A local business will be honored next week as the Maine Merchants Association’s 2005 Retailer of the Year at the group’s 72nd annual meeting in Augusta. Indian Hill Trading Post, situated on a bluff overlooking Moosehead Lake, is being recognized for the diversity of its operation and its commitment to serve both tourists and year-round residents, according to a prepared statement about the award. The store, operated by the Stuart Watt family since 1983, also is known for its civic commitment to the Moosehead region, the statement indicated. The association also will present its Government Service Award to state Sens. Christine Savage and Lynn Bromley. In addition, state Sens. John Martin and Richard Nass and former State Economist Laurie Lachance will participate in a panel discussion of the state’s finances. The luncheon will be held at 11 a.m. Friday, Oct. 14, at the Holiday Inn Conference Center in Augusta.