What are “Wood Composites”?
Wood composites is a broad term used for any material made from wood and at least one other type of material. Common examples of woo composites are plywood, oriental strand board (OSB), Formica counter tops, and so-called ”plastic lumber” used for park benches and other outdoor applications. Industry often turns to the wood composites field for new products to solve existing problems.

Why Wood Composites?
The State of Maine studied various industrial sectors to try to identify what areas are probably growth areas for high-wage jobs. The Wood Composites Field is one of those sectors. Considering Maine’s abundance of natural resources, our lengthy wood manufacturing history, the presence of a world-class composites laboratory for research and development at the University of Maine, and the demand by industry for new and better products, the wood composites field was selected as one of seven sectors in which to invest resources to grow future businesses and future high-wage jobs.

Why Greenville?
Greenville’s proximity to the many and varied “wood baskets” (standing, working forests) in the North Maine Woods, its steam power plant located in the Greenville Industrial Park, proximity to Canada and potential rail access to overseas and western markets all favor the location of the wood composites incubator in Greenville. Piscataquis County’s potential to become a tax-free Pine Tree Enterprise Zone, especially for advanced manufacturing fields such as wood composites, also is a reason to locate in Greenville.

What will the Incubator Be?
The proposed Wood Composites incubator will be an approximately 20,000 sq. ft. facility (steel building) within the Greenville Industrial Park which will be available for lease to entrepreneurs in the wood composites field. Three-phase power will feed the building, as well as water and sewer service (although water and sewer may be offered on-site to begin the operation). The CTC will oversee the operation of the incubator, and the University of Maine will coordinate laboratory testing services of prototype products. The available space will be offered at a competitive lease price to encourage business growth. Costs will be kept low due to the limited debt incurred by construction of the facility.

How will it be paid for?
A variety of sources have been identified to cover the costs of construction of the incubator. These sources, listed in greater detail in the attached budget, include funds from a Congressional Appropriation from the Department of Housing and Urban Development (HUD); USDA Rural Development; Governor’s Economic Development Bond proposal; funds from the Town of Greenville. In total, we expect to have no more than $75,000 in debt when the project is complete. Total project cost will be between $750,000 and $1,171,000.

How will Greenville and the rest of Piscataquis County benefit?
Greenville and Piscataquis County will benefit from the prospect of high-wage jobs growing through business growth in the wood composites field in our region. Nationwide, over 85% of all businesses which exit a business incubator locate their own facility within 25 miles of the incubator center, due to proximity to familiar vendors, raw materials, transportation corridors, and labor source. It is expected that businesses which get their start in the wood composites incubator will eventually exit the facility and start up their own facilities within Greenville and greater Piscataquis County. Business growth and high wage job creation will be the dividend s the people of Greenville and Piscataquis County will receive from this investment.

Is there a tenant planed for the incubator once it is built?
The CTC is working with a Maine entrepreneur who has expressed solid and reliable interest in leasing space within the incubator. The Town of Greenville, the University of Maine and the PCEDC have been working with this entrepreneur for nearly two years. The proposed business would start small with about 10 jobs and then ramp up over time to as much as 3-5 times as many positions, all offering above-average wages for this region.

What risks are there for Greenville in developing this project?
The worst that could happen would be that a structure is erected for the incubator, and no tenant or tenants occupy the building, eliminating not only job growth but also the revenue stream which would defray the cost of debt service and/or building maintenance. Permission to borrow funds up to $75,000 is being sought by the Greenville Board of Selectmen, but the Board does not intend to execute such authority (if granted) until the project is developed to the point of requiring such funding. Indeed, execution of borrowing authority might not occur until a tenant has signed a letter of intent. Multiple entities are working to market this center, and the State of Maine will be working to capitalize on its investment in this center by aggressively marketing the center and assisting in tenant acquisition and business development for exiting tenants.

Budget for the Incubator

Total Construction, Engineering and Miscellaneous Costs (estimated, ~20,000 sq. ft. building):

GRAND TOTAL: $1,171,538

Revenue: Advanced Technology Development Center Grant: $18,000 (~)

Special Congressional Appropriation (VA/HUD): $223,538

MTI Grant:

State of Maine EDI CDBG Funds: $25,000 (~)

USDA Rural Development Funds: $80,000

Town of Greenville Bond: $75,000 (~)

SUBTOTAL: $421,538

Governor’s Bond: $750,000

TOTAL REVENUE: $1,171,538

Grand Total: $1,171,538

Schedule for the Implementation of the Incubator

Currently, all expected funds will be available by July 31, 2003. If all goes according to plan, engineering and permitting work will begin in July; construction will begin in September; the center will open by January 2004.