enlarge 2004 Press Herald file

The old Hathaway shirt factory in Waterville is being redeveloped by Niemann Capital, which specializes in revitalizing historic structures, and Paul Boghossian, a Rhode Island developer.

The wide swath of Maine that runs from Waterville, through Augusta and down to Lewiston-Auburn has been seeing a variety of economic changes.

For the twin communities of Lewiston and Auburn, and for the state's capital, the retail sector continues to expand.

"(Augusta) has grown from being very under-retailed to a point where it's hard to believe there's enough customers to support it," said Peter Thompson, president and chief executive officer of the Kennebec Valley Chamber of Commerce. "People drive from 30, 35 miles away to do some shopping, from the coast, woods, north and south."

Major national chains such as Lowe's, Staples, Best Buy and Target are opening in Augusta in March, said Thompson, joining already existing stores like Barnes & Noble, Wal-Mart, Sam's Club, The Home Depot, Gap and others.

Thompson suggested that the increased retail has changed the city's image "from a dusty town where you make laws to a place where "oh, you can actually shop here?"

Retail activity by the Auburn Mall has exploded, said Charles Morrison, president of the Androscoggin County Chamber of Commerce. The mall, for all practical purposes, was pronounced dead in recent years, he said. Now it's full again, he noted. New additions include fast-growing clothing store Steve & Barry's, a Super Shoes and a Joker's (the children's activity business based out of Portland). Around the mall, new businesses include a Kohl's, T.G.I. Friday's, a Ruby Tuesday and a Longhorn Steakhouse.

A number of new restaurants have opened in the downtowns of both Lewiston and Auburn, said Morrison, and two new hotels have announced projects in each of the cities.

"It goes on and it goes on and it goes on," said Morrison.

Both Augusta and Lewiston-Auburn see strengths in the distribution sector. In Augusta, that includes businesses like Pine State Trading, PFG NorthCenter, Progressive Distributors and NRF, said Thompson.

In Lewiston/Auburn, the notables include the Wal-Mart distribution center, Bisson Transport's new center and Estes Express. Morrison noted that FedEx was building a new facility in Lewiston. And Safe Handling, which as the state's first ethanol facility, has seen "meteoric" growth, he added.

"It's taking advantage of what we have --wonderful transportation access," said Morrison. "We have the confluences of two railroads and the turnpike with an airport throw in, to boot."

Meanwhile, in the Waterville area, the big news of 2007 continuing into 2008 is inarguably the redevelopment of the Hathaway shirt factory by Niemann Capital, which specializes in revitalizing historic structures, and Paul Boghossian, a Rhode Island developer.

The Waterville site was occupied for more than 160 years by the shirtmaker known by the trademark featuring a man wearing an eye patch. An attempt was made in the 1990s to revitalize the factory, and activity finally ended completely in 2002.

The factory will be redeveloped into office space for MaineGeneral's health care network. MaineGeneral Health will occupy 40,000 square feet of space on the third floor of the center, making it the anchor tenant. The factory is expected to be ready for occupancy in the spring of 2008.

The redevelopment represents a $60 million investment in downtown Waterville, and the plan is to have 1,000 people living and working in the entire Lockwood Mills complex, said Kimberly Lindlof, president of the Mid-Maine Chamber of Commerce.

"To have an influx of 1,000 people a day in downtown Waterville. I don't even know how you'd compute it," said Lindlof. "You can't have a vibrant downtown without people living in it."

John Butera, executive director of the Central Maine Growth Council, said the redevelopment of Hathaway sent multiple messages about the area's vitality.

"Obviously there's an economic and financial boost that goes...