In May 2012 Saco was named by the Governor as one of the first Certified Business Friendly Communities. This application was the basis for the award. Introduction The City of Saco is applying to become a Certified Business Friendly Community to recognize its longstanding and continuing efforts to promote business and job growth and economic diversification in the community. The City s efforts since the decline of the millbased economy have focused on the construction and marketing of business parks, promotion of redevelopment of the downtown and mill district, assisting with business finance, and removing obstacles to development. The City Council s adopted vision, which guides the City in all areas, could be a vision statement for an economic development plan: Our vision is a high quality of life for Saco citizens. Central to this vision is a sustainable economy that offers an opportunity for everyone to have rewarding employment and for business to prosper, now and in the future. The people of Saco bring this vision into reality by working together and building on our tradition of hard work, dedication and ingenuity. (The remainder of this application follows the order outlined in the application materials, with keyword headings drawn from each bulleted application topic.) Customer Service/Product/Capacity Staffing and Promoting Economic Development The City has employed professional economic development staff for over 30 years. The staff works closely with businesses expanding or locating in the city. The Development Director helps expanding and relocating businesses find a building to lease or a business park lot to purchase and build upon as a frequent and key part of these efforts. Promoting business expansion takes many forms, including assisting with state and local permits, helping with access to funding and business finance, helping with infrastructure requirements, and addressing brownfields issues. The City s Development Director works closely with a City Economic Development Commission on construction and marketing of business parks. The staff also works closely with a Main Street affiliated downtown organization, Saco Spirit, created by the City and businesses 10 years ago. Projects by this mostly business owner, volunteer-run organization include marketing, buy-local programs, advertising, festivals, events, and many other business promotion activities. In addition to the Development Director, whose activities are explicitly related to economic development, the Development Director directs a planning staff which is very customer oriented in reviewing and facilitating applications for business development, as is the code enforcement office, the city engineer, and the Public Works Department. The combination of planning and economic development in the same office has led to the constant improvement in processing applications, including such practices as staff review (rather than Planning Board review) for minor applications, Projects Undertaken / Programs in Place Construction and marketing of business parks, downtown redevelopment efforts, key infrastructure investments, and business finance are among the City s key programs.
Business Parks: Saco began its program of creating industrial and business parks in the late 1970s and early 1980s. The older Saco Industrial Park now has over 1067 jobs. The newer and smaller Spring Hill Park now has 341 jobs. To create a business park the City acquires property, builds roads and utilities, and sells the lots to businesses to build plants and offices. Covenants regulate the appearance of buildings and to avoid noxious uses. Because the parks are already approved by the DEP, approvals for new buildings come quickly. The reasons for this municipal intervention in the commercial real estate market are simple. Sites and buildings are needed to attract companies or to encourage local companies to expand. The planning, financing, and construction of business parks is funded by the city, and mostly recovered through lot sales and occasionally TIF payments. Federal grants have occasionally provided a 25% share of park development costs. Because the revenue from lot sales seldom exceeds the cost of construction, at least when the cost of financing is factored in, the City s ability to plan for longer timelines is essential. In addition, the City receives benefits over a longer time frame -- a long term annuity in the form of property taxes and increased employment in the community. Very few private business parks have been developed in southern Maine because of the patient investment needed. Downtown Redevelopment and Key Infrastructure Investments: The City has invested more than $3 million in Main Street improvements over the last five years, including the reconstruction of sidewalks and streets, the undergrounding of overhead utilities, and other improvements in design, infrastructure, and physical condition of the downtown. Additional municipal investments in the downtown include the $2.4 million Saco Transportation Center, the Amtrak station which serves The Downeaster and houses the Biddeford Saco Chamber of Commerce. Strategic investments are also made in the Saco Museum, in the parks, and in a high level of maintenance. The City is now working on a wayfinding signage system and a pedestrian bridge in the mill district, both in cooperation with Biddeford. The City also manages a railroad in the industrial park. Business Finance: Twenty