSacoChamberofCommerce. ThefirmPlanningDecisions,whichisassistingtheCitywithpreparationofanupdatedComprehensivePlan,writesofdowntownSaco:“LivingindowntownSacoisnowperceivedfavorablyanddevelopershavenoticed,notjustonSacoIslandbutalsointheapproximately300condominiumsbuiltinaringaroundthedowntowninthepastdecade.ThepositiveimagefordowntownSaconotedbySacoIslanddevelopersandmanyothers.“Saco”isabetter“brand”thanadecadeagotothosewhodonotliveorworkhere.LargescalenewactivityonSacoIslandandintheBiddefordmilldistrictwillhelpprovideadditionallocalmarketsupportsfordowntownbusinesses.” Sacocompletedadowntownplanin1998andupdateditin2007.Themajorrecommendationsfrom1998downtownplan:

• EncouragemixeduseredevelopmentofSacoIslandusingTIFandotherincentives• CreateorganizationtomanagedowntownusingNationalMainStreetapproach(Saco

Spirit)• Connectwestsideparking• AddparkingnearPepperellSquare• Improveparking,parkingsignage,parkingmanagement• Buildtrainstation• RehabMainStreet–PepperellSquare• Newsignage,orientationsignage

Manyoftheserecommendationshavenowbeenimplemented.SacoIslandisbeingredeveloped.SacoSpiritcoordinatesmuchoftheactivityinthedowntown.Parkinghasbeenaddedandimproved.MainStreetandPepperellSquarehavebeenrebuiltbeautifullyandnow


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theMainStreetsectionfromCityHalltoBeachStreethasalsobeencompleted.Newsignageandorientationsignagehasbeendesignedandinstalled.Substantialprogresshasbeenmadeonallbutthewestsideparking. The2007planemphasizessupportofSacoSpirit’seffortsforthedowntown.Italsohaslonglistsofdetailedrecommendations.Amongthem:

• Continuetoreinvigoratedowntown's"streetscape"andparkinglots;• PlanapedestrianbridgetoBiddeford,milldistricttodistrict;• Planforhousingexpansionandimprovementinthedowntown;• PlanforSacoandBiddeford’sroleintheCreativeEconomy,whichhasledthe

revitalizationofmanydowntowns.Saco’senvironmentalleadershipandheritagetourismmayalsohavearole.

StreetscapeworkhascontinuedintheCityHalltoBeachStreetsection;apedestrianbridgewithBiddefordisthesubjectofacurrentengineeringstudy;housinggrowthcontinuesdowntown;heritagetourismhasbeenaddressedwithanAmtrakStation,amajorpermanentmakeoveroftheSacoMuseumwitharegionalhistoryexhibition;aMainStreethistorytrail,aNationalRegisterDistrictwalkingtour,andanupcoming3‐Dhistoricpanelprogram. TherelocationoftheCentralFireStationandtheNotreDamechurch,aswellasthemillspaceonSacoIsland,providesignificantopportunitiesfordowntownredevelopment.BiddefordSacoChamberofCommerceandIndustry TheChamberhasoccasionallyplayedakeyroleinafeweconomicdevelopmentefforts.ItparticipatedinencouragingtheseweringofRoute1inthelate1980s,andisoneofthefoundingpartnersintheBSAEDC.Ithasalwaysprovidedlocalinformationpackagestovisitorsandrelocators,andnowprovidestourisminformationattheAmtrakStation.UnderthenewdirectorithasbeguntoparticipateintheMaineBeachesprogram,whichisthestate’sregionaltourismeffortinsouthernMaine.IthasbeenapartnerwiththeBSAEDCandthetwoMainStreetorganizationsinthecurrentBuyLocalprogram.SouthernMaineRegionalPlanningCommission(SMRPC) Traditionallyalanduseplanningagency,SouthernMaineRegionalPlanningCommission(SMRPC)hashadagrowingroleineconomicdevelopment.ItprovidesaccesstothefederalBrownfieldsprogramanditislikelythisyeartobecometheEDAdesignatedeconomicdevelopmentdistrictforthisregion.AsoneofthetwoagenciesinvolvedwithSouthernMaineEconomicDevelopmentDistrict(SMEDD),ithasalreadyassistedSacointwosuccessfulgrantapplicationstotheEDA.IthasalsoprovidedassistanceinpreparingCDBGprojects,especiallythedreadedenvironmentalreview.Recently,afterstatebudgetcutsforcelayoffsattheDepartmentofEconomicandCommunityDevelopment,SMRPCwasappointedbytheDECDtoprovideoutreachservicesonbehalfoftheDECD.

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CurrentPractices:FederalandStateEconomicDevelopmentPrograms

Thissectioncatalogsstateandfederalprogramswhichhaveoccasionallybeenhelpfulormayhavethepotentialtobehelpful.

FEDERAL:

EconomicDevelopmentAdministration(EDA)

TheEconomicDevelopmentAdministration(EDA)istheFederalGovernment’smainarmforlocaleconomicdevelopment,chieflythroughitsgrantprograms.TheEDAprovidesasmallregionalplanninggranttoSouthernMaineRegionalPlanningCommission(SMRPC)eachyearsoitcancoordinateeconomicdevelopmentactivitiesintheregion.EDAalsoprovidesgrantsforinfrastructure.SacohasbenefitedfromtwoEDAgrantsforconstructionofbusinessparks$590,000fortheSpringHillParkin1999and$800,000fortheMillbrookParkin2004.TheregionaleconomicdevelopmentdistricttiedtotheEDAinthisregionisSouthernMaineEconomicDevelopmentDistrict(SMEDD),whichincludesmostofYorkandCumberlandcountiesandisgovernedbyajointboardofGreaterPortlandCouncilofGovernments(GPCOG)andSMRPC.ThereisacurrentefforttomakeseparateeconomicdevelopmentdistrictsfortheGPCOGregionandSMRPCregion,andtomakeotherchangesintheEDDdistrictboundaries.Inthelasttwodecades,SacohasreceivedtwoofthethreegrantsforbusinessparksinYork‐Cumberlandregion.

