rDRAFT

LOCAL ECONOMY POLICIES/STRATEGIES

November 23, 2011

 

State Goal

To promote an economic climate that increases job opportunities and overall economic well-being.

 

Local Goal

To foster economic growth and increase population through the creation of natural resource based jobs.

 

Summary

There are broad political and social issues that influence the local economic climate and job creation. How much we can actually do locally to improve these broad influences is open for much discussion and may well be the greatest challenge for improving the local economy. State and Federal policies that may intend to promote a favorable climate for job growth in northern Maine are not yielding results in the eyes of some of Fort Kent’s most experienced business people. Maine’s regulatory structure is a burden to businesses of all sizes and available social services do more to encourage people, especially young people, to not work rather than work. Some businesses actually close because they cannot find or keep good help. The Town has a strong desire to overcome the obstacles to job creation, population growth and a stronger economy. An understanding of this is reflected in these policies and strategies for improving the local economy.

 

Despite the loss of jobs over the past decade, natural resource based businesses still represent the greatest potential to create jobs and improve the economy. Half of our agricultural land base is idle and our most valuable forest raw material, spruce and hardwood saw logs, is sent to Canada or elsewhere for milling and manufacturing. Our resource base is within a day’s drive of the largest markets in the country. To improve the economic potential of these resources we must add value here before they are transported to markets. Natural resource based businesses are our most vital economic engine and have the greatest potential to create jobs and improve the local economy.

 

Fortunately for Fort Kent, education, health care and tourism help to underpin the economy and keep it alive. These are also economic engines that attract outside people and spending to the community and help sustain an important retail sector. The University helps to create and foster an entrepreneurial spirit that may well prove to be of significant economic value in the decade ahead.  

Policy 1:

Encourage, create and attract companies that produce, harvest, utilize and add value to agricultural and forest related resources to remain or locate in Fort Kent.

 

Strategies

 

a.      Establish business contacts and dialog with economic development counterparts in Quebec and New Brunswick.

b.      Analyze the economic advantages for Canadian natural resource based (and other) companies to expand in Maine and locate in Fort Kent.

c.      Determine the regulatory, licensure and other requirements for local companies and prospective companies to access port facilities on the St. Lawrence.

d.      Seek State/Federal grant and loan funding and identify job creation and capital equipment related tax incentives that may benefit existing businesses and communicate with business owners.

e.      Identify medium sized, natural resource based, Maine companies and implement an on-going business outreach/attraction program that targets their expansion.

f.        Identify businesses that supply materials and products to large manufacturers and processors and focus effort to attract local expansion of these companies.

g.      Continue to explore and support opportunities for biomass utilization and other alternatives for heating and electrical generation.

h.      Evaluate the interest of local farmers in the establishment of a packing/shipping and grain milling facility.

 

Policy 2:

Focus local economic development efforts on procurement of funding for the infrastructure, facilities, services and capital needed to support natural resource based businesses of all scales.

 

Strategies

 

a.      Study the feasibility of a new industrial park development at locations identified in the future land-use plan.

b.      Study the feasibility of extending infrastructure to prospective industrial sites and

1.      seek funding for the development of infrastructure improvements.

c.      Research, support and initiate with industry participation, a private or public vocational/technical program in forestry and forestry equipment operation.

d.      Work with local, regional, State and Federal organizations to develop and maintain two or more incentive packages for business expansions and start-ups.

e.      Contact existing natural resource based businesses to determine their interest in expansion or diversification and provide assistance.

f.        Participate and support regional business development/attraction initiatives.

g.      Research and identify available St. John Valley labor force skills and expatriated labor force skills and use in business attraction.

h.      On an on-going basis, advocate for changes in State and Federal policy that are favorable to business.

 

Policy 3:

Support continued economic diversification to ensure the long term sustainability of the local economy. Seek funding to initiate new programs.

 

Strategies

 

a.      Establish a local business investment trust (LBIT) to provide capital for business start-up and purchases by working with all potential sources including local banks, private interests, local government, the Maine Department of Economic and Community Development and other State and Federal institutions.

b.      Support the needs of existing businesses by applying for business assistance, energy efficiency and other grants that address specific needs.

c.      Form a collaborative effort between Community High School and UMFK to develop an entrepreneurial program that allows students to convert their business ideas into an operating business.

d.      Continue to follow-up with NMDC on the reuse or reopening the call center facility.

e.      Support on-going effort and investment in telecommunication system redundancy to facilitate internet based businesses.

f.        Continue to fund the Chamber of Commerce for their efforts to promote tourism, organize festivals and events and support the needs and interests of retail businesses.

g.      Maintain a dialog with the University, Northern Maine Medical Center and other major employers to understand their need for local support.

h.      Obtain funding and work with the University to conduct one or more IMPLAN economic study to determine the actual economic impact of local festivals and events. IMPLAN is economic modeling software that does input/output analysis of local events or business activity.

i.        Continue to partner with Fort Kent’s civic organizations and clubs on projects that provide a broad benefit to community members and visitors.

j.         Continue to obtain Micro-Enterprise Grants to assist small, home-based businesses with needs for capital improvements, market access and other challenges.

k.       Update the Zoning standards to ensure that home occupations do not create nuisance issues, impact neighborhood safety or property values.

l.         Participate in and support regional efforts to improve telecommunications infrastructure needed to support hi-tech, information based companies.

 

 

 

 

 

 LOCAL ECONOMIC DATA

 

Employment Sectors (2009 data)

Fort Kent

Aroostook

Maine

Location

Quotient

(Maine)

 

Total

%

Employed

Total

%

Employed

Total

%

Employed

 

Management, professional & related occupations

589

31.7

9,197

28.6

218,740

33.3

0.95

Service occupations

391

21.0

6,161

19.1

115,436

17.6

1.2

Sales & office occupations

382

20.5

7,348

22.8

162,634

24.8

0.83

Farming, fishing, forestry

85

4.6

1,041

3.2

10,385

1.6

2.9

Construction, extraction, maintenance

150

8.1

3,287

10.2

68,696

10.5

0.77

Production, transport, material moving

262

14.1

5,146

16.0

80,520

12.3

1.1

Totals

1,859

 

32,180

 

656,411

 

 

 

 

Taxable Retail Sales

2006

2007

2008

2009

2010

2011 (1st Q)

Total

59754.4

57599.2

59451.1

59,028

62538.8

13357.5

Personal

42731.7

42389.8

42841.1

42011.1

45324.7

9408.1

Business Op

17022.7

15209.4

16610

17016.9

17214.1

3949.4

Building

7556.2

6821.1

8096.8

7171.8

6880.5

876.8

Food Store

1458.8

3176.6

3741.3

4441.3

3345.5

1025.9

General

5,077

4823.2

4573.2

4469.3

4942.5

1104.1

Other

3183.6

3475.5

3709.9

3609.3

3743.6

959.6

Auto Trans

18527.3

18254.6

17202.4

17125.6

19845.5

4177.9

Restaurant

4800.7

5137.6

4829.3

4503.1

4584.4

1153.4

Lodging

617.3

701.2

688.2

690.7

714.2

110.4

Restaurant & Lodging

5,418

5838.8

5517.5

5193.8

5298.6

1263.8

 

 

 

 

 

LMA Average Annual Unemployment