Brunswick Economic Development Corporation
28 Federal Street
Brunswick, Maine 04011

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Brunswick Economic Development Corporation (BEDC)

7/24/07

Frequently Asked Questions: 

1. What is BEDC, what does it do and how was it created?

The BEDC was created in November 2003 to be a non-profit corporation by the Town of Brunswick with Articles of Incorporation that specifically requires it to: a) promote economic development within the Town of Brunswick; b) expand and diversify the economic and tax base of Brunswick; c) provide information and advocate for appropriate Brunswick business development; d) coordinate economic development within Brunswick; e) purchase and lease land or buildings for economic development; f) develop, manage and sell property for economic development; and finally, g) borrow and loan money for economic development.

2. What is the make up of the BEDC Board, how were they selected and what are the qualifications for the BEDC Board?

The BEDC Board currently has 17 Board members approved by the Brunswick Town Council. Six of the Board members are public officials or Town staff. Eleven of the Board members are from private industry. A list of the BEDC Board members is posted on the brunswickme.org link to BEDC’s brunswickbiz.com website. The BEDC Board seeks to have private members that bring a broad mix of business knowledge, experience and relationships to the economic development issues facing Brunswick. The BEDC Board has public members who have direct roles and responsibilities in Brunswick’s economic development projects and processes.

3. Are the BEDC Board members paid, or do they receive any compensation from the earnings of the BEDC?

 The BEDC Articles of Incorporation specifically states “no part of the net earnings of the corporation shall inure to the benefit of any member, director or officer, or private individual (except that reasonable compensation may be paid for services rendered to or for the corporation in the carrying out one or more of its purposes), and no member, director or officer of the corporation, or any private individual, shall be entitled to share in the distribution of any of the corporate assets on dissolution of the corporation.” The private Board members are all unpaid volunteers. The public Board members are the appointed Town Councilors and Town Staff, which are all currently paid by the Town of Brunswick and not by the BEDC. Each member of the BEDC must sign a copy of the BEDC Conflict of Interest Policy upon membership to the board.

4. Will the BEDC Board members receive any special benefits or compensation, e.g. real estate commissions, building or road construction contracts, etc., for economic development projects, such as a business park, in Brunswick?

The BEDC Board members, both public and private, do not individually or on behalf of their company or organization receive any special benefits or compensation for economic development projects promoted and developed in Brunswick. All Board members must purchase, lease, sell or earn contracts or commissions for land, buildings, roads, etc. by going through the exact same processes, e.g. bidding, purchasing, permitting, etc., that all other individuals and businesses must do.

5. Are the BEDC Board meetings open to the public or the press and are the BEDC Board meeting minutes available to the public?

The BEDC Board meetings are not open to the public or the press, but non-Board members are frequently invited to review and discuss specific economic development issues with the Board. Businesses considering expansions or relocations in Brunswick most often request confidentiality to protect their employees and customers, and to prevent their competitors or current and future landlords of advance knowledge of their preliminary analyses and planning. The minutes of the BEDC Board are not provided to the public for the very same reasons. This policy is consistent with economic development corporations created by other communities.

6. What authority does the BEDC have over Town Council actions?

The BEDC has no authority over any Town Council action. Like any other government created agency, committee or non-profit entity, the BEDC serves in an advisory capacity only. The BEDC provides advice and assistance on economic development matters to the Brunswick Economic Development Department and to the Town Council. The BEDC also works with other community, regional and state committees and agencies regarding economic development activities in Brunswick. The BEDC provided advice to the Comprehensive Plan Update Committee regarding the business park development process. The BEDC has also provided the Town Council with an annual economic development report and, from time to time, white papers regarding specific economic development policy issues. The Town Council has to approve all BEDC contracts and commitments on economic development projects.

7. Why does the BEDC support the creation of another business park in Brunswick when the BNAS closure will provide land and facilities for future business development?