CommunityDevelopmentBlockGrant(CDBG)

CommunityDevelopmentBlockGrant(CDBG)programisafederalprogramfunneledthroughtheState’sCDBGoffice.TheCDBGprovidesfundingforprojectsthatbenefitlowandmoderateincomepersons.Sacohasbenefitedmanytimesfromprojectsthathavehelpedrevitalizedowntownneighborhoods,includingdrainage‐sewer/streetprojectsintheTemple,Pleasant,andGreenStreetareaandGrayStreetarea.SeveralSacobusinesseshavebenefitedfrombusinesslendingandgrantprogramsinthepast,includingmostrecentlythebakeryonThorntonAvenue.ACDBGprogramcanalsoprovidegrantsforequipmentacquisition.ThecityassistedSaundersElectronicsinobtainingonein2006andisassistinganotherfirmcurrently.

CommunityDevelopmentFinancialInstitutions(CDFI)

TheCommunityDevelopmentFinancialInstitutionsfund(CDFI)isaprogramoftheTreasuryDepartmentthatcapitalizesrevolvingloanfunds(RLF)fornon‐profit/municipaldevelopmentagencies.TheBiddefordSacoAreaEconomicDevelopmentCorporation(BSAEDC)hasobtained$1,000,000fromCDFIinordertoprovideloansforbusinessesintheregion.

SacoEconomicDevelopmentPlan FederalandStatePrograms

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SmallBusinessAdministration(SBA)

TheSmallBusinessAdministration(SBA)guaranteesbusinessloansmadebylocalbanks.Muchofthelendingdonebylocalbankstobusinesseswouldnotbedoneonasfavorableterms,withouttheSBAguarantees.TheSBApartnerswithotheragenciestoprovidealocalSmallBusinessDevelopmentCenters,whichinthisregionishousedonMainStreetwiththeBiddefordSacoEconomicDevelopmentCorporation.

RuralDevelopmentAgency

TheRuralDevelopmentAgencycanlendinSaco,includinglendingformunicipalinfrastructureprojects;however,itdoesnothaveanygrantprograms.TheRuralDevelopmentAgency’sratestraditionallyhavenotbeenfavorableenoughtogiveitacompetitiveadvantageoverotherprograms.ThisagencyhasalsohelpedcapitalizeBSAEDCloanfunds.

HistoricRehabilitationTaxCredits(HRTC)

HistoricRehabilitationTaxCredits(HRTC)canhelpprovideequityforeconomicdevelopmentprojects,whichincludestherehabilitationofanhistoricbuilding.InSaco,theyhavebeenemployedprimarilyintheresidentialsectorforhousing,includingattheWardwell.Becausethestatehaspassedhistoricrehabilitationtaxcreditlegislationthecombinationofthefederalandstateprogramhasmadetheprogrammoreadvantageoustodevelopers.TheSacoIslanddevelopersplantoutilizethisprogram.

Brownfields

TheBrownfieldsprogramisusedfortheremediationandredevelopmentofsitesthatcontainhazardoussubstances,pollutants,orcontaminants.TheBrownfieldslendingandgrantprogramisadministeredbytheEnvironmentalProtectionAgency(EPA).TheMaineDepartmentofEnvironmentalProtection(DEP)workscloselywiththeEPAandhasadditionalstatefunding.SMRPCadministerstheEPAprograminthisregion.TheSacoIslandprojectwasapprovedfortheuseofBrownfieldsfundingbuthasnotyetgoneforwardwithitsproject.TheCityreceivedanassessmentgrantthroughSMRPCthatpermitteda$200,000grantapplicationbytheCityfortheremediationoftheformerSacoSteelsiteonLundRoad.

IndustrialRevenueBonds(IRB)

IndustrialRevenueBonds(IRB)areabondsimilartoamunicipalbond.IRBsarealow‐costfinancemechanismavailabletohelpencouragetheexpansionorrelocationoflargeindustrialfirmsintheCity.IRBsprovidebondfinancingtoprivateindustrialfirmsatlownon‐taxablerates,similartothosepaidforbymunicipalities.TheapplicationrequiresCityCouncilapprovalbutdoesnotcreateanyliabilityfortheCity.Theprogramisrarelyusedandisagoodfitforvery


4‐3

fewfirms.Sacohasusedthismethodinthepast,issuinganIRBinducementinconjunctionwiththeSterlingRopeprojectin2001,althoughthecompanydidnotpursuetheendeavor

STATE:

DepartmentofEconomicandCommunityDevelopment(DECD)

TheMaineDepartmentofEconomicandCommunityDevelopment(DECD)isMainestategovernment’seconomicdevelopmentarm;however,duetopoorfundingandfrequentprogramchanges,DECDactivitiesareverylimitedinscope.Itadministers:

Tourism

DECDhasatourismpromotionbranchthatisquiteactiveinorganizingandpromotingtourism.TheSouthernMaineversionofthestate’stourisminitiativeiscalled“MaineBeachesAssociation”.AreaChambersofCommerceandhospitalityrelatedbusinessesworktogetherwiththeStatethroughthisinitiative.

PineTreeZones

Maine’sPineTreeZonesprovidetaxincentivestobusinessesexpandingtheiremploymentbygreatlyreducingoreliminatingstatetaxesforuptotenyears.Theprogramtargetsparticularindustries,including:biotechnology,marinetechnology,aquaculture,environmentaltechnology,informationtechnology,financialservicesandmanufacturing.ThePineTreeZoneprogramprimarilyreducespayrollcostsforexpandingbusinessesandprovidesotherincentivesfornewbusinessesandbusinessesthatarerelocatinginMaine,withinthesesectors.

RegionalRepresentative

Untilrecently,theDECDprovidedaregionalrepresentativeinsixareasofMaine.Thesestateagentsprovidedleadsforexpandingandrelocatingbusinesses,providedinformationaboutPineTreeZoneprogramstolocalbusinesses,andworkedcloselywithcityandregionaleconomicdevelopmentoffices.ThestateabolishedthepositionsinApril2010,andhasatleasttemporarilysubstitutedfundingforasimilarfunctionattheregionalplanningagency,SMRPC.

