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Beartooth RUD Area, Inc. c "'"
Board of Director's Meeting Agenda
Meeting 1:00 P.M.
Tuscano Machine 100 Makers Way Big Timber, MT
Thursday, November 18th, 2021
Conference Number
605-475-5900
Access code 8472365
1:00 pm
Meeting Called to Order
Chair
Pledge of Allegiance, Introduction of Members and Guests
Chair, All
Review September Board Minutes
Chair, All
Action
Congressional Updates
Maddie Alpert (sen.Tester)
Information
Tory Kolkhorst (Sen. Daines)
Cade Overstreet (Rep. Rosendale)
Treasurer/Financial Reports
Information
1. Treasurer Update
Action
2. RC&D Financials
Action
3. RLF Financials
Financial Director Update
Bertolino
MOU's
Bertolino
Information
Staff Reports - Program/Project updates
Bertolino
Information
1. Food/Ag Program -Joel Bertolino
knight
Information
2. Revolving Loan Fund - Knight
Head
Information
3. Economic Development/ CRDC-lacy Head
Lastusky
Information
4. Operations support- Myrna Lastusky
Regional Roundup- News and updates from regional
Roe
Information
members on projects and activities in key CEDS categories....
et al
(see topics on next page)
Next Beartooth RC&D Area, Inc. Board of Directors Meetine
Information
January 20th, 2021 - Yellowstone County
Adjourn Optional short tour to look at Pioneer Meats new
2:30 PM
Retail store
Regional Roundup
Our goals for the Roundup are to find out what's happening in the area, keep the conversations
focused, inform the others attending the meeting, and to tie it all back to and reinforce the importance of
the CEDS. Please help us identify the projects in their area that fit into our CEDS categories:
• Infrastructure
• Housing
• Transportation
• Broadband
• Economy
• Upturns or downturns in industry sectors
• New business openings (or closures)
• Communication
• Marketing and outreach
• Services
• Health care
• Natural Resources
• Agriculture
• Energy
• Human Capital
• Workforce
• Education
NOTES:
Page 2
Beartooth RC&D Area, Inc. Board of Director's Meeting MINUTES September 16th, 2021
Agenda
1:00 pm
Meeting Called to Order
Chair
Pledge of Allegiance, Introduction of Members and Guests
Chair, All
Review July Board Minutes
Chair, All
Action
Congressional Updates
Madd'leAlpert (Sen.Temer)
Tory Kolkhorst (Sen. Dalnes)
Cade Overstreet (Rep. Rosendale)
Information
Treasurer/Financial Reports
4. Treasurer Update
Knutson
Information
5. RC&D Financials
Knutson
Action
6. RLF Financials
Knutson
Action
Bertolino
Information
CDBG CV BIG HORN CO
Staff Reports — Program/Project updates
S. Food/Ag Program —Joel Bertolino
Bertolino
Information
6. Revolving Loan Fund — Jillann Knutson
Knutson
Information
7. Economic Development/ CRDC—Jacy Head
Head
Information
8. Operations support- Myrna Lastusky
Lastusky
Information
Regional Roundup— News and updates from regional
Roe
Information
members on projects and activities in key CEDS categories....
et al
(see topics on next page)
Next Beartooth RC&D Area, Inc. Board of Directors Meeting
November 18th, 2021 -Sig Timber
Information
2:30 PM
Adjourn
Page 3
ATTENDANCE
Board of Directors Meeting
Board of Directors Meeting
September 16'", 2021
Minutes
Members Present:
Joel Bertolino, BRCD
Jillann Knutson, BRCD
Jacy Head, BRCD
Myrna Lastusky, BRCD
Ryan Van Ballegooyen, Billings Job Service
Bill Foisy, City of Red Lodge
Dan Lowe, Big Hom County Conservation District
Raymond Porter, Sweet Grass County Chamber Director
Heidi Sparks, City of Laurel
Genna Southworth, Workforce Director at MSUB-City College
Scott Miller, Carbon County Commissioner
Don Jones, Yellowstone County Commissioner
Members who joined via phone:
Jeff McDowell, Two Rivers Authority
Barb Wagner, Yellowstone Conservation District
Meeting Called to Order
• Pledge of Allegiance, Introduction of Members and Guests
o Jacy Head was welcomed as our new Economic Development Director.
o Genna (pronounced Gina) Southworth has joined us from MSUB-City College. She is excited
to be part of the board and hopes to talk to many board members about challenges and
opportunities in their areas.
• Bill Foisy welcomed us all to Rd Lodge and told us the Roosevelt Center is completely full at this
point. There is a Chamber After Hours event this evening, and there is a lot going on here.
Review July Board Minutes
• Scott Miller motioned to accept the minutes. Bill Foisy seconded. Motion carried.
Congressional Updates — None present
Maddie Alpert/Josiah Porcell (Sen. Tester)
Tory Kolkhorst (Sen. Daines)
Cade Overstreet (Rep. Rosendale)
Treasurer/Financial Reports
1. Treasurer Update / RLF Financials
a. 151 page of Treasury report
b. Had loan presented to RLF committee last week that didn't pass.
Page 4
c. Plenty of money to lend, interest is low, but people are still looking for free money.
d. One loan will be closing soon in Yellowstone County. Construction loan with First Interstate
Bank. Construction is being delayed due to product availability.
e. Working to de -federalize the RLF grant given to us in 1994 — continuing to jump through
hoops but getting close to the end.
i. Genna asked what de -federalization will do. Jillann explained that EDA is still
"attached" to that loan and have always required her to get training and do quarterly
reports. EDA finally came out with a ruling that we can de -federalize it, so no more
reporting, no more strings attached to the money. Organizations often don't want to
apply for this money because of all the reporting requirements. Jillann has been hung
up on the fact that the grant number she's used for 15 years (4x per year) is wrong. So
she's waiting for someone in EDA to figure this out!
ii. Dan remembered when we first got the loan and all the strings and reporting and they
said then that they would eventually get rid of it.
iii. Bill asked if we can "de-Fromberg" the Fromberg money. O Jillann said there are two
possibilities: (a) CDBG will request that the money be returned for non-use; (b) we
approached CDBG to change it to regular CDBG, but at that time, they denied us. Will
probably need to change it or give it back at some point. Jillann would like to have it
transferred into the regular CDBG pot. Fromberg wanted their pot separate (this is 20
years ago), but the rest in the county said it could all go into the general pot.
iv. Ryan mentioned there are 16 good loans in place. Lots to celebrate, too!
v. We have one that we didn't lose — they just moved their storefront to home. We also
had 2 or 3 pay off since Covid, which is great.
Dan mentioned an extra digit on the RLF total — reads $6525,731 instead of $625,731. That change
was made before approving.
2. RC&D Financials
a. Differences between budgeted and actual amount is due to CARES Act and Covid and not
knowing what to expect.
b. We got a beautiful new door at the office —under Building account column.
c. Ryan mentioned the $7,000 in Reserve — not planning to spend it, but it's there if we need it.
d. Jillann hoped to receive the audit draft by the end of September. Auditors are also very short-
staffed, and our usual auditor took another position. They have up to 70+ questions Joel and
Jillann have had to answer— much more in-depth than it used to be.
Dan motioned to approved the financials as presented. Heidi seconded. Motion carried.
CDBG CV Grant Application for Big Horn County — Joel
• Steve held CDBG hearings in the spring in case any counties were interested.
• Last month Big Horn County asked Joel to look into an application for them for affordable housing.
Joel has been working his way through that application. He told them we all need to work together to
get it done. Joel spoke with Charlene Johnson at Plenty Doors CDC about combining their projects,
but Plenty Doors doesn't want to do that.
• Dan asked if the application was County -owned? Yes
• Dan said he asked because it's a large umbrella & diverse with different cultures, etc.
• Joel asked BHC Commissioners to get him info and we need to decide by Oct. I if we have a worthy
application.
Staff Reports — Program/Project updates
Page 5
Food/Ag Program —Joel Bertolino
1. Page 13 — Joel had a face-to-face in Helena at Dept of Ag last week. Talked about Specialty
Crop Block grants that we may pursue.
2. Joel has scheduled visits with Lane Gobbs of Montana Manufacturing Extension, and Weston
Merrill, a Business Development Specialist at MT Dept of Ag who works out of Billings.
3. Basin Inc. out of Big Timber— they did receive the GTA (Growth Through Ag) grant funding.
4. Visited Project Meats and discussed the GTA program.
5. Referred to Primitive Meats and they are going through the pre -application process for GTA.
6. Charter Ranch and Yellowstone Valley Food Hub are both making improvements with their
GTA grants. Joel is keeping in touch with them.
7. 406 Bovine — Bryan Elliot is getting closer to launching this Ag Tech product.
8. Pioneer Meats — Joel sent them info on a USDA Meat & Poultry Inspection Readiness grant
for their new plant in Big Timber. They got that in.
9. Joel spoke with Big Sky Beef— 300-500 head a day meat processing. 2 sites were chosen, but
the first site fell through, so they are working on this.
10. Restoration Beef—Jess Petersen in talks with Joel. Joel put them in touch with potential
investor.
11. Yellowstone Regional Ag Sustainability Project — federal office restricted travel due to Covid,
so that is wrapping up. Great project for the 5 years it was going on.
