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By DENNIS HOEY, Staff Writer Sunday, February 25, 2007

BRUNSWICK Ð It will be another four years before the P-3 Orions and the squadrons that fly those planes leave Brunswick Naval Air Station for Jacksonville, Fla. But the jobs and income that will be lost are foremost in the thoughts of the panel charged with making sure the midcoast economy remains strong.

The base closure will leave the region scrambling to replace an estimated 2,240 jobs and as much as $145 million in income in the years ahead, according to an analysis by the State Planning Office.

ÒI like to tell people that our biggest challenge is creating 2,200 jobs. ThatÕs a huge dent in our economy,Ó said Mathew Eddy, BrunswickÕs director of economic development.

But regional economists, public policy makers and business leaders believe that midcoast Maine, with its beaches, rugged coastline, rivers and harbors, will attract new residents and businesses.

ÒI think there will be short-term (economic) stresses to the regional economy because it will be hard to swallow the loss of that many jobs,Ó said David Vail, a professor of economics at Bowdoin College in Brunswick. ÒBut I also believe there is reason to be upbeat because it seems to me the midcoast region is proving itself to be a prime region to live and work in.Ó

Vail and other people familiar with the regional economy insist they are not being overly optimistic. They point to several development projects that are planned or under way as signs that the economy will withstand the blow.

Eddy cites a planned composites manufacturing campus and a composites training center in Brunswick as examples of a positive trend. Coupled with existing composites companies such as Harbor Technologies in Brunswick and Custom Composite Technologies of Bath, Eddy said the future of the composites industry looks promising.

Composites, commonly known as reinforced plastics, combine a strengthening fiber with a plastic polymer to create a strong, durable product.

DOWNTOWN POTENTIAL

Massachusetts developer J. Hilary Rockett Jr.Õs plans to invest $36 million in downtown Brunswick is another positive sign.

The Maine Street Station project, which will feature offices, retail shops, restaurants, a theater and train station, will not only bring more traffic to downtown, but it could create hundreds of new jobs and significant tax revenue for the town.

Rockett will invest about $300,000 to conduct a feasibility study to determine if the market will support his development. If the study demonstrates otherwise, Rockett could withdraw his plans.

ÒIt is so important to our downtown, because it gets us to critical mass in terms of attracting people. Our downtown is incredibly healthy, but it could do better,Ó Eddy said.

Rockett, a 1986 Bowdoin College graduate, says Brunswick has a lot of potential.

ÒMaine Street Brunswick is fabulous. It has great restaurants, a lot of traffic, itÕs close to the highway and it has Bowdoin College. This development just makes a lot of sense,Ó Rockett said. ÒThe base closing É weÕve looked at it, but I think itÕs something we can deal with.Ó

Several major residential projects are planned. The prospect of losing a major Navy base did not seem to daunt developers who proposed their projects before it was known that Brunswick would be closed.

In Wiscasset, National RE/source, a Connecticut-based company, will invest up to $150 million to develop the Point East Maritime Village. The project will convert an abandoned power station into a mixed use complex featuring restaurants, offices and a hotel.

National also plans to build 80 single-family homes and 160 condominiums ranging in price from $400,000 to $1.2 million on land around the old Mason Station. The first home was erected in January. The waterfront development will also feature a 239-slip marina on the Sheepscot River.

Scott Houldin, the project manager, said his company is not worried about selling all the homes right away. That process could take several years.

ÒWe are selling a very unique and specialized product,Ó he said.

Houldin says his company has a reputation for cleaning up former industrial sites and converting them to profitable uses. Its owner is also familiar with the Wiscasset region and its quality of life.

Portland developer Bruce Poliquin is forging ahead with plans to develop Popham Woods, a 69-unit housing development in Phippsburg. Poliquin said he is not worried about the impact closing the base will have on the largest subdivision in town history.

Poliquin is accustomed to risks. During the 1980s he worked on Wall Street for a private investment management firm.

ÒPeople are getting overly excited about an event (the base closure) that is not terminal,Ó Poliquin said. ÒThere are wonderful natural resources in the midcoast, which is close to Boston and Portland. The sailing and fishing are terrific. And Bowdoin College is a nice anchor. Midcoast Maine is going to do just fine.Ó

INDUSTRIAL PARK NEEDED

Even in Brunswick, where the closure will hit hard, developer Scott Howard went ahead with plans to build 96 homes on outer Maine Street. Botany Place offers in-town living to people who want to be close to Bowdoin College and Parkview Hospital. About one-third of the homes, priced between $280,000 and $600,000, have been sold.

But Howard, who also serves as president of the Brunswick Economic Development Corporation, says the greatest challenge facing the region is the need to build an industrial park.

ÒWe see a lot of companies that are very interested in this area, but they want to move here now,Ó Howard said.

Bisson Moving and Storage of West Bath, for instance, has said it may leave the region if Brunswick can not accommodate its need for more office and storage space.

James Upham, BathÕs director of planning and development, said his city is conducting a feasibility study to determine if it should expand the Wing Farm business park off Congress Avenue.

ÒAn expansion would help us diversify our tax base. I donÕt think itÕs good for any community to have its entire economy based on one business,Ó said Upham, referring to the cityÕs largest employer, Bath Iron Works.

TopshamÕs retail economy is booming, as evidenced by the influx of big-box stores such as Home Depot, Target, Best Buy and DickÕs Sporting Goods. Residents recently adopted a moratorium to prevent growth at the Topsham Fair Mall from spilling across Interstate 295.

Dan Catlin, a commercial real estate broker who has handled several deals at the Topsham mall, also owns the Tontine Mall in downtown Brunswick Ð a collection of tiny shops, a movie theater and a bakery.

Catlin, whose father helped develop a Hannaford supermarket in downtown Brunswick in the 1960s, said the base closure Òis going to be a hiccup, a bump in the road if you will.Ó Catlin thinks developments such as Maine Street Station will revitalize BrunswickÕs downtown, ensuring a vibrant future.

Vail, the economist, said favorable articles in publications such as the Wall Street Journal and Money magazine have put Brunswick and the midcoast on the map as a good place to live.

ÒI am optimistic about the future of this economy, but that is not to minimize the short-term stress we will likely experience. Generally speaking though, I think this region should do well,Ó Vail said.

Staff Writer Dennis Hoey can be reached at 725-8795 or at: dhoey@pressherald.com