CommunityDevelopmentBlockGrant(CDBG)

Whilefundingforthisprogramisfederal,theadministrationisentirelyatthestatelevel.TheCommunityDevelopmentBlockGrant(CDBG)officeisfrequentlycalleduponbythestatelegislaturetoadministerothereconomicdevelopmentgrantopportunities,such


4‐4

astherecentRiverFrontBond,the1994‐1996jobsbond,andtheMunicipalInfrastructureBond2006,whichcontributed$500,000torehabilitationofMainStreet.TheCDBGofficehasbeenconsistentlyhelpfultoSaco’seconomicdevelopmentandneighborhoodrevitalizationeffortsandhashadcontinuityandresourcesthatotherportionsoftheDECDhavelacked.

MaineandCompany

MaineandCompanyisanon‐profitthatwasestablishedbylargerMainecorporationsandutilitiestoassistthestateinprovidingbusinessrelocationservices.ItfocusesonattractingbusinessesfromelsewheretoMaine.TheCityoccasionallyreceivesleadsfromtheagency,buttheseareseldomsolidprospects.

FinanceAuthorityofMaine(FAME)

TheFinanceAuthorityofMaine(FAME)providesloanguaranteesforbusinesslending.IthasalsohashadamajorroleincapitalizingrevolvingloanfundsattheBiddefordSacoAreaEconomicDevelopmentCorporation(BSAEDC).Theagencyalsohasaroleinindustrialrevenueandbonds,andtheoreticallycanprovidebondfinancingforlocalbusinessprograms,butpresentlydoesnotdoso.

MainStreetMaine/MaineDowntownCenter

SacoSpiritisourlocaleffortatdowntownrevitalizationfollowingtheNationalMainStreetapproach.MainecommunitiesthatparticipateintheNationalMainStreetapproachworktogetherthroughMainStreetMaine,whichishousedintheMaineDevelopmentFoundation,asastate‐widenon‐profitfundedbycorporatedonorsandasmallofamountofStatefunding.ItprovidestrainingforthelocalMainStreetprograms.(SeealsoSacoSpiritin‘Practices”section.)

HistoricRehabilitationTaxCredits(HRTC)

TheMaineHistoricRehabilitationTaxCreditsareavailableforpropertiesthatare“certifiedhistoricstructures”throughtheNationalRegisterofHistoricPlaces.AftertheStateHRTCcombinationofthefederalandstatelegislationhasmadetheHRTCprogrammoreadvantageoustodevelopers.WiththeCity’sassistance,theMillDistrictwasaddedtotheNationalRegisterofHistoricPlacestwoyearsago.TheSacoIslandRehabilitationprojectislikelytoutilizeHRTCs.

TaxIncrementFinancing:Seelocalandregionalprograms.

5‐1

StrengthsWeaknessesOpportunitiesThreatsAnalysis

AspartoftheplanningprocessthecommitteeundertookaSWOTanalysis,thatis,ananalysisofthecity’sstrengths,weaknesses,opportunitiesandthreatsintheareaofeconomicdevelopment.UsingtheresultsfromtheSWOTanalysis,thecommitteememberswerethenaskedtoeachselectthreeitemswhichtheyfeltthattheCityshouldbeshouldbetakingactionon.ThisrefinedtheitemsmentionedintheSWOTbrainstormintoitemswhichmightbecomeactionitemsinthefinalreport. Ofthe21items,onlyfivewereselectedbymorethanoneperson.Fourpersonsselected“NotenoughmoneytomarkettheCity.”Threechose“Businessvisitationprogram.”Thesemightbeconsideredstronglyrelatedaspartsofamarketingprogram. Twopersonsselectedeachofthefollowing:‐Growthinhealthcareemployment‐MetrocoalitionwithPortland(toenhancelinks,cultivateties)‐Lackofclearvisionforfuturebusinessparkdevelopment Allofthesefiveaforementioneditemscanandshouldbeaddressedbyrecommendationspresentedinafinalreport,asfollows:Marketingbudget:‐AmarketingprogramwithsufficientfrequencycouldhelptheCitycreateapositiveimageasabusinesslocation.Themarketingprogramcouldbeextendedwithanadvertisingbudgetlargeenoughtoallowafrequent,continuouspresenceinselectedpublicationsreadbybusinessleaders.BusinessVisitation:‐ThebusinessvisitationprogramisaneffectivewaytolearnabouttheneedsofcurrentbusinessesinSacoandoccasionallytohearaboutexpansionandrelocation,andtodevelopleads.Thisprogramhasfocusedonbusinessesintheindustrialparksinthepast.Itshouldalsoincludesmalloneandtwopersonbusinesseswithgrowthpotential.HealthCare:‐UNE’sstrengthinvariousmedicaldisciplines,alongwiththegrowingpresenceofSouthernMaineMedicalCenter,MaineMedicalCenter,VNS,andseveralorthopedicandphysicaltherapygroupsisevidentinSaco.Medicaluseshavebeengrowinggenerallyintheregion.Thecityshouldincludeinitseffortsafocusongrowthinmedicalandalliedfields.MetroCoalition: ‐ThehealthoftheSacoeconomyiscloselytiedtotheeconomichealthoftheentireregion.Therefore,theCityshouldcontinuetoworkcooperativelywiththecitiesofBiddeford,ScarboroughandOldOrchardBeach,withGreaterPortland,andwithregionaleconomicdevelopmentorganizationssuchastheBSAEDCandSMRPCandtheChamberofCommercetofostertheeconomicprosperityoftheregion.BusinessParkDevelopment:‐SincethereisalimitedsupplyofpreparedsitesinSouthernMaineforeconomicdevelopment,theCityofSacoshouldcontinueitsbusinessparkprogramtoprovideacontinuoussupplyofsuitabledevelopmentsitesthatareservicedbypublicwaterandsewerage.Aspartofthiseffort,theCityshouldconsideracquiringandlandbankingsuitableparcelsforfuturedevelopmentsites