years ago Saco, Biddeford and the Chamber determined that small business finance needed additional attention and created the Biddeford Saco Economic Development Corporation as a response. Today, BSAEDC is governed by an 11 member Board of Directors. The city s Development Director was a founder and served on the Board throughout. The BSAEDC has made over $5 million in loans in the region since 1994 and is a key component of Saco s economic development efforts. BSAEDC has approximately $6.2M available for lending. Over the last 18 years, BSAEDC loans have leveraged almost $26 million in private sector investment into the Saco-Biddeford region and created or retained approximately 1,200 jobs. Currently, BSAEDC has 19 active loans totaling over $1.7 million, which has leveraged over $9 million in private sector investment and created and retained over 270 jobs in the City of Saco. Active Portfolio # of Loans $ Disbursed $ Leveraged Jobs Created/Retained 2
19 $1,740,000.00 $9,140,550.00 276 Historical Portfolio # of Loans $ Disbursed $ Leveraged Jobs Created/Retained 50 $3,712,628.67 $25,711,685.00 1,200.5 Most recently, the BSAEDC, along with the Chamber and the Main Street organizations, has led the Biddeford-Saco Buy Local program promoting the local businesses and educating residents on how to support our local economy. Projects and Programs to Retain, Expand, Recruit Business park construction and marketing programs, lending programs through the BSAEDC, the Main Street program executed with Saco Spirit based on the National Main Street Model, a Buy Local program, a program of events to draw residents downtown, frequent updates in zoning and the use of contract zoning are among the programs the City utilizes to promote business development. Our current initiatives include a new wayfinding signage system to help residents and visitors find merchants, a new pedestrian bridge connecting the mill district in the two cities, and implementation of zoning amendments under the Comprehensive Plan to tailor new and existing business districts for growth. The City has created three downtown parking lots in the last 15 years. The City is preparing a scope of services for a new parking study so that parking lots can be prepared to better serve downtown. The downtown programs are chiefly run with Saco Spirit and supported by a $25,000 appropriation each year. Comprehensive Plan Saco s fifth Comprehensive Plan was found consistent with the Growth Management Act on October 20, 2011. The plan was being developed at the same time as a city Economic Development Plan Update (Adopted January 2012, previously November 2010) and provides support for much of the city s economic development effort, including the identification of large areas of the city as growth areas, and large areas of the downtown, Route 1 corridor and Turnpike corridor as business growth areas, with commercial, industrial and mixed use zones. The City has nine publicly owned business park sites ready for immediate development and tracks numerous others so that private sites can also be candidates for relocation and expansion. The Comp Plan identifies approximately 1360 acres for industrial and manufacturing growth and 1668 acres for business and commercial growth. Offices are permitted in both areas. The Comprehensive Plan outlines many projects and goal, including the following: -To increase the number and quality of jobs available in Saco. -To diversify the mix of firms and jobs to avoid dependence on single sectors. -To increase the commercial tax base of the City. -To maintain the vitality of Downtown Saco and expand its role as a commercial, office, retail, educational and cultural, residential, and service center. -To enhance Saco s role in the Southern Maine tourist economy and expand the range of recreational, entertainment, and cultural activities available in Saco to meet the needs of travelers and visitors. -To work cooperatively with Biddeford, Old Orchard Beach, Scarborough, Greater Portland, Dayton and other communities to the west, and regional groups to improve the economy of the region. 3
Community Resources/Open For Business Attitude As the programs described above demonstrate, the City of Saco is committed to a strong local and regional economy. The staff and network of volunteers work hard to make the City a business friendly community. This is easy for anyone to say, but the proof is in the business parks, along Main Street, in the major infrastructure investments such as business parks, Main Street rehabilitation, and the Amtrak Station. The attitude of the City toward development services is constantly monitored and was commented upon February 21 in an unsolicited letter from a Kennebunk broker, Henry LaBrie III: This is my 25th year in real estate and I always look forward to contacting the Saco assessing, code enforcement and planning units as they are knowledgeable and helpful. Staff members take considerable pride in their work and present a very welcome atmosphere for the public. Our success in the real estate industry hinges on a wide range of peripheral support structures including banks, attorneys and various regulatory agencies. Municipal government is a primary and influential role player in this process and the City of Saco is an outstanding model of how an organization can best benefit its members (residents and non-residents) who daily seek assistance and direction related to activities in Saco. Programs