RANGELEY – The couple who rescued the once-failing Saddleback Mountain from closure has unveiled a $12 million expansion that they hope will transform the resort into a destination ski area that’s family-friendly and affordable.

Gov. John Baldacci was among the 100 or so government officials, area businesspeople and community members Tuesday at a ribbon-cutting ceremony hosted by new owners Bill and Irene Berry.

“I first skied here in 1971 and one of the things I remember was that the skiing was great. In 2002, it was still great, but nothing had changed. The mountain had not kept up with the times,” Bill Berry said.

Within months of last summer’s purchase of the 8,000-acre property, the Berrys pressed ahead with a plan to modernize its aging equipment and outdated lodge.

The work included construction of a new base lodge nearly three times as big as the old one, a new quad chairlift, an extended double lift, seven new trails, two extended trails, and a new snowboarding terrain park featuring a 200-foot-long half pipe.

Along with a new power line and septic system to sustain future development, the owners acquired additional snowmaking equipment that will boost coverage from 50 percent of the mountain to 80 percent.

In May 2003, general manager Tom McAllister announced that the mountain would not reopen unless a buyer was found. Today, there are more than 105 workers, including 26 year-round employees. The family expects to double the work force by the 2007-08 season.

Jack Cashman, economic and community development director, said the improvements are providing a much-needed boost to the local economy that will have ripple effects felt statewide.

“In addition to the jobs that have been created, more skiers on the mountain will generate increased revenue for businesses in the surrounding area. The Berrys’ initial investment of $12 million will have an economic impact of approximately $36 million,” he said.

Construction of a 125-room hotel will begin next summer and there are plans to add a tubing park and ice skating pavilion. The Rangeley Lakes Cross Country Ski Club plans to construct approximately 45 miles of trails and a lodge.

The new owners said their aim is to keep prices at levels that Maine families can afford. A full-day adult weekend ticket at Saddleback costs $35, compared to $57 at Sunday River and $58 at Sugarloaf/USA.