SacoEconomicDevelopmentPlan SWOTAnalysis

5‐2

formanufacturing,distribution,research,largescaleofficeandsimilarhighqualityeconomicactivities,asthesesitesbecomeavailableonthemarket. Anothergroupofsixitemswereselectedbyjustoneperson.However,someofthesewerediscussedinseveralmeetings,complementarywithotherdiscussionsandefforts,orareconsistentwithgoalsofthecomprehensiveplanandothercityplanningdocuments.Thereforetheycanalsobeturnedintoreportrecommendations.Theyare:‐Welldefinedpermittingandzoningprocessperceivedbydevelopers,realtors,‐ReviseCitywebsite‐River(charters,fishing,tourism,recreation)‐Regionalmarketing(tourism)‐Toofewseasonalemployeesforhospitalitybusinesses‐HelpmakemicrobusinessesintominibusinessesPermittingandZoning:‐TheCityisalreadyrecognizedintherealestatecommunityforitsgenerallyefficientpermittingandforthedelegationofstatesitelawpermitting.Thepermittingprocesscouldbeenhancedbythepublicationofaguidetotheplanningandpermittingprocess.WebSite:‐Updatemarketingeffortswithanimprovedwebpresenceincorporatingmaterialsdevelopedfortheprinteffortandwithothernewmaterials.Riveretc.:‐ThereareadditionaltourismopportunitiesatCampEllisandthebeach.Fishingexcursionshasbeenidentifiedasoneareatobeencouraged.Beachuseisanother.Regionaltourismmarketing: ‐TheBiddefordSacoChamberofCommerceandIndustryhasmanyrolesinthecommunity,includinganimportantroleintourism.TheChamberisnowworkingwiththestate’sregionaltourismprogramandlocaltourism‐relatedbusinesses,includinghotelsandthemeparks,topromotetourismintheregion.Collaborationandweekendpackagesareamongthepossibleareasforimprovement.TheCityshouldsupporttheseChamber‐ledefforts.SeasonalEmployment:‐Alackofsummerworkersfortourismorientedbusinesseshasbeenidentified.FuntownSplashtownUSA,otherswhoemploysummerworkers,theMaineDepartmentofLabor,andtheChambershouldorganizeasummerworkfaireachspringtohelpidentifypeopleinthecommunityforsummerwork. The“microtomini”itemisaddressedinthelastsentenceofthebusinessvisitationprogram,whichsuggeststhatsmallbusinessesalsobeincludedinthatprogram. Justtobecomplete:Selectedbyoneperson.Notaddressedinrecommendations.‐Opportunitytoparticipateinlocalgovernmentandcommittees‐Energyqualityandelectricityvolume‐Energycosts&limitednaturalgasaccess‐ResourcepovertyofsmallbusinesscommunityNotselectedbyanyone.Notaddressedinrecommendations.‐Agingpopulation


5‐3

‐Proximitytolargecitiesandpopulations‐DowneastertoFreeport/Brunswick‐Improvefiberaccess‐Consolidatestatepermittingprocess‐Limitedlodgingduringsummer‐Lackofnetworkingwithbusinessgroups InanotherexerciseadaptedfromanICMAmanualdesignedtoassesscommunityreadinessaswellasstrengthsandassetsforeconomicdevelopment,thecommitteeratedthecommunityhighlyinthefollowingareas:‐Lackofdependencyonasinglefirmorindustry‐Capacitytodiversify‐Availabilityofvacantland‐Availabilityofunderusedland‐Accesstotransportation(highways,airports,etc.)‐Accesstointernet

Accesstoventurecapitalwasnotratedhighforthecommunity,norwasthepresenceofprivatelaboratories.


5‐4

SWOTAnalysisResultsResultsorganizedbytopic

STRENGTHS WEAKNESSES OPPORTUNITIES THREATSEDUCATION Educationalopportunities(higher) Collegegradratelowerthannationand

region

Pooropportunitiesforhighschooltradeschool

Matchingeducationandskillswithactualjobs

LackofconnectiontoUNE POPULATION Slowpopulationgrowth Agingpopulation Agingpopulation(impacton

healthcare) Proximitytolargecitiesand

populationsYouthleavingState

TRANSPORTATION/UTILITIES Transportationnetwork Turnpikeinterchangeneeded DowneastertoFreeport/Brunswick TransportationneedsandcostsDowneaster Broadbandnodesandfiber Improvefiberaccess Lesstrafficcongestion Energycosts&limitednaturalgasaccess PERCEPTIONS Greatpublicsafety ConflictingviewofSaco’sconnectionwith

Portland

PositiveperceptionsofSacoandBiddeford

Perceptionofhighbusinesscostsisn’tthereality

Qualityoflife Poorproductivity,45thState GOVERNMENT Stablecitygovernment Taxstructure(reliesonpropertytaxtoo

much)Opportunitytoparticipateinlocalgovandcommittees

PotentiallackofcontinuityinStategovernment

Lowtaxrate Welldefinedpermittingandzoningprocessperceivedbydevelopers,etc

Disconnectbetweenpublicpolicyandwhatpeopleactuallywant

Innovativeandflexiblecitygovernment

Consolidatestatepermittingprocess Sprawl/lowqualitydevelopment

Useofcontractzoningtoaccommodatebusinesses

Diverserealestatetaxbase FinancialstabilityBondRatingAA ECONOMICDEVPROMOTION Establishedbusinessparksandroomforgrowth

Lackofclearvisionforfuturebusinessparkdevelopment

Businessvisitationprogram Othertownshaveorganizedeconomicdev.agencies

Organizedeconomicdevelopmentdepartment

Regionalmarketing(tourism) ReviseCitywebsite

NotenoughmoneytomarkettheCity Helpmakemicrobusinessesintominibusinesses

TOURISM Campingfacilitiesandlodging Limitedlodgingduringsummer River(charters,fishing,tourism,

recreation)

SacoRiver Toofewseasonalemployeesforhospitalitybusinesses

VARIOUS CostofdoingbusinessislowerthanPortland

Resourcepovertyofsmallbusinesscommunity

Growthinhealthcareemployment Distance/costformedicalprocedures

ProximityandConnectiontoGreaterPortlandarea

Lackofnetworkingwithbusinessgroups MetrocoalitionwithPortland(enhancelinks,cultivateties)

Risingsealevel

Loyalandhardworkinglaborforce Gooddowntownlivingopportunity Safeandsoundfinancialinstitutions

