FAIRFIELD -- The Kennebec Valley Council of Governments has received a $60,000 federal grant for economic-development planning and strategy.

Kenneth Young, the council's executive director, said the U.S. Department of Commerce's Economic Development Administration money is being used for continuing marketing and planning in local communities, most recently in Hartland, Oakland and Gardiner.

"Our principal responsibilities in terms of using the money is to prepare, update and implement a five-year, comprehensive economic development strategy for the region," Young said Monday. "What we do with the EDA money is we help cities and towns line up and obtain federal funding for water, sewer, roads, utilities -- economic development projects -- like FirstPark, Libby Hill (Business Park in Gardiner) and the treatment plant in Hartland."

The current management plan runs through 2013.

"As goals and strategies change, we'll amend it on an annual basis as well," Young said.

Young said the council applies to the federal government for planning-assistance grants and in turn uses that money to help member communities get grants of their own.

This round's $60,000 has to be matched with an equal amount from the council, either in actual funds or by "in kind" participation by community volunteers.

He said a "dollar value" can be put on volunteer meeting and strategy hours. Volunteers can include local bankers, business leaders and presidents of area Chambers of Commerce.

Young said EDA rules allow the council to use Community Development Block Grant money, which is administered by the state of Maine, as part of its share in the funding, along with membership fees by participating cities and towns.

Membership stands at 53 communities in Kennebec, Somerset, and western Waldo counties. Members represent a population of about 175,000 people.

Fees paid to the council reflect population and property valuation.

The federal funding was announced last week in a joint statement from U.S. Sens. Olympia Snowe and Susan Collins. The current program runs through March 31, 2009, and funds will be drawn down quarterly.

The Eastern Maine Development Corp. in Bangor was awarded $62,000 and the Androscoggin Valley Council of Governments in Auburn, $60,000, as part of the same package.

Young said the council has an annual operating budget of about $900,000, with $180,000 coming in fees from member communities. The council also administers a $4.5 million revolving loan fund for businesses and uses federal money for marketing and to help attract businesses to the area, the best example of which is the luring of T-Mobile to FirstPark in Oakland.

In addition to planning and administrative tasks, the council uses its funding for economic development work, such as the Libby Hill Business Park project in Gardiner, Young said.

He said when Gardiner was in line for an $856,000 EDA public works grant for the second phase of the project, the council worked with the city's economic development director to prepare the applications. That stage of the project is ready and going out to bid for the actual construction work financed by the grant, he said.

In Hartland, the council helped secure a $700,000 EDA grant to upgrade the treatment plan used by the tanning company.

"Hartland needed another $300,000 in (Community Development Block Grant) money and we helped them with that, and we administered both of those contracts," Young said.

The council also assisted the town of Oakland with a $200,000 federal "brown fields" grant for an environmental review of the former Cascade Woolen Mill site.

The review said the facility could be cleaned up and reused.

The town applied for an other $200,000 cleanup grant and was awarded the money last month, Young said.

Doug Harlow -- 861-9244

dharlow@centralmaine.com