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Published quarterly by the Maine Department of Economic and Community Development February 2008  Volume 12, No. 1

From the Commissioner
Photo of Commissioner John Richardson

As the New Year begins, the country as a whole faces economic uncertainty but I am optimistic that the successes Maine has had in the last year have placed us in a good position to meet any future challenges head on. Maine's business climate is showing signs of growth; the State Fire Marshall's Office reported that over $1.2 billion in commercial construction plans passed through their office in 2007. This is nearly a quarter million more in planned investment than in 2006.

Also, 2007 was a great year for businesses benefiting from the Pine Tree Zone incentives. This year marks the fourth anniversary of the state's Pine Tree Zone Program that Governor Baldacci introduced in 2003. The past four years have seen many businesses, large and small, benefit greatly from the incentives the program offers. The Pine Tree Zones have been a vital part to the economic stimulus that we, here at DECD, have worked so diligently for over the years.

Maine is being proactive when it comes to business development. Maine's Pine Tree Zone program keeps us competitive with other states and I am proud to say today that the program is a true success. Every year, more and more businesses have become certified. Just in the past three months, over 20 businesses, ranging from start-ups to wellestablished organizations have been granted Pine Tree Zone certification. To date, over 150 companies have been certified, 45 in 2007 alone, more than in any previous year. These companies have identified the creation of 4,100 jobs as a result of these benefits. The Pine Tree Zone Program was amended in 2007 in order to assist Maine's manufacturing industries. Now businesses not located in a Pine Tree Zone can qualify for certification if they meet special criteria to create at least four net new jobs and an investment of at least $225,000. This has encouraged numerous manufacturing companies to expand their workforce and production capability to better compete in a global economy. In December, Eastman Industries became certified for their manufacturing plant expansion which will lead to the creation of up to 100 new jobs. Previously Eastman Industries was able to purchase Ingersoll Tractors, a Wisconsin-based manufacturing company, and relocate it to Maine.

This type of development is good news for the state's manufacturing sector, a key industry in our state.

I am excited about our progress to date and I am looking forward to what the future will bring in terms of manufacturing growth and business development.

Sincerely,

Photograph of Commissioner John Richardson's signature
Commissioner
John Richardson (207) 624-9805
john.richardson@maine.gov
www.businessinmaine.com

Deputy Commissioner
Thaxter Trafton (207)624-9800
thaxter.trafton@maine.gov

Director of Business Development
Jim Nimon (207) 624-9804
james.nimon@maine.gov
www.mainebiz.org

Director of Community Development
Orman Whitcomb (207) 624-9819
orman.whitcomb@maine.gov
www.meocd.org

Director of Tourism
Patricia Eltman (207) 624-7483
pat.eltman@maine.gov
www.visitmaine.com

Director of Maine International Trade Center
Janine Bisaillon-Cary (207) 541-7400
jbcary@mitc.com
www.mitc.com

Director of Innovation
Catherine Renault (207) 624-9801
catherine.s.renault@maine.gov
www.maineinnovation.com

Launch of New Prototype Heralds Economic Growth

The launch of the Mark V.1 prototype, a new naval patrol craft built by Hodgdon Yachts, positions Maine's boat building and composites industries well for the future. The launch is the most recent achievement of the partnership between Hodgdon Yachts, Maine Marine Manufacturing and the University of Maine.
Read the full story ...

Maine Office of Tourism Debuts New Travel Show Pavilion

The Maine Office of Tourism debut of its new travel show pavilion took place at the Adventures in Travel Expo January 12-13 at Pier 94 Convention Center in New York City.
Read the full story ...

OBD Business Development Specialists

For the past 10 years, OBD has had a decentralized approach to business development. The eight business development specialists do not work in the Capital but are literally out in the streets of their communities. They are the state's economic development experts and are based in the offices of regional economic development agencies to help companies and organizations optimally utilize Maine's valuable business resources.
Read the full story ...

Bangor Welcomes 500+ Tourism Professionals for Governor's Conference

More than 500 tourism and hospitality professionals gathered at the sold-out Bangor Civic Center for the 2008 Governor's Conference on Tourism. It was the largest gathering of the annual event in a decade.
Read the full story ...

Technology Fund Created to Boost Innovative Maine Businesses

The Department of Economic and Community Development announced that the Maine Technology Institute (MTI) board of directors has approved a competitive application process for allocating funds from the $50 million research and development (R&D) bond that was passed by the voters in November.
Read the full story ...