Establishbrandawareness

6‐1

UpdatingMarketingMaterials

Initsinitialdiscussions,thecommitteequicklydeterminedthatSaco’smarketingmaterialswerenotcurrentandneededupdating.InordertobegintheprocessofimprovingthemthecommitteedevelopedalistofSaco’sbenefits,whichisreproducedbelow.Thepurposeofthelistwastodevelopsomesellingpointstopromoteinthemarketingmaterials. Thematerialswillbeusedinthebusinessvisitationprogram,forsalescalls,andforanymailingsrelatedtoeconomicdevelopmentpromotion. ThecommitteedeterminedthatlocaladvertisingmanFredO’NeilwouldbeeconomicalandefficientfortheworkandthecitycontractedwithO’NeilAssociatestoproduceaneweightpagefullcolormarketingbooklet,amarketingfolder,andrevisedpromotionalpageontheMillBrookBusinessPark.Thecommitteerevieweddraftsofthematerials,whichwerefinalizedquicklyandarrivedbeforethecompletionofthisstudy.Theyareattached.Overall:• Qualityschoolsystem• Supportivelocalgovernment• Qualitylaborforce• Qualitymedicalservices• Quality,affordablesites

SacoBusinessandIndustrialParks:• Lotsrangingfrom2to10acres(woodedoropensites)• Protectivecovenantsassurequality• JustoffMaineTurnpikeExit36,easyaccesstomarkets• Fullyserviced• Somesitescanbeservedbyrail• GreataccesstoInterstateandRoute1• Water,Sewers,Treatment,Utilities

o BiddefordSacoWaterCompanyo SewercomplieswithStateandFedregulationso Allsitesadjacenttoelectricalandtelephonelines

• Progressivebusinessenvironment/communityCommunicationsInfrastructure:Advancedcommunicationinfrastructureenablesmaintaininginternationalandnationalrelationshipsseamlessly• Enhancedfibertothenode• Digitalsubscriberlines(DSL)• Digitalphone• 3‐Gmobiledataandphone

SacoEconomicDevelopmentPlan UpdatingMarketingMaterials

6‐2

Transportation:• Interstate95(Exit36)• AccesstoUSRoute1andMaineRoutes5,9,111,and112.• AmtrakDowneastertoBostonandPortland• Airports:PortlandInternationalJetport(15miles),BostonLoganInternationalAirport(85

miles)• Shuttlebus:Tri‐townservice(Biddeford,Saco,OldOrchard)• ZOOMTurnpikeExpressisacommuterservicethatlinksBiddefordandSacowith

downtownPortland

Education:• ThorntonAcademy,privatehighschoolwithinternationalprogram• UMaineUniversityCollegeprogramsonSacoIsland• UNE–4miles(Biddeford)• UniversityofSouthernMaine‐17miles(PortlandandGorhamCampuses)• UniversityofMaineSchoolofLaw–17miles(Portland)• MaineCollegeofArt‐17miles(Portland)• YorkCountyCommunityCollege–17miles(Wells)• Highereducationwithin50miles

o BatesCollege(Lewiston)o BowdoinCollege(Brunswick)o UniversityofSouthernMaine(Lewiston‐AuburnCampus)o SaintJosephsCollegeofMaine(Standish)

• Bostonuniversitiesandgradschools‐areasonablecommute

FinancialIncentives:• BiddefordSacoEconomicDevelopmentCorporation(BSAEDC)loanfundprograms• PineTreeZones• TaxIncrementFinancing(TIF)

CommunityCharacterandHeritageTourism:• MainStreetWalkingTours(CityandMuseum)• DowntownHistoricalDistrict,twoNationalRegisterDistricts• SacoMuseum

o PermanentRegionalHistoryExhibito Changingartandhistoryexhibits

• MainStreetMaineCommunitySacoSpirit

SacoEconomicDevelopmentPlan UpdatingMarketingMaterials

6‐3

• SacoSpiritFestivalsandActivitieso Pumpkinfesto SidewalkArtWalko Holidayfesto PreserveAmericaCommunity

• ThorntonAcademy• BeautifulMainStreet• SacoIsland–MassiveMillRehabilitationandRenovationUnderway• RetailBusinesses,RestaurantsandFoodService,FinancialInsuranceandRealEstate,Other

ServicesAttractions‐Tourism:

• FuntownSplashtown• Aquaboggan• CinemagicIMAXMovieTheater(onlyoneinMaine)• VacationlandBowling• FerryBeachStatePark• Threeactivemarinasandwaterfrontboatingfacilities• Icearenaandathleticcomplex• Hotels,motels,campgrounds,bedandbreakfastsNaturalAreasandBeaches:• SacoRiver• CampEllis• SacoHeath• SacoBayTrailsandRiverwalkTrail• EasternTrail• Parks(200acresofcityparks)• Beaches• CascadeFalls

7‐1

CommitteeFocus:TourismandUniversities

TourismandthepresenceofuniversitiesinthecommunitywerespecialfocusesoftheEconomicDevelopmentPlanCommittee’sattention.TheinterestintourismwassupportedbypresentationsbymembersEdHodgdonandCraigPendleton.ThefocusonuniversitiesinthecommunitywassupportedbyvisitswiththepresidentofUniversityofNewEnglandandrepresentativesoftheUniversityofMaineatAugusta,whichoperatesacenterinSaco.Thefindingsfollow.

TOURISMThe state encourages a regional approach to tourism through the Maine Office of

Tourism and breaks the state into 8 regions; Saco is included in the southernMaine regioncalled“MaineBeaches.”Sometourisminformationidentifiedinthisstudyincludes:

1. Fundingcomesfromthemealsandlodgingtaxandeachregiongetsthesameamountoffunding.

2. Forsomeareas,includingCanada,Maine’sbeachesaretheclosestoceanbeaches,makingOldOrchardBeach,Wells,Ogunquit,andYorkdrivetobeachdestinations.

3. Sacoistheonlybeachdestinationwithayearrounddowntown.Thismaybeamarketableniche.

4. TheMaineTourismOfficeconsidersnaturetourismandheritagetourismasinterrelated.Sacohasbeendevelopingassetsinbothareas.

5. Maineasafooddestination.TherestaurantsceneinSacoandBiddefordhasreallycomealive,withmanyinternationalcuisinesnowavailable,andourfirstbreweryattheRunoftheMill.

6. Lowercostdestinationshavecontinuedtodowelldespiterecession.Sacoisconsideredlowercost.

Meetingswithstateofficialshaveencouragedaregionalapproachtotourism.TheBiddefordSacoChamberofCommerceandIndustryhasexpressedarenewedinterestinthisactivityandisnowparticipatinginthestate’stourismregionalprogram,MaineBeaches.TheChamber’sstaffingoftheAmtrakStation,alongwiththevolunteerprogramintheevenings,shouldalsobeconsideredatourisminitiative.TheChamberhasoccasionallyplayedakeyroleineconomicdevelopmentefforts.IthasbeenapartnerwiththeBSAEDCandthetwoMainStreetorganizationsinthecurrentBuyLocalprogram.

