GREENVILLE – Plum Creek’s development plans around Moosehead Lake could help restore the region’s once-thriving tourism economy and reverse population declines that threaten the vitality of local schools and hospitals, according to a study being released this week.

The report, which was conducted by Eastern Maine Development Corp., acknowledges that the construction of two resorts and nearly 1,000 houses near Moosehead could negatively affect traffic flow and public services.

But an EMDC representative told Greenville and Piscataquis County officials on Wednesday that many of those effects could be lessened through pre-negotiated agreements with developers or low-cost remedies.

“We do not endorse the [Plum Creek] project nor do we stand against it,” Jonathan Daniels, EMDC’s president and chief executive officer, told Greenville selectmen and town staff Wednesday afternoon. “It is our estimation that there are … impacts, but they can be mitigated.”

Plum Creek Timber Co. contracted with the nonprofit EMDC to analyze the impact of its 400,000-acre rezoning request on housing, tourism, education, transportation and other government services in the Moosehead region.

The summary report does not, however, discuss the impact the development will have on the Moosehead region’s natural resources, which figures to be the most hotly contested issue in the coming state review. Numerous environmental organizations have strongly criticized Plum Creek’s plan as potentially ruinous to the very asset that makes Maine’s largest lake such a tourist draw.

The full report will be submitted on Friday to the Land Use Regulation Commission, which will decide the fate of Plum Creek’s rezoning request. But the summary provided Wednesday to local government officials concludes that the development will have many positive impacts on local communities.

Positive impacts include:

. The potential for more than 260 additional students in the Greenville-region school system, which has seen dramatic drops in enrollment during the past 15 years.

. A broadened client base at Greenville’s C. A. Dean Hospital and Jackman Regional Health Center, which have been forced to downsize in recent years because of lower demand.

. At least a partial return to the heyday of Greenville’s tourism economy, when the Kineo Hotel alone could accommodate up to 1,000 guests. The region’s history as a tourist destination also means it can better support future development, the report states.

“The changing economy of the region, like many other parts of the state, has forced a shift in population out of the area that has stressed the remaining systems to provide a sufficient level of service to fewer users,” the report reads.

“The existence of substantial, but underutilized, infrastructure means that the proposed plan development will require much less infrastructure investment than would be required in a totally undeveloped area.”

Building 975 houses plus two resorts in a largely rural area will place additional strain on local resources, the report stated.

But those negative impacts can often be offset, or at least lessened, through advanced planning and making sure developers carry their share of the burden, the authors wrote.

For instance, traffic will undoubtedly increase on local roads. The EMDC authors state that one of the worst intersections in the area – the junction of Main Street, Pritham Road and Lily Bay Road in downtown Greenville – could be improved through dedicated turn lanes and a programmable traffic signal.

Other road improvements, such as turn lanes into the resorts, should be financed by the developers, the authors state.

Subdivisions should have homeowner associations that will be responsible for maintenance of roads within the subdivisions, eliminating the need for public agencies to maintain the roads.

The life span of Greenville’s landfill would likely be shortened from the current capacity projection of 26 years to 21 years with all of the development, the report states. But the authors recommend an impact fee to mitigate for the shorter life span.

The report predicts that the additional housing – much of which would be seasonal – and resorts would further stress already burdened fire, police and emergency medical services. The report recommends a “cooperative planning effort” between municipal and county officials, subdivision and resort developers and emergency service providers to address those concerns.

EMDC also encouraged localities to partner with any private emergency services crews at the resorts, which are proposed for Big Moose Mountain and on the Lily Bay peninsula.

Local residents as well as groups involved in the debate over Plum Creek’s plans have expressed concern over the lack of affordable housing in the area, which is increasingly becoming a destination for retirees and second-home owners.

EMDC recommends the creation of up to 160 affordable housing units in the area for people who move into or back to the region as the economy improves. Plum Creek has offered to donate 100 acres for affordable housing. But the report does not address who will build the housing.

With its largely optimistic take on Plum Creek’s development plans, EMDC’s report will likely be scrutinized by groups critical of the scale of the development as well as its potential impact on the region’s scenic resources.

There were no representatives of groups critical of Plum Creek’s plan present at either of Wednesday’s two meetings.

Several of the local government officials praised EMDC’s work, however.

Piscataquis County Commissioner Thomas Lizotte said he hopes the report will inform the debate over Plum Creek’s plan as it moves through the regulatory process. LURC’s review of the rezoning proposal, which includes extensive public input, is expected to last well into next year.

“We want Greenville to be the thriving community that … others remember, and certainly this is one way to reverse what has not been a pleasant trend,” Lizotte said.

John Simko, Greenville’s town manager, said he was pleased with the comprehensive nature of the summary but anxious to read the full report.

“We know the development will occur. People want to come here. It’s just how we manage it,” Simko said.

The full report will likely be available on LURC’s Web site sometime after it is filed with the commission this Friday.