Sabre Yachts Honored for Winning Boat of the Year Awards

Members of the boat building community and officials from the state all participated in a celebration at Sabre Yachts as the company was presented with two national Boat of the Year awards on Monday, January 7.
Read the full story ...

Office of Tourism Hosts Lobster Bake for Chicago Media

The day before the Adventures in Travel Expo in Chicago, the Office of Tourism hosted an authentic Maine Lobster Bake for Chicago area travel media. The luncheon was attended by 13 media representatives from newspapers, magazines, radio and television.
Read the full story ...

Maine Snow Sculpting Team to Represent U.S. at Quebec Carnival

A team from the Maine Snow & Ice Sculpting Foundation will be the lone United States representative at Quebec Winter Carnival's International Snow Sculpture Event happening February 5-10 in Quebec City.
Read the full story ...
in this issue

Mark V.1 Prototype | New Travel Show Pavilion | Profile: OBD
Bangor Welcomes 500+ Tourism Professionals | Technology Fund Created
Sabre Yachts Honored | Lobster Bake for Chicago Media | Maine's Snow Sculpting Team





Launch of New Prototype Heralds Economic Growth

EAST BOOTHBAY, Maine – The launch of the Mark V.1 prototype, a new naval patrol craft built by Hodgdon Yachts, positions Maine's boat building and composites industries well for the future. The launch is the most recent achievement of the partnership between Hodgdon Yachts, Maine Marine Manufacturing and the University of Maine.

DECD Commissioner John Richardson joined Senator Susan Collins, Representative Tom Allen, Tim Hodgdon, president and CEO of Hodgdon Yachts, Commodore Evin Thompson from Naval Special Warfare Group FOUR, Dr. John Pazik from the Office of Naval Research, David Packhem, president and CEO of Maine Marine Manufacturing and Dr. Robert A. Kennedy, president of the University of Maine to participate in the boatyard's launch ceremony.

“This accomplishment was made possible through the collaboration of the state's traditional boat building and cutting-edge composites industries,” stated Richardson. “The state-of-theart composite materials developed specifically for this project by the people at the Advanced Engineered Wood Composites Center (AEWC) at the University of Maine not only provide a stronger and lighter military boat but can be used to create new global product opportunities with applications for commercial and luxury yachts.”

Photo of Dr. Robert A. Kennedy, State Representatives Emily Cain and Chris Rector, Tim 
			Hodgdon, John Richardson, Dr. Habib Dagher and Cathy Renault of the Office of Innovation standing before the MARK V.1 after the launch
Dr. Robert A. Kennedy, president of the University of Maine, State Representatives Emily Cain and Chris Rector, Tim Hodgdon, John Richardson and Dr. Habib Dagher of the AEWC and Cathy Renault of the Office of Innovation stand before the MARK V.1 after the launch.
 
Photo of the Mark V.1 resting in the harbor after being launched. Photo provided by The Maine Department of Economic and Community Development
The Mark V.1 resting in the harbor after being launched. Photo provided by The Maine Department of Economic and Community Development

Richardson continued to say that the success of the Mark V.1 will encourage further investments in research and development in the composite industry and provide support to this burgeoning industry cluster in Maine. Richardson added that the North Star Alliance Initiative also played a role with research and development support, and funding to the AEWC and training.

The university is pleased with the outcome of the project as well. Dr. Robert Lindyberg, assistant director for Boat Building and Composites at the AEWC, commented that, “Today's event is significant: it represents the result of a 192-year-old boat building company coming together with the University of Maine and support of the state government to pursue new market opportunities. This launch is the first success of that endeavor and the AEWC is looking forward to future collaborations.”

David Packhem was openly excited at the prototype's launch. “The Mark V.1 is the result of nearly four years of work that clearly lays the foundation for advanced composite development for Maine-based companies and new product development,” he said. “Everyone involved with this project is enormously pleased right now.”

 


Maine Office of Tourism Debuts New Travel Show Pavilion

NEW YORK, New York - The Maine Office of Tourism debut of its new travel show pavilion took place at the Adventures in Travel Expo January 12-13 at Pier 94 Convention Center in New York City.

The traveling display highlights the state's unique attractions, destinations, activities and touring routes. Visitors can learn about Maine lobster, lighthouses, wildlife watching and the abundance of vacation opportunities in Maine.

“Our new tourism pavilion is an important marketing tool for us as we encourage consumers to choose Maine,” said DECD Commissioner John Richardson.