DuetoitslocationontheSouthernMainecoast,tourismisanimportantcomponentofSaco’s economy. Saco’s beautiful beaches, the Saco River, historic downtown, and theshopping district provide visitors withmany recreational and cultural opportunities. SeveralSaco businesses supply goods and services to tourists. Visitor services include motels,campgrounds,waterparks,athemepark,thetrailsystem,andotheroutdooractivities.

SacoEconomicDevelopmentPlan CommitteeFocus:TourismandUniversities

7‐2

TheCityhasbeen involved inheritagetourismforseveralyears.Theseeffortsrevolvearound the Saco Museum and the City’s National Register historic districts, and wereencouragedbyformermayorMarkJohnston.TheCitywasabletoobtaina$37,500fromthePreserveAmericaProgramandother sources to supportamajorpermanent regionalhistoryexhibitionattheSacoMuseum,withasmalloverviewoftheexhibitattheSacoTransportationCenter. A colorful set of historic panels along Main Street was another joint City and SacoMuseumprogram.

Anupcoming heritage tourismproject, called SACO3‐D,will install three dimensionalhistoricimagesofSacoatthepostoffice.Anothernaturetourismprojectwillpresentabirdingguidetothecity,incooperationwiththeYorkCountychapterofMaineAudubonSociety.

Inotheraspectsoftourism,theCityisactiveinmaintainingseveralparkingareasatthebeach, and waterfront facilities such as a pier and boat ramps. Saco Trails maintains asignificant trail system in the City. The City’s growing trail system, including the muchanticipated Eastern Trail, and a forthcoming Saco birding brochure should be consideredadditionaleffortsinthisregard.

TOURISMASSETS

FerryBeachStatePark

The117acreFerryBeachStatePark is locatedonbothsidesofSeasideAvenue.Ontheoceanside,thereisaswimmingbeach.Onthewesternsideistheparkinglotaswellaswoodswith1.4milesofself‐guidednaturetrails. Thetrailsarewide,level,andprovideboardwalkstocrosswetlands.Adetailedtrailmap is available from the parking lot attendant during the summer. The parkalsohasaplayground.LongPond,locatedwithintheparkboundaries,isutilizedbyduringthewinterforiceskating.Theparkiscurrentlydevelopingaplanforanaturecenterbuilding.

SacoMuseumFoundedin1866,andformerlyknownastheYorkInstitute,theSacoMuseumisoneof

theoldestmuseums inMaine. Its collectionof fineart,naturalhistory,andhistoricartifactscontainsmorethan10,000itemsandincludesfolkart,householditems,historicmemorabilia,papers,andpersonalitemsmadeorownedbypeoplelivinginnorthernYorkCounty.Severalitemsareofnationalsignificance.Themuseumcontinues to acquire present day artifacts foritscollections.

The SacoMuseum is open to the public and offers on‐going programs for students,adults, and families. Its public outreach includes walking tours, art classes and workshops,visiting lecture series, musical events, and a biennial historic house tour emphasizing art,history, and culture. The museum’s historic Main Street Walk begins at the museum andextendsdownMainStreettotheMillDistrict.Brochuresareavailabletoguidethetour.


7‐3

PRIVATEATTRACTIONS

ThereareseveralattractionsforvisitorsintheRoute‐OceanParkRoadCorridor,including:

I‐Max–This3‐DdigitaltheateratCinemagic,theonlyoneinMaine,ishugenewattractionwhichopenedrightacrossthestreetfromFuntownSplashtownUSA.

FuntownSplashtownUSA–FamilyAmusementParkandWaterPark.FuntownSplashtownUSAisinvolvedinMaineBeachesandothertourismefforts.

Riverwalk

TheRiverwalkisa3,500foottrailalongthebanksoftheSacoRiverthatisintendedforusebypedestriansandbicyclists.AccesscanbegainedeitheratthetopofFrontStreet,justoffPepperellSquare,orattheendofHallAvenue.Thetrailprovidesgorgeousviewsandamplewildlife,includingaresidenteagle,asitwindsalongtheriverbank.

HistoricMainStreetWalkingTour

TheMainStreetWalkingTourfeaturesseveralhistoricbuildingsandsitesalonga1/2milesectionofMainStreet,Saco.ThetourspanstheareafromtheDyerLibrarytoSacoIslandwithatotalof27stops. ThetourwaspreparedfortheCityofSacobyThomasHardiman, formercuratoroftheSacoMuseum,andincludesmarkersatspecificlocationsthatinformwalkingofspecifichistoricevents.SacoMuseumWalk

Anotherpublichistoryproject,theSacoMuseumMainStreetWalk,presentscolorfulhistoricinterpretivepanelsalongMainStreetfromtheAmtrakStationtotheMuseum.Themuseumandthecityarenowworkingonathirdheritagetourism/publichistoryproject,whichwillpresent3‐dphotosofSaconearthepostoffice.

The Eastern Trail in Southern Maine provides a four‐season, non‐motorized, multi‐purpose, recreational trail between Kittery and South Portland, and will require thecooperationofanumberofgroupsandcommunitiesandthecommitmentofresourcesto itsdevelopment. 6.2 miles of trail will be completed in early summer 2011 from Biddeford toKennebunk,anddesignworkwillbecompletedandconstructionbidssoughtinfall2010fora4.3milesectionfromOldOrchardBeachtoSaco.

EasternTrail

ThepurposeoftheEasternTrailAllianceistoestablishafour‐season,non‐motorized, multipurpose, transportation and recreation trail betweenPortsmouth,NewHampshireandSouthPortland,Maine.ThetrailwillserveasthesouthernMaineportionoftheEastCoastGreenway.Itwillpromotetrail‐associatedeconomicdevelopmentinYorkandCumberlandCountiesbydirectly serving the recreational, commercial, and social activities ofresidentsandvisitors to the southernMaine region. A sectionof this trailrunsthroughSaco.