12. Becky's Berries —tour of her new facility in May. Had GTA grants and Coronavirus grants
we've helped her with. We continue to watch for funding for her to keep growing.
13. Potential new projects
i. Yohannes Tedesse in Billings
ii. Beartooth Fertilizer in Red Lodge
iii. Crazy Peak Brewing in Big Timber
iv. Cory Wilson Mushrooms in Billings
14. Door project — new front door at the offices. It looks great!
15. Joel also picked up a couple of Steve's projects (e.g. Red Lodge Pea Cannery).
Don asked about 406 Bovine — actually recognizes the face of the cow?
o Yes, it's an awesome concept. He does have a YouTube video explaining it
(https://www.youtube.com/watch?v=kTwkhUi9leA ). Can verify where animal was born,
chain of ownership, to meat processing facility. This technology will track it so much better
than current tags. Great especially for people selling organic beef—huge implications even
into the meat markets. Can also add what dollar amounts it sold for at each stage. Many
possibilities.
o Jillann: Her work at Midland Bull Test has shown her how important this is with veterinarians
— they can see what treatments each bull had done from day to day and know exactly what has
been done and what needs to be done.
o Genna asked if this was intemet-dependent? Jillann said yes.
o Don said maybe they can put it in and download it later? Most likely.
o Jillann: With shortage of employees, the same guy can't ride pens 7 days a week. This allows
them hand it off to another guy.
o Several people mentioned great benefits to 406 Bovine's concept.
Page 6
Economic Development/ CRDC — Jacy Head
1. EDA Cares Act
a. Still working with Deb Brown from SaveYour.Town. Working with her in weekly meetings,
and also working with her more with Bozeman Trail project.
b. Big Sky EDA — primary focus is Yellowstone County economic recovery.
c. Cushing Terrell Housing Study — should have report in next month or two. They also
presented at the Billings Housing Summit in August.
2. BSTF Projects
1. Red Lodge Pea Cannery — architects are currently creating a plan.
2. Sandstone School — check has been issued.
3. Laurel West Interchange —waiting on City of Laurel to decide how to proceed.
3. EDA American Rescue Plan Programs (ARPA) — has $3 billion for funding to assist in building
communities back from the effects of Covid-19.
1. Build Back Better Challenge — 2 phases and need to be approved for each phase. They are
looking for a very big region, like a multi -state project. Probably already needed to have a
project in mind to get funded (according to Denver office). Deadline is Oct. 19th. Probably not
do -able at this point.
2. Good Jobs Challenge
3. Economic Adjustment Assistance (EAA) — most flexible of any of these and can be used for
infrastructure.
i. Many of these will go toward coal communities. There is a Coal Communities
Commitment that will be allocated $300 million from the $3 billion - $100M of Build
Back Better funds and $200M of the EAA funds.
• Raymond asked if the total was $3 billion or $3 million? Genna said it's $3 billion across the entire
US.
• Ryan asked Heidi what the status is on the BSTF for Laurel. Heidi will reach out to Nick and find out
more.
• Bill asked about the timeline on Pea Cannery feasibility study. Joel thinks April but it will probably
be sooner. High Plains is doing it.
o Bill asked if this is public knowledge. The community development director didn't know it
was being done, so we should coordinate with James Caniglia when the study is finished.
■ Joel said part of this is a change of ownership and some other issues.
• Bill asked about Deb Brown and meeting different officials — who is she meeting with? She should
definitely meet with James Caniglia when she comes to Red Lodge.
• Genna asked about the last blurb in notes with the CRDC buckets of money.
o Jacy is still figuring this all out. She attended a CRDC meeting earlier this week, and will
follow up with Genna. Genna feels these are programs that would be great to coordinate with
at City College.
• What is CRDC? Certified Regional Development Corporation.
o Ryan pointed us all to the acronym list at end of agenda. He also mentioned how helpful it is
to have conversations between BRCD, university system, governor's office, etc.
• Dan asked about last meeting's minutes — Pryor Mountain Wind Farm. What does it mean that it's
about to be done reporting? Answer: It is DONE. After 12 years of reporting on it, it is finally
finished.
Operations Support- Myrna Lastusky
• Working to help Jacy get up to speed on different projects.
• Assisting with government reporting.
Page 7
• Keeping the Bozeman Trail project going.
• General assistance to the Beartooth team.
Regional Roundup — News and updates from regional members on projects and activities in key CEDS
categories....
Raymond Porter — Sweet Grass County Chamber & Economic Development
• City of Big Timber and County applied for ARPA funding. Apps sent back and then resubmitted
them. Chamber of Commerce gave letter of support. Waiting to hear back on that. Main thing for
infrastructure.
• Raymond has been contacting landowners and developers individually to inquire on the status of
existing projects. There are too many miners & others who want to live there and can't.
• Chamber approved a new website and Raymond hopes to get City and County to update theirs, also.
• Pioneer Medical Center updated their health clinic.
• Greycliff Mills is expanding to include an aged cheese underground facility. They have sandy land,
not rocky, which is amazing.
• Pioneer Meats' new storefront is open. The new Meats of Montana storefront in downtown Big
Timber has revitalized a blighted area of town, and that business is connecting local producers to
local consumers. The new storefront is also attracting tourists. The money spent on the Meats of
Montana store is benefiting the community as a whole.
• Crazy Peak Brewery is also very busy.
• Town is thriving now, and BRCD has been a key part of that.
Bill Foisy — City of Red Lodge
• Economic Development — City approved that the vacant lot next to Sam's Taproom will be their new
warehouse.
• Planning Board is developing a plan for the Tax Incremental Financing (TIF) District at north end of
town.
• Resort tax for fiscal year ending June 30 was up 16% pro -rated. For 4' quarter of last fiscal year, it
was up 32%. Amazing during Covid, but tourism has been up.
• Bull and Bear closing after 40 years. New bar replacing it — One -Legged Magpie.
• City and Community Foundation leveraging funds for individual housing projects.
• Events — Octoberfest last weekend. This week is Big Sky Gravel Tour — not motorcycles; it's
bicycles, and has started.
• Big SKY EDA Council is showing Edge of the Plains documentary in Red Lodge in 2 weeks.
o Raymond saw it last night in Big Timber— featured business owners from region, including
Tuscano Machine in Big Timber, Earlywood, Crazy Peak, etc. Very well put together. About
90 minutes long with Q&A afterwards.
• Beartooth Hwy closes Oct. 12`h officially.
Scott Miller — Carbon County Commissioner
• Detention Center failed the bond on Aug. Yd by over 1,000 votes. We are waiting to hear from public
on how to move forward.
• We own 13 acres in Joliet. Looking at a 50 -unit housing development as a possibility there. Looking
at investors to do that.
• Thefts and break-ins are up big time.
Page 8
• 2 deputies retired and we hired 2 new ones. Back to taking people all over the state to other counties'
jails.
• Hiring an HR person for the County. Have never had an HR person. Found the money and are getting
one at last.
• Also hiring a Finance person probably in January. Also, IT, janitors, dispatchers. Trying to take care
of people so they stay in their position longer.
o Jillann asked who has been doing the HR part of it?
■ Angela Newell —along with everything else! Barbara moved to Sanitation.
o Have to abide by some state requirements, and we need to get some of these things in place.
o Budget was approved last Thursday.
• Doing some paving projects near Edgar (1-1.5.miles paved) and also the Lower Bridger Road by the
bean plant.
• Just finished lifting Meeteetse Road up about 3 feet to avoid flooding. Worked with other agencies to
pay for it, and we built it.
• Chance Bridge in Chance near Wyoming will get done coming up.
• Big Sky Passenger Rail Authority — Carbon is the 12' county to join. 3 others will join. Passenger rail
that is possibly going to happen — will take billions of dollars to get it done. Will come down though
southern part of state like it did at one time. There is $65 billion dollars in the passenger rail system —
$13 million in testing and determining new rail lines like the southern route in MT. It will take
millions through government and private funding to get this up and running with a time frame of
years. We got on that authority to make sure Carbon County had a say. Spoke with Deputy Director
of Transportation, but Congress and Senate hasn't passed it. IF it happens, Scott will try hard to get it
through Carbon. Possible depots in Fromberg and Bridger. Routes will go to Minneapolis, Denver,
Yellowstone Park, etc.
• ARPA money — Carbon got $2M. Spent $600K already. Put some into Senior Centers and other
businesses. $1.4 M to still give out to the county. Each community got money and must spend by
2026.
• Fromberg Legion got $43,000 to work on community center.
Heidi Sparks — City of Laurel
• City of Laurel is in early stages of 2 new housing developments. Passed annexation and early-stage
planning for Cherry Hills subdivision — on the northwest side of town toward golf course. Will start
on that and will probably have 2 more filings for subdivisions in that area. It would finish West
Maryland all the way out to Golf Course Road. Golf course is planning to put in new clubhouse and
annex into the city. Passed first vote, but haven't had second vote yet.
o 25 units
• Other end of town near Sid's — Hazel to Juniper. Putting in planned unit development. This just
passed annexation and first round of development. 55+ gated community with 60 houses. Heidi is
very excited about it. This area needs some development, too!
