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HomeMy WebLinkAboutJanuary 2022 BRCD Meeting Materials ML Beartooth RC&D Area, Inc. Board of Directors Meeting Agenda Meeting 1:00 P.M. Billings Job Service, 2121 Rosebud Dr, Ste B, Billings, MT Thursday, January 20th, 2022 Conference Number 605-475-5900 Access code 8472365 1:00 pm 2:30 PM Meeting Called to Order Pledge of Allegiance, Introduction of Members and Guests Review November Board Minutes Congressional Updates Maddie Alpert (Sen. Tester) Tory Kolkhorst (Sen. Daines) Cade Overstreet (Rep. Rosendale) Treasurer/Financial Reports 1. Treasurer Update 2. RC&D Financials 3. RLF Financials 4. Audit 5. Annual Budget Staff Reports – Program/Project updates 1. Food/Ag Program – Joel Bertolino 2. Revolving Loan Fund – Nan Knight 3. Economic Development/ CRDC – Jacy Head 4. Operations Support- Myrna Lastusky Regional Roundup – News and updates from regional members on projects and activities in key CEDS categories…. (see topics on next page) Next Beartooth RC&D Area, Inc. Board of Directors Meeting March 17th, 2022 - Big Horn County Adjourn Chair Chair, Simonson, MacLean Chair, All Bertolino Knight Head Lastusky Roe, et al Action Information Information Action Action Information Action Information Information Information Information Information Information Page 2 Regional Roundup CEDS SWOT (Comprehensive Economic Development Strategy – Strengths, Weaknesses, Opportunities, Threats) 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 you 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 3 Beartooth RC&D Area, Inc. Board of Director’s Meeting MINUTES November 18th, 2021 Agenda 1:00 pm 2:30 PM Meeting Called to Order Pledge of Allegiance, Introduction of Members and Guests Review September Board Minutes Congressional Updates Maddie Alpert (Sen. Tester) Tory Kolkhorst (Sen. Daines) Cade Overstreet (Rep. Rosendale) Treasurer/Financial Reports 6. Treasurer Update 7. RC&D Financials 8. RLF Financials Financial Director Update MOU’s Staff Reports – Program/Project updates 5. Food/Ag Program – Joel Bertolino 6. Revolving Loan Fund – Knight 7. Economic Development/ CRDC – Jacy Head 8. Operations Support- Myrna Lastusky Regional Roundup – News and updates from regional members on projects and activities in key CEDS categories…. (see topics on next page) Next Beartooth RC&D Area, Inc. Board of Directors Meeting January 20th, 2021 - Yellowstone County Adjourn Optional short tour to look at Pioneer Meats new Retail store Chair Chair, All Chair, All Bertolino Bertolino Bertolino knight Head Lastusky Roe et al Action Information Information Action Action Information Information Information Information Information Information Information Page 4 Board of Directors Meeting November 18th, 2021 Minutes Members Present: Joel Bertolino, BRCD Nan Knight, BRCD Jacy Head, BRCD Myrna Lastusky, BRCD Bill Foisy, City of Red Lodge Lorene Hintz, Big Sky EDA SBDC Dan Lowe, Big Horn County Conservation District Raymond Porter, Sweet Grass County Chamber Director Don Jones, Yellowstone County Commissioner Barb Wagner, Yellowstone Conservation District Melanie Roe, Sweet Grass County Amie Kusch, Sen. Tester’s Office Caitlin _____,Sen. Tester’s Office John Durnal, Sen. Daines’ Office Earl Atwood, Guest - CGWG Rep Meeting Called to Order at 1:03 pm. Pledge of Allegiance, Introduction of Members and Guests Review September Board Minutes Bill motioned to approve. Don seconded. Motion carried. Congressional Updates Caitlin / Amie Kusch (Sen. Tester)  Biggest thing is bi-partisan infrastructure package – huge for roads, bridges, etc. o Think this is a huge win for the State and our counties o Hoping to get NDAA finalized o Debt limit also needs to be addressed o Sen. Tester is dealing with some cattle pricing/transparency stuff  Bill asked if MDT is putting anything out about which projects will be accelerated with the infusion of dollars o Caitlin didn’t know yet. Her understanding is that the funding is designated through existing programs other than some of the broadband/internet issues. It might be divvied up through the State or a Revolving Loan Fund. o Direct questions to Tester’s office and they will try to answer. John Durnal (Sen. Daines):  Sen. Daines didn’t support the infrastructure bill.  