7‐4

SacoHistoricDistrictandNationalRegister

TheCityof Saco haseight sitesand twodistricts includedon theNationalRegisterofHistoricPlaces.SacoZoningOrdinance includesaHistoricPreservationsectionthataddressestheneedtopreserveareas,sitesorlandmarksintheCitywhicharehistorically,architecturally,or culturally significant. In 1991, the City designated much of downtown as a HistoricPreservationDistrict.TheSacoDowntownHistoricDistrictoccupiesapproximately103acresoflandanditincludes225properties.Ofthese,186areconsideredtocontributetothehistoricalsignificanceofthedistrict.DyerLibrary

TheDyer Libraryhas55,000 to60,000volumes, including twospecial collections.TheMaineHistoryRoomisdevotedtohistoryonastatewidebasisbutwithaspecialemphasisonsouthernMaine.ThelibraryisconsideredanexcellentresourceaboutYorkCountygenealogy. SacoSpirit

SacoSpiritisSaco’sNationalMainStreetaffiliatewhichfollowsthenationalfour‐partapproachtodowntownrevitalization.TheapproachisbasedonfourcommitteesworkingwithaMainStreetmanageronthefollowingissues:design,organization,promotions,andeconomicrestructuring.TheCityCouncilhasappropriated$25,000eachyear,inrecentyears,tosupportSacoSpirit’sdowntownefforts.TheSacoArtShow,thePumpkinFest,andothereventsattractvisitors.


7‐5

UniversityFocus UNE’sgrowingpresenceintheregion,particularlyinthegrowthareaofmedicineandalliedhealth,hasthepotentialtobeacatalystinthecityandregion.

BasedonarecentvisitwithUNE’spresident,thecommitteeidentifiedseveralwaystoworkwithUNE.

RegistrationandOrientation

ThecitywillaskSacoSpirittoorganizelocalbusinessesinwelcomingnewandreturningstudentsinthefallatorientationandregistration.TheCitywilldistributeinformationtostudentsfacetoface.Sacoalsooffersaccommodationsforvisitingparentsandfamilies.

SACOSPIRIT

SacoSpiritalreadycollaborateswithUNEstudentsforthedifferentprogramsandeventsthattheyhost.UNEstudentshavetofulfillacivicservicerequirementtogettheirdegreesomanystudentshavehelpedwithSacoSpiritevents.Theywillcontinuetodothis.

Otherpossibleprogramstogetstudentsinvolvedininclude:

IsthereawaytogetUNEtoofferwork‐studyforsomeofthesecommunity‐basedpositions?

HomeWeatherizationvolunteers Communitygardenerprogram AdvertiseParksandRecreationvolunteerpositions

Businesses MoreSacobusinesseswillacceptUNE’sNor’easterdollars.SacoSpiritwillleadtheeffortstoincreaseaccess.TheBuyLocalcampaignhasalsobeenverysuccessfulwithcollegestudents.IfabusinessparticipatesintheBuyLocalCampaignoracceptsNor’easterdollars,thiswillberecognizedintheChamberofCommercedirectory.Thebusinessesthatparticipateintheseprogramsshouldalsohavedecalsshowingthis. Ithasbeenfoundthatrestaurants,bars,andgrocerystoresarethelargestbeneficiariesofcollegestudentspending.Thetypesofbusinessesmightconsiderpromotions,likecollegenights,offeringdiscountsandcouponsforstudents.Anotherwaytoattractmorestudentstodowntownbusinesseswouldbebyextendingstorehourstobeopenafter5pm.

• Otheractivitiesforstudentso OpenMicNights,orotherstudentorientedeventso Offerstudentdiscountsfortourismactivitiesi.e.IMAX,bowling,etc.o SportsArenasorConcertHallsattractstudentsandadults20‐30

ResearchandInternshipOpportunities

ResearchisanimportantpartoftheUNEexperienceo CanSacocompaniesoffersomeclinicalandinternshipopportunities?


7‐6

o GetSacobusinessesconnecttotheinternshippostingsites,relevantdepartments,ornewslettertoadvertiseinternships/jobs

o StudenttestimonialsaboutinternshipexperiencesandjobplacementwithSacobusinesses.

Housing AlotofUNEgraduatestudentsarelivingintherehabilitatedmillslocatedinbothSacoandBiddeford.DoesUNEhaveanyfuturehousingneedsthatSacomaybeabletofulfill?

Transportation

TheUNEShuttlebus,theNor’easterstopsattheSacoTransportationCenter.StudentratesareofferedatAmtrak.TheNor’easterhasbeensuccessful,maybetheroutecanbeextendedallthewaytoCinemagic.CouldaCampEllisFerrybeutilizedforstudentstocommute?

UNIVERSITYCOLLEGEATSACOISLAND TheUniversityCollegeatSacoIslandisoneofnineUniversityofMaineSystem(UMS)centersinMaine.Currently,coursesaretaughtonsiteandremotelybyfacultyfrombothUniversityofMaineatAugustaandUniversityofSouthernMaine.ThefutureofthissatellitecampusisuncertainatthistimehoweverthereisspeculationthatthecampusmayeventuallyonlyoffercoursesthataretaughtremotelyviaInteractiveTelevisionandtwo‐wayvideoconferencing.SEVENFOCUSAREASFORYOUNGPROFESSIONALS

• EmploymentandEarningOpportunitieso Internshipso Jobs

• Socialcapital:diversity&toleranceo Culturaleventso Encouragemoreyoungprofessionalandstudentinvolvementincommunity

