October 17, 2005
A shift in philosophy | Wiscasset focuses on internal growth rather than recruiting new businesses
By Nate Hardcastle
Wiscasset's cash-strapped town government recently laid off its director of economic development, a move that initially sent up red flags among some townspeople and local business observers (including this newspaper). The story behind that move is less alarming than it first appeared, however: Wiscasset's new arrangement reflects an attempt by the midcoast town to make every dollar count as it develops its future after Maine Yankee.
Wiscasset Town Manager Andrew Gilmore in early September decided to consolidate the offices of town planner and director of economic development into one position, director of economic and community development. Town planner Jeffrey Hinderliter is assuming that post, leaving former economic development director Don Alexander out of a job.
On one level, the move to streamline town government represents a straightforward response to Wiscasset's tight budget: Gilmore projects that eliminating the position will save the town roughly $60,000 a year. But the shake-up also represents a shift in Wiscasset's economic development philosophy, from an emphasis on external marketing designed to attract new business to an internal focus on managing growth. "Our growth management and planning need to take a front seat right now," says Gilmore. "Development activities should be a close second."
One reason for that shift: Wiscasset is beginning to emerge from the difficulties that followed Maine Yankee's 1997 closure. The town at that point faced the loss of 95% of its tax revenue, with a paucity of business activity to pick up the slack. Eight years later, conditions are looking brighter. "Wiscasset has passed some important milestones successfully," says former town planner Dan Thompson. He points out that the town has come to an out-of-court agreement with Maine Yankee concerning its remaining tax payments, developer Point East is building a marina, residential development and technology business park on former Maine Yankee land, and the town's mill rate will remain steady this year for the first time in almost a decade.
Such developments have Gilmore and others in town government concerned more about the quality of growth than its quantity. "A town has to grow at the pace of its townspeople," says selectman Michael Blagdon. "Some towns grow too quickly, and the townspeople are left saying 'what happened to our town?' There's no need for that."
Gilmore argues that combining the town's planning and economic development offices will result in better coordinated business development and growth management efforts. "Planning and business development go hand in hand," he says. For example, Gilmore believes that Wiscasset in the future will need to put its resources toward securing grant funding for infrastructure upgrades, developing new growth management policies and assisting current residents and investors ˆ not necessarily toward recruiting businesses from elsewhere.
Meanwhile, Gilmore believes the town's resources, including an airport and its coastal location between Bath/Brunswick and Camden, already go a long way toward attracting business investment. "We think Wiscasset has such unique infrastructure and geography that we begin with a great advantage ˆ and therefore our investment is better spent on retention and expansion, while inviting new investment into the community."
Small-town strategy
For example, Gilmore points to a high-end marketplace recently proposed by Raymond developer Kevin Gagnon. "He identified Wiscasset on his own," Gilmore says. "He doesn't need Wiscasset to tell him how great it is ˆ he needs technical assistance in understanding the permit process and help developing community support for the project." Gilmore argues that the seamless point of contact offered by a single office of planning and development is best suited for providing such services.
The shift in development philosophy corresponds with the different backgrounds of Gilmore and recently released economic development director Don Alexander. Gilmore, who learned economic development at the feet of former Portland mayor George Campbell, came to Wiscasset in 2003 as its first economic development director. He told the Wiscasset Newspaper at the time, "The people I respect and trust most in economic development say you should first concentrate on the expansion and growth of your existing businesses. Everybody wants to get the big hits. Everybody uses MBNA as an example ˆ and if that's a fit for the community, that's great. But the old expression 'a bird in the hand' is still a good one."
Alexander, hired in September 2004, had spent seven years directing development for Franklin County and then the town of Topsham. In both positions his challenge was to attract external businesses ˆ to offset Franklin County's losses in manufacturing and other declining industries, and to diversify Topsham's retail-heavy economy. "My successes have come from proactive marketing," he says. "We identified appropriate industries, and then targeted them to attract their investment."
Alexander points to the accomplishments of Richmond, Va., and, closer to home, the Growth Council of Oxford Hills as evidence that such marketing works. "Economic development is the only area of municipal government where investing more increases your potential return on investment," he says, pointing out that Richmond alone spends $8 million a year on marketing.
But Gilmore argues that 3,700-person Wiscasset can't hope to compete with the marketing dollars spent by larger municipalities and regions. "To be on the same playing field, marketing-wise, we would have to invest equal amounts of money," he says.