• On the South side, they are moving forward with all new infrastructure for S. 40' (water lines, sewer,
curbs, streets ...). When you come off main Laurel exit under RR tracks, that is South side. Those
streets are the worst in town.
o The RR owns the crossing, and it's a state highway, so multiple entities involved.
o The RR put new crossing on 5`h. Also engaged in new traffic study coming in from the main
interchange.
• Workforce —getting code enforcements coming back out of Building to the Police Dept. They will be
hiring a Code Enforcement Officer (i.e. Parking and Barking Officer). O
Page 9
Dan Lowe — Big Horn County Conservation District
• Lot of fires to the east this summer. 150-170,000 acres burned. BHC had fairly minimal impact from
fire this year, considering how many there were.
• Playing musical chairs with administrator position in Conservation District. Have gone through a few
different ones in the last several years. Recently hired a new lady in this position.
• Aquatic Check Station near Fort Smith has gone through 2 cycles now and has been very successful.
Get 10% fee for managing the one by the rest area — this gives them a nice bump in revenue.
Jillann: Quick Bridger update: building a big new fancy gym. $1 million in Wind Farm impact fees is going
toward this. This will make it handicap -accessible, which is important.
Barb Wagner — Yellowstone County Conservation District
• Working on draining Lake Elmo now with aquatic invasive species.
• Looking at a grant to show that entire process through a video.
• The Nile Rodeo is coming in October.
• Doing education programs for 4`h grades Oct. 18-20.
Genna Southworth — MSUB-City College of Billings
• Appreciates being here and joining us.
• Her background is primarily in healthcare and education. One of her passions is rural healthcare.
• World of workforce is living in the Upside Down now. All the rules have changed. Genna's job is to
figure out how City College can support Workforce. She really wants feedback from everyone on
needs.
• Has had requests for non-credit ranch management education — people wanting to move into 21't
Century by getting their books online, etc.
• Big Sky EDA is looking at the Good Jobs Challenge — the challenge is pipeline. There are many
needs but employment rate is down and many aren't looking for jobs. Have started having
conversations on whether they can go for the Good Jobs Challenge. Housing, childcare are big
hurdles — especially therapeutic childcare because there are more and more kids in the system with
social/emotional needs.
• Genna wants to listen and talk to people and get lots of input from our group.
• Jillann suggested that Genna contact the Extension. Jillann and Kris went to Succession Training
through the Extension, and the lady from Missoula was fantastic. It was geared toward farmers and
ranchers and setting up trusts, etc. Jillann will connect Genna to the Extension.
o Ryan mentioned that MT Extension has added Workforce to their mission in the last couple
years, also.
Ryan Van Ballegooyen, Billings Job Service
• We don't need more good jobs — we need more people. Working on engaging people who aren't
employed.
• 868 people in YC have completely exhausted their unemployment in June. Job Service is calling all
of them. All have different stories of why they aren't working yet — worried about Covid, felony
background, can't find childcare, etc.
o Genna: There is no money in childcare— it costs a lot and liability is high.
o Jillann: Daycare isn't a new problem. Went through 8-10 different scenarios in 12 years.
Page 10
Return to Work Bonus — once you are back at work for 4 weeks, you are eligible for $1200 bonus
from the State.
We've shifted from connecting unemployed with jobs to connecting employers with workers.
Don: Montana no longer withholds a driver's license if someone doesn't pay their fines — that is no
longer an excuse for not being able to get to work.
Jeff McDowell, Two Rivers Authority
• He was told that the old slaughterhouse is operating again in Hardin.
• Shipton's is expanding their parking lot.
• Old Shopko is undergoing remodeling, new parking lot, etc. Reportedly will be a Dollar Tree.
• Vacant lot half block from Jeff where someone is cutting down dead trees — liability or prepping for
construction? Not sure.
• Some other water line work happening in Hardin.
• Farmer's Market — a family from Fort Smith sells their own boxed beef and wants to sign up for
Market so they can accept SNAP cards.
• Work on Hwy 313 south of town is still going ...
Heidi Sparks motioned to adjourn, Scott Miller seconded.
Meeting adjourned at 2:44 pm.
Next Beartooth RC&D Area, Inc. Board Meeting: November 18th, 2021 - Big Timber
Page 11
Beartooth Books- Reporting Ending August 2021
of
Budgeted Actual budgeted
Income
AG -FOOD AND AG CENTER
85,007
AG-MCDC
1,000
BOARD - EDA SPONSOR DUES
55,907
BOARD -INTEREST INCOME
400
BOARD -FOUNDATION MONEY
3,700
RLF-STAFF REIMBURSE
18,000
RLF-ORIG FEES
5,000
CRDC
71 907
MISC GRANT ADMIN $
10,750
EDA -GRANT
70,000
NOT BUDGED INCOME
TOTAL INCOME
321,671
Expense
TOTAL STAFF EXPENSE
256,044
COMMUNICATIONS
6,000
EQUIPMENT & VEHICLE
8,520
CONTRACTUAL
21,220
SUPPLIES
9,800
TRAVEL
10,140
OTHER
8,430
RESERVE
EXPENSE TOTAL
320,154
Page 12
Account Balances
Bank of Joliet -Building Account $4,475.22
Bank of Joliet- Savings Account $75,470.79
Bank of Joliet- Checking Account $104,119.54
Revolving Loan Fund Books- August 2021
Loan Client Review
County
# of loans
$ Loaned out
Big Horn
2
$168,693
Stillwater
3
$429,049
Yellowstone
7
$349,628
Carbon
2
$20,900
Sweet Grass
2
$169,196
• A $200K loan was for Yellowstone County that hasn't been funded yet.
• Loan interest is very slow.
• Work is being done to de -federalize the EDA funding, I hope to have this completed and approved
soon.
Bank Balances as of Aueust 2021 Total available for lendine
Bank of Joliet- EDA $47,677 47,677
Bank of Joliet-CDBG $415,384 415,384
Bank of Joliet- IRP $384,408 132,811
Bank of Joliet-Fromberg $29,859 29.859
$6525,731
Page 13
Beartooth Books- Reporting Ending October 2021
Budgeted Actual of budgeted
Income
AG -FOOD AND AG CENTER
85,007
AG-MCDC
1,000
BOARD - EDA SPONSOR DUES
55,907
BOARD -INTEREST INCOME
400
BOARD -FOUNDATION MONEY
3,700
RLF-STAFF REIMBURSE
18,000
RLF-ORIG FEES
5,000
CRDC
71,907
MISC GRANT ADMIN $
10,750
EDA - GRANT
70,000
NOT BUDGED INCOME
TOTAL INCOME
321,671
Expense
TOTAL STAFF EXPENSE
256,044
COMMUNICATIONS
6,000
EQUIPMENT & VEHICLE
8,520
CONTRACTUAL
21,220
SUPPLIES
9,800
TRAVEL
10,140
OTHER
8,430
RESERVE
EXPENSE TOTAL
320,154
Account Balances
Bank of Joliet -Building Account
Bank of Joliet- Savings Account
Bank of Joliet- Checking Account
$4,475.22
$64,572.23
$134,613.02
Page 14
207,447
81%
6,336
106%
3,973
47%
428,686
2020%
10,237
104%
1296/0
10.118
1200/6 11
668,093 I 1 209%
Revolving Loan Fund Books- October 2021
Loan Client Review
Total available for lending
County
# of loans
$ Loaned out
Big Hom
2
$167,891
Stillwater
3
$429,013
Yellowstone
7
$347,610
Carbon
2
$20,900
Sweet Grass
2
$166,956
• A $200K loan was for Yellowstone County that hasn't been funded yet.
• Loan interest is very slow.
• Work is being done to de -federalize the EDA funding, I hope to have this completed and approved
soon.
Bank Balances as of October 2021
Total available for lending
Bank of Joliet- EDA $48,197
48,197
Bank of Joliet-CDBG $419,174
419,174
Bank of Joliet- IRP $389,606
134,214
Bank of Joliet-Fromberg $29,880 29.880
$631,465
Page 15
Beartooth RC&D Staff Project Update
November 2021
FOOD AND AG CENTER PROJECTS
Beartooth FADC
Beartooth FADC activities have been focused on assisting producers with the Growth Through Ag Grant and
Loan program and waiting on the Montana and Federal food supply chain funding updates as well as
conference calls with the Dept of Ag and an in person meeting September 9t' in Helena. We have
scheduled a visits with Primative Meats and Big Sky Beef to introduce the Montana Manufacturing Engineer
for our Region Lane Gobbs and offer assistance and updates on funding opportunities. The State of
Montana just released a new Value Added Grant opportunity Beartooth has been sending the notice out to
Food and Ag clients.
Growth Through Ag Projects
Beartooth FADC has worked with several businesses Growth Through Ag grant some of these will have an
opportunity to be granted funding and we will continue to assist them in completing their business
expansion projects.
Business/Project Name- Agrika Foods
Contact-Yohannes Tedesse
Location -Billings
Yohannes Tedesse has developed a business of purchasing grains and having them processed for unique
cultural markets across the US. He has been looking for storage to build or rent for purchased grain so he
can continue to grow his business.
Page 16
Business/ Project Name -
Contact -Corey Wilson
Location -Billings
Beartooth FADC visited with Corey Wilson about his mushroom business and the potential for funding
through the Growth Through Ag Grant. Beartooth FADC sent him the information on GTA and the
deadlines as a reminder; he did put in an initial application for funding for GTA.
