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HomeMy WebLinkAboutBig Sky EDA BulletinBig Sky EDA - News from the Executive Director Page 1 of 7 Cindy Allen From: Big Sky EDA Bulletin [director@bigskyeda.org] Sent: Tuesday, April 01,2003 3:47 AM To: City of Laurel Subject: Big Sky EDA - News from the Executive Director ECONOMIC DI~I~LOPME ~T - AUTHOR IT¥ Staff Reports I Membe~ Investols Continue to Join Big Sky EDC In this Issue.., In this issue of News From The Executive Director, we'll take a look at the progress being made by Big Sky EDA's staff; give an update on the Big Sky EDC, the member-investor arm of Big Sky EDA; take a look at the hugely positive economic impact that the Bull Mountain Energy Project will have on the economy of Yellowstone County; share what cities like Boise, Idaho and Colorado Springs, Colo. are teaching us about economic development; and take a look at the upcoming Montana Economic Development Summit. Newsletter Links · Big Sky EDA Staff Reports · Member- Investors Continue to Join Big Sky EDC · Bull Mountain Project to have Positive Economic Impact on Yellowstone County, Study Says · Billings Economic Development in line with Boise and Colorado Springs · 2003 Economic Development Summit to be held in Billings May 28 and 29 News From the Director Big Sky EDA Staff Reports Big Sky EDA's team of managers recently reported on their respective department's activity, and we're proud to say that, once again, our staff has been very busy helping the local business community. Our Billings Small Business Development Center (SBDC) has, this quarter, worked with more than 60 new business clients. Seventy- two counseling sessions and 172 hours of counseling service have been provided so far. The SBDC has sponsored eight workshops which were attended by 120 prospective entrepreneurs that provided 240 hours of solid Joseph P. McClure business training. Currently, the SBDC is Executive Director involved with 13 highly successful projects including seven start-ups and six expansions and buyouts. The project involvement totals $3.25 million. As the sole SBA 504 Loan packager in Yellowstone County, the Billings SBDC has been busy putting together this financing for six businesses to date. The SBDC recently conducted client evaluations, and the overall satisfaction rating was at 95%. The SBDC business specialists are grateful for this high approval rating, and it's authentication of the program services. Equally impressive are the ~]overnment marketing results from the Montana Procurement Technical Assistance Center (PTAC). They have been 4/1/03 Big Sky EDA - News from the Executive Director Page 2 of 7 extremely busy with the current military buildup activities, getting small businesses in position to produce and supply requested items. Currently, the PTAC is working with a firm in Billings that manufactures innovative decontamination tents. They have been working to expedite purchase and delivery of the Tent Kits to various agencies within the Department of Homeland Security. A representative from the Defense Supply Center in Philadelphia (DSCP) recently contacted PT^C with a request to find tent manufacturers. This representative is now in active conversation with this client. Sales of the tent have already contributed to a boost in the company's overall sales. Possible modifications to the design of the tents may open moro doors with this department. Over the last six months, the PTAC staff has been assisting Quake Industries in developing and marketing a rifle sling and optic covers to military buyers. The company was at a road block with development funds. PTAC approached the MSU TechLink and their DoD development funds and secured a $15,000 grant to complete design modifications and travel to a DoD testing lab for final tests before purchase. The Community Development staff has also been busy working on a variety of projects. One such project is Pre-Disaster Mitigation planning. Big Sky EDA, in partnership with Jim Craft of County Disaster and Emergency Services, held the first community planning meeting to identify potential hazards. More than 30 people participated, resulting in a comprehensive list of sites within the county that could be vulnerable to a variety of natural and human-caused disaster situations. Casey Joyce of our Community Development department will be working with the City of Laurel to assist them with re-applying to State Department of Commerce HOME funds. Our Community Development staff continues to be active with plans for the Gateway Business Park in Billings. A public meeting was held in early March, with another scheduled for late spring. Big Sky EDA hosted Federal EDA and HUD representatives, as well as Todd Capser of Senator Burns' office, and Sharon Peterson of Senator Baucus' office and downtown, city and county officials, to discuss redevelopment opportunities and potential funding sources for the area currently known as the Conoco Triangle, on the South Side of Billings. Linda Beck went to Helena earlier this month to support numerous bills that Big Sky EDA is keeping a close eye one. She reports that the legislature has been very supportive of several bills that were recently introduced to both houses. Included are bills such that would create a workforce training fund, one that would give certain rail road property leased by non-profit organizations a tax exemption, a bill that would enable local development organizations to sell their "seasoned" loans to create a fund to make more loans, and extending funding for research and commercialization past 2005, which would effect programs such as Big Sky EDA's SBDC. Linda has also spoken with G and G Advertising of Albuquerque about its move to Billings. The owner, Michael Gray, has purchased the old Masonic Temple building in Downtown Billings, and will be hiring 10-15 people in Billings by fall, with up to 27 additional hires by the endof the year. Big Sky EDA continues to be involved with the EERC. That organization is involved in a Iow-rank fuel symposium that is scheduled for June 1 in Billings. Linda Beck facilitated conversations with Senator Burns to appear with Senator Dorgan of North Dakota on a video-teleconferonce for the symposium. Top of page Member-Investors Continue to Join Big Sky EDC Big Sky EDC, the non-profit member-investor arm of Big Sky EDA, is continuing to gather a diverse group of member-investor businesses that are contributing towards economic development in the Billings aroa and Yellowstone County. So far, Big Sky EDC boasts 32 members that have each made three-year commitments totaling $125,550 per year. This bdngs 4/1/03 Big Sky EDA - News from the Executive Director Page 3 of 7 the three-year total contributions to $376,950. There have been many additions to Big Sky EDC's member-investor roster, including: A&E Architects, ADAM Associates