Utilized The City has utilized many state and federal economic development programs, including tax incrementing financing districts (TIFs), both for infrastructure improvements and credit enhancements, federal EDA grants to assist with industrial park construction, state grant funds to help with a portion of Main Street rehabilitation, and CDBG for downtown revitalization and CDBG development funds for supporting local companies. A CDBG grant supported a community kitchen, which provides training and an incubator for food related businesses. We work closely with a Main Street organization, a Chamber of Commerce, and a public-private lending institution. Technical assistance is available in the community through the Maine Small Business Development Center; Maine Procurement Technical Assistance Center; and Maine Center for Women, Work & Community. We occasionally work with Maine and Company and the State DECD on prospects. Southern Maine Regional Planning Commission, the DEP and the EPA have been helpful with brownfields lending and grant programs, and SMRPC is helpful on regional economic development planning and implementation. The City maintains an economic development fund, which provides a continuing account to fund economic development projects. Economic Priority 1. Downtown Development 2. Manufacturing 3. Technology Business/Local Involvement /Collaboration Work Force, Partnerships, Strategies, and Training Saco works with regional partners to address skilled workforce training needs. The University College on Saco Island is a satellite of the University of Maine and offers higher education opportunities.(the City is working with private partners currently to provide a new facility in its own Saco Island building.) Recently Saco partnered with Biddeford, the 4
Chamber, the Career Center, Goodwill Workforce Solutions and Biddeford Saco Economic Development Corporation to create a successful community job fair. The BSAEDC has also convened regional metal working companies to coordinate training. In the region the University of New England with its medical school works in collaboration with a Saco veterans medical center and the local free clinic. Saco cooperates with Old Orchard Beach to provide GED and extensive other adult education opportunities. The City works with York County Community Services to provide a community kitchen, which has a training component. Collaboration with Businesses and Organizations for Time Is Money Approach The City has employed professional staff in the position of development director for over three decades to work to promote businesses. Often this involves mobilizing partners in a team effort the state on Pine Tree Zones; the BSAEDC on finance; city officials for licensing and permitting --- because it is important to keep things moving forward. Helping the business find real estate and helping with permitting are major focuses. Both save businesses time. The City has taken the lead in organizing two community groups, Saco Spirit (National Main Street affiliate) and the Biddeford Saco Area Economic Development Corporation to promote business interests in the downtown and with business financing. The City also works with the Chamber of Commerce on business related issues, and has created a prominent tourism information Center by locating the two-city chamber in the Amtrak Station. A published permitting guide provides further assistance. Life Amenities Among the amenities in Saco are natural areas and an extensive trail system. These include beaches, including Ferry Beach State Park, the Eastern Trail, the Riverwalk, which has been developed by the downtown promotion group Saco Spirit, and Saco Bay Trails, which maintains 30 miles of trails in the City. The Cascade Falls, 200 acres of city parks, and boat ramps along the Saco River are other attractions. Three marinas and many hotels and campgrounds serve visitors, as well. Private amenities include Funtown- Splashtown, Maine s only IMAX 3-D cinema, an ice arena-sports training facility, Aquaboggin, and Monkey Trunks ropes course. Thornton Academy is a private high school which serves Saco s students and over 100 international students whose presence is a growing asset in the community. Cultural amenities include the Saco Museum, a professionally staffed museum of regional history and art, a Main Street history walk, a University of Maine Center, and two National Register historic districts. Saco Spirit sponsors many cultural festivals, including the Saco Sidewalk Arts Festival each June. Saco s beautiful Main Street is listed on the National Register of Historic Places, as is the historic mill district. Saco has been designated a Preserve America city. Notice for Public Comments/Application Support Letters (15 points) With just three weeks from the time the City heard of the Business Friendly Community Program to the time of application, several efforts to increase public awareness were undertaken. The program and application were first placed on the City s web site on March 16 and discussed March 19 by the City Council (on cable television), which was very 5