Business/Project Name-Toews Family Farms
Contact -Aaron Toews
Location- Hardin
Aaron Toews has been working with Beartooth FADC for the last two years discussing his startup business
working off the family farm he plants several hundred acres of corn for grain, which he harvests, bags and
sells direct to the public both off his farm and through local feed stores. This business has growth each year
and Beartooth worked with them on a GTA last year but they did not make the deadline, they have
submitted an application for the deadline this year for equipment to help their business continue to grow.
Business/ Project Name: Prime Meats
Contact -Lamont Herman-
Location- St Xavier Big Horn County
Lamont Herman has a cattle ranch and is looking to add profit by finishing some beef having then processed
and packaged and then selling directly to consumers and restaurants. He began direct selling over a year
ago and the demand has grown he is now looking for increased cooler space to store his processed
products before they are delivered and other delivery equipment.
Business/ Project Name: Primative Meats
Contact- Kelsey Grice
Location- Worden, MT
Kelsey Grice and her husband are looking for funding assistance through the GTA grant to help them with
construction costs and equipment for their start up meat processing business.
Page 17
On Going Projects
Business/ Project Name: Basin Inc
Contact- Judy Edwards
Location -Big Timber, MT
The Hagerman family raises natural grass fed beef in Sweet Grass County and is developing a fresh beef
business that will add value to their beef production business. These products will be marketed as grass-
fed locally grown beef. Beartooth FADC is assisting this business with a USDA Value Added Producer Grant
application to help them expand their business to increase the number of animals processed and sold in an
effort to meet increased demand for local beef. The VAPG grant for $90,000.00 was approved and the
USDA did a site visit to their ranch on September 17th. Beartooth worked with the business on submitting
their GTA grant application for their business.
Business/ Project Name: JWK Enterprises
Contact -Justine Kougle
Location- Busby, MT
The Kougl family raises grass fed hormone free beef in Big Horn County and is developing a profitable
business that adds value to their beef production business. This project takes the raw commodity of beef
cattle livestock and changes the physical state to packaged, labeled for re -sale meat products. These
products will be marketed as grass-fed grain -finished, and locally grown. Beartooth FADC assisted this
business with a USDA Value Added Producer Grant application to help them expand their business to
increase the number of animals processed and sold in an effort to meet increased demand. The VAPG was
successful and they will receive $100,000.00 for expanding their direct marketing beef business. They are
now applying for Growth through Ag grant funds as well.
Business/ Project Name: Charter Ranch Vermicast Soil Amendment
Contact-
Location-Sheperd, MT
The Charter Ranch has developed a regenerative vermicast soil amendment using the cultivation of worms
adding non -chemical nutrients to soil. Beartooth FADC assisted them with the development of a Growth
Through Ag Grant that was funded for $14,000 to expand their operation. We have began trying to follow
up to see how the expansion project is developing.
Page 18
Business/ Project Name: Yellowstone Valley Food Hub
Contact- Schahczenski
Location -Billings, MT
The Yellowstone Valley Food Hub is looking to expand their business and add space for aggregating locally
produced foods. Beartooth FARC assisted them with applying for a Growth Through Ag Grant that was
approved for $20,000.00 to expand. Beartooth FADC has reached out to follow up with this business and
determine any further needs.
Business/ Project Name: 406 Bovine LLC
Contact- Bryan Elliott
Location -Laurel, MT
406 Bovine LLC has worked with Beartooth staff and is nearing the commercialization and launch of his Ag
Tech product. Bryan Elliott has developed a facial recognition software that can be used on computer and
iphones to track livestock. He has produced a youtube video outlining his product that can be viewed via this
link. https://Youtu.be/kTwkhUi9leA Beartooth will continue to assist this business as needed. Beartooth
FADC followed up with 406 Bovine to give them the updates on the status of state and federal funding
sources. Bryan had been granted investments from two entities that have developed funds specifically for
supporting new technologies such as facial recognition. He does have interest from a large Agricultural
business in investing in the business he is trying to rais 3- 5M in order to fully launch and commercialize the
product. They have refined the app and worked hard on the company pro forma for potential investors.
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Page 19
Stillwater Packing Cc/ Emmett's Meats
Location- Columbus, MT
Contact -Jason Emmett
Stillwater Packing has been working through an increase in business due to the supply chain bottlenecks
shifting some buyer interest to smaller plants like theirs. Beartooth FADC staff has visited the business to
discuss upcoming funding opportunities. We have visited about potential future funding needs, the
difficulties they are having with their incinerator and workforce, they are having a difficult time hiring
workers.
Pioneer Meats
Location- Big Timber, MT
Contact- Brian Engle
Pioneer Meats received a Montana Meat Processors Infrastructure grant of over $100,000.00 which will
allow them to expand their meat processing business, they have purchased another meat processing location
in Big Timber that will allow them to process wild meat at one location while expanding their beef, pork,
bison and Iamb processing at their main facility. Beartooth FADC staff will continue to work with Pioneer to
utilize any new funding opportunities in completing their expansion; they are working on a USDA Meat and
Poultry Inspection Readiness Grant. Brian has also submitted a Growth through Agriculture Grant.
Page 20
Bie Sky Beef
Contact- Gary Guessman
Gary Guesman is working with Big Sky EDA the Department of Ag and Beartooth FADC on their potential
300-500 head a day meat processing project they are interested in developing in the Yellowstone County
area. Beartooth FADC staff met August 21"to discuss the project and initial steps and potential barriers to
the project with Allison Corbin, Ty Thompson, Joe Goggins, Weston Merrill from Montana Department of
Ag as well as Gary Guessman. Beartooth FADC staff look forward to the potential to utilize funding to
assist with this project. We had a follow up meeting to discuss the challenges they are having finding a site
for this project. They have looked at sites in Lockwood as well as Hardin but are now looking at areas just
outside of Yellowstone County, the major obstacle is to find a site that has the infrastructure they will need.
The plant will need either a municipal water supply or several large wells as well as water treatment. The are
looking into the new State Value Added Grant.
Restoration Beef Proiect
Contact- Jess Peterson
Restoration beef has developed a feasibility study around building a high quality beef plant that processes
between 500 to 1000 per day, they are in the process of developing interest and funding but are interested in
the Yellowstone Valley area. They have recently been in touch with a potential investor group from
Washington State and have been discussing their project with the principles on another large meat processing
project
Becky's Berries- Absarokee, MT
Location-Absarokee
Becky Stahl has been a client of Beartooth for several years and we last assisted her with development of an
expansion plan for her Jams, Jellies and Barbeque sauce business. She has completed construction of the
facility. Beartooth staff assisted Becky with the development of a successful Ag Adaptability Grant for
$9,000.00 for a makeup air system in her new processing facility and a commercial food processor. She has
installed the commercial food processor and the new makeup air system has been installed. Becky has
purchased a new commercial freezer needed to keep up with increased demand for her products she said her
business has been very busy this summer and fall.
Outreach- F Bar 3 Vineyard in Laurel, after visiting about their needs, Lane Gobbs with Montana
Manufacturing Extension has begun working with a Senior Engineering class at MSU on designing an
irrigation system for the vineyard.
Page 21
Economic Development Director Report for November 2021
BRCD Board Meeting- November 18th
1. EDA Cares Act
a. Deb Brown- She is visited us in October and continued her efforts in leading the Bozeman Trail
project.
b. Big Sky EDA- They are providing trainings throughout the region and created several committees
to address certain issues that businesses are facing from the ongoing COVID situation.
c. Cushing Terrill Housing Study- We have received their report and are currently creating a roll out
plan for the region.
2. BSTF Projects -
1. Red Lodge Pea Cannery- HPA is 50% complete on this project; they believe we should have the
study complete by the beginning of 2022.
2. Sandstone School- 3 communities meetings were held successfully; the school board must decide
how to proceed forward after this feasibility study. The feasibility study was successfully
completed by HPA.
3. Laurel West Interchange- this grant is closed; funds were turned back to DOC.
4. Stillwater Industrial Park Feasibility Study- BSTF awarded us a planning grant to complete a
$27,000 feasibility study.
3. ARPA- Still assessing project possibilities with other CRDCs and our 5 counties. About 30 % of the
funds from the first round have gone out. The second round of ARPA funds will be released in June
2022.
4. Mountain Health CoOp- partnered with them for an Emergency Rural Healthcare Grant, track 2
(impact grant); if successful, it would allow a remote healthcare clinic site in Busby or Lodge Grass.
We are still waiting for approval.
5. RCDI Grant with USDA RD- $120,000 towards the EDD position in Hardin and Bighorn. For 2021:
we must form a hiring committee, create a job description, advertise the ED job, and conduct
interviews. Then hire for the job opening.
6. CDBG CV- $1.375 mil for Bighorn County; Awaiting approval for the application.
Page 22
Frequently Used Acronyms
BEAR — Business Expansion and Retention
BIA — Bureau of Indian Affairs
BLM — Bureau of Land Management
BRCD — Beartooth RC&D
BSEDA — Big Sky Economic Development Association
BSTF — Big Sky Trust Fund
CDBG — Community Development Block Grant
CRDC — Certified Regional Development Corporation
CEDS — Comprehensive Economic Development Strategy
CTEP — Community Transportation Endowment Program
EDA — Economic Development Administration
EDD — Economic Development District
ESRI — Environmental Systems Research Institute, Inc.
