Mainebiz

W W W. M A I N E B I Z . B I Z 11 F E B R UA R Y 6 , 2 0 1 7 Bar Harbor Bankshares, the holding company for Bar Harbor Bank & Trust, successfully completed its merger with Lake Sunapee Bank Group, the hold- ing company for Lake Sunapee Bank in Newport, N.H. The company is now the only community bank headquar- tered in Northern New England with a market footprint in all three Northern New England states of Maine, New Hampshire and Vermont. UMaine inks forest-products partnership e University of Maine has signed a letter of intent with the U.S. Department of Energy's Oak Ridge National Laboratory to partner in the development of forest-based biomaterials for use with advanced addi- tive manufacturing, composite materials development and manufacturing, as well as bio-refineries, bioenergy and biofuels. e signing of the letter of intent marks one of the first steps in implement- ing the recommendations offered by the federal Economic Development Assessment Team, which has outlined eight strategies for boosting Maine's $8.5 billion forest products industry. UMaine's Advanced Structures and A quaculture is the fastest-growing food production busi- ness in the world, and it's already contributing nearly $138 million in both direct and multiplier or related economic impact to the state. The Maine Aquaculture Economic Impact Report, issued in late January by the University of Maine Aquaculture Research Institute and its collaborators, also found a total economic impact of 1,078 jobs and $56.09 million in labor income in 2014. The numbers came from 71 survey respondents. The state had 107 aquaculture businesses in production in 2014. The report noted that Maine has advantages in a com- petitive world economy because its economic prosperity depends largely on its geography, physical resources and human capital. That makes the state's coastline and marine resources a unique asset for aquaculture, the report found. More fish farming needed Aquaculture, the farming of finfish, shellfish or plants in fresh or salt water, produces all kinds of potential revenue sources, including food fish, sport fish, bait fish, ornamental fish, crustaceans, mollusks, algae, sea vegetables, research animals and fish eggs. Aquaculture also includes growing plant species used in food, pharmaceutical, nutritional and biotechnology products. The report noted that 62% of food fish is expected to be produced by aquaculture by 2030, which translates into a needed 70% increase in global production. Aquaculture production grew 6.5% annually from 2000 to 2012. The United States is the third-largest market for seafood in the world but imports 91% of its seafood, resulting in an $11.2 billion trade deficit. The report noted that Maine has a long history of sup- plying North American markets with fresh seafood and is within a 24-hour truck ride of over 150 million customers. The state's 107 aquaculture businesses marine grow-out farms, marine hatcheries, freshwater grow-out farms, fresh- water hatcheries, land-based aquaculture and aquaponics. More highlights from the report: Maine's aquaculture sector has a direct economic impact of $73.4 million in output (sales revenue), 571 in employ- ment and $35.7 million in labor income. Since 2007 the total economic impact of aquaculture has almost tripled from $50 million to $137 million dollars. The top three species are Atlantic salmon, blue mussels and Eastern oysters. All sub-sectors include businesses reporting more than $2 million in sales revenue in 2014. Most jobs related to aquaculture production are full-time, all- year positions. Less than 30% of employment is seasonal. Some 39% of respondents reported $0 revenue. An unknown portion of them represent start-up companies. Research services account for 47% of the revenue reported by aquaculture businesses providing services. Some 86% of aquaculture producers send their produce to wholesalers or distributors. Most businesses in the sector made sales in-state in 2014. The shellfish sub-sector sold the most in-state in 2014. For all expenditure categories, feed is the highest cost and accounts for 57% of expenditures. Some businesses reported a fall in sales revenue over the last five years, but the majority reported an increase. The greatest rise was in the shellfish sub-sector. There is substantial optimism in the aquaculture sector, with 73% of respondents predicting 51% or greater increase in sales revenue by 2020. This optimism is greatest in the shellfish, sea vegetable and service providers sub-sectors and is probably spurred by the newer companies. A large portion of the sector is new; 24% of respondents began operations in the last two years and another 21% began operations in the last three to five years. Aquaculture production varies considerably annually in part due to site rotation and fallowing routines. The study was conducted when finfish production was at a low point in its normal three-year rotation cycle, thus sig- nificantly reducing the economic impact of that sub-sector. Aquaculture has $138M total economic impact on Maine B y L o r i V a l i g r a B I Z M O N E Y Billionaire invests in island restaurant Billionaire investor and art collector Mitchell Rales, a part-time resident of Northeast Harbor, teamed up with Michael Boland, the long-time owner of restaurants in Bar Harbor, to buy a seasonal restaurant on Little Cranberry Island. e Bangor Daily News reported that they plan to extend the season at Islesford Dock Restaurant, but want to retain the character. e Islesford Dock Restaurant has been running since 1993, according to its website. e purchase comes upon the retirement of owners Cynthia and Dan Lief. Boland, whose restaurants include Havana and Choco- Latte in Bar Harbor, said they plan to buy as many goods as possible from Maine vendors. "We certainly hope to run as great a restaurant as Dan and Cynthia did for the last 24 years," Rales added. "However, we are equally excited about the economic impact of keeping this icon going and increasing its eco- nomic impact through various means, including lengthening the season." N O T E W O R T H Y M I D C O A S T & D O W N E A S T The U.S. Environmental Protection Agency awarded the Eastern Maine Development Corp. in Bangor $200,000 to support a develop- ment and implementation strategy in Bucksport for the former Verso Paper Mill project area. PC Construction in Portland recent- ly bolted the final piece of struc- tural steel in place at The Jackson Laboratory's new Center for Biometric Analysis, a 21,000-square-foot facil- ity in Bar Harbor. The $14.25 million project was designed by Harriman Associates in Auburn. Redzone Wireless LLC, a wireless Internet service provider in Rockland, activated the first phase of its new 5Gx fixed wireless broadband network in 10 selected markets — Portland, Bangor, Augusta, Sanford, Waterville, Lewiston, Auburn, Camden, Rockland and Topsham. Coastal Maine Botanical Gardens said it received a 25-acre parcel of land adjacent to the organization's Boothbay property. The gift from an anonymous donor contains over one-quarter mile of lakefront on Knickerbocker and Little Knickerbocker lakes. Output Employment Labor Income Direct impact $73,410,609 571 $35,675,486 Multiplier 1.875 1.888 1.572 Multiplier effects $64,237,661 507 $20,411,758 Total impact $137,648,270 1,078 $56,087,244 Economic Impact of Maine Aquaculture Industry, 2014 S O U R C E : Maine Aquaculture Economic Impact Report, January 2017, University of Maine Aquaculture Research Institute M I D C O A S T & D O W N E A S T N O R T H E R N & E A S T E R N

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