Pine Tree Zones are part of Gov. John Baldacci’s plan to spur economic development.
LEWISTON – Lewiston’s entire downtown, turnpike business parks and undeveloped parcels off Mollison Way should get Maine Pine Tree Zone benefits, according to the City Council.
Councilors approved an application placing those three areas into the Androscoggin Valley Region Pine Tree Zone. The state should review and accept those parcels in February, according to Assistant City Administrator Greg Mitchell.
“We expect the state to really follow the local group’s lead on this,” Mitchell said. “If we need to change things a little, we will. But we don’t expect many changes.”
Pine Tree Zones are part of Gov. John Baldacci’s plan to spur economic development in Maine by offering incentives to new and growing manufacturing, banking or high-tech businesses.
A number of zones will be set up around the state, including the Androscoggin valley zone. That one includes Auburn, Lewiston, Greene, Lisbon, the Oxford Hills region, Franklin County and the Mexico-Rumford area.
To qualify for Pine Tree benefits, businesses need to add full-time employees, offer qualified retirement programs, group health insurance and offer wages greater than the surrounding county average. In the Androscoggin valley zone, that average wage is $12.93 per hour.
The business also needs to prove that its expansion would not happen without the Pine Tree Zone benefits.
Businesses that qualify can look forward to exemptions on sales taxes for building material and personal property, employment tax reimbursements and TIF benefits. The state also would return state income taxes to the business for five years and then half of all state income taxes for another five years.
“This is to bring new businesses here, to Maine,” Mitchell said. “It’s supposed to level the playing field and make us more competitive to out-of-state businesses hoping to relocate.”
Mitchell said the city identified the business parks around the Maine Turnpike interchange and the Fairgrounds Business Park off of Main Street because there was room for growth and utilities included.
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