By Carol Coultas,Business Writer

AUBURN – Concord Insurance plans to build a new facility at Kittyhawk Industrial Park, capitalizing on the state’s Pine Tree Zone incentive program.

The multi-line insurance company submitted an application to the state last year for Pine Tree Zone status, which was granted in December. The application outlines the company’s plans to build a $1.4 million building to handle claims and sales.

The Pine Tree Zone is Gov. John Baldacci’s program to offer tax incentives to targeted industries that make significant new investments. Certified companies don’t have to pay sales taxes on construction costs, and are eligible for 80 percent income tax reimbursements for new hires. The Pine Tree application states the company hopes to hire more than 40 new employees over five years.

The Concord, N.H.-based company submitted plans for a 10,000-square-foot office building to the city Planning Department in July. Because it’s an accepted use for an existing industrial park, the application requires no Planning Board action, just a staff review.

The plans show a two-story brownstone building with 63 parking spaces, with a possible future addition of 5,000 square feet with another 41 parking spaces.

The company sells personal and commercial insurance coverage through a network of 300 independent agents in Maine, Massachusetts, New Hampshire and Vermont. It has an office at 308 Center St.

Calls to the corporate offices in New Hampshire weren’t returned. But James Nimon, the state’s overseer of the Pine Tree Zone program, said he believes the incentives were key to the company’s decision to invest in Auburn.

“They were looking at sites around New England,” he said. “We’re very happy they decided on Maine.”