Such expenditures aren't likely to happen given the town's tight post-Maine Yankee finances and determination to hold its mill rate at 18. The town in recent years has drawn on capital reserves to fund school and municipal expenses, which this year stand at $14.3 million. Those budget dynamics have selectpeople scrambling to reduce spending. "We're a small town, but the infrastructure and groundwork for development are growing," says selectman Blagdon. "At some point Wiscasset may have a full-time development director once again."
Wiscasset Town Manager Andrew Gilmore in early September decided to consolidate the offices of town planner and director of economic development into one position, director of economic and community development. Town planner Jeffrey Hinderliter is assuming that post, leaving former economic development director Don Alexander out of a job.
On one level, the move to streamline town government represents a straightforward response to Wiscasset's tight budget: Gilmore projects that eliminating the position will save the town roughly $60,000 a year. But the shake-up also represents a shift in Wiscasset's economic development philosophy, from an emphasis on external marketing designed to attract new business to an internal focus on managing growth. "Our growth management and planning need to take a front seat right now," says Gilmore. "Development activities should be a close second."
One reason for that shift: Wiscasset is beginning to emerge from the difficulties that followed Maine Yankee's 1997 closure. The town at that point faced the loss of 95% of its tax revenue, with a paucity of business activity to pick up the slack. Eight years later, conditions are looking brighter. "Wiscasset has passed some important milestones successfully," says former town planner Dan Thompson. He points out that the town has come to an out-of-court agreement with Maine Yankee concerning its remaining tax payments, developer Point East is building a marina, residential development and technology business park on former Maine Yankee land, and the town's mill rate will remain steady this year for the first time in almost a decade.
Such developments have Gilmore and others in town government concerned more about the quality of growth than its quantity. "A town has to grow at the pace of its townspeople," says selectman Michael Blagdon. "Some towns grow too quickly, and the townspeople are left saying 'what happened to our town?' There's no need for that."
Gilmore argues that combining the town's planning and economic development offices will result in better coordinated business development and growth management efforts. "Planning and business development go hand in hand," he says. For example, Gilmore believes that Wiscasset in the future will need to put its resources toward securing grant funding for infrastructure upgrades, developing new growth management policies and assisting current residents and investors ˆ not necessarily toward recruiting businesses from elsewhere.
Meanwhile, Gilmore believes the town's resources, including an airport and its coastal location between Bath/Brunswick and Camden, already go a long way toward attracting business investment. "We think Wiscasset has such unique infrastructure and geography that we begin with a great advantage ˆ and therefore our investment is better spent on retention and expansion, while inviting new investment into the community."
Small-town strategy
For example, Gilmore points to a high-end marketplace recently proposed by Raymond developer Kevin Gagnon. "He identified Wiscasset on his own," Gilmore says. "He doesn't need Wiscasset to tell him how great it is ˆ he needs technical assistance in understanding the permit process and help developing community support for the project." Gilmore argues that the seamless point of contact offered by a single office of planning and development is best suited for providing such services.
The shift in development philosophy corresponds with the different backgrounds of Gilmore and recently released economic development director Don Alexander. Gilmore, who learned economic development at the feet of former Portland mayor George Campbell, came to Wiscasset in 2003 as its first economic development director. He told the Wiscasset Newspaper at the time, "The people I respect and trust most in economic development say you should first concentrate on the expansion and growth of your existing businesses. Everybody wants to get the big hits. Everybody uses MBNA as an example ˆ and if that's a fit for the community, that's great. But the old expression 'a bird in the hand' is still a good one."
Alexander, hired in September 2004, had spent seven years directing development for Franklin County and then the town of Topsham. In both positions his challenge was to attract external businesses ˆ to offset Franklin County's losses in manufacturing and other declining industries, and to diversify Topsham's retail-heavy economy. "My successes have come from proactive marketing," he says. "We identified appropriate industries, and then targeted them to attract their investment."
Alexander points to the accomplishments of Richmond, Va., and, closer to home, the Growth Council of Oxford Hills as evidence that such marketing works. "Economic development is the only area of municipal government where investing more increases your potential return on investment," he says, pointing out that Richmond alone spends $8 million a year on marketing.
But Gilmore argues that 3,700-person Wiscasset can't hope to compete with the marketing dollars spent by larger municipalities and regions. "To be on the same playing field, marketing-wise, we would have to invest equal amounts of money," he says.
Such expenditures aren't likely to happen given the town's tight post-Maine Yankee finances and determination to hold its mill rate at 18. The town in recent years has drawn on capital reserves to fund school and municipal expenses, which this year stand at $14.3 million. Those budget dynamics have selectpeople scrambling to reduce spending. "We're a small town, but the infrastructure and groundwork for development are growing," says selectman Blagdon. "At some point Wiscasset may have a full-time development director once again."
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