Island Falls Redevelopment Project
Transforming a historic Maine town by converting underperforming downtown properties into economic engines through strategic planning, community engagement, and innovative funding.
A Town at a Crossroads
Once a thriving community driven by motivated entrepreneurs, Island Falls was—at its prime—a successful town. Sitting at the intersection of beauty and valuable natural resources, the founders harnessed the town's enormous potential.
With its landscape in prime location on the Mattawamkeag River, its lakes, forests, and the railway, they built up businesses, families, and a community all supported by the rich offerings of the land.
As industries and economies have evolved, Island Falls has struggled to adapt. The downtown is now saddled with properties that were once well-suited for business in the past, but no longer serve the needs and interests of the community today.
The Fundamental Problem
The downtown section of Island Falls is not currently contributing at its highest potential.
While the town still holds natural resources and economic opportunities with potential to benefit the population, redevelopment is necessary to allow current and future generations the same economic opportunities for prosperity.
SWOT Analysis
Strengths
- ✓ Natural beauty & outdoor recreation on Mattawamkeag River
- ✓ Historic 19th & 20th-century architecture
- ✓ Strong community spirit and bonds
- ✓ Strategic location on Route 2
Weaknesses
- ✗ Economic decline from starch factory closure
- ✗ Lack of public sewer infrastructure
- ✗ Limited amenities and services
- ✗ Aging population and declining workforce
Opportunities
- ⚡ Tourism development leveraging natural beauty
- ⚡ Small business growth with incentives
- ⚡ Historical preservation and adaptive reuse
- ⚡ Grant funding for revitalization
Threats
- ⚠ Competition from nearby towns
- ⚠ Continued outmigration of young people
- ⚠ Difficulty attracting private investment
The Starch Factory Property
The starch factory once greatly contributed to the town's success. It still sits on Grade A waterfront today, but what was once in its prime is now in a state of disarray.
Because this property is so visible at the entry to town, it negatively impacts the image of Island Falls as a whole, creating an enormous deterrent for development of surrounding properties.
At this point, even the most motivated entrepreneurs would be unable and unwilling to carry the weight of negative equity required to redevelop these properties.
Current State
11.45 acres of riverfront property—which should be near the top of contribution rankings— currently pays only $10K in yearly taxes.
It could and should be paying considerably more.
Proposed Strategy
A comprehensive approach to transforming Island Falls through cleanup, redevelopment, and strategic use of natural resources.
Harnessing Natural Resources
It's widely accepted among the community that our most valuable natural resource is our beauty. When you add that to our highly accessible location, there's no reason why we can't move our town's status towards the top of the state's economic success list with a strong year-round economy.
Waterfront Lodging Development
By using the waterfront area for lodging (mentioned in the comprehensive plan as a need), we can:
- Attract outside dollars to be spent within the town
- Provide more jobs for residents
- Improve the health of the town as a whole
- Fix the negative equity problem
- Attract new residents and encourage current residents to invest in properties
Immediate Impact:
This development would have an immediate positive impact on the valuation of nearby properties and create increased contribution from an underperforming downtown.
Benefits of Additional Lodging
Local Business Support
- Increased revenue at local grocery stores
- More customers for gas stations
- Higher utilization of golf course
- Support for local venues and pubs
Economic Growth
- Attract additional restaurant development
- Create new job opportunities
- Increase property values town-wide
- Generate sustainable tax revenue
Funding Strategy
Recognizing the estimated investment of approximately $2 million, we believe the competitive nature of this design could garner matching amounts in grant funds.
Grant Opportunities
This revitalization is a strong competitor for grant funding as it involves cleaning up waterfront and allows for tourist use—a fundamental objective for the State of Maine (Vacationland).
TIF & Municipal Surplus
Tax Increment Financing and the town's $4M+ surplus can be strategically deployed to compound returns while maintaining fiscal responsibility.
Expected Outcomes
Job Creation
New employment opportunities in hospitality, tourism, and supporting services for families seeking economic stability.
Property Values
Increased valuations throughout the town as the downtown becomes an asset rather than a liability, benefiting all property owners.
School District
Population growth and increased tax base provide resources for educational improvements and attract families.
Tourism Growth
Capitalize on natural beauty and outdoor recreation to create a year-round economy supporting local businesses.
Community Pride
Restored downtown creates sense of accomplishment and attracts people who want to be part of a thriving community.
Sustainable Revenue
30+ years of increased tax contributions reduce burden on lake properties and provide resources for municipal improvements.
Does Your Community Face Similar Challenges?
The Island Falls project demonstrates how strategic planning, community engagement, and innovative funding can transform underperforming assets into engines of prosperity.