Recovery of Loring recognized Former base sparks jobs, County, state economy

LIMESTONE – Despite fears that Aroostook County would never recover economically from the devastating blow it was dealt in 1994 when Loring Air Force Base was closed, a new report reveals that more civilians are working there now than before the base was shut down.

Twenty organizations occupy 1.6 million square feet of the former base, which was once home to 4,500 military personnel and 1,100 civilian jobs.

“Seven years after Loring closed its doors, we are pleased to report that there is life after military base closure,” Brian Hamel, president and chief operating officer of the Loring Development Authority, told his board of trustees last week. “It is important for politicians, the people of Aroostook County and the state to understand this.

“The economy of the area has improved considerably, and more people are working in the civilian economy than prior to the closure of Loring,” he said. “People are back to work, and the LDA played a big part in that.”

Earlier this month the Maine State Chamber of Commerce presented the Loring Development Authority with its annual Investor Award in recognition of the LDA’s successful efforts to redevelop the former base.

In July, unemployment in the area had dropped to 2.9 percent, an all-time low in Aroostook County.

An economic impact report, compiled by the LDA and the Maine State Planning Office and presented to the LDA trustees Oct. 10, shows that the Loring Commerce Centre and the companies located there have invested $364 million in Maine in the last seven years.

The amount includes $185 million invested by tenants on the base and $179 million invested by the Air Force.

A breakdown of the $364 million indicates that $117 million was in payroll, $25 million in retail sales, $70 million in services, $10 million in wholesale purchases and $142 million in construction.

More importantly, $264 million of the entire package was spent entirely in Aroostook County. The annual payroll of the 1,100 jobs at the Loring Commerce Centre is $30 million.

The Maine State Planning Office has estimated that the annual ripple effect of the Loring Commerce Centre supports 1,200 other jobs in Maine that put $28 million in the Maine economy in payroll and profits.

The ripple effect was estimated to create $18 million in retail sales, $43 million in business sales, $11 million in wholesale sales, and $2 million in construction sales.

The ripple effect was said to be $42.4 million in Aroostook County alone. The LCC is estimated to support more than 900 other jobs in The County.

“All of this happens every year,” Hamel said. “We are not even counting the estimated $50 million that the two Phish concerts injected into the Maine economy in 1997 and 1998.

“These figures are underestimated if anything,” he told his governing board. “The economy has improved greatly.”

He said the former base now employs more civilians than were employed at Loring when the Air Force was there. Trustees were told the LDA played a big part in that.

The announcement came at a meeting during which the LDA trustees approved an agreement with a company opening an aircraft refurbishing facility on the base. The Telford/Volvo Group will start bringing planes into Loring next month, according to Hamel. The operation will start with 12 employees, but is expected to grow to more than 100, he said.

“Job well done, to make this happen,” trustee Philip Bennett of Caribou said.

“It’s a real pleasure to see the rush hour traffic when I come here,” Albert Watt, chairman of the board of trustees said. “It’s a thrill to see what has happened here over the last seven years.

“This economic impact report, backed by figures from a state agency, is really great,” Watt said. “It is time for us to blow our own horn.”

All tenants of the Loring Commerce Centre were surveyed for the study. It was done over the course of several months to develop accurate figures on employment, purchases, sales and construction investments.

In presenting the Investor Award, Maine State Chamber of Commerce President Dana Connors lauded the efforts of the LDA and three other companies receiving the award. The others were the Cianbro Corp., based in Pittsfield; Great Northern Paper Co. of Millinocket; and the Perrier Group of America, owners of Poland Spring bottled water.

“We applaud the efforts of these four businesses who have advanced our state’s economy through investments in their companies, their employees and their communities,” Connors said.