The story behind landmark legislation
In his commentary on the Maine economy in the Oct. 4 Sunday Telegram, economist Charles Lawton made one significant statement, and then asked two key questions, all of which goes to the fundamental issue of regional economic development: "In fact, then, the ‘two Maines' are less north and south than they are urban and rural. And looking forward, the economic development question is less, ‘How can we spread the prosperity?' and more, ‘How can we accelerate the job growth in our metropolitan centers so as to soften the economic impact on the state as a whole?'"
I remember sitting there, slightly stunned, and exclaiming "Finally, someone is asking the right question." It has been argued that southern Maine is the sometimes unwilling engine to the state's economic train, and that Greater Portland has been southern Maine's economic engine. No, we aren't everything to everyone, nor do we desire to be or believe that we are. Rather, however, we are willing to put aside municipal differences in a way that will foster new regional understanding of our economy.
For the past three years, and serving as introduction to this new column, the communities of Portland, Scarborough, South Portland and Westbrook have come together through their economic development directors to develop new ways of working together, to eliminate unnecessary competition and to craft a regional approach to marketing that previously escaped us. In 2006, we joined forces at the Bio 2006 Chicago trade show to introduce the Greater Portland Biotech Hub, which represents the location of over 50% of the state's biotech companies. That show was a run-up to the Boston 2007 show, where we jointly exhibited biotechnology in Cumberland County. We skipped the 2008 show in San Diego, but worked together again at the Atlanta show this year and plan to attend the Chicago 2010 show in May.
We are only a couple of hours from Boston, now the nation's leader in biotech development and information technology. By working together, name recognition for each of us grows, particularly and most importantly, out of the state. We have, together with our legislative delegation, recently shown our strength when we all successfully achieved the extension of Pine Tree Zone benefits to include this part of the state.
We were keenly aware that, to capture the corporate eye, the issue of business taxes needed to be addressed. And, as we were also keenly aware, businesses in this part of the state were not eligible for these benefits, given the lack of sufficient unemployment. However, first in concert with our regional representatives, and then by working hard with the Business, Research, and Economic Development Committee of the Legislature, lawmakers and the governor were all convinced of the need to expand the benefits statewide to provide the greatest possible benefit in these tough times.
As we testified together in public hearings and work sessions, the BRED Committee realized the need to expand the benefits statewide, with new registration and benefit time limits and caps. Particularly with the help of co-chairs Sen. Elizabeth Schneider and Rep. Nancy Smith, and Rep. Joan Cohen of Portland, we hit the ball out of the park. It must be noted that at first, the BRED Committee was resistant to change, given the last exemption for manufacturing that was bartered two years ago. We honestly expected the bill to either be defeated outright at worst, or held over to the next session at best.
But what happened next was remarkable: the committee realized that economic development today is more critical than ever, and by looking at the entire state, the inclusion of the state's admitted economic engine was the best method for achieving the PTZ's goals.
The crowning moment came when Rep. Hannah Pingree spoke as sponsor of a proposed seafood processor exemption; she commented that while she represented interests of the Midcoast, she readily accepted that it was better for the processor to land in Portland rather than Canada, where now 75% of our processed lobster comes from. Landing in Maine was the key. Our jaws dropped.
From that point on, the committee embraced the bill, and together with the governor's office and Department of Economic and Community Development PTZ staff, LD 1473 was born. Through what turned out to be brilliant discussion and negotiations between the various parties, a compromise was worked out to establish statewide benefits, based on a relationship with the unemployment rate, with benefits lasting five or 10 years based on a business' unemployment rate. If companies apply by Dec. 1, they will be eligible for 10 years of benefits, regardless of which rate they fall into.
So, what's so remarkable about all of this? Five key outcomes. First, this effort to increase the PTZ benefit came from the local level, in cooperation with county and regional chamber of commerce representatives and area legislators. Everyone pitched in. People had a vision and were unrelenting in their approach to getting these benefits to the businesses and sectors most poised for growth.
Second, this represents the first time municipal economic developers garnered legislative support for a broad-reaching, business-related bill. Third, our representatives, particularly Rep. Cohen and Sen. Susan Austin of Gray, worked tremendously hard with us to move this through the process. Fourth, the BRED Committee recognized its leadership role, understood the policy implications and ran with it. It was, in the end, their bill.
Lastly, we succeeded as a region by continuing to recognize that, by talking with each other, sharing resources and working collaboratively, we could succeed on what we believe is a landmark piece of legislation. The job now is with the business community to register, and help prove us right by expanding economic development in the state's most populous region.
This column was collaboratively written by the economic development directors of Portland, South Portland, Westbrook and Scarborough, with Erik Carson, South Portland's economic development director, taking the lead. He and Greg Mitchell of Portland, Keith Luke of Westbrook and Harvey Rosenfeld of Scarborough work jointly on advocacy at the state level, out-of-state business recruitment/regional marketing and pursing grants. This column will appear monthly in Portlandbiz, highlighting news of regional significance.
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