August 21, 2006
Narrowing the scope | EnterpriseMaine scales back its development efforts in western Maine
By Chris Churchill
It has covered a section of western Maine like a blanket, providing much-needed economic development help from Windham to Bethel. But EnterpriseMaine recently concluded the blanket was stretched thin, leading the organization to scale back its mission, narrow its focus and pull out of many of the towns it has served.
EnterpriseMaine, based in South Paris, has provided a wide range of services ˆ from business microloans to real estate development ˆ to an area that includes 37 towns. But the organization's leaders recently decided to concentrate instead on key services and reel in its geographic base to just eight towns. EnterpriseMaine, says Brett Doney, its president, has adopted a strategic plan "that returned the organization to its roots of focusing just on Oxford Hills. We had too much on our plate for the resources we had. We had taken on too much. We just didn't say 'no' enough."
EnterpriseMaine's board of directors began reviewing the organization's focus in January and formally adopted the new strategic plan in June. The size of the EnterpriseMaine staff already has been cut from eight to three; its annual operating budget from $1.6 million to $550,000. And Doney, with EnterpriseMaine for 12 years, is leaving for an economic development position with the city of Great Falls, Mont. He says his departure is related to the shift at EnterpriseMaine, although he stresses he agrees with the changes. "It really doesn't make sense to pay somebody what I'm getting paid or to have someone with my level of experience heading a smaller organization," he says.
The organization's public and private funders, its leaders say, largely are based in the Oxford Hills and prefer that the group concentrate its efforts there. "It certainly is not a negative," says James Delamater, president of Lewiston-based Northeast Bank and chair of the EnterpriseMaine board of directors. "I view this as a positive step. We've decided to shift our focus to transformative projects in the Oxford Hills area, and hopefully we can make a difference there."
The new strategic plan has EnterpriseMaine concentrating its efforts on high-profile projects. The organization will continue to provide loans to businesses, but "will focus on significant deals that provide high wages," Doney says, adding that "if it's going to be a small company [that gets a loan], it's going to be one with tremendous growth potential."
EnterpriseMaine also will concentrate on getting Route 26 ˆ a roadway it sees as economically vital to the Oxford Hills region ˆ improved into a modern road. The group also will continue marketing and developing two real estate projects already underway: the Oxford Hills Business Park and an office/technical park proposed for Norway.
The need for a regional approach
The changes at EnterpriseMaine ˆ the umbrella group for the Growth Council of Oxford Hills, Western Maine Development, Western Maine Finance and Western Maine Community Capital ˆ mean a former regional economic development group is becoming, essentially, a local agency. But Doney notes that the organization's regional focus was hard to support when outlying towns often resisted contributing to EnterpriseMaine coffers. "Everyone loved that we were providing these services," he says, "as long as they were free."
Some in western Maine, however, continue to believe regional economic planning is ideal. "Particularly for smaller communities, economic development is regional development," says David Morton, town manager in Casco, one of the towns that will no longer be in EnterpriseMaine's service area. "It transcends town boundaries."
Still, Morton says the change hasn't had a big impact on his town. Mitchell Berkowitz, town manager in Bridgton, which also is losing the group's services, agrees, saying he's heard no hue and cry about the EnterpriseMaine contraction. "The net impact [here] is probably not great," he says, "other than losing a great regional resource."
Besides lack of support from the towns themselves, though, Doney also bemoans what he sees as a statewide lack of support for economic development. He cites a lack of funding for the hiring of economic development professionals as one example. He also calls for an increase in regional approaches to economic development and said the state needs, on occasion, to make sacrifices. "My message to Maine is, 'For God's sake, make some hard choices,'" he says. "I feel Maine is in the position of trying to do too much with too little resources."
As an example, he cites what he calls modest and prudent proposals for change recently put forth by the university system, controversial shifts that, among other things, would have incorporated the University of Maine at Augusta into the University of Southern Maine. "Everybody screamed like you're taking candy from a baby, but everybody is going to have to give a little if Maine is going to be successful," he says. "This state should be humming along. It should have the hottest economy in New England. It has the quality of life that everybody is looking for."
