BATH – Gov. John Baldacci plans to create a Pine Tree Economic Development Zone encompassing Bath, Brunswick and Topsham, a region that will be hurt when the Brunswick Naval Air Station closes.

Pine Tree Zones use tax incentives to draw commercial activity to economically distressed areas of the state to create jobs.

In addition, Baldacci said his administration is working on a plan that would allocate $20 million to improving the infrastructure and encouraging entrepreneurs who want to start technology-related businesses.

Baldacci made his remarks Thursday at the 10th anniversary of the Mid-coast Council for Business Development and Planning.

Normally the Bath-Topsham-Brunswick region wouldn’t qualify for a Pine Tree Economic Zone designation because its unemployment and average salary figures exceed the criteria, said Jack Cashman, the state’s director of economic and community development.

“What we’re doing is asking the Legislature not to wait until the unemployment figures and wages meet the criteria for a Pine Tree Zone but to be proactive and take action now,” he said.

As for the $20 million appropriation, administration officials have not decided whether to make it an appropriation or to ask the Legislature to issue bonds.