• Easeofgettingaroundtown• Affordabilityandcostofliving

o Downtownhousing• Vitality:healthycommunitywherepeopleareactive,includingrecreationalactivities

o FitnessCenterindowntown• Thingstodoafter5pm

o SportsBarso 18+and21+danceclubsandotherlatenightentertainment

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Saco’s Economic Development History Saco’s early wealth, at the very beginning of the 19th century, was based on logging, sawmills, ocean going trade, and agriculture. Soon the capital from the trade allowed Col. Thomas Cutts to amass real estate and, along with Josiah Calef, to start a factory on what was then Cutts Island, later Factory Island, and is now Saco Island. This first major iron works was established in 1811 and made hoops, nails, and other iron products. The project thrived and the island became a center of commerce for nearly two centuries thereafter. Thus began the transformation of rural Saco and Biddeford to the large manufacturing centers they would become. When Cutts died, his 30 acres of land on Saco Island was auctioned. By 1829 a seven story cotton mill, 210 feet long by 47 feet wide was constructed by the Massachusetts interests later called the York Manufacturing Company, which had purchased the island at auction. The auction brochure proclaimed all of the advantages of the site, including water power, ocean access, lumber and clay for bricks. The giant mill burned a year later, but was quickly replaced by a large brick mill. The York erected eight more mills, and many others were erected by Laconia and Pepperell. Such brick mills would continue to be built for the next century on both banks of the river until the cities were a worldwide force in textiles and textile machinery. As many as 9000 were employed. But a major decline came in the decades after World War II, as the textile industry moved at first to the south and then abroad. The manufacturing of spinning and weaving machinery at the Saco Lowell led naturally into the production of arms during the war. That legacy continues at General Dynamics on North Street, where employment has rebounded to 400, at what is now Saco’s largest employer. Civic Role In this early period there was little direct town involvement in economic development, but the town began constructing streets, drains, and organizing fire departments to accommodate the growth.

Saco Economic Development Plan Economic Development History

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Some 19th Century Milestones 1842 Portland, Saco and Portsmouth Railroad 1827 Saco Biddeford Savings Institution 1867 Boston and Maine Railroad 1860 census, Biddeford population exceeds Saco’s

Civic interest in promoting economic development in the 1890s manifested itself in a Saco Board of Trade, which historian Roy Fairfield says pursued “many ill‐fated schemes.” It was a favorite target of newspaper editors, and “Only a few were fair enough to recognize the stubborn opposition which the group had to overcome,” according to Fairfield. It was 1915 before the Saco board of Trades’ first success. Decades later it attracted Sears Roebuck by assisting it in building a five‐story factory along the rail line at Park Street. That firm soon employed 400, but departed quickly. However, the building was occupied by shoe related industries through the 1990s. It has now found reuse as the Park Street Loft condominiums. Later there are references to city actions to help retain existing employment. Fairfield reports that in 1922 the city helped keep the York Mill intact by rebating a large amount of taxes. A 1941 letter shows a “gentlemen’s agreement” not to increase taxes on another of the mills. Fairfield identifies the changing school curriculum as city assistance to economic development. Vocational training became the norm in the first third of the 20th century. Post WWII Years The mill businesses that rose so rapidly in the 19th century fell nearly as fast in the mid 20th century. Biddeford – Saco Mill employment fell from 10,027 in 1948 to 3,230 in 1959, a loss of 6797 jobs. The mills’ payroll dropped from $581,893. annually to $211,660. for the same period. (Employment in the downtown mills hung on in Saco until 1986 when Blue Ribbon Shoe, a division of Nike, closed for the last time. At one point in the 1970s Nike employed 1000. The mill employment in Biddeford dwindled until the final textile shop in the downtowns, the West Point Stevens mill, closed in 2009.) The twin cities were devastated. Statewide relief efforts were organized by Gov. Payne in the early 1950s. The Red Cross pitched in. The impact was immense. The thousands of mill workers who were daily customers no longer walked by the shops on their way to and from their work at the mills. By the 1960s, storefront after storefront was empty in Biddeford’s once bustling downtown. Saco’s smaller downtown fared a bit better, but was also hard hit.


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Civic leaders in the private sector organized for action, stepping up promotion of the twin cities and creating a new model for redevelopment – the industrial park. Perhaps they had noticed that the new sites in the south where the mills had fled were no longer multi‐story downtown mazes, but rather efficient, suburban, single‐story boxes designed for production. Banks, insurance people, and some of the remaining manufacturing executives organized to revitalize the employment base of the two cities. The techniques were well‐known, and employed elsewhere to good effect. The Greater Portland Building Fund, a private civic organization, with city and town cooperation, built five industrial parks in four towns and cities, ringing the city. Lewiston and Auburn also began building industrial parks which eventually revitalized employment in those cities. In Saco this more suburban pattern of development had already begun with the establishment of the Saco Lowell Armaments Division in 1949 on North Street, the present site of General Dynamics. The site had the advantage of being on the railroad, as well as just down the street from the emerging transportation mode of choice, the Maine Turnpike, which reached Saco in 1947. It was also the former site of the City’s poor farm. The same advantages were noted by civic leaders, and land was assembled and building began on Industrial Park Road and Lund Road, where the first buildings were established by New England Oxygen (now PM Construction) and Lynflex (now Der‐Tex) in 1960 and 1968 respectively. In 1980, Arthur “Skip” Huot wrote, “The improvements on the property (road, sewer, water, rail, and electric service) were obtained by influencing the city and the utilities into servicing the Park.” The civic leaders at first made a civic project of the recovery. “Shares” in the Saco Industrial Corporation, which promoted the new park were sold for $5 each as a fundraiser to pay for acquisition and construction. Occasionally when a very long‐time Saco resident dies, a hopeful son or daughter stops by City Hall to redeem the Saco Valley Industrial Corporation and the Saco Industrial Corporation “stock” only to find that 50 years later it is worth nothing (one type) or still worth just five dollars (another type). These earliest efforts were initiated by private civic groups which later turned over their assets to the city. A program of industrial and business park construction was born, but its birth was not easy according to Huot. The City was turned down for state and federal grants several times in the 1960s and 1970s, according to Huot. He points to several factors in the various half‐starts, including grant denials based on Portland’s better employment statistics, which included Saco at that time,


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refused appropriations by the city, and inertia because Saco leaders did not want to do anything until Interstate 195 (the Spur) was complete. Nevertheless, a $16,000 grant from the Farmers Home Administration was obtained and a master plan for an industrial park was completed. Huot’s 1980 piece appears to have been written to answer criticism of economic development efforts. He writes about why the plan includes private land as well as public land, the suitability of the land for development, the economical approach taken rather than the “5 Star” approach to business parks that some communities took. The work led to the completion of a phase of the park to Garland Manufacturing in 1984 and to the end of Industrial Park Road, adjacent to the pond, in 1987. Inflation was high when the project began, and the City bonded it at a rate of 13% interest. But the die was set in the early 1980s for a pattern of development which began then and continues now in Saco. Likewise, Biddeford has utilized the same formula and has built extensive industrial parks

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