“Maine competes with destinations throughout the world and this pavilion helps position us as a leader in tourism promotion and as a must-see vacation destination,” Richardson added.

A photo of the new tourism pavilion at the Adventure in Travel Expo in New York City.
The new tourism pavilion at the Adventure in Travel Expo in New York City.
 
Photo of Representatives of Maine's tourism industry greet visitors at the new pavilion
Representatives of Maine's tourism industry greet visitors at the new pavilion

Director of Tourism Pat Eltman expressed her pride in the pavilion. “Maine's pavilion was very well received in New York and Chicago,” said Eltman. “ It is gratifying to see the positive reaction from show attendees and our competing destinations.”

The Maine pavilion will be on display at travel shows in New York City, Boston, Chicago, Washington, DC and Los Angeles. The Office of Tourism will be joined in the pavilion by representatives from a variety of attractions throughout Maine, as well as other state agencies.

 


Profile: OBD Business Development Specialists

Photo of Business development specialists: Standing, left to right: Alain Ouellette, Bill Osborne, Ron McKinnon, Janet Toth, Brian Hodges, Judy Bielecki (Pine Tree Zones project officer),
						Deborah Elliott, Jeanne St. Pierre, Brian Longstaff. Seated: Brian Doyle, Jim Nimon (Director of OBD), Andrea Smith (Office of Community Development).
Business development specialists: Standing, left to right: Alain Ouellette, Bill Osborne, Ron McKinnon, Janet Toth, Brian Hodges, Judy Bielecki (Pine Tree Zones project officer), Deborah Elliott, Jeanne St. Pierre, Brian Longstaff. Seated: Brian Doyle, Jim Nimon (Director of OBD), Andrea Smith (Office of Community Development).

AUGUSTA, Maine - Jim Nimon, director of the Office of Business Development (OBD), is clearly proud of his business development specialists.

“They're our eyes and ears throughout the state,” he says. “They provide an excellent grassroots approach to how Maine is working to develop the economy and allow for a more nimble response to the critical needs of our regions and their communities.”

For the past 10 years, OBD has had a decentralized approach to business development. The eight business development specialists do not work in the Capital but are literally out in the streets of their communities. They are the state's economic development experts and are based in the offices of regional economic development agencies to help companies and organizations optimally utilize Maine's valuable business resources. This de-centralized method provides a local and more convenient way to help a business grow. Governor Baldacci, in his recent State of the State address, explained it well. He said that Maine's top economic development priority should be to provide communities with the support and resources to help them accomplish their goals. Business development specialists are the liaisons between the state and businesses. Simply put, their job is to make doing business in Maine as easy as possible.

“I know firsthand the value of getting information about the state's resources into the hands of those who need it most,” says Ron McKinnon, a Business Development Specialist since 1998. “I act like a general practitioner for businesses and part of my job is to properly assess their needs and refer people to agencies that can add the most value. Most successful projects take several entities to work, such as the financial people and local officials. I help put that team together. There is a lot of data to wade through on your own and having a guide or coordinator is a great help for businesses.”

McKinnon adds that budget constraints due to diminishing resources are posing a problem, and that the state's Pine Tree Zone Program has been an immense help.

Without OBD regional field staff, an organization looking to expand or re-locate to Maine might be daunted by the possibilities. There are many business resources and incentive programs that the state offers. Field staff help match these incentives to organizations based upon their development needs. Also, having state representation on a project or initiative carries a certain level of security and confidence not matched by smaller, specialized organizations.

Business development specialists are the key sales force behind programs such as the Pine Tree Development Zone incentives, Tax Increment Financing (TIF) and the Governor's Training Initiative.

The business developments specialists are highly pro-active in their jobs and work to foster strong connections with the people in their various regions and highlight the available resources to businesses within their communities.

 


Bangor Welcomes 500+ Tourism Professionals for Governor's Conference

BANGOR, Maine – More than 500 tourism and hospitality professionals gathered at the sold-out Bangor Civic Center for the 2008 Governor's Conference on Tourism. It was the largest gathering of the annual event in a decade.

The theme of the conference was “It's All Right Here,” a celebration of all Maine has to offer as a place to live, work and visit. Attendees heard a keynote address from Dr. Laila Rach of New York University's Tisch Center for Hospitality, Tourism and Sports Management and took part in educational workshops, a tourism tradeshow, and the Maine Tourism Awards program.

“Improvements to this year's conference allowed more people to attend and put an emphasis on the strength of local, regional and statewide partnerships among tourism operators,” said Pat Eltman, director of the Maine Office of Tourism.