No other major updates  Questions on any legislation, reach out to John/Tory Cade Overstreet (Rep. Rosendale) NOT PRESENT Page 5 Treasurer/Financial Reports 1. Treasurer Update (Joel) a. Jillann is on contract as we transition to a new Finance Director, Nan Knight, who started on Tuesday. Jillann was training Nan yesterday and will be back tomorrow and helping as needed. b. RLF books look good – had several payoffs in last couple years that were unexpected. About $800,000 to loan yet. There was a question on whether it was $800K or $600K. c. 2 new applications recently. Jillann and Nan are working on a Red Lodge business – one that looks real good. It would be a partner loan & $75,000 would come from BRCD RLF. d. Nan Knight was hired fairly quickly – Bill asked for some background/intro from Nan i. Degree in Occupational Safety & Health. Has experience in loan funding, but more indirect loans with Altana and First Interstate Bank. ii. Then she managed a plastic surgery center in Billings. iii. Has learned a lot already from Jillann. She knows the language from experience with banks, but needs to learn all the acronyms. iv. Loves the way BRCD is helping the community and is eager to be part of the team. 2. RC&D Financials (Joel) a. The books look good. Need to remember that contractual is always higher than actual due to CARES Act. 3. RLF Financials (Joel) a. Don asked about the $200K Yellowstone County loan. i. Our RLF committee approved it, but the business has had some delays due to supply chain issues. Hope to allocate it in the next couple months. b. Don asked if the $200K was part of the $800K available. i. We believe that there is $600 unencumbered and the $200K was part of the original number Joel mentioned. Financial Director Update – see above MOUs  In the middle of annual MOU presentations to entities who partner with us as match against our EDA Partnership Planning grant. Have met with 3 so far. Will meet with all 5 counties and Cities of Billings, Laurel, and Hardin.  Bill asked about dues o Base fee plus .19/citizen. Most counties lost population other than Yellowstone County (according to 2020 census). Staff Reports – Program/Project updates 1. Food/Ag Program – Joel Bertolino - p. 16ff a. GTA (Growth Through Ag) changed format a bit this year and Joel reached out to clients to let them know. i. Had 3 approved to move on to next phase. ii. Met with Dept of Ag about the program on Sept. 9th. iii. Scheduled outreach with Lane Gobbs iv. Met with Primitive Meats and their GTA app v. Reconnected with Big Sky Beef – big meat processing plant. They are struggling to find a suitable site since many will need infrastructure. Looking at Hardin, TEDD in Billings, and other locations. b. Passed on info from Value-Added funding opportunities that came out of ARPA. i. Agrika Foods put one in but were not selected ii. Corey Wilson – fresh mushrooms but not selected iii. Toews Family Farms – raise own corn and bag and sell it. Talked last year and this year they got the pre-app in but weren’t selected. Page 6 1. Melanie asked why they aren’t being selected. Joel said because it is SO competitive. They only select about 30 to move on. They received 158 apps this time (record number – which broke the record from last year). 2. Total dollar amount of program $900,000. Max grant is $50K and average received is about $25K iv. Prime Meats – LaMont Herman received Value-Added Producer grant v. Primitive Meats – were selected and are working on full application vi. Basin, Inc – were selected. Joel worked with them on Value-Added grant. They want to expand ranch business. vii. JWK Enterprises – direct sales. Didn’t get GTA app in. viii. Charter Ranch Vermicast Soil Amendment – pretty much done with improvements they’ve been making. ix. Yellowstone Valley Food Hub – GTA approved for $20K to expand. x. 406 Bovine – developed cool software phone app that involves facial recognition for livestock. Owner is seeking investors with a goal of $5 million. xi. Stillwater Packing/Emmett’s Meats – didn’t submit GTA. Joel passed along new opportunities. xii. Pioneer Meats – selected for GTA and are working on app as well as new funding opportunities. xiii. Big Sky Beef – bigger processing plants