GIS — Geographic Information Systems
GPS — Global Positioning System
HOME — Montana Home Investment Partnerships Program
HUD — US Department of Housing and Urban Development
IRP — Intermediary Relending Program
LESA — Land Evaluation Site Assessment
MBI — Montana Board of Investments
MDOC — Montana Department of Commerce
MDOL — Montana Dept. of Labor
MDOT — Montana Dept. of Transportation
MDFWP —Montana Dept. of Fish, Wildlife and Parks
MEDA — Montana Economic Developers Association
NADO —National Association of Development Organizations
NCOC —National Carbon Offset Coalition
NHS — Neighborhood Housing Services
NRCS — Natural Resource Conservation Service
RBEG — Rural Business Enterprise Grant
RBOG — Rural Business Opportunity Grant
RC&D — Resource Conservation & Development Area, Inc.
RCDI — Rural Community Development Initiative
RD — Rural Development (a division of USDA)
RCPP- Regional Conservation Partnership Program
RLF — Revolving Loan Fund
RTA — Resource Team Assessment
SBA — Small Business Administration
SBDC — Small business Development Center
TIED — Tax Increment Finance District
TSEP - Treasure State Endowment Program
USDA — United States Department of Agriculture
USFS — United States Forest Service
Page 23
Billings Housing Summit
Aug. 24, 2021
Notes
Dr. Patrick Barkey—also see photos at the end
• 14% increase in home values in 2021 (just in the 1" 8 months of the year)
• More young people living at home since post -Great Depression (52% of 18-29 year olds).
• 21-65 years old:
0 85% are open to new opportunities
0 50% look daily or weekly for new jobs
• Looking for salary, life balance, benefits, right location, flexibility
o If they were to relocate, their top 3 considerations are:
Cost of Living
• Housing Costs
• Housing Availability
• All 3 of these were within Y2 point of each other
• Housing price increases in 2020 — Billings was 14% while Livingston was 38%. Billings is actually
one of the lowest around the state in terms of price increases in last year.
• In an affordable housing study of Yellowstone County:
0 65,000 households
0 5700 were Very Low Income (less than $17, 735/year)
o Howeowners (19%) were much less cost burdened than renters (45%).
0 2,207 housing units are receiving subsidies
0 39% of subsidized housing will have subsidies expire in the next 10 years.
Monica Plecker, City Planning Division Mngr: What tools the City employs for development:
• How they handle annexations
o Policy and map — red area is identified designation for properties who can petition the
City for annexation any time.
Map is reviewed on annual basis
o Responsive to Council decisions and under continual review—working with public
works, emergency services to make sure it is working.
o Goal is to be ready to give answers to petitions
• Project Recode
o Updated entire zoning code (previous was from 1970s)
o Focus on efficient uses of land, especially on the edges
o PND — encourages density by requiring multiple types of zoning (48t1 & King, e.g. has
commercial use with other story multi -family, plus duplexes and single-family).
o Got rid of lot size requirement. Lot sizes based on lineal frontage feet.
o Helping with infill development. More reinvestments happening due to changed zoning.
o Since this was implemented, no one has come to them to say they can't build because
of zoning/codes.
• Metropolitan planning efforts
Mark Elison — Regional manager for water DNRC and was on City Council; also a geologist/hydroligist
Q. Possibilities for potable water in future
* Great aquifer but beneath it is 1000 feet of shale — thin, widespread, highly productive aquifer, but
must get water into it. Some comes from surface water, some from precipitation, but most from
irrigated agriculture. Groundwater levels come up dramatically as irrigation happens. Lots of flood
irrigated land — not very efficient so 50% of it goes in to recharge aquifer.
* Current high demand on the aquifer. With every housing development, there is less ag land and less
water going into aquifer. Non -sustainable situation.
* In 2002 study, showed many areas around Billings have high nitrate levels in groundwater. YBGR
moved well, Elysian School shut down for a time due to this.
* Solution (probably only one available): City of Billings has an enormous water reservation out of
Yellowstone River — no constraints as to where they take it out of river or where they put that water.
City is looking into putting in a reservoir and different methods to get water from Yellowstone River. Not
sure how long we can continue with current system, but it is not sustainable.
Julie Flynn, Dept of Commerce—what programs are available?
1. Programs tend to focus on supply side, but she is focusing on mortgage programs.
2. Focus on fed level tends to be on urban development, so they try to adapt that to MT's needs as
much as possible.
3. CDBG program: rehab existing multi -family properties for LMI housing.
a. 2 -person household= $52K ($25/hour total —so $12.50/hour for two adults)
4. Single-family Rehab: need to rehab existing homes that already have infrastructure available.
But the market motivates construction workers to work on new developments.
5. NeighborWorks Montana manages funds — provide silent second mortgages to homeowners.
a. Have streamlined this process and asking only minimum to stay out of trouble with fed.
b. Also provide these funds to Trust Montana
6. MT Board of Housing
a. MT Tax Credit Program —Acme building, Red Fox apartments, Pheasant apartments all
utilized tax credits to be built.
7. Board of Housing mortgages hit that 60-80% middle-income people who often get missed.
Interest rate is 2.5% 30 years fixed.
a. Veterans loans at 1.2%
8. Reverse annuity mortgage for eligible seniors
9. MT Historic Preservation grant
Q&A:
0 Groundwater does filter out some nitrates before getting into aquifer.
• Can City inject water from Yellowstone directly into aquifer? Possibly. Need City services to have
higher density b/c when you need individual wells and drain fields, you need larger lots sizes.
• Has City considered expanding the red zone? This has been in discussion. Anticipated that this
spring will bring some changes.
• Infill development? Can we get serious about this vs. continuous infrastructure development?
There aren't a lot of tools to help with this. New codes allow for much greater density.
• Seems to be some non-cooperation between City and County.
• City has state of the art facilities for water coming in and going out.
• Opportunity Zone — but nothing to do within our zone? Redevelopment opportunities in
downtown core are present. Any way to stretch the boundaries? Not that Monica is aware of.
• Cost of Services Study — a priority of the City. Not funded right now.
2nd Panel: Are local lenders able to pivot to assist developers and builders more quickly than ever
before? What else can be done so approved buyers aren't left on the sideline?
1. Deb Sokoloski, Opportunity Bank
a. Access to credit and affordable programs is there, but wages aren't keeping up with
housing prices. Many people sitting prequalified and ready to purchase with nothing in
their affordable house range.
b. Many people own properties and are selling to turn a profit. Causing demand to shift
even greater b/c some people who have been renting these are now displaced.
c. Sellers are going conventional — don't want to go with a buyer using some of the
programs.
2. Wayne Nelson, Stockman Bank Pres —criteria for developers to obtain financing
3. Bob Leach, Realtor— what changes are taking place in our housing market?
a. Fear -based market: Worried about not finding a home, sight unseen, high offers—
including more cash offers and often 10% over asking price.
b. Ave. sales price = $340K
c. Home inventory continues to decline while demand rises.
d. Majority of young adults (age 18-29) are now living with parents (over half — first time in
last 120 years).
e. Currently more houses on market for over $500K than any other price category.
f. Workforce housing (80-120% of median household income). Median household income
(4-prson) is currently $59K in YC.
g. Rental demand is highest in memory.
h. Lot sales tripled from a few years ago.
i. Must encourage more kids to go into Trades rather than 4 -year college.
j. 1940s — ave housing was 245 square feet/person and now is over 800/person. Houses
are much bigger!
k. No major manufactured home subdivision in this community in over 20 years.
I. Explore what other communities are doing to solve housing problems.
4. Rob Lorenz, Builder: Obstacles facing with construction
a. Costs— OSB was $10/sheet and has gone as high as $80/sheet. Recently dropped back
to $15/sheet
b. Lack of tradesmen —they are 4-6 months out to schedule
c. Availability of building products. Used to be 4-6 weeks out and now they are out 3
months or more.
S. Jeff Junkert, Developer:
a. Land — have seen it go to 60,000-100,000/acre now.
b. Disparagement between City and County development.
c. Affordability has always been an issue and will never be solved.
d. More slab and crawl spaces houses now.
6. Greg McCall, Builder/Developer —how to control/reduce cost of construction; innovation
construction technology
a. Panelization plant — build walls in controlled environment to build higher quality home
for less money.
b. Just don't have the tradesmen to do the work. They could use 5 additional framing
crews tomorrow just for their company. They have jobs!
c. Utilizing kids from Teen Challenge.
d. Trying to bring in more products and inventory some things right now (not normally
what they would want to do).
Photos of Slides from various presentations:
Why Are We Talking About Housing?
Portent Change in Selected Consumer It erns since 1995
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Mortgage Meni deduction
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Mortgage credit certificates
Capital gains treatment /or sales o/primary readvnces
Savings and loan Asspclations
FHAin,eance
Fannie Mae and Freddie Mac mortgage guarantees
Ouota for Fannie and Freddie for targeted populations
Support for mstituhons like FHLB's
30 -year b.ed rate inongag, a nh no prepayment penalty
FHA and VA loan programs
HUD Wren 502lol, mn mortgages to low-income households
Ratio of Home Pnce to Median FIH Income
2014
Migration Data from Post Office Address Forwarding Request Data
Yellowstone County's Housing Affordability Challenge
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Is Billings Building Enough Housing?
