By Carol Coultas,Business Writer

LEWISTON – The original incorporators of Androscoggin Bank likely looked on as Bates Mill No. 6 was being built.

After all, the bank – founded in 1870 – had been around for 22 years by the time Mill No. 6 went up.

Now, 113 years later, the two institutions are coming together. President Steven Closson has announced plans to relocate the bank’s back-office operations to the newly renovated mill space. Against a backdrop of rough-hewn timber, freshly washed brick and 13-foot windows, Closson expressed his pleasure at the deal.

“We’re very excited about the opportunity to be here,” he said to a gathering of development officials, business people and press Thursday. “We expect this will increase our capacity to serve our customers and the communities we’ve served since 1870.”

The bank will relocate its loan processing, deposit and information technology divisions to the second floor of the mill. About 40 employees will work there, relocating from a Main Street office. Another 10 to 12 people could be hired as the bank grows, said Closson.

The consolidation of the technology and transaction divisions under roof will improve the bank’s efficiency, making it worth the move’s cost of $700,000 to $800,000. Closson said they hope to be in the new space by the end of the year.

Androscoggin Bank is the first tenant announced for Mill No. 6, but others are expected soon. Developer Pat Maiorino, who partners with Tom Platz in Bates Mill LLC, said the company is negotiating with other tenants for the 54,000-square-foot mill.

“It’s been a long time coming because it’s such a large project,” said Maiorino. Bates Mill LLC has sunk about $2.5 million into renovating the three-story mill, including raising the second floor by 17 inches to create enough head space in the first level to make it leasable space. Once all the space has been fitted for tenants, Maiorino said the cost will likely hit $5 million.

Once Mill No. 6 is occupied, the developers will turn their attention to Mill No. 3. The south side of that mill is occupied by TD Banknorth; the north side is under negotiations for tenants who are likely to be announced within a couple of weeks.

The smaller No. 2 wing and storehouse buildings are next in line for development. Once those are occupied, Bates Mill LLC will have 400,000 square feet of leased space, Maiorino said.

Then the company will turn its attention to Mills No. 1 and 2 – the gigantic mills that jut from either side of the original Bates Mill tower. Temporary tenants of those buildings have been moving out over the last couple of years to allow for its redevelopment.

Maiorino said the intent is to draw a mix of tenants for the entire complex to make it a “well-rounded facility.” Discussions are under way with fitness centers, day-care centers, restaurants and other businesses. Maiorino said there’s potential to have 4,000 to 5,000 people working at the complex – similar to the number of employees when Bates Mill was in its heyday.

“It would bring us back full circle, when the mill was the largest employer in Maine,” said Maiorino.

The remaining two parts of the Bates Mill complex – the boiler plant and the huge Mill No. 5 – are still owned and managed by the city. Officials hope to develop Mill No. 5 into a convention center and are seeking developers willing to invest the $40 million into its transformation.