AUGUSTA (AP) – Economic development in Down East Maine could best focus on making the region more attractive to tourists and retirees while also bolstering industries that use the area’s natural resources, according to a report prepared for Gov. John Baldacci.

The strategic report for Washington County, which suffers from high unemployment and low per capita income, was submitted by former utility executive David Flanagan.

The report also highlights the desirability of developing energy resources and supporting local initiatives.

“Washington County is ideally suited for energy development. From its location, it will benefit from the transmission of energy between the U.S. and Canada, with major investments already planned. It also has the natural resources to generate green’ electricity from biomass, wind, and even tidal power.

“Energy development is one of the most promising sectors for expanded economic opportunities in Washington County. To support this, this state can help explore the technology and financial strategies for making these alternatives viable,” the report says.

More than 70 recommendations are included overall.

Earlier this year, Baldacci successfully vetoed a bill supported by the Passamaquoddy Indian Tribe to allow slot machines at a harness racing facility in eastern Maine. At the time, Baldacci said he was committed to fostering economic growth in the area and announced that Flanagan would serve as his special representative.

Baldacci is scheduled to deliver the keynote address Friday at a Washington County Economic Summit at the University of Maine at Machias.

In his report on the eve of the summit, Flanagan notes that “every recent administration has devoted special attention to Washington County.”

He added: “Typically, they have focused on the same needs for infrastructure and education, and the same sectors of the economy – agriculture, forestry, marine resources and tourism, as this one.”

Flanagan’s report goes on to say: “It would not be fair to say these initiatives failed – it is probably true that Washington County is better off than it would have been but for the efforts of the Brennan, McKernan and King administrations.

“But it is also clear that none of them has had a transformational impact – perhaps that can only come when true, natural competitive advantages emerge, as they did with the sardine industry a century ago, or pulp and paper in the 20th century, or perhaps, aquaculture or an energy terminal/corridor in this century.”

In late September, Flanagan was appointed by U.S. Sen. Susan Collins as general counsel to a Senate panel investigating the preparations and response by all levels of government to Katrina.

Flanagan previously was president of Central Maine Power and before that was legal counsel to Gov. Joseph Brennan.

In the summer of 2002, Flanagan scrubbed an independent candidacy for governor, saying he concluded he had little chance of winning.