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Opening Message
The suite of eight economic development programs reauthorized by the 2019 Montana Legislature through House
Bill 52 provide tools that form part of the backbone of a comprehensive economic develop strategy in Montana.
These programs strategically enable the small businesses and entrepreneurs who power Montana's economy. First
developed in 2000, reauthorized in 2009 and again in 2019, this proven set of business development programs is
designed with intention to support each phase of growth.
The state carefully tracks metrics of success. The state's investment remains $3.365 million each year, which in
turn provides an exponential return in each of our communities. A big part of why the state's investment is so
impactful is because it allows Montana to bring in matching dollars from federal and other partners. From 2012-
2019, these programs supported 15,000 businesses and made available 12,000 jobs for Montanans!
Cooperative Development Center
DEPARTMENT OF AGRICULTURE
Growth Through Agriculture
Food & Agricultural Development Centers
DEPARTMENT OF COMMERCE
Small Business Development Centers
Small Business Innovative Research Program
(MTIP at MSU TechLink)
Certified Regional Development Corporations (funded in 2003)
Montana Manufacturing Extension Center at MSU
Export Trade
Montana Board of Research and Commercialization Technology
Business Recruitment
TOTAL
These are the annual funding levels per program.
2001-2009
2010-2019
2020-2027
$65,000
$65,000
$65,000
$1,250,000
$625,000
$900,000
$0
$300,000
$600,000
$125,000
$125,000
$325,000
$50,000
$50,000
$50,000
$425,000
$425,000
$625,000
$200,000
$200,000
$500,000
$300,000
$300,000
$300,000
$4,850,000
$1,275,000
$0
$175,000
$0
$0
$7,440,000 $3,365,000
$3,365,000
This report marks the beginning of a more streamlined and consistent approach to measuring the impact of the
programs housed within the Montana Department of Commerce. We listened to lawmakers who said they wanted
2 to better understand the collective impact of investing $3.365 million into Montana businesses.
The Department has streamlined its definitions of jobs and businesses supported across all of its business
development programs, and is using one tool, Salesforce, to organize information provided directly from business
clients, regional economic development partners and university partners. This tool will also allow the Department
to better inform lawmakers and the public of impacts that are more difficult to measure.
Most of the programs reauthorized by HB 52 invest in local communities with on the ground resources around the
state. These aren't solely a collection of grant programs, instead, they largely support regional technical assistance
centers and professionals in communities in nearly every corner of Montana. This regional approach is critical to
ensure hands-on support for business and entrepreneurs.
CERTIFIED REGIONAL DEVELOPMENT CORPORATION REGIONS
Montana Office of Tourism and Business Development
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SMALL BUSINESS DEVELOPMENT CENTER (SBDC) REGIONS
Montana Office of Tourism and Business Development
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The Montana Department of Commerce is a resource for small-scale makers, innovative startups, well-established
brands that sell their products globally — and everything in between. The Legislature's $3.365 million annual
investment allows the Department to access a broader network of federal support, it powers regional expertise,
and it helps businesses go from a good idea to an international exporter.
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The Montana Department of Commerce is a resource for small-scale makers, innovative startups, well-established
brands that sell their products globally — and everything in between. The Legislature's $3.365 million annual
investment allows the Department to access a broader network of federal support, it powers regional expertise,
and it helps businesses go from a good idea to an international exporter.
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As part of a comprehensive approach to economic development, Montana deploys a toolbox of programs,
including the HB 52 programs, to strategically target critical points in the pipeline of business development.
Montana businesses are supported by the Montana Departments of Commerce and Agriculture from their very
first product or service idea, through startup, financing, and growth, and even to international sales. These
programs provide technical assistance, expertise, support, and grant and loan dollars for a myriad of Montana
businesses, including manufacturers, main street businesses, service providers, tourism businesses, etc.
Additionally, this support is not centralized and difficult for Montana companies in rural areas to reach; rather,
Commerce hosts a statewide network of business assistance resources, providing localized assistance in every
corner of the state, with specialized services for disadvantaged businesses.
Taking an idea and turning it into a profitable business is a monumental process, and the complexity of it can be
daunting for entrepreneurs. Most start out as ill -funded solopreneurs who already have a day job, spending every
free moment they have tinkering with an innovation in their garage or sketching out their idea on a napkin. Alone,
the process can be overwhelming and take much longer than with help.
IDEA & STARTUP
The first place entrepreneurs can turn for guidance on turning their idea into a startup business is one of the
state's ten Small Business Development Centers (SBDCs); those registered with a Montana tribe can also work
with one of eight Native American Business Advisors (NABAs). Entrepreneurs can walk in the door of their local
SBDC or NABA, sit down with an expert and discuss the feasibility of the startup, using financial projections and
market research from the SBDC's national network. The SBDC may also help the entrepreneur via their local
NABA or Certified Regional Development Corporation (CRDC) — there are 11 to choose from — to apply for the Big
Sky Economic Development Trust Fund's (BSTF) Planning Grant or the Tribal Business Planning Grant (TBPG) to
fund a feasibility study, business plan, etc., which can increase a new business's chance of accessing traditional
bank financing.
Once the idea looks promising, the SBDC or NABA can help the entrepreneur with their business plan, perhaps
referring them to the Cooperative Development Center (CDC) for guidance on starting up and financing a
cooperative, if that business structure makes the most sense. For technology-based businesses, the Small
Business Innovation Research (SBIR) program can provide funding to help the entrepreneur complete necessary
4
research and development and to get the product ready for sales.
FINANCING
Usually the next step for an entrepreneur is to obtain financing for their startup expenses and operations. SBDCs,
NABAs, and CRDCs provide expert technical assistance, helping entrepreneurs to prepare their documentation
for loan packages, and CRDCs can provide loans to local startups to help them apply for other grant and loan
programs. Additionally, the MicroBusiness Finance Program (MBFP) can help with startup expenses. The Indian
Equity Fund (IEF) Grant is available to help enrolled tribal members with start-up and expansion expenses, and
the Native American Collateral Support (NAGS) financial instrument helps bankable businesses to meet collateral
requirements for traditional bank financing.
GROWTH
When a manufacturer has established demand and is in the production growth phase, their local Montana
Manufacturing Extension Center (MMEC) Business Advisor can help them plan and implement growth and
innovation projects, such as facility layout, equipment purchases and implementation, cost and capacity planning,
inventory systems, processes and procedure development, and the SBDCs and NABAs also help with growth
planning. If this growth includes hiring employees, MMEC can also assist with hiring, training and retention
activities. The business can also access BSTF Job Creation grant funds to help pay for capital expenditures, such
as wages, equipment, construction materials, etc.; and the Primary Sector Workforce Training Grant (WTG) can
help offset the cost of training the new employees. The MBFP can also help with financing this growth.
INTERNATIONAL EXPORTING + MARKETING
As business grows, the sales pattern for most manufacturers and service providers develops in concentric
circles radiating out from local, regional, and national, to international markets, depending on their marketing
goals. SBDCs and NABAs can help companies to develop and execute their marketing plans. For local markets,
manufacturers can take advantage of the Made in Montana program's marketing opportunities. To develop
regional and national customers, businesses could use ExportMontana's Trade Show Assistance Program grant
for exhibiting at trade shows within the USA. Montana exporters can benefit from ExportMontana's international
marketing expertise when they are ready to develop international customers for their products, and they can use
the State Trade Expansion Program grant for international trade shows, foreign language translation, international
product certification, etc. For growing manufacturers, MMEC can assist with new product development,
operational enhancements, technology integration, and regulatory compliance, among other things.
EXIT STRATEGY
When it comes time for the business owner to consider the exit strategy or transition of the business to a family
member, employee, outside buyer, etc., the process can be just as daunting as the startup phase. MMEC, SBDCs,
and CRDCs offer the financial and strategic expertise the business owner needs to plan a successful strategy and
begin the transition process.
The Montana Department of Commerce's idea to international business services provide entrepreneurs expertise
and assistance every step of the way, removing startup and growth barriers, and improving the chances of long-
lasting business success. More in-depth information on the programs funded through 2019's HB 52 are as follows. 5
Montana Cooperative
Development Center
The Montana Cooperative Development Center (MCDC) is a 501 c3 organization whose
mission is to promote and develop cooperatives to meet the economic and community
needs of Montana. The $65,000 received annually through the Montana Department of
Agriculture is leveraged to match the $200,000 Rural Cooperative Development Grant
through USDA -Rural Development every October. MCDC, founded in 1999 as part of
the Montana State University -Northern, became an independent organization in 2004
and continues to serves all 56 counties of Montana. MCDC is the administrative branch
of the Montana Council of Cooperatives, a trade association serving all sectors of the
160 cooperatives in Montana. MCDC is part of the economic development community
and partners with other statewide and regional organizations across the State. Current
initiatives include wholesale grocery store cooperatives, workforce conversions,
investment cooperatives, meat processing cooperatives (branding, distribution, facilities),
grass bank and young producers, childcare, housing, and labor and shared service
cooperatives.
