HALLOWELL -- Fall is bringing more than colorful foliage to this tiny city.

"For sale" signs are coming down as new businesses open their doors, and entrepreneurs are seeing opportunities here.

Roger Pomerleau said he is "putting together estimates to determine costs and feasibility of opening a bistro in the Water Street building currently housing Haircut 100.

"I like what I see in Hallowell," Pomerleau said. "When I drive down Water Street late in the week, it reminds me of Freeport in its heyday. You can't find a parking spot anywhere, and there can be an hour wait at some of the restaurants."

"Property values in Hallowell have gone up," Pomerleau said, "and it is a solid place to start a business."

Farther up Water Street, Louise Harwood opened The Periwinkle, which serves treats such as ice cream and lobster rolls. Harwood's shop opened Memorial Day weekend.

On the southern end of Water Street, Fred Knee is welcoming antique dealers and shoppers to the Hallowell Antique Mall, which opened Sept. 1.

Knee, who owns the antique business with his wife, Randy, said the couple has "been slammed" with business in the first month.

"It's been much more than what we projected for the first month," he said.

The surge in business caught them somewhat by surprise, but not entirely, even in the down economy.

"My wife and I have faith in local businesses," he said. "(Hallowell's economy) is on the upswing."

Knee believes economic growth has happened because entrepreneurs have identified niches in Hallowell that make a certain business attractive, particularly antiques.

"Hallowell has a draw for specific businesses," Knee said. "It goes the other way, too; you probably wouldn't see a big factory come into town. It just doesn't fit with Hallowell."

Cary Colwell, president of the Hallowell Area Board of Trade, agreed.

"You won't see big box stores here," Colwell said. "Once people discover Hallowell, they want to keep coming back. We have such unique shops and items here you can't find in big box stores."

Colwell, however, stopped short of saying Hallowell's economic development was headed into an upswing.

"There's so much activity in town, for sure; but businesses come in and go out," Colwell said. "Not all of them make it, as much as we'd like to see them succeed. Though I would say business is going well here, I know some were hit hard by the recession."

The Board of Trade does not keep records of businesses that set up shop in Hallowell or close down. The city does not require businesses to have a business license on file unless the proprietor sells food and alcohol.

One business that closed was a beloved novelty gift and card shop, Paper Kicks, a 25-year-old fixture of Hallowell's downtown.

The owner, Ruth Coffey, closed it in April.

"The economy has just had a huge impact on small businesses. The more buildup there is in Augusta, the more that draws away from downtown stores," Coffey said last March before shutting down her shop. "We've been through so much, we thought we could just ride the economy out and hope things were going to get better."

In spite of the nation's economic downturn, the Knees do not believe they took a big risk.

"This is a destination for antiquing," Fred Knee said. "It has a great reputation. In fact, I just did business today with two folks from South Carolina. People in Massachusetts come to Hallowell specifically to do their antiquing."

The Knees bought the building next to the Hallowell Antique Mall, the former Mark Susi law office, so they can expand.

"We eyed that opportunity right away," Fred Knee said. "There's plenty of space for more parking and expansion."

Meghan V. Malloy -- 623-3811, ext. 431

mmalloy@centralmaine.com