During the morning session, Governor John Baldacci made welcome remarks, and Department of Economic and Community Development Commissioner John Richardson and Maine Tourism Commission CEO Vaughn Stinson talked about the continuing strength of Maine's tourism industry.

Eltman and Richardson presented the Maine Tourism Awards, which honor individuals, businesses and organizations that have distinguished themselves through their work.

Award winners were: Maureen Regan of Seaside Vacation Rentals for Commitment to Tourism Growth, Ed Palmer of the Portland Marriot at Sable Oaks for Commitment to Employees, Rocky and Lisa Freda of Sun Valley Sports for Commitment to Innovation, Joseph Cyr of Cyr Bus Lines for Commitment to Service Excellence, and Fred Cook of DownEast Acadia Regional Tourism for the Governor's Award for Tourism Excellence.

Eltman said the record turnout was the perfect way to kick-off a new year for Maine's tourism industry. “The energy and enthusiasm from attendees was amazing,” she said. “So many people are doing great things to keep Maine a premier vacation destination.”

The Governor's Conference on Tourism is a project of the Maine Office of Tourism, the Maine Tourism Commission and numerous sponsors, including the major conference sponsor, Maine Tourism Association. The 2009 Governor's Conference on Tourism will take place February 10.

Photo of an advertisement for the Governor's Conference on Tourism
Photo of an advertisement for the Governor's Conference on Tourism


Technology Fund Created to Boost Innovative Maine Businesses
~Fund Encourages Public-Private Collaboration to Have Maximum Economic Benefit~

The Maine Technology Institute (MTI) logo

AUGUSTA, Maine - The Department of Economic and Community Development announced that the Maine Technology Institute (MTI) board of directors has approved a competitive application process for allocating funds from the $50 million research and development (R&D) bond that was passed by the voters in November.

The monies from the bond are held in a newly created fund called the Maine Technology Asset Fund and join a variety of other funding programs that support the stages of research, development and commercialization of new technologies and generate quality jobs across Maine.

 

According to DECD Commissioner John Richardson, “R&D is a motivating force in economic growth. The competitive application process of the fund is extremely important because it encourages collaboration among our universities, nonprofit research laboratories and for-profit innovative businesses. Collaboration is proven to bring new technologies from the lab directly to the market, such as our composite technology and its application today in our boat building industry.”

Dr. Catherine Renault, director of the Office of Innovation, and a member of the Maine Technology Institute Board, added, “This bond package will result in better paying jobs and faster growing companies. For every dollar invested in R&D, there is a $10 return in terms of economic impact. These jobs keep Maine on the cutting edge and counter job loss in our traditional industries.”

The Maine Technology Asset Fund will be used for capital and infrastructure expenditures, such as laboratories and laboratory equipment supporting research and development activities leading to commercialization of new products and processes in Maine's technology sectors. Individual universities, nonprofits and for profit entities may all apply to this fund, and evaluation criteria are weighted toward collaborations among organizations working together to move new technologies to the market. An example of an eligible project is funding for a new laboratory and specialized equipment that will support a specific field of research and development and will be performed in collaboration with a number of private sector companies. The process will be outlined in a Request for Applications expected to be released by February 1. MTI will be conducting informational sessions on the new program in February.

In contrast, the existing MTI Development Awards are for operational funds (e.g., salaries, materials) for research and development that support commercialization and the creation of jobs in Maine. These awards are designed to fund specific activities that help advance products and services toward the market. An example of an eligible project is a proof of concept, alpha testing, prototype development, beta testing, and/or manufacturing design for a new product, service or process.

Companies seeking capital investment or working capital or both for commercialization alone with no research and development component are eligible for funding from a wide variety of other state programs, such as the Small Enterprise Growth Fund, the Finance Authority of Maine and other equity and loan programs. An example would be a project building a new manufacturing facility or expanding a plant to support a new product if the product development is substantially complete.

For information on the new Maine Technology Asset Fund, visit the Maine Technology Institute at www.mainetechnology.org. For information on programs from the Small Enterprise Growth Fund, visit www.segfmaine.com. For information about programs from the Finance Authority of Maine, visit www.famemaine.com.