Cooperative Development Specialists in Montana are housed in ten Economic
Development Organizations across Montana: Beartooth RC&D, Native American
Development Corporation, Headwaters RC&D/Butte & Silverbow Economic
Development Corporation, Mountain West Economic Development Corporation, Snowy
Mountain Economic Development Corporation, Park Local Development Corporation,
Eastern Plains Economic Development, Great Northern Economic Development, Ravalli
County Economic Development Authority, BearPaw Economic Development.
State Investment............................................................................... $65,000
Leveraged Investments:
USDA- Rural Development............................................................. $179,302
Montana Council of Cooperatives (Association) ..................................$5,000
Private/Other Funds...........................................................................$63,077
Total Investment.............................................................................$370,456
METRICS FOR SUCCESS
Cooperatives Formed................................................................................... 2
CooperativesAssisted................................................................................16
Businesses assisted not cooperatives........................................................ 22
Number of Businesses incorporated no cooperative ..................................... 1
Groups working with us to explore cooperative business model ................. 20
October 2019 to April 2020
6 Technical Assistance I Montana Department of Commerce
Certified Regional Development
Corporations
The Certified Regional Development Corporations (CRDC) program was
created by the 2003 Montana Legislature to encourage a regional approach
to economic development that facilitates the efficient delivery of economic
development programs by supporting regional capacity. A CRDC must
be a private, non-profit corporation, and apply for certification through a
competitive state Request for Proposal (RFP) process. CRDCs work directly
with businesses to help them access capital, grant and loan programs, and
provide technical assistance. There are 11 CRDCs spread across the state;
Havre, Joliet, Baker, Wolf Point, Butte, Ronan, Helena, Bozeman, Colstrip,
Great Falls, Lewistown. Each CRDC serves multi -county regions.
METRICS FOR SUCCESS
Total Number of Loans Closed...........................................................
20
Total Dollar Amount of Loans ................................................
$1,574,343
Dollars Matched by Businesses for Loans ............................
$8,081,417
Number of Jobs Created...................................................................
48
Number of Jobs Retained..................................................................
50
Number of Businesses Assisted......................................................
470
Number of Projects Assisted...........................................................
429
January to March 2020
61
Technical Assistance I Montana Department of Commerce 7
.,PROGRAMS IN
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Strategic Partnership: Montana Craft Malt
Montana Craft Malt started its six-year relationship with the Departments of Commerce and Agriculture
back in 2014 when a Commerce -created industry study showed the potential for growing, making and
selling Montana -made beer malt. Fast forward to 2020 and Butte -based Montana Craft Malt was cutting
the ribbon on its $25 million state -of -the art malting facility designed to capitalize on the world-class
quality and high quantity of barley grown in Montana to provide the microbrewery and micro -distillery
industries with customized products.
Brewing and distilling is big business. In Montana alone, 92 breweries use an estimated seven million
pounds of malted grain each year. Montana Craft Malt saw an opportunity in the industry since most
malt used in Montana comes from out of state, and brewers around the globe are always seeking high-
quality specialty malts.
The six-year path from moving an idea to a realized innovation was done with the coordinated support
of the Montana Departments of Commerce and Agriculture. What started with industry research
quickly turned into the development of a business plan under the advisement of Butte's Small Business
Development Center (SBDC) and the Big Sky Trust Fund Planning Grant program. Montana Craft Malt
then sought guidance from the Montana Technology Innovation Partnership (MTIP) to develop its Small
Business Innovation Research (SBIR) grant application. From there, Montana Craft Malt worked with the
Montana Manufacturing Extension Center (MMEC) to develop design and engineering plans for its facility.
Montana Craft Malt was successful in competing for a Growth through Agriculture (GTA) grant award
which helped purchase state-of-the-art malting equipment.
Along the way, the Montana Board of Investments supported the project with financing. With its Butte
facility under construction, Montana Craft Malt started developing its international market connections
thanks to the ExportMontana team and the State Trade Expansion Program (STEP). When it was time
to hire, Montana Craft Malt turned to the Big Sky Economic Development Trust Fund Job Creation grant
program to support the creation of new, good -paying jobs.
Montana Craft Malt's story shows what can happen when private business teams up with strategic
government support: an expanding craft malt industry can take root in Montana, where we're known for
growing the best grains in the world — soon, we'll be known for making the best malt, too.
N
E
Montana Manufacturing Extension
Center at MSU
The Montana Manufacturing Extension Center (MMEC) is a statewide
manufacturing outreach and assistance center staffed by full-time
professionals with extensive experience in manufacturing and business in
a variety of industries. MMEC serves the thousands of manufacturers in
Montana by helping them assess and improve their manufacturing operations,
providing trainings and workforce development, and leveraging research and
technological developments at state and federal entities to keep manufacturing
competitive in the state.
MMEC is headquartered at MSU in Bozeman, with remote offices in Billings,
Missoula, Kalispell, Great Falls, and Butte (opening 2020).
MMEC is also part of the National Institute of Standards and Technology's
Manufacturing Extension Partnership (MEP) National Network. NIST is a non -
regulatory agency of the U.S. Department of Commerce that promotes U.S.
innovation and industrial competitiveness. MEP is a public-private partnership
with centers in all 50 states and Puerto Rico dedicated to serving small and
medium-sized manufacturers. MMEC's advisory board helps guide how MMEC
serves Montana's manufacturers.
State Investment................................................................... $500,000
Leveraged Investments......................................................... $540,000
Total Investment.................................................................. $1,040,000
METRICS FOR SUCCESS
SFY2020 Goal
SFY2020 Metric
Clients served
77
151
Jobs added and retained
298
182
New and retained sales
$29,800,000
$25,292,000
Cost savings and avoidance
$4,172,000
$4,518,020
New investment
$8,940,000
$5,147,676
Clients surveyed
44
30
State Fiscal Year 2020
Technical Assistance I Montana State University 9
ExportMontana
ExportMontana helps Montana manufacturers and service providers sell
outside the USA. Assistance provided includes market assessment, access,
and development so Montana -based employers can take advantage of
regional, national and international trade promotions and grants for developing
new markets. Available programs include the Trade Show Assistance Program
grant for exhibiting at national trade shows, and the federally -funded State
Trade Expansion Program grant for international marketing. The state's
$300,000 statutory appropriation is used to access federal matching funds
from the Small Business Administration which was $401,818 in FFY 2018.
METRICS FOR SUCCESS
Businesses supported through grants, consultations, trainings........ 386
Funding provided for market development activities" .............. $540,919
Sales from market development activities* ......................... $25,159,189
Jobs retained or created from market development activities`.......... 183
*Trade shows, etc.
July 1, 2019 -May 22, 2020
10 Technical Assistance + Grants I Montana Department of Commerce
LOPROGRAMS IN ACTION
Responding to Crisis: Commerce -Supported
Companies Step Up During COVID-19
As the novel Coronavirus spread closer to home early in 2020, Department of Commerce -supported businesses
quickly shifted their product manufacturing lines to support the needs of the global pandemic.
Distilleries in nearly every corner of Montana started making hand sanitizer and shipping it to hospitals and health
care centers by the truckload. "We are just trying to get it out to the people who need it the
most," Gulch Distillers co-owner Steffen Rasile told the Helena Independent Record. "We
felt like it was our duty to help out where we can. We are in a unique position, so we
decided to step up."
Gulch Distillers, Bozeman Spirits and Headframe Spirits are among a handful of other spirits-turned-sanitizer
companies that have accessed Commerce's State Trade Expansion Program (STEP) grant dollars to expand their
reach. The Montana Manufacturing Extension Center also assisted the distillers quickly shift their operations by
hosting weekly conference calls where they collaborated on many issues, including finding bottles. It was MMEC
that secured bottle and cap donations for the Montana businesses from Berry Global in Indiana.
Montana's well-known pet accessory maker West Paw also shifted their manufacturing of indestructible dog toys
and pet beds to make face masks for healthcare workers.
According to its website, West Paw worked to retool their Bozeman, Montana production facility, leveraging the
skills of their employees who normally might be making dog toys, beds, collars, and leashes. "As a purpose -
driven certified B Corp, we live our values of community and employee support by unleashing the capability and
skills of our staff to make an impact," says Spencer Williams, President and CEO of West Paw.
West Paw was MMEC's first client in 1996 when Williams bought the company, and their relationship with
Commerce started in 2006 when it first worked with the ExportMontana team. Since, it has grown to a
large international exporter with assistance from the State Trade Expansion Program and Big Sky Economic
Development Trust Fund Planning Grant program.
Several plastic injection molders in Montana; including Spark R&D, PDM, Diversified Plastics, Blackhawk, and
Creative Sales; collaborated to produce nearly 20,000 facemasks for Bozeman Health and Billings Clinic. These
masks were invented by Billings Doctor Dusty Richardson and made national news. Montana Silversmiths, Salient
Technologies, and Thompson Precision also collaborated to produce these "Montana Facemasks" using their 3D
printers.
These companies stepped up to make in -demand products and were able to adapt quickly through the support
of the Montana Manufacturing Extension Center at Montana State University. MMEC partners with and is funded
through Commerce.
"Seeing Montana's manufacturers collaborate to meet the demands of the crisis
in Montana is truly inspiring," said Paddy Fleming, Director of MMEC. "Former
competitors are now talking about how they can better work together in the
future and there are even a few of them talking about forming joint ventures!"