xiv. Restoration Beef – Jess Peterson has done a lot of feasibility study work for a larger facility. xv. F Bar 3 Vineyard – would like to expand to have a wedding venue/agri-tourism piece c. Don asked: Did you work with Shane Flowers at Project Meats? Yes i. Don said this is a skilled labor at these processing plants. Shane and others are getting a group together to figure out the labor shortage issue in their field. Don suggested that Joel may want to reach out and find out about this group. ii. Melanie asked if they were going to do meat processor training in Miles City? Joel: Yes, but they can’t get the people iii. Joel: Many issues with building processing plants – like waste stream, amount of water needed, and how to manage all this. Not many options where a municipal water supply would be sufficient. Need to have trained employees to manage all this, too. iv. Joel said workforce continues to be a huge issue especially in these areas, and he will reach out to Shane Flowers. d. Melanie asked about the Mobile Meat Processor that was in the works. i. Joel said it’s good for educational purposes, but they won’t put a dent in the overall need. Shane Flowers has a good thing going. The plant they bought in Miles City hangs 80 head, which is a huge cooler. They are using cattle from Billings and sending them on trucks a couple times per week to Miles City, then sending back to Billings. 1. Melanie: What do they do with their waste? Joel wasn’t sure. Don speculated this was why they moved to Miles City. Joel said some processors use incinerators, some landfills, etc. 2. Lorene asked if it could be made into dog food or something? a. Joel said that has been done – Baker Commodities had a rendering plant and would do pickups from Stillwater Packing and charged quite a bit to do that. But one plant when out of business, so it was no longer financially feasible for Baker to make the route. 3. Melanie: Is Stillwater getting their incinerator issues figured out? Not that Joel knows 2. Revolving Loan Fund – Nan / Joel a. Nan is starting to look at the current loans and the new one with Jillann. Hoping to present the applicant from Red Lodge to the Exec. Committee in Dec. b. De-federalization: Jillann has been working on this and is very close to being done. Contract is in writing. We have a resolution to de-federalize funds, but it just came up yesterday. If the Board is Page 7 willing to allow Executive Committee to make a final determination of that, we can complete it in December. This will greatly lessen reporting and the regulations for which businesses we can loan money to. i. Melanie asked if the Board is able to make this decision. Need a motion? ii. Bill motioned to allow EC to effectualize any resolution needed to the de-federalization of the federal loans. Don seconded. iii. Bill said the Executive Committee historically has authority to act on behalf of the Board. This is even better since the Board is resolving ahead of time. iv. No further discussion. Motion passed unopposed. 3. Economic Development/ CRDC – Jacy Head – pg. 22 a. EDA CARES Act i. Deb Brown – visited in October. Got a lot of good info, especially regarding the Bozeman Trail. Met with mapping experts to work on the actual route. Deb did a lot of recording of the Bozeman Trail stories to put on YouTube. Also met with officials throughout the 5 counties. ii. Big Sky EDA – Economic Resiliency in Yellowstone County. Several committees to address Covid-related issues; workshops/webinars offered to small business owners; Diane Lehm has seen good progress with this project. iii. Cushing Terrell – Regional housing study is pretty much wrapped up and we are waiting to roll it out. b. BSTF project i. Red Lodge Pea Cannery – High Plains Architects (HPA) is working on the feasibility study. Hoping to have this by Feb. 2022. ii. Sandstone School – HPA completed the feasibility study. Continuing to work with them. iii. Laurel West Interchange – not moving forward due to lack of matching funds iv. Stillwater Industrial Park feasibility study – just awarded $27K for this. Working with Steph Ray and AnnMarie to move that project forward. c. ARPA – still looking at project possibilities with other CRDCs and our 5 counties. 