LEWISTON – Set against the backdrop of the historic Bates Mill, Gov. John Baldacci revealed details of his plan to push economic development into the future.

Surrounded by legislators and state officials, Baldacci announced the specifics of his Pine Tree Zone development plan, a linchpin in his strategy to revive Maine’s economy.

“We are providing incentives to draw in business to the state and to help businesses within the state to grow,” said Baldacci.

Sixteen communities along the Androscoggin River valley will benefit from the zones. Towns from Rumford to Kingfield will be able to attract new and expanding businesses by offering tax breaks as incentive. Nearly 5,000 acres within Androscoggin, Franklin and Oxford counties received the Pine Tree Zone designation, with close to half falling in Lewiston (1,285 acres) and Auburn (1,033 acres.)

“This is a nice bundle of incentives to have in our tool kit,” said Lucien Gosselin, director of the Lewiston-Auburn Economic Growth Council. “It significantly levels the playing field, especially with our sister state, New Hampshire.”

The incentives include breaks in payroll taxes, refunds of corporate income tax, options for local property tax breaks and sales tax exemptions on construction materials and equipment purchases. Eligible businesses could also receive electricity discounts for locating within the zones. The incentives have a 10-year life span. Applications can be submitted immediately.

The incentives are only available to new or expanding companies in the manufacturing, financial services and technology fields. The Androscoggin Valley Council of Governments will administer the program locally.

The state plans to roll out a marketing program to tell prospective businesses that Maine is throwing down the welcome mat.

“We’re letting the world know that we’re a first-class place to do business,” said Baldacci. He said similar programs in other states have reaped the benefits of this kind of economic development, which can be measured in good paying jobs.

Bob Thompson, director of AVCOG, offered an example of how the incentives would work using the Bates Mill, which falls in one of Lewiston’s Pine Tree Zones. If a new technology business wanted to move into Mill No. 6, the prospective client could approach either owner Tom Platz or the LAEGC. Both would refer him to AVCOG, which would screen the business for eligibility for Pine Tree incentives. If everything was in order, AVCOG would ship the application to the state for final approval. If awarded, the business could then locate within Mill No. 6 and reap the benefits of the incentive programs for 10 years while bringing new jobs to the community and expanding its tax base.

Jack Cashman, commissioner of the state Department of Economic and Community Development, commented on the appropriateness of making the announcement at the Bates Mill, which has a long history as a textile manufacturer, but is transitioning into 21st century jobs in the financial services field.

Hundreds of communities petitioned the state for Pine Tree Zone status. Four zones were established by statute: Androscoggin Valley, Penobscot Valley, Aroostook and Washington counties. Four others were determined through an application process: Kennebec Valley (4,005 acres); Midcoast (1,993 acres); PenQuis (2,855 acres in an area encompassing Penobscot and Piscataquis counties); and Southern Maine (2,594 acres).

[email protected]