supportive. The City s Economic Development Commission was consulted. The directors of the Biddeford and Saco Chamber of Commerce and Industry and the Biddeford Saco Economic Development Corporation were consulted. The notice of the program was placed not only in a daily newspaper, but also on the city s web site and on a community Facebook page with 4400 followers. Economic development colleagues and agencies including our partners in Scarborough and Biddeford have been consulted. Businesses were consulted to obtain letters of support. Response was uniformly positive and supportive. Copies of notice and letters of support are attached. Licensing and Permitting (25 points) Type of License/Permit Site Plan, subdivision, conditional use, and in most cases stormwater and site location of development under the delegated review authority from the state Business License Cost of License/Permit Planning permit fees are varying cost recovery deposits which pay for the cost of review. The remainder is returned. Hence, they vary, but keep fees aligned with costs and keep them from falling upon the general taxpayer. $15 for businesses not licensed by state Sewer Impact Fee $2700 per $185 gallons per day flow Combined Sewer Overflow Impact fee $2283 per 185 gallons per day. Building permits, $11 per $1000 construction cost One-time Fee, reoccurring Fee One time. See previous. There is a $25 nonrefundable fee for some applications, but most are equal to cost of review Annual One time One time One time Purpose of Fee Recover the cost of review, only. To pay for the cost of the permit required to meeting the standards of the zoning ordinance and subdivision regulations. Helps track for personal property and other purposes To meet state/federal treatment mandates. Pays to build sewage treatment. Charges actual users not general taxpayers. To pay for the cost of meeting state/ federal stormwater mandates. Charges users rather than taxpayers To pay for the cost for permitting and inspections required for safe buildings. Electrical permit 5.5 cents per sq. ft. One time To pay for the cost for permitting and inspections required for safe buildings. Plumbing permit $10/ fixture One time To pay for the cost for permitting and inspections required. Exception: 25% of the plumbing fee must be sent to the State for no services to the City Above State requirement For site location and stormwater, the city s review is less than the state s for the same, and is apportioned to cost. The subdivision reviews are required by the state, but done locally. Site plan and conditional use review is enabled by the state, but are a local responsibility. No additional charge for state licensed businesses Not required by the State, but the State provides no sewer services or funding. Not required by the State, but the State and feds provide no funding for this expensive mandate. Building permits are required by the state, but administered locally. Fees are commensurate with costs. Electrical permits are required by the state, but administered locally. Fees are commensurate with costs. Plumbing permits are required by the state, but administered locally. Fees are commensurate with costs. 6
2012 BUSINESS FRIENDLY COMMUNITY CERTIFICATION PROGRAM APPLICATION FORM The Governor is seeking applications for the 2012 Certified Business Friendly Community Program. Applications can be made by Communities, Chambers of Commerce, Regional Development Authorities, Trade Organizations, Businesses or individuals but require the approval of the community being considered. A volunteer scoring panel will review and score the applications received. The first Business Friendly Community applications are due April 6 th with a targeted award date of May 2012. All communities that become certified under this program will be recognized with an award by the Governor. Certified Business Friendly Communities will also receive recognition on the State of Maine DECD website and receive an Open for Business sign among other amenities. Applications for certification will be evaluated and scored based on narrative answers, response to questions and inclusion of information identified on the application checklist. The Review Team reserves the right to seek and/or request and utilize additional information for applications received. Applicant Identification Signature of Municipal Official: Date: April 5, 2012 Name: Peter F. Morelli Title: Acting City Administrator Signature of Nominator: Date: April 5, 2012 Name/Title: William Armitage III, president Name of Business/Chamber of Commerce/Regional Development Authority, etc: Biddeford Saco Economic Development Corporation 7
OPEN FOR BUSINESS 8
Completed Application Forms and supporting documentation should be sent to: Department of Economic & Community Development Attn: Andrea K. Smith 59 State House Station Augusta, ME 04333-0059 APPENDIX A Application Timetable & Requirements Applications Due Projected Announcement Date April 6, 2012 May 2012 July 6, 2012 August 2012 October 5, 2012 November 2012 SUBMISSION REQUIREMENTS ONE ORIGINAL and SIX COPIES of the APPLICATION FORM and all requested supporting documentation as outlined below: Packaging Checklist for Complete Application: Application Form with Community Certification Responses to Narrative Questions* Notice to solicit Public Comment (must be published at least 10 days prior to application deadline) 3 Letters from Businesses in support of Application *MARGIN and TYPE SIZE. All applications must contain margins consistent with those in the Application and be typed using a minimum size 12 Arial font on 8 ½ x 11 inch paper. Please identify and answer all of the questions listed. The narrative responses to questions must not exceed a total of 6 pages. Faxed or e-mailed copies will not be accepted. 9