2nd round of ARPA funds will be released in June. d. Mountain Health Co-op: partnering on an Emergency Rural Healthcare Grant, track 2 (impact grant). Would allow healthcare in Busby or Lodge Grass. Awaiting approval. e. RCDI Grant with USDA RD - $120,000 toward the EDD position in Hardin and Big Horn County. Working together to get it off the ground. f. CDBG-CV: $1.375 mil for Big Horn County for affordable housing. i. Joel mentioned that Plenty Doors CDC also put one in for rural wastewater systems. g. Bill asked about the Pea Cannery feasibility study – he asked us to send a copy of it to James Caniglia, Community Planning Director, to keep him in the loop 4. Operations Support- Myrna Lastusky a. There has been a lot of government reporting to do recently including the CRDC quarterly report, EDA CARES Act semi-annual report. These were all completed. b. Just submitted our 3-year EDA Partnership Planning Grant application. c. Working on better ways to track what everyone is doing – creating spreadsheets that will hopefully assist us in future reporting and follow-up with clients. i. Joel mentioned that the reports provided by CRDC, in particular, are not good. Creating our own spreadsheets will help as we complete those, too. 5. CGWG (Custer Gallatin Working Group) – Earl Atwood a. CGWG has been an entity going on 5 years now. Upcoming rewrite for Custer-Gallatin. It is a group with great diversity in it.  Moved to meeting on a quarterly format, & then Covid came and it became quarterly and virtual.  Hoping the Dec. 8th meeting is in person. Page 8  Forest Plan has been the anchor project, but they have also selected a variety of specific projects within the forest arena and voted to adopt it as a project for the working group. They offer input, advocacy, and support to those projects. Many have to do with fuel mitigation, trail development, and other areas. o Melanie asked if FWP gave Forest Service the grizzly bear stuff yet. She had a meeting with Mary Erickson and discussed the issue of where grizzlies are going, etc – they are wanting to move grizzlies around possibly.  Earl didn’t know about it but wondered if this was to mitigate some of the problems they are having with grizzlies?  Melanie thought it could exacerbate the issue. Also talk of moving buffalo into the grizzly bear recovery area – concerns about brucellosis and overgrazing. o Earl said CGWG has worked near Ashland as well as a few areas around Red Lodge. o Melanie mentioned the possible land swap on the eastern side of the Crazies. Raymond said he believes it’s in the Forest Service’s hands at this point. o Bill: Last time we saw Earl he was trying to be less involved in CGWG . . .  Earl said he’s had discussions about having a lesser role and it’s still on the table. Once John Prinkki relocated back to MT, he is more available and a little more involved as the frontline person, which has given some relief to Earl’s workload.  Melanie asked who is a part of the CGWG group.  10 county commissioners from BRCD district and beyond  NGOs – Wilderness Society, Recreational groups (e.g. biking group)  Kerry White (was in legislature) is in the group and knowledgeable for weed management, trails, etc.  2 seats for Ag  Timber  Ski Industry. And more!  It is a very diverse group and was designed with that intent. They try to reflect the many areas of the Forest Service. Regional Roundup – News and updates from regional members on projects and activities in key CEDS categories….Infrastructure, Economy, Communication, Services, Natural Resources, Human Capital. Bill Foisy – Red Lodge  Resort tax – from 3rd quarter last year to 3rd quarter this year: preliminary numbers show up 15%. Hotel and alcohol are the highest.  TIF District is teetering – not approved yet by Council. Issue is School District revenue.  60-unit condo development goes before Planning Board next week (will be on Hwy 78). NOT affordable housing.  Dec 3-4 Christmas Stroll  Money for wayfinding plans, phase 2 o If anyone needs help getting MDT approval, designs, specs, etc – Bill is your guy!  o Myrna mentioned the Bozeman Trail group may want to talk to him.  New Mayor – Kristen Cogswell  Bill will be transitioning off BRCD Board eventually. Dan Lowe: Big Horn Conservation District  Conservation isn’t a restriction of use. It’s a wise and prudent use of resources to maintain them.  