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V O L . X X X N O. I JA N UA R Y 8 , 2 0 2 4 14 E C O N O M I C F O R E C A S T F O C U S D E V E L O P M E N T The Downs looks to 'transformative' year B y A l e x i s W e l l s D espite the high building costs, interest rates and continued issues with material pricing, new construc- tion continues at the Downs, a mixed- use development in Scarborough. According to Dan Bacon, the development director of the Downs, 2024 is expected to be a transforma- tive year with the activation of the planned Town Center. Infrastructure construction has just started. In 2024, a new Allagash Brewing tasting room, InterMed surgery center, medical office and the first few mixed-use buildings anchoring the Town Center will be under construction. e mixed-use buildings in the Town Center will be available for retail, restaurants and other commercial space, as well as office and residential. "A year from now, we'll be able to visit many of these destinations as well as walk on the sidewalks of the new Town Center," says Bacon. e Downs has developed 500 units of housing of all kinds, including single- family homes, apartments, elderly hous- ing, condos and even tiny houses. e majority of the housing and unit types they have focused on have appealed to young professionals and empty nesters. e development has families with children, but that's not the majority of households. is is mainly due to the housing types, which include condos, apartments, town- houses, smaller single-family homes, and various price points. "For 2024, we are adding some new housing types, including ameni- tized condos and units in mixed-use buildings (above retail), but expect the demographics of new residents to be similar," says Bacon. Bacon says given the Federal Reserve's announcement about interest rate adjust- ments downward over the course of 2024, real estate development is poised to regain better predictability and more favorable lending. "is can help both the developer side as well as buyers, especially in work- ing to address the statewide housing crisis," says Bacon. "e high-interest rates of 2023 have caused some projects to stall or not move forward and others to proceed but price out middle-income buyers and renters." R E TA I L Despite 'headwinds' for consumers, VIP exec optimistic B y A l e x i s W e l l s T im Winkeler, president and CEO of VIP Tires & Service, says his out- look for automotive retail is very opti- mistic. With the total number of miles being driven continuing to climb and the average age of vehicles on the road increasing, the automotive retail sector is in a strong growth mode. Winkeler believes Maine's economy will be just fine in 2024. "Although there are some headwinds from a consumer perspective, such as rising interest rates and debt payments," says Winkeler. "I believe we will continue to see net positive migration into the state as well as healthy increases in wages for most jobs, which will more than off- set any challenges that may exist." VIP Tires & Service, based in Auburn, is northern New England's largest privately held automotive service provider and tire dealer. Its 69 locations are up from 40 in 2001. e workforce has grown from about 490 in March 2020 to 650 today. "We have plans to add to our staff at every location in 2024," says Winkeler. "e current demand environment is such that as soon as we can onboard the right person and get them trained to our processes, they become productive, and it allows us to welcome even more customers into our shops." "Of course, automotive service isn't for everyone, but we are seeing increased interest in the trades as a career among many young people today, so we are bullish on our ability to continue to increase employment across Maine and New England," he says. VIP Tires & Service plans to open four to five new locations in 2024, targeting Connecticut, Vermont and Massachusetts, including Cape Cod. e company also plans to expand its older location in established markets in Augusta and Yarmouth, where they have outgrown their current facilities. H O S P I TA L I T Y Bam Bam Bakery is ready to take on New Year B y A l e x i s W e l l s O ver the past three years, the restau- rant industry has faced plenty of struggles and uncertainty. But Tina Cromwell, owner of Bam Bam Bakery, plans to reopen her gluten- free bakery in a new location. Bam Bam Bakery leased 1,961 square feet of retail space at the former Ela Market & Grill at 125 Bucknam Road in Falmouth. e bakery closed its Commercial Street location in the Old Port during the pandemic. Although Cromwell is excited about the new location, like many res- taurant owners in the state, she worries about staffing and increased costs of ingredients and products. "e restaurant industry is still trying to find what works best," says Cromwell. "Ingredients are expensive. Staffing is tricky. People want a lot of money and will walk out on you knowing that they can go elsewhere for more money and a job that starts immediately. It's very unsettling." In anticipation of the opening, the bakery owner is ready to start hiring. She says she is looking for those who love what they do and show up, but this has been her biggest struggle for many years. » C O N T I N U E D F RO M P R E V I O U S PA G E Tim Winkeler is president and CEO of VIP Tires & Service. P ROV I D E D P H O T O P ROV I D E D R E N D E R I N G Dan Bacon, the Downs P ROV I D E D P H O T O A rendering of the planned Town Center at the Downs in Scarborough.

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