Sabre Yachts Honored for Winning Boat of the Year Awards
~Maine Yacht Company receives two Boat of the Year Awards for the Sabre Spirit~

Photo of Sally Helm of Sailing World magazine, Commissioner Richardson and Daniel Zilkha, CEO of Sabre Yachts
			with the “Boat of the Year” awards.
Photo of Sally Helm of Sailing World magazine, Commissioner Richardson and Daniel Zilkha, CEO of Sabre Yachts with the “Boat of the Year” awards.

SOUTH CASCO, Maine – Members of the boat building community and officials from the state all participated in a celebration at Sabre Yachts as the company was presented with two national Boat of the Year awards on Monday, January 7. Sabre was recognized by Sailing World magazine and Cruising World magazine for the Sabre Spirit. The Sabre Spirit is a sailing yacht crafted in Maine by Sabre's skilled boat builders. It is very rare for the same boat to receive two Boat of the Year awards and State Department of Economic and Community Development Commissioner John Richardson was pleased to join in the celebration at Sabre Yachts' boatyard.

'Maine-built boats, such as Sabre's, have an understated beauty and elegance to their design,” remarked Richardson. “The people of Maine are proud of our boatbuilding heritage and so we should be. Our boats are some of the most inspired watercrafts in the world.”

Sabre, a member of Maine Built Boats, Inc, an organization established to strengthen and expand Maine's boat building industry, was presented with Sailing World magazine's Boat of Year award in the Daysailer category. Cruising World magazine awarded Sabre Boat of the Year in the Judge's Choice category based upon the high-quality and ingenuity of the design. Bentley Collins, Sabre's vice president of sales and marketing, said that Sabre's awardwinning craftsmanship is something the company takes great pride in.

 

“It takes great people to build a great boat,” Collins stated. “We're very proud to receive these prestigious awards; it reflects the commitment and talent of the men and women who designed and built the Sabre Spirit.”



Office of Tourism Hosts Lobster Bake for Chicago Media

Photo of Chef Kevin Tacy from Foster's Downeast Clambake demonstrating
			how to eat a lobster to a group of Chicago area travel media.
Chef Kevin Tacy from Foster’s Downeast Clambake demonstrates how to eat a lobster to a group of Chicago area travel media. The Office of Tourism hosted the demonstration and lobster bake on January 25 at The Chopping Block in downtown Chicago.

The day before the Adventures in Travel Expo in Chicago, the Office of Tourism hosted an authentic Maine Lobster Bake for Chicago area travel media. The luncheon was attended by 13 media representatives from newspapers, magazines, radio and television.

Chef Kevin Tacy from Foster's Downeast Clambake in York Harbor prepared the lobster bake using a one-pot method, including using seaweed and demonstrated the process to the media as they asked questions and took notes.

The Office of Tourism is now following up with the writers who attended and are planning stories on Maine.

 


Maine Snow Sculpting Team to Represent U.S. at Quebec Carnival

A team from the Maine Snow & Ice Sculpting Foundation will be the lone United States representative at Quebec Winter Carnival's International Snow Sculpture Event happening February 5-10 in Quebec City.

Fresh off his Guinness World Record tallest sandcastle build last summer, Maine Snow & Ice Sculpting Foundation Executive Director Ed Jarrett will lead the Maine team in the Quebec sculpting event for the first time. Apprentices Tim Wade and Jay Bluck will help Jarrett transform an 18 foot wide, 12 foot deep and 10 foot tall block of snow into a unique work of art.

Quebec Carnival is the biggest winter carnival in the world, and the Maine team was selected from several other United States applicants to compete against 45 teams from Canada and the rest of the world.

“Ed's sculptures have made Maine a destination for spectator builds whether he's using sand, snow or ice,” said Maine Office of Tourism Director Pat Eltman. “I'm proud that Maine will represent the country against the world's best snow sculptors at Quebec Carnival.”

L.L. Bean is outfitting each team member, and is hosting a team practice area for two weeks before the competition on the stage at Discovery Park at the company's Freeport campus.

On February 16 and 17 the Maine delegation, including Commissioner Richardson and DECD staff will treat carnival visitors to lobster bisque and wild blueberry cake at the Palace Royale. During the visit, DECD officials and members of Maine's Legislature have meetings scheduled with Quebec government tourism officials.



Contact Us

Maine Department of Economic and Community Development
The Burton M. Cross State Office Building
111 Sewall Street, 3rd Floor
Augusta, ME 04333



Mailing Address:
59 State House Station
Augusta, ME 04333-0059



The Department of Economic and Community Development's mission is to improve the quality of life for all Maine people through effective programs in business, tourism and community development, and through policies that advance the state's position in the global economy.