Bill would aid (Maine) rural economy- Senate gives initial OK for new development authority

The Maine Senate gave initial approval Wednesday to a bill that would create a new development agency to help areas hard hit by the loss of major
employers or plagued by long-term economic problems.

Joe Rankin
Kennebec Journal

The bill would create a Maine Rural Development Authority that would loan money to towns to build commercial buildings and could buy and redevelop
existing vacant buildings.

Supporters say the bill would help depressed communities in all areas of the state, but would be a boon to rural Maine communities like Dexter, where
hundreds lost their jobs when Dexter Shoe Co. closed, and Lincoln, where a section of Main Street was devastated by a fire.

Having secured preliminary approval of both chambers, the bill looks likely to be enacted. The big question is the funding to allow it to operate.

Gov. Angus S. King Jr. has proposed $15 million for the authority as part of an economic development bond. Proposals currently before the
Legislature’s appropriations Committee range from $7.5 million to $10 million.

No matter what the final figure is, voters would still have to approve the bond.

"What the authority is really envisioned to do is go in and recapitalize areas hard hit by the loss of a substantial amount of jobs or the loss of a large
employer," said Rep. John G. Richardson, D-Brunswick.

Richardson is the co-chairman of the Legislature’s Business and Economic Development Committee, which developed the proposal.

Richardson said the authority legislation would "create a nimble program" that could help towns develop buildings to lure business and also help
redevelop existing properties that might be difficult to fill otherwise.

Sen. Kevin L. Shorey, R-Calais, co-chairman of the business and economic development committee, said the ability to buy and renovate vacant
industrial buildings would provide "something for our business attraction people to sell."

The Authority would be a quasi-independent agency, staffed initially by the Department of Economic and Community Development until it gets up and
operating.

DECD Policy Specialist Peggy Schaffer said the authority is modeled on the Maine Port Authority. It is similar to industrial development authorities that
operate in other states, she added.

The program could be particularly beneficial for more rural areas where "mature" industries such as clothing makers and shoe factories are the major
employers and have been closing at a rapid pace.

Communities eligible for help would include those that had lost a "significant percentage" of jobs or tax base because of the closing of a major employer
or are dealing with chronically high unemployment rates, loss of population, or below average personal income.

Assuming the authority is funded, it would essentially create a revolving loan fund. Bond money would be loaned to towns to build buildings and used by
the authority to buy and rehabilitate existing properties for resale. In both cases the revenues would be reinvested in future projects and also used to
fund the authority’s operations, Schaffer said.

Because the bond is seen as a one-time infusion of cash, supporters are lobbying for as large a figure as they can get.

"Fifteen million dollars is the right figure, but $10 million is workable," Schaffer said. "If we undercapitalize it, the Authority will have to come back" in the
future for more funding.

"This is a good thing for rural Maine.

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