Growth consultant: Support of existing businesses is critical

Susie Burke

An economic development firm advised the Town Council to prioritize retention and expansion of downtown businesses. (Staff photo)

The challenge for South Berwick is keeping the small-town vibe residents value while developing a vibrant business environment that avoids “leaking money to other towns,” according to a market analysis by consultants hired to help the town develop its comprehensive plan.

More commercial business in town would strengthen the tax base and ease residents’ tax burden, Jim Damicis of Camoin Associates, an economic development consulting firm based in Saratoga Springs, NY, told the Town Council on Tuesday. He cited the downtown, including lower Main Street, and the Punkintown area on Route 236 as particular locations to target for growth.

At the same time, growth for its own sake is not the answer, said Damicis, and he strongly encouraged the town to focus on business retention and expansion.

The Camoin report listed South Berwick’s “small town charm” and a proposed downtown revitalization plan as strengths, while noting that traffic congestion, aging building facades and commercial vacancies are challenges. There is market demand for additional retail, restaurants, business and personal services, it said, as well as an existing “talented mix of business owners dedicated to downtown.”

The intent of the study, which included interviews with residents, is help the town develop a “resilient local business environment” while also maintaining the qualities of life and place that people value, Damicis told the council.

South Berwick should prioritize helping the existing downtown businesses survive and thrive, he said. Exploring opportunities for new housing downtown and hosting more events downtown would generate interest and activity for the stores and restaurants.

“These businesses are your friends,” he said.

The report recommended the town take three actions: redevelop and ignite the downtown; develop a business retention and expansion program in conjunction with local businesses; and prioritize development along Route 236 by marketing existing sites and completing the corridor infrastructure plan.

Attracting new businesses is difficult, Damicis told the council, recommending that the town not go after what in his industry is called a “whale” – giant businesses and buildings – but rather pursue mixed-use and flexible spaces that would serve the area best and be most likely to attract businesses to locate here.

As with all of Maine and much of the country, affordable housing is a major problem, Damicis said. Interviews with residents showed that people like living here and don’t want to sell their homes and move elsewhere, he said, which speaks well for the town but presents a challenge in terms of housing availability. He suggested the town look into housing trusts, which receive public funding to support preservation and production of affordable housing.

Along the 236 corridor, one challenge is that while town sewage is available, there is no access to town water, which he called a major stumbling block for large commercial or industrial businesses.

In terms of new buildings, Damicis warned there are dangers when towns engage in too much contract zoning, a special zoning agreement for a specific spot for a specific use that doesn’t correspond to usual zoning regulations. If you have too many of these agreements, he said, it is a red flag that you may have problems with your zoning to begin with.

The same is true of towns that try to go after too many Tax Increment Financing, or TIF, districts, he said, as either can create a patchwork arrangement that is harder to regulate and manage. Denise Clavette, the town’s economic and community development director, concurred with that assessment.

For additional information, see pages 17-29 of supporting documents from Tuesday’s council meeting.

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