NH town still reeling but on cusp of a comeback

By Lynne Tuohy

Associated Press

Published: Sunday, Aug. 12 2012 10:40 a.m. MDT

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In this photo taken Thursday, Aug. 9, 2012, a vacant lot is seen on Main Street in Berlin, N.H. As the city tries to get out of its deep depression since the closing of the paper mill, there are signs the city is about to turn around including plans to build a hotel in the vacant lot.

Jim Cole, Associated Press

Summary

The city of Berlin is on the cusp of crawling out of its steep economic woes. Residents and officials are pinning hope on a new federal prison's $20 million payroll and a biomass plant that promises to resuscitate the logging industry when it opens late next year.

BERLIN, N.H. — The city of Berlin is on the cusp of crawling out of its steep economic woes. Residents and officials are pinning hope on a new federal prison's $20 million payroll and a biomass plant that promises to resuscitate the logging industry when it opens late next year.

But lifelong residents of this once-thriving mill city temper hope with caution.

This year, job losses have outpaced new hires, but that may be about to change.

The prison has just 100 of its anticipated 341 workers in place. The revived Gorham Paper and Tissue Mill is hiring again. Corrections officers transferring to the area are beginning to buy homes and frequent local retailers and restaurants, and developers announced plans Tuesday to build a hotel downtown.

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