Going from making pedicabs to protective face shields like Bonner -based Coaster Cycles, or from making world-
class Gortex fiyfishing waders to sewn surgical gowns like Bozeman -based Simms Fishing — these Montana -
made companies have stepped up in a big way to respond to the crisis. 11
Small Business Development Centers
The Montana Small Business Development Center (SEDC) is Montana's
premier provider for entrepreneurial and small business assistance. The
program is funded through a partnership with the Small Business
Administration (SBA), Montana Department of Commerce, economic
development organizations and higher education institutions. Montana SBDC's
Business Consultants assist business owners and aspiring entrepreneurs
with low-cost training opportunities and no cost, one-on-one advising that
is customized to meet their needs. The SBDC network supports ten centers
across the state, focusing on counseling and training in areas such as financial
analysis, business planning, strategic planning, loan packaging, financial
projections, business management and market research to help small
businesses achieve their goals of growth, innovation and success.
METRICS FOR SUCCESS
Number of Clients Served..............................................................1,025
Number of Training Attendees......................................................
1,280
Number of Jobs Supported...........................................................3,144
Number of Business Start Ups ..........................................................
56
Capital Infusion Amount .....................................................
$34,505,216
July 1, 2019 -March 31, 2020
12 Technical Assistance I Montana Department of Commerce
Windrift Hill
Amber Hofstad, part owner of Windrift Hill, said her handmade, locally sourced goat milk soap and lotion
business in Conrad, Montana, relied on multiple programs operated through the Department of Commerce to
expand in 2017-2018. Hoftsad said the knowledge and ongoing support from Jason Nitschke of the Great Falls
Development Authority - part of Montana's network of Small Business Development Centers (SBDC) - helped
throughout the two-year expansion.
"Jason is a great resource and very helpful in all aspects of business, if he
doesn't have the answer, he finds the answer or finds the best person for
business owners to turn to," Hofstad said.
Hofstad said Windrift Hill also turned to the Montana Manufacturing Extension Center (MMEC) for the food safety
and manufacturing expertise of Claude Smith, who created plans for Windrift's new manufacturing facility and
worked directly with contractors to ensure safety regulations would be met.
Additionally, assistance through the Bear Paw Development Corporation's Food and Ag Development Center
(FADC) located in Havre made it possible for Windrift Hill to receive $45,000 in financing through the Department
of Agriculture's Growth Through Agriculture (GTA) program. A $25,000 grant and a $20,000 loan through
GTA allowed Windrift Hill to speed up production to make 65 gallons of product in the same amount of time it
previously took to make seven gallons.
"I can honestly say that without the combination of all these programs Windrift
Hill would still be struggling to find the help, support and correct equipment
needed to grow," Hofstad said.
560ur business has continued to grow, we have since hired employees and been
able to reach new markets because we have been able to focus on growing WDH
instead of focusing our energy on things the programs assisted us with. These
people can take so much burden off a small business owner and make things
that were once impossible seem possible again."
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PROGRAMS IN ACTION.
Community Pillar: Spika Design &
Manufacturing
Spika Design & Manufacturing, one of the largest employers in Lewistown, has relied on programs through the
Department of Commerce at various points throughout its prestigious tenure. The manufacturing business serves
such customers as the U.S. Army, Navy, Marine Corps, Air Force, Coast Guard, NASA and Facebook out of its
15,600 sq. ft. production facility in Lewistown.
This family-owned and operated business is a pillar of the Lewistown community. The company's CEO, Katie
Spika, says Spika rewards the dedication of their employees by offering wages above the statewide median and
makes a meaningful impact on the local community through contributions to the local economy.
Several programs funded through or operated by the Montana Department of Commerce have helped Spika
become the success it is today. Recently, the Snowy Mountain Development Corporation, which is a part of
Montana's network of Certified Regional Development Corporations (CRDCs), Workforce Training Grants, the
knowledgeable staff at the Department of Commerce's ExportMontana team, and Montana Manufacturing
Extension Center (MMEC) have all provided Spika with technical assistance, grant funding, and expertise at
different turning points in the company's history.
These programs have allowed Spika to expand into foreign markets and grow the company's sales. In fact, at
times, Katie says, international customers account for a quarter of the company's sales. Spika has also been able
to improve the quality and efficiency of their design and manufacturing, and hire additional employees.
"We would not be near the company we are without their support," Katie says.
Small Business Innovation Research
Program
The Montana Innovation Partnership (MTIP) is powered by MSU Techl-ink, and
is a strategic partner for Montana innovators, entrepreneurs and inventors
to help them access critical Research and Development funding and craft
effective commercialization plans.
METRICS FOR SUCCESS
Number of Clients Served................................................................... 41
SBIR/STTR Proposals Submitted.......................................................14
Number of Training Attendees......................................................... 168
Number of Training Events Held ......................................................... 10
July 1, 2019 -May 6, 2020
Technical Assistance I Montana State University 15
Food and Agricultural Development
Center Network
The Montana Food and Agricultural Development Center (FADC) Network helps
Montanans innovate and grow businesses that produce and commercialize
food, agricultural and renewable energy products and processes, creating
wealth in our communities and on our farms and ranches. The centers -
located in communities throughout Montana - operate as a statewide network
serving community-based businesses.
The centers support economic development by ensuring that more of the state's food, agricultural and
energy dollars circulate in Montana. The network provides training, coaching and technical assistance,
including: product development, testing and analysis, regulatory compliance training, food processing,
business planning and development, market research, business networking, access to financing,
cooperative development and education on industry dynamics and technologies.
Currently, the State of Montana is served by eight FADCs, including: Bear Paw Development Corporation
in Havre, Beartooth Resource Conservation & Development in Red Lodge, Great Falls Development
Authority in Great Falls, Great Northern Development Corporation in Wolf Point, Headwaters Resource
Conservation & Development in Butte, Lake County Community Development Corporation in Ronan,
Prospers Business Network in Bozeman, and Ravalli County Economic Development Authority in
Hamilton.
Prior to the passage of HB 52, state law limited the number of FADCs to four. HB 52 removed the
limit on the number of centers, allowing for the current make up of eight centers and a more equitable
distribution of services throughout the state. Additionally, HB 52 moved FADCs under the decision
making authority of the Agriculture Development Council. With the new grant structure, Montana
Department of Agriculture staff monitor these grants from award to close-out for compliance.
Additionally, the Department's Marketing staff works with FADCs to collaborate on projects that promote
and expand Montana's food and agriculture industries.
METRICS FOR SUCCESS
JobsRetained..................................................................................344
JobsCreated...................................................................................43.5
Leveraged Funds................................................................. $6,643,000
NewClients....................................................................................... 50
Businesses Assisted........................................................................... 91
Counseling Sessions - Hours Paid Time ...........................................522
NewProducts................................................................................... 26
16 Technical Assistance I Montana Department of Agriculture
Growth Through Agriculture
The Growth Through Agriculture Program is a competitive grant and loan
program whose mission is to strengthen and diversify Montana's agricultural
industry through loans and grants that assist with the development
of innovative agricultural business organizational improvements, the
commercialization and marketing of new agricultural products in order to keep
pace with a transforming agricultural industry, and to create new jobs and
expand small business opportunities.
The Agriculture Development Council, a seven member independent body
consisting of industry representatives spanning food, agriculture and economic
development, reviews applications and selects successful projects for
program investment. The program is administered by the Montana Department
of Agriculture.
The Program is administered by staff at the Montana Department of Agriculture. Eligible projects should
primarily add value to Montana's agricultural products, have prospects for achieving commercial
success given the current personnel, experience and resources of the applicant and have the possibility
to create and/or retain jobs in Montana. Examples of project activities include, but are not limited to:
equipment purchases, advertising and promotion, and consultant services such as engineering costs. A
$1 for $1 match is required for all types of Growth Through Agriculture projects, including both grants
and loans. The maximum award from the program is $150,000; up to $50,000 in grant funding and
up to $100,000 in loan funding. Post -award, projects are monitored until close-out for compliance by
Montana Department of Agriculture staff.
METRICS FOR SUCCESS
Awards Summary
TotalAwards...................................................................................... 39
Total Grant Amount.................................................................. $670,992
Total Loan Amount.................................................................. $239,600
Total Award Amounts...............................................................$910,592
Program Metrics
Increase in number of Full Time Employees ......................................111
Increase in number of Part Time Employees ...................................... 43
Increase in Gross Annual Sales ................................... $126,317,188.69
Projected Annual Payroll of New Jobs ................................. $8,260,633
Numbers based on projections provided by FY20 awardees
Grants I Montana Department of Agriculture 17
Growth Through Agriculture Funding at Work
Strick's Ag is a family-owned grain merchandiser located in Chester. In 2017, Strick's Ag was awarded a grant of
$49,488.44 and a loan for $100,000 for construction and equipment purchases to assist in the expansion of the
processing facility.
"Strick's Ag was able to start off
the construction of our pulse -
processing plant because of the
grant and loan from the GTA program,
however, the program's assistance
stretched farther than just the
grant and loan funds. Staff from the
Montana Department of Agriculture
was instrumental in our ability to
meet some of our first customers
who placed orders to get our plant
operational. Strick's Ag grew from a
company of 8 employees before the
GTA award, to having 25 full time
employees now."
Jillien Striet, Stricks Ag