Number of saline seeps – concern about aggression and growth. Natural moisture filtrates into the ground, absorbs salt, and then resurfaces. The water evaporates and leaves white residue. Result is often that no vegetation can grow. As this advances, the size of these seeps increases. Page 9 o Considering use of drone and 310s to help with this issue. Using drones comes with all sorts of legal issues, but it is helpful to do some photographic work periodically and relate back to annual precipitation. o Some groups will be meeting in January to revisit the issue.  Conservation District has 3 hats o District o Weed Board o Aquatic Invasive Species check stations  One at Fort Smith and just finalized processes for Hardin check station at Rest Stop. So far so good, but once there is an introduction, it’s very hard to reverse.  Dan comes to meetings for 2 reasons o Support BRCD o Support of Conservation District o He loves hearing the stories & work being done at these bi-monthly meetings  Earl asked if there is a fix or remediation for saline seeps. o Try to catch at the source – introduce plants that are tolerant and reduce subsurface water.  Dan said they are also struggling with an invasive species similar to Cheatgrass. Leaves are sharp and barby, nothing will eat it, and they are limited to chemicals to fight it. Herbicides cause other issues. Try to be proactive. It’s a complicated process. o Dan: Every time you do some remediation, you have to examine what else will be impacted. Raymond Porter, Sweet Grass Chamber of Commerce:  Welcome to Big Timber  Pioneer Meats, Crazy Mountain Brewing, and Greycliff Mill are all available for short tours after the board meeting. o Greycliff is being put on the map by this group. They have supported so many things around Big Timber. They have a mill, are putting in a creamery, will have Air BnB, etc. o Housing, inflation, workforce are all big issues here, too . . . o New businesses: Grand Hotel changed hands this summer. Lorene: Big Sky EDA / SBDC  Big project was the Edge of the Plains documentary and showed in 5 locations. The best part was getting out, building relationships, & meeting people during the process. o The documentary will be on the Rock31 website near the end of November.  Great response from Q&A at the showings. o Big Sky EDA hopes to move to their new building in May 2022. o Kevin, Kayla and Lorene went to Boise and Salt Lake City to visit some co-working spaces. They thought there would be a huge buzz of activity, but it was more about private offices being used. This provided good feedback regarding how they will structure their co-working space. o One-day business summit – Rise and Restore – at the Depot. Working with Dept of Disadvantaged Business Enterprise. Will have keynote speaker and some breakout sessions to encourage businesses in this strange time. o Don asked if the Coke bottling plant is moving forward. Lorene didn’t know. Don Jones, Yellowstone County  Coke Bottling Plant – should be going in on frontage road  Amazon Prime is putting in a warehouse (he thinks . . .)  Alcohol – for mental health.  Vision 2025 for Metra is ongoing. Barb Wagner, Yellowstone County Conservation Page 10 o Video for Lake Elmo project – start to finish of draining. The grant was approved. Draining is taking a long time and more expensive than anticipated. o Approval for Billings Bench Water Association. o Saline seeps are a big problem around Billing, too. They are using some reverse osmosis wells, which is helping but expensive. Looking at doing a workshop in the spring. o Salt Cedar – Finding that the Yellowstone River Counsel sees that the Salt Cedar is taking over.  