NORWAY – Tax breaks and other enticing incentives are promised to new and expanding businesses under a new state Pine Tree Development Zone Program.

And the Oxford Hills region wants to get in on the action.

Municipal officials from Norway, Oxford and Paris met Tuesday with officials from the Growth Council of Oxford Hills to learn more about the program being administered by the state Department of Economic Development. The Androscoggin Valley Region, defined as Oxford, Franklin and Androscoggin counties and two census tracts in Lewiston, has been deemed eligible for participation because it is considered an economically depressed area of the state.

The collaboration among the Growth Council, the Greater Franklin County Development Corp. and the River Valley Growth Council, coordinated by the Androscoggin Valley Council of Governments, would allow municipalities to choose properties they’d like to see designated as Pine Tree Development Zones.

“The goal is to submit a regional application that is creative and success-based, bringing new investment to the region,” said Barb Olson, the Growth Council’s vice president.

Under the program’s rules, a zone cannot consist of more than 20 non-contiguous parcels. In early planning meetings of the economic development groups, the consensus seems to be to allow everyone to have a piece of the pie.

The whole Androscoggin Valley region could be submitted as one zone, which must be under 5,000 acres. The group has opted to designate four zones from Oxford Hills, four zones in the River Valley, three in Auburn, three in Lewiston and four in the greater Franklin County area.

At the Tuesday meeting, Olson and her boss, Brett Doney, recommended including the Western Maine Office Technology Park in Norway as one of the zones. Western Maine Development’s light industrial office park project on Route 26 in Oxford was suggested as another zone, and the area on Route 26 in Paris near the KBS Systems manufacturing plant was suggested as a third zone. Retail development would not qualify for zone designation.

An important criteria for selection is that the land be as ready for commercial development as possible, and be able to demonstrate that “but for” the zone designation, the project would not happen.

“A business may be right on the edge of deciding” whether to locate in the Norway office park, for example, said Olson, “and the one thing that would kick them over would be these tax incentives.”

The benefits include a 100 percent state income tax credit for the first five years, followed by a 50 percent credit for the sixth through 10th year. Doney called this the “most powerful incentive.” Other exemptions include, starting in 2005, a 100 percent sales tax exemption for building materials and all tangible personal property, and that tax increment financing districts located in zones would be exempt from the cap on town property that can be placed under a TIF.

Olson said she did not know what other zones were being considered by the other economic development organizations, and officials their could not be reached for comment.

The Pine Tree Development Zone program was created during the last legislative session and is endorsed by Gov. John Baldacci. The zones include up to 500 acres in the Penobscot Valley reserved for the Penobscot Nation, up to 500 acres in Washington County reserved for the Passamaquoddy Tribe, and up to 100 acres in Aroostook County reserved for the Aroostook Band of Micmacs and the Houlton Band of Maliseet Indians.

Areas must demonstrate economic distress, and be located in economically depressed areas of the state.

Olson stressed that the Pine Tree Development Zones program requires municipal support and participation. Paris Selectman Bruce Hansen said he wasn’t sold on the idea, since as envisioned it would not provide any incentives for existing businesses.

“(The new business) gets the credit, whereas the guy who has been here 20 years and is still struggling would not,” he said.

AVCOG’s Amy Landry, an economic development planner, said the hope is to have Pine Tree Zones in operation by Jan. 1, 2004.

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