But Montana, too, has an enviable quality of life, and Doney says he's looking forward to the change. His last day at EnterpriseMaine is Sept. 8. Board Chairman Delamater says the now-smaller organization has begun its search for a replacement.
EnterpriseMaine, based in South Paris, has provided a wide range of services ˆ from business microloans to real estate development ˆ to an area that includes 37 towns. But the organization's leaders recently decided to concentrate instead on key services and reel in its geographic base to just eight towns. EnterpriseMaine, says Brett Doney, its president, has adopted a strategic plan "that returned the organization to its roots of focusing just on Oxford Hills. We had too much on our plate for the resources we had. We had taken on too much. We just didn't say 'no' enough."
EnterpriseMaine's board of directors began reviewing the organization's focus in January and formally adopted the new strategic plan in June. The size of the EnterpriseMaine staff already has been cut from eight to three; its annual operating budget from $1.6 million to $550,000. And Doney, with EnterpriseMaine for 12 years, is leaving for an economic development position with the city of Great Falls, Mont. He says his departure is related to the shift at EnterpriseMaine, although he stresses he agrees with the changes. "It really doesn't make sense to pay somebody what I'm getting paid or to have someone with my level of experience heading a smaller organization," he says.
The organization's public and private funders, its leaders say, largely are based in the Oxford Hills and prefer that the group concentrate its efforts there. "It certainly is not a negative," says James Delamater, president of Lewiston-based Northeast Bank and chair of the EnterpriseMaine board of directors. "I view this as a positive step. We've decided to shift our focus to transformative projects in the Oxford Hills area, and hopefully we can make a difference there."
The new strategic plan has EnterpriseMaine concentrating its efforts on high-profile projects. The organization will continue to provide loans to businesses, but "will focus on significant deals that provide high wages," Doney says, adding that "if it's going to be a small company [that gets a loan], it's going to be one with tremendous growth potential."
EnterpriseMaine also will concentrate on getting Route 26 ˆ a roadway it sees as economically vital to the Oxford Hills region ˆ improved into a modern road. The group also will continue marketing and developing two real estate projects already underway: the Oxford Hills Business Park and an office/technical park proposed for Norway.
The need for a regional approach
The changes at EnterpriseMaine ˆ the umbrella group for the Growth Council of Oxford Hills, Western Maine Development, Western Maine Finance and Western Maine Community Capital ˆ mean a former regional economic development group is becoming, essentially, a local agency. But Doney notes that the organization's regional focus was hard to support when outlying towns often resisted contributing to EnterpriseMaine coffers. "Everyone loved that we were providing these services," he says, "as long as they were free."
Some in western Maine, however, continue to believe regional economic planning is ideal. "Particularly for smaller communities, economic development is regional development," says David Morton, town manager in Casco, one of the towns that will no longer be in EnterpriseMaine's service area. "It transcends town boundaries."
Still, Morton says the change hasn't had a big impact on his town. Mitchell Berkowitz, town manager in Bridgton, which also is losing the group's services, agrees, saying he's heard no hue and cry about the EnterpriseMaine contraction. "The net impact [here] is probably not great," he says, "other than losing a great regional resource."
Besides lack of support from the towns themselves, though, Doney also bemoans what he sees as a statewide lack of support for economic development. He cites a lack of funding for the hiring of economic development professionals as one example. He also calls for an increase in regional approaches to economic development and said the state needs, on occasion, to make sacrifices. "My message to Maine is, 'For God's sake, make some hard choices,'" he says. "I feel Maine is in the position of trying to do too much with too little resources."
As an example, he cites what he calls modest and prudent proposals for change recently put forth by the university system, controversial shifts that, among other things, would have incorporated the University of Maine at Augusta into the University of Southern Maine. "Everybody screamed like you're taking candy from a baby, but everybody is going to have to give a little if Maine is going to be successful," he says. "This state should be humming along. It should have the hottest economy in New England. It has the quality of life that everybody is looking for."
But Montana, too, has an enviable quality of life, and Doney says he's looking forward to the change. His last day at EnterpriseMaine is Sept. 8. Board Chairman Delamater says the now-smaller organization has begun its search for a replacement.
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