GARDINER -- Call it a renaissance of residences.

Within the last 18 months, two couples have purchased commercial buildings on Water Street in downtown Gardiner, with plans to turn them into their permanent homes and open businesses on the first floor.

Re-using these historic 19th-century buildings is a major component of downtown revitalization, something local and state officials are promoting.

Kara Wilbur and her husband Mike Bensen, a Cony High School science teacher, purchased a two-story former bank at 289 Water St. last year. Wilbur said she loves the convenience and urban feel of living downtown and the huge benefits of being close to shops and services.

"You can walk to everything," she said. "You're near a post office, the hair salon, restaurants, shops, the library, Renys and a grocery store. And the cool thing is you don't have to live in Portland or Boston to have the urban experience. Maine small towns really have great main streets and in-town buildings."

Down the street, Clare Marron and her husband, Peter Malyon, purchased a four-story building at 263 Water St in August 2008.

Marron said they researched real estate in many different states, planning an escape from the commutes and "craziness" of Washington D.C. Malyon is a network engineer for a Virginia-based computer company and could work from anywhere.

"Every time we went for a walk we talked about buying a building and starting a business," she said. "This building caught our eye and we started keeping track of it. It had good bones and was well taken care of. When we saw the price drop we knew someone would buy it so we ramped up our plans to move."

Michael Baran, director of the state's Office of Community Development, said there needs to be "a critical mass" of residents in a downtown area for businesses to be viable.

"Getting people to live in the downtown is a challenge, but its one I think will become a much hotter topic," he said. "Hopefully, resources will become more available in the future. It's a real necessity to get those building modernized enough so they can be utilized. It's been proven that a critical mass is needed to make a difference. There are some tools out there, tax credits and things like that are becoming more popular."

State and federal tax credits are available for owners interested in renovating buildings in the historic districts like downtown Gardiner, according to Jason Simcock, Gardiner's planning and development director.

In the past, he said, the city has provided a façade improvement program to building owners in partnership with Gardiner Main Street.

City officials are looking at offering a new façade program as part of a future downtown revitalization grant application, Simcock said.

And in June, voters will decide on whether to approve a $5 million bond issue for Communities for Maine's Future, which would provide funds for downtown improvements for businesses and residences.

Meanwhile, Wilbur and Bensen are renovating their living space on the building's top floor. A former office in the back of the building is now their bedroom. They've turned an upstairs bank vault into a pantry.

Later this month, Wilbur and her friend, Lisa Liberatore, will open a shop in the first-floor storefront that specializes in gourmet teas, coffees and cupcakes, as well as new and used wedding dresses.

Wilbur said the downtown building has proven cheaper than a home, and can generate income. Also, she said, with fewer main street buildings, the couple thinks they can maintain re-sale value.

The building owned by Marron and Malyon has two apartments upstairs and two offices below. Their living quarters still has 1970s-era harvest gold appliances and blue countertops in their kitchen, as they've concentrated on the first and second floors.

Marron eventually wants to open a gallery and gift shop on the first floor. She said it makes sense to live in the building where your business is located -- you only have one mortgage.

Simcock calls the work Wilbur and Bensen, Marron and Malyon are doing the best kind of mixed-use development.

"With all of the downtown revitalization projects that have been happening, downtown Gardiner can offer a lot of services and opportunities for those who are looking for a great location to live, work and play ... all within walking distance," Simcock said. "The people moving into downtown, making these investments, also bring a new level of energy and vitality to the community."

Mechele Cooper -- 623-3811, ext. 408 -- mcooper@centralmaine.com