Mel: Mostly on the Yellowstone? Barb thinks so  Don: How much water per day? Barb didn’t have the number, but it’s a crazy amount. o 310s – a LOT of complaints the last two years. Have been able to take care of most of them. o We funded Rocky Mountain College for Yellowstone River cleanup. So much garbage cleaned up in this effort! It’s a great project that does a lot of good. Meeting adjourned at 2:28 pm. Optional tours of Main Street Meats, Crazy Peak Brewing, and Greycliff Mill followed. Thanks to Raymond Porter for setting everything up! Next Beartooth RC&D Area, Inc. Board of Directors Meeting January 20th, 2021 - Yellowstone County Page 11 Beartooth Books- Reporting Ending October 2021 Budgeted Actual % of budgeted Income AG-FOOD AND AG CENTER 85,007 80,262 94% AG-MCDC 1,000 0 0% BOARD - EDA SPONSOR DUES 55,907 54,613 98% BOARD-INTEREST INCOME 400 99 25% BOARD-FOUNDATION MONEY 3,700 3,372 91% RLF-STAFF REIMBURSE 18,000 0 0% RLF-ORIG FEES 5,000 0 0% CRDC 71,907 35,922 50% MISC GRANT ADMIN $ 10,750 0 0% EDA - GRANT 70,000 35,000 50% NOT BUDGED INCOME - 468,944 0% TOTAL INCOME 321,671 678,212 211% Expense TOTAL STAFF EXPENSE 256,044 207,447 81% COMMUNICATIONS 6,000 6,336 106% EQUIPMENT & VEHICLE 8,520 3,973 47% CONTRACTUAL 21,220 428,686 2020% SUPPLIES 9,800 10,237 104% TRAVEL 10,140 1,296 13% OTHER 8,430 10,118 120% RESERVE - EXPENSE TOTAL 320,154 668,093 209% Account Balances Bank of Joliet-Building Account $4,475.22 Bank of Joliet- Savings Account $64,572.23 Bank of Joliet- Checking Account $134,613.02 Page 12 Revolving Loan Fund Books- October 2021 Loan Client Review County # of loans $ Loaned out Big Horn 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 13 Beartooth RC&D Budget Comparison INCOME Budget Actual Budget Actual Budget Actual Budget Actual AG-FOOD AND AG CENTER 65,000 81,396 85,007 83,340 85,007 73,538 45,000 AG-MCDC 1,000 1,070 1,000 270 1,000 500 BOARD - EDA SPONSOR DUES 50,767 50,305 51,072 54,823 55,907 54,614 56,979 BOARD-INTEREST INCOME 400 845 400 459 400 300 400 BOARD-FOUNDATION MONEY 3,700 3,373 3,700 3,390 3,700 3,373 3,300 RLF-STAFF REIMBURSE 18,000 18,000 18,000 18,000 RLF-ORIG FEES 5,000 2,377 5,000 5,000 7,500 CRDC 43,500 43,492 71,907 69,751 71,907 71,844 71,000 CGWG/ fuels 11,000 13,048 1,875 6,147 MISC GRANT ADMIN $10,750 12,750 EDA - GRANT 70,000 70,000 70,000 170,000 70,000 70,000 70,000 SW-GRANT 224,357 BSTF 44,220 EDA-CARES ACT 200,000 Total Income 268,367 265,906 306,086 383,908 321,671 748,393 285,429 0 EXPENSES TOTAL STAFF EXPENSE 210,300 190,898 233,104 214,386 256,044 245,234 231,429 COMMUNICATIONS 4,000 5,018 6,000 6,712 6,000 7,194 4,500 EQUIPMENT & VEHICLE 5,000 6,501 8,520 9,938 8,520 4,970 4,500 CONTRACTUAL 25,000 26,693 20,000 106,640 21,220 442,632 21,100 SUPPLIES 4,000 13,246 12,900 19,335 9,800 10,908 5,000 TRAVEL 6,000 7,561 11,080 2,001 10,140 1,534 7,800 OTHER 11,700 11,987 10,420 15,912 8,430 10,618 10,000 Total Expense for the year 266,000 261,903 302,024 374,923 320,154 723,091 284,329 0 Net Income 2,367 4,003 4,062 8,985 1,517 25,302 1,100 0 The above income figures currently include both "net income" and "pass-through" funds. We are working on the ability to state these amounts independently to provide a more accurate picture of the budget. Bank of Joliet-Building Account$4,476.88 Bank of Joliet- Savings Account$75,544.36 Bank of Joliet- Checking Account$105,203.79 2019 2020 2021 2022 Account Balances Page 14 Revolving Loan Fund Books- December 2022 Loan Client Review County # of loans $ Loaned out Big Horn 2 $167,094.91 Stillwater 3 $428,907.11 Yellowstone 7 $345,400.18 Carbon 2 $20,900.88 Sweet Grass 2 $163,569.10  A $200K loan was for Yellowstone County that hasn’t been funded yet. Completion soon  Loan interest is very slow.  Work is being done to de-federalize the EDA funding, I hope to have this completed and approved soon.  Expecting one Stillwater loan payoff by end-of-month Bank Balances as of December 2021 Total available for lending Bank of Joliet- EDA $49,699.62 49,699.62 Bank of Joliet-CDBG $424,541.35 424,541.35 Bank of Joliet- IRP $366,181.91 110,789.91 Bank of Joliet-Fromberg $30,938.66 30,938.66 $631,465 Page 15 Beartooth RC&D Staff Project Update January 2022 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 Value Added ARPA grant funding as well as conference calls with the Dept of Ag. Growth Through Ag Projects and ARPA Value Added Ag Grant 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. Yellowstone Valley Farm Contact-Reuben Stahl Location-Laurel Reuben Stahl has a family greenhouse business growing basil and selling to FSA and Sysco, he would like to add another greenhouse to keep up with increased demand this last year. He has applied for the Montana Value Added Ag ARPA