GORHAM – A strip along County Road in South Gorham is positioned to become a village center area as the town has approved contract zones to allow more business development.

Tuesday, the Town Council unanimously approved five contract zones previously reviewed by the Planning Board. In separate action, the council forwarded a more recent contract zone request to the planners for a recommendation. The town has received a barrage of requests after granting a contract zone last year for Hans Hansen.

Hansen previously received Planning Board approval to construct a child day care center at his 24-acre business park site at the intersection of County Road and South Street. Hansen is actively marketing lots at his site.

Town Councilor Michael Phinney said Tuesday the council’s Ordinance Committee believes the area would “blossom” into a village district.

“It’s becoming more and more of a commercial district,” Phinney, chairman of the Ordinance Committee, said.

Contract zones would allow a variety of businesses including convenience and retail stores, restaurants, and professional offices. This week, the Town Council added brewing and distilling businesses to a list of potential uses.

Property owners receiving council approval for zoning changes are Dennis Chadbourne, 83 County Road; Albert Frick, 95 County Road; Michael and Sara Ordway, 94 County Road; Mary McFarland, 86 County Road; and Marion Green, 68 County Road.

No one from the public commented on the proposals in the council’s public hearing. None of the five property owners have publicly announced any specific plans.

In a first step for another contract zone, the council referred a request from Carol Wood at 34 County Road to the Planning Board for a public hearing and its recommendation.

County Road in Gorham is now a mix of businesses and homes plus a church. Current businesses include a Mercy Hospital facility, farm market, animal hospital, O’Donal’s Nursery and an auto parts store.

In other action, the Town Council approved re-financing remaining debt from $21.2 million bonded in 2002 to finance construction of the middle school and Baxter Memorial Library expansion. Town Manager David Cole believed the town could receive a more favorable interest rate, saving the town about $260,000.

The council also voted 5-2 (Matthew Robinson and Phinney opposed) to hold a council workshop with town department heads, school personnel and Cole to review capital needs. The agenda item sponsored by Town Councilor Philip Gagnon had proposed the meeting to be handled by the Capital Improvements/Economic Development Committee.

Gagnon had concerns about tight budgets and maintaining town assets.

“Gorham has a ticking time bomb for capital needs,” Gagnon said.

In a budgeting issue, School Committee Chairman James Hager told the council Gorham would likely face receiving $233,000 less in state school subsidy.

Town Manager David Cole introduced to councillors Sharon LaFlamme, who became the town’s new finance director Nov. 28.

LaFlamme succeeds Maureen Finger, who left the position Oct. 21. “She moved to New York to be closer to family that live in the area,” Cole said Wednesday.