1. BNAS Availability - the Navy does not expect to make any property inside the base available until 2012; it is estimated that of the approximately 3200 acres inside the base only 1600 acres can be developed; some of the 1600 acres has major environmental issues and most of the 1600 acres has not been environmentally assessed or market appraised; the rising cost of closing the base and the lack of funds for redevelopment are creating major uncertainties as to when any base property will be available for private business development; the Executive Director of the Brunswick Local Redevelopment Authority (BLRA) has stated it will most likely be 2015 before land for a business spark would be available; engineering, permitting and infrastructure construction could take another year or two.
2. BNAS Cost and Tax Revenue Uncertainty - the Navy has stated it will seek market value for the base property, which could be more than many smaller businesses can afford to pay; the base property will require major road, water, sewer, environmental mitigation, etc., investments to make it useable for redevelopment; neither the state nor the federal governments have budgeted sufficient funds for environmental clean up or infrastructure improvements; the Midcoast Regional Redevelopment Authority (MRRA) has the power to assess fees for base redevelopment, operations and infrastructure improvements; Brunswick most likely will not see any tax revenues from the base redevelopment for many years. 
3. BNAS Job and Income Loss - the Office of the State Economist has recently updated the analysis of the job and income loss of the base: 6,000 to 7,000 jobs will be lost statewide, with 85% of the jobs in Brunswick, Bath and Topsham; $140 million in income will be lost; 6,500 to 7,500 population reduction; a new business park outside the base property is absolutely essential to offset some of these job losses before and while they are occurring; there is no developed business park lots left in Brunswick or in the surrounding towns.
4. BNAS Housing and School Impacts – over 600 homes and 1700 rental units outside the base will become vacant and enter the market, causing a major impact on home market prices and rental vacancy rates; over 70% of Brunswick’s tax revenues are generated by residential property values; Brunswick schools will lose 10% of its students and $1 million in federal school aid; Brunswick must diversify its tax base to avoid a potentially significant tax revenue impact.
5. Existing Economic Development Incentives – the federal government and the State of Maine have incentive programs (WIRED grant, Military Development Zone, etc.) now in place with 3 to 5 year windows that encourage businesses to locate or expand in Brunswick BEFORE the base closes; the BDC, BEDC and the Town of Brunswick have nearly $4 million to invest in economic development projects (parks), facilities, revolving loan funds, etc. to assist businesses wishing to expand or locate in Brunswick; there are no developed business park lots left for businesses seeking to expand or locate in Brunswick in the immediate future; additionally, there are no parks presently permitted in Bath or Topsham, creating an acute shortage in immediately available land (see the findings of the Governor’s Advisory Council).
6. Other Job Losses – BIW’s shipbuilding program has major gaps that have resulted in a loss of over 1,100 mostly production jobs to date; the recent political changes in Washington are creating major uncertainty, especially with regards to future military spending; BIW and many of the area businesses that supply BIW are possibly facing many more job losses; Brunswick must create jobs now and have park space available now to address these job threats.

8. What are some examples of companies looking to expand or locate in Brunswick?

In the last year the Brunswick Department of Economic Development and BEDC have talked to or helped over 40 businesses in town and in the business parks. Companies range from small retail stores to the Times Record and Harbor Technology construction projects. Currently 14 businesses have needs that range from 2,000 square feet to 100,000 square feet. Brunswick has very limited space to accommodate these varied needs. The following table provides a generic glimpse of these jobs: 

The smaller companies can be absorbed in new “incubator” facilities, like the old Times Record facility that would house multiple tenants. Fort Andross used to fulfill this role but that facility is shifting more towards offices and the creative economy. There are roughly 12 new business park lots needed now to create new businesses. This would only satisfy about one third of what is needed for park space. It is hoped that Brunswick’s infill development and the park development in neighboring communities can fill these voids.

9. What are some of the properties being marketed to companies looking to expand or locate in Brunswick?

Presently, the following infill properties are being actively marketed (there are no lots available in the existing park and all buildings will soon be occupied):

· Maine Street Station (mixed use, under construction in 2007)

· Washburn Lumber (4 potential lots)

· Crooker Properties, Old Bath Road (retail)

· Health South (negotiating)

· Atrium Property (retail)

· Fort Andross (office, parking limited)

· Kilfoil building, Paul Street

Additional properties not formally being marketed at this time include:

· Moore Property (Old Portland Road)

· Fox Run Property (River Road)

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