funding. Mill Creek Farms Contact- Josh Sian Location-Pompeys Pillar Josh Sian manages Mill Creek Farms they farm and ranch in Yellowstone county and operate a value added feedlot where they specialize in heifer development for other producers offering a custom feeding program tracking their weights, carcass traits and reproduction suitability. Beartooth FADC assisted Josh in developing a Value Added ARPA grant for improved infrastructure in their heifer development operation. Blue Creek Marbled Beef Contact-Nels Pearson Location-Blue Creek South of Billings Page 16 Blue Creek Marbled beef are developing a state inspected meat processing plant South of Billings they are under construction and expect it to be a 2-3 million dollar project. Beartooth FADC assisted this business in applying for the Value Added ARPA grant for construction and equipment costs. Carbon County Meats Contact-Sabina Giovetti Location-Belfry Sabrina and Shane Giovetti have built a custom exempt meat processing plant in Belfry, MT and opened this Fall, they have been busy but have a need to expand already especially their cooler space, Beartooth FADC have assisted them with the development of a Value Added Ag ARPA grant for expansion. 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 a GTA and Value Added Ag 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. This Business also applied for an ARPA Value Added Ag Grant On Going Projects Page 17 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 assisted this business with a successful 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. Beartooth FADC assisted them with developing a GTA application as well. 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 FADC 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; they are still working with the department of Ag on their GTA project and have needed to change their initial project scope. 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/kTwkhUj9leA 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. Bryan was given the information on the Value Added ARPA grant and was determining if we would apply. Page 18 Stillwater Packing Co/ 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 finding workers. Page 19 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 lamb 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, and we have assisted them with developing a Value Added ARPA grant. Big 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 21st 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. They were given the information on the Value Added Ag ARPA grant and developed an application. Page 20 Becky’s Berries- Absarokee, MT Location-Absarokee Contact- Becky Stahl 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. F Bar 3 Vineyards Location- Laurel, MT Contact-Kasey Felder Beartooth FADC visited 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. Beartooth FADC has had follow up discussions with the business and assisted them with developing an application for the Value Added Ag ARPA grant for improved irrigation, which would allow them to expand their business and add more vines. Page 21 Economic Development Director Report for January 2022 BRCD Board Meeting- December 15th 1. EDA Cares Act a. Deb Brown- Bozeman Trail Project and monthly watch parties b. Big Sky EDA- ERRT c. Cushing Terrill Housing Study- January 25th Zoom Presentation 2. BSTF Projects- 1. Red Lodge Pea Cannery- 75% complete 2. Sandstone School- 100% complete 3. Stillwater Industrial Park Feasibility Study- Request for Proposals has been advertised 3. ARPA-attending the commission meetings 4. Mountain Health CoOp- no follow up from Ed Vozzo about the impact grant for the Lodge Grass remote clinic 5. RCDI Grant with USDA RD- The position has been advertised and the hiring committee has been created. Hiring will begin shortly. 6. CDBG CV- $1.375 mil for Bighorn County; turned down by DOC. 7. Montana Community Foundation grant- $9,870 for both Sweet Grass and Stillwater County; divided in half for the two counties . 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 TIFD – Tax Increment Finance District TSEP - Treasure State Endowment Program USDA – United States Department of Agriculture USFS – United States Forest Service