By Renee Worthing
Register Reporter
   Several economic development projects are on track, Sanford Economic Affairs Director Les Stevens said during the Feb. 5 Sanford Town Council meeting.
   Stevens updated the council on several  economic projects underway in Sanford, including the Sanford Institute for Savings expansion, Oxford Aviation, the mills and the downtown area.
   He said the Super Wal-Mart and Lowe’s development in south Sanford is moving forward.
   He said the deal between Great Island Development and Wal-Mart to develop the shopping center is “imminent” with groundbreaking expected in May or June.
   He said delays in the project were due to multiple changes of Wal-Mart real estate representatives and engineering issues that needed to be resolved to meet Maine Department of Transportation’s stringent specifications.
   He also said delays were attributed to “environmental due diligence on Wal-Mart’s part.”
   “They are on this,” Stevens said.
   He said they took soil samples about three weeks ago, but did not know what they were looking for.
   He said the 370,000 square foot, $20 million project is expected to provide 650 jobs and generate more than $293,000 in new taxes.
   The development will also act as a “magnet” for new retail, he said.
 
OXFORD AVIATION
   Oxford Aviation, an Oxford-based company that refurbishes airplanes, is also moving forward as they “continue to work with OSO,” Stevens said.
   Based in Massachusetts, OSO Acquisitions Inc., is a group that pulls together investors, financing packages and works with a company's existing management to foster further growth.
   “OSO is a very strong partner,” Stevens said. “Roberto Tenenbaum (Chairman and CEO of OSO LLC and President and CEO of the acquisitions unit, OSO Acquisitions Inc.) surrounds himself with excellence.”
   Stevens said OSO is currently defining Oxford Aviation’s project costs, new operating projections and re-securing financing.
   “Letters of commitment from the Finance Authority of Maine ran out and need to be resubmitted,” Stevens said.
   He said the purchase and sale agreement is expected to be signed by Feb. 15 with a closing date at the end of February. Construction will begin in summer and continue into the winter, with the doors “more likely” opening in the second quarter of 2009, Stevens said.
 
MILLS
   “Two quality developers have been looking at the mill area,” Stevens said.
   He said one developer is “going through due diligence on environmental issues” while the other is working on a comprehensive development plan with the town.
   “The plan will cover the specifics of a public and private partnership,” Stevens said.
   He said the developer’s plan will also address environmental liabilities and define who is responsible for the clean up of the mill area.
   “What the developers ultimately do with mills will hinge on their assessment of the market, how much they can charge for office space versus retail space versus residential space,” Stevens said.
   Stevens said Sanford is the only community in York County to qualify for new market tax credits, that allows developers to use credits to raise capital or financing from private investors for at least seven years.
   He said historic preservation tax credits, a tax credit that reduces the cost of developing a building, which is either, designated as historic or is in an historic district may also be implemented in the development of the mills.
   He said one of the stipulations of the historic preservation tax credit is the building cannot be demolished.
   “It’s the opposite of urban renewal when old buildings were torn down,” Stevens said. “Maine has a conservative historic preservation tax credit. We would like Maine’s historic preservation tax credit to be more like what is available to developers in other states.”
  He said historic preservation tax credits are more readily available in other states.
 
DOWNTOWN
   “Nearly every square inch (of downtown) is being looked at,” Stevens said.
   He said three developers, all with drug store components, are considering development in the downtown area and another bank is also contemplating a move to the downtown area, although he declined to name the bank.
   Stevens commended the council’s recent decision to allow the planning board to approve drive through window applications on a case-by-case basis.
   He said it was important to the growth of downtown Sanford to allow drive through and drive up windows.
   The $4.5 million Sanford Institute for Savings (SIS) expansion project on Main Street is expected to break ground in April, Stevens said.
   He said two parcels of Pine Tree Zone in south Sanford must be reallocated to the SIS location. A 7,789-square-foot parcel will be reallocated to 900 Main Street where the current SIS building stands and 16,667-square-feet will be shifted adjacent to the existing bank.
 
NEW ENGLAND TRUCK TIRE
   Another tire re-treading plant is expected to open across from Rubb, Inc. near the Sanford Regional Airport in south Sanford, Stevens said.
   He said the company currently employs 55 people in six locations, but said the new plant will initially employ 15 people, which may include five transfers from other locations. He said the company is expected to offer up to 30 new jobs.
   He said New England Truck Tire employs Michelin technology which requires substantial space to accommodate the necessary equipment.
   Initially, the company will rehabilitate a 25,000-square-foot building across from Rubb, Inc.
   Phase two will include the addition of 15,000-square-feet of space, Stevens said.
To contact Renee Worthing, email news@intheregister.com or 282-4337 ext. 240