Among the numerous tax incentives in the Gulf Opportunity Zone Act is one that creates a three-year window in which businesses can depreciate their personal assets at a quicker rate.

That could mean a serious spurt of activity in the near future, Stetelman said.

"I anticipate 2006 to be one of the largest building permit years," he said. "Commercially we're already seeing a lot of things hitting the drawing board."

Stetelman said he has seen renewed interest in both former Kmart locations his firm London and Stetelman manages - one on U.S. 98 at Westover Drive near Interstate 59 and the other at 49 Place near Cloverleaf Center.

Several businesses, including two potentially 80,000-square-foot anchor stores and a number of smaller businesses, are looking at the U.S. 98 building. Stetelman wouldn't identify the businesses.

"Some very quality merchants have expressed keen interest in being in that building especially because of its location and the two restaurants that are locating there," he said, referring to a LongHorn Steakhouse now under construction and a planned Olive Garden.

At 49 Place, demand for space has Stetelman's firm considering the construction of a new building.

"Several retailers are trying to expand at 49 Place and some retailers want us to build a new building," he said.

Stetelman also is working on smaller business projects that dot the wave of development throughout Hattiesburg.

David Aiena, a Hammond, La., businessman who is opening a 24-hour gym called 24.7 Fitness Studio along Hardy Street, said he sees Hattiesburg as a prime market for new business.

"Hattiesburg looks like it's booming," he said. "I had been thinking about it for a while. Even before the hurricane I thought it had a lot of enthusiasm and spirit."

Tax break

Aiena said he was unaware of the new tax incentives passed in the wake of Katrina, but intends to look into it to maximize his investment in 21 pieces of fitness equipment.

Meanwhile, significant construction projects and business plans, especially along U.S. 98 West, are rapidly moving along.

"We're going to deliver to most of our tenants within the next couple of weeks and most should be ready to open in 60 to 90 days," said Princeton Partners leasing agent Krista Dabney, who is overseeing business leases for the Turtle Creek Crossing development.

While the center's anchor stores, which included the areas first Target, opened in the last four months, at least 12 smaller boutique-style businesses and six additional restaurants are planning to locate on out parcels.

"The retailers that have opened are very happy with their sales," Dabney said. "We expect that to carry over to the other businesses."

Office complex

In addition to that retail development, Paige York-Losee of York Development said her firm continues to work behind Turtle Creek to develop an office complex along the newly constructed Ring Road.

"We're developing plans right now, but we are looking at built-to-suit as well as speculative office space," she said.

Further west, nearer the intersection of Old Highway 11, several other projects are picking up momentum.

Those include a York project that will include a 115,000-square-foot Outback Storage site and about 15,000 square feet of retail space, general contractor Jeff Smith said.

And nearby, Mac's Construction is preparing to break ground for an addition to its Newpointe Shopping Center that will add about six businesses.

"Basically, we're looking at businesses that would complement what we've already got out here - upscale art or rugs, specialty paper, garden or floral businesses," said Mac's spokeswoman Kelly Thornton. "We don't want anything that competes with what's already in the shopping center."

GO ZONE

The Gulf Opportunity Zone Act is intended to stimulate economic development in states affected by hurricanes in 2005.

Some of the provisions:

• Doubles small business expensing from $100,000 to $200,000 for investments in new equipment

• Provides a 50 percent bonus depreciation for businesses that invest in new equipment and new structures

• Allows additional issuance of tax-exempt private activity bonds

• Expands the amount of available low-income housing tax credits

• Doubles Hope Scholarship and Lifetime Learning Credits for students attending colleges and graduate schools in the zone

White House summary statement

New Developments

1 - Newpointe expansion: Owners at Mac's Construction are preparing to break ground on an expansion behind the center that will add about six businesses to the existing shopping center on U.S. 98 west of Old Highway 11.

2 - Outback Storage and retail center: York Development is constructing a 115,000-square-foot storage facility with outdoor access climate-controlled units and units for recreational vehicle or boat storage. Long-term plans call for a 15,000-square-foot retail development that will face U.S. 98 at the Gravel Pit Road intersection.

3 - Turtle Creek Crossing: New stores that include After Hours Formal Wear, David's Bridal, Cold Stone Creamery, EB Games, Jackson Hewitt, LifeWay Christian Store, Radio Shack, Payday Auto, rue21, Sally Beauty Supply, Smoothie King and Glamour Nail Salon and Sake Cafe should begin opening within two to three months. Restaurants including Captain D's Seafood, Lion's Choice, Logan's Roadhouse and TGI Friday are in various stages of development.

4 - Westover Crossing: London and Stetelman commercial realtors are continuing to market the former Kmart building on U.S. 98 at Westover Drive after a national sporting goods company backed out of lease plans. Currently, LongHorn Steakhouse and Olive Garden are developing two outparcels and two others are still available. The company is adding office spaces along the newly developed Ring Road.

5 - Chauvet Square: Developers at Terra Firma continue to oversee the development of the site that will include at least one and possibly two shopping areas in addition to the existing Grand Theater and a planned freestanding restaurant and Marriott Courtyard hotel.

6 - 24.7 Fitness Studio: A 24-hour gym is being developed in 4,500-square-feet in the Hardy Plaza across from the University of Southern Mississippi.

7 - 49 Place: London and Stetelman agents are considering lease options and possible construction of a second building for additional stores at the existing development across from the Cloverleaf Center.

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