Advertising and Marketing, BFI Industries, Chicago Title Company, Eide Bailly, Engineering inc., Roscoe Steel and Culvert and Wendy's of Montana. Bruce Whittenberg, Member Investor Relations for Big Sky EDC reports that them are currently 21 prospects in various stages of follow-ups. The current roster of member- investors has contributed between $1,000 and $25,000 towards the campaign. "Generally, members and prospects alike are very supportive, and see the value of a member-investor organization," said Whittenberg. "Some member-investors have committed to increased investment in year two when our organization produces results. This has so far been an excellent exemise to gather feedback and look for opportunities to solve problems and collaborate. Some ideas and interesting issues have been emerging from the conversations we've had with our member-investors." Big Sky EDC is also currently seeking member-investors who are interested in serving on its board. The board will consist of the 11 current Big Sky EDA board members, plus up to nine member-investors. One of the programs being developed is a revolving loan fund (RLF) for businesses throughout the Yellowstone County region. The current Big Sky EDA board of directors has earmarked funding from the pending sale of Deering Clinic back to the county to establish this fund, The loan fund would provide additional capital for businesses expanding and creating jobs in the area. It is envisioned that the primary goals of this fund will be to stimulate job creation and encourage additional private sector capital investment. Scott Langman, Small Business Development Center director at Big Sky EDA, will be leading a finance committee comprised of member-investor financial institutions to develop the lending guidelines and ensure that they are providing "gap~ financing to businesses who, although profitable and growing, are having difficulties meeting conventional bank underwriting standards in funding that growth. It will in no way be considered an alternative to private lendem, but rather a supporting mechanism for the private sector. Ideal scenarios would include a combination of private secfor capital and RLF funds combined to carry out a project. Top of page Bull Mountain Project to have Positive Economic Impact on Yellowstone County, Study Says A study by the Center for Applied Economic Research at MSU- Billings reports that the Bull Mountain Energy Project would have wide-reaching implications for Yellowstone County. The study says that construction of the coal- fired electrical generation plant in Roundup, along with the expanded coal mining needed for the facility, could bring up to $38.8 million in direct labor income to workem living in Yellowstone County during the peak construction year, and $10.2 million annually once the plant is fully operational. "While the project will have immediate impact on Mussellshell County, the effects will reach into Yellowstone County as well," said Joe McClure, executive director of Big Sky EDA, who commissioned the study. "The impact of this project will be overwhelmingly positive for the economy of both counties." The details in the report by the CAER are based on numbers from the draft Environmental Impact Statement, which has been on file with the Montana Department of Environmental Quality since November of 2002. The ElS contains a socioeconomic impact evaluation conducted by the University of Montana, and presents and estimated impact of construction upon 4/1/03 Big Sky EDA - News from the Executive Director Page 4 of 7 Mussellshell and Yellowstone counties. "It's difficult to estimate the number of construction workers who will live full- time in Yellowstone County," said Dr. Scott Rickard of the CAER. "However, they will definitely be spending money in Yellowstone County. This is part of a larger ripple that will affect many industries in the county, from retail and services to construction." The average mining and construction labor wages during the five-year construction phase is estimated to be $40,800, and the average wage once construction is completed is estimated to be $36,400. The ElS estimates that Yellowstone County will be home for 40% of mine and power plant workers and 75% of the construction workers. Ten percent of workers in secondary jobs that are created or maintained due to construction or operations of the mine or power plant will live in Yellowstone County. According to the CAER estimates, the numbers for Yellowstone County break down as: Number of Current Number of i'otal Total Labor Compensation for New Population Current and New Residents Resident 3rowth WoAing on the Workers Resident Workers Project Year One 97 67 151 $2.5 Million Year 1017 704 1487 $24.4 Million Two Year 1619 1100 2351 $38.8 Million Three Year Four 712 448 1071 $17.4 Million Years 5 and 411 228 343 $10.2 Million On The CAER study explains that it would be difficult to predict how many of the construction workers would live full-time in Yellowstone County dudng their work on the power plant. Many of them may commute on weekends and maintain permanent residence outside the area. Because of this fact, it is also difficult to estimate how much of the income earned by these temporary resident/workers would be spent in Yellowstone County. "However, it's very safe to say that many dollars would be spent in our county," said Rickard. It is estimated that one secondary job will be created for approximately every two construction jobs. While these jobs will not pay as much as the primary construction jobs, some or most will actually come to Yellowstone County. "There is going to be a huge amount of job creation because of this project," said McClure. "Not just in the construction area, but in many sarvice-related areas. Of course, the primary impact will be felt by companies that will need to hire additional help to serve the construction with supplies and machinery. The services industries will also be strongly impacted, as the workers will be spending money, buying food, renting housing, and more." By year five of the project, the permanent work force should be established, the study says, with an estimated 639 workers living in Yellowstone County and 873 living in Mussellshell County. Total primary labor income for Yellowstone County residents will be $10.2 million. "This project is undoubtedly going to have a major impact for Musselshell County by increasing the tax base and supplying jobs for residents," said McClure. "However, there will be a huge impact on Yellowstone County as 4/1/03 Big Sky EDA - News from the Executive Director Page 5 of 7 well. Many industries will reap the benefits of having such a large project dght in our own backyard." To see the story on the Bull Mountain Mine, which was featured on KULR 8 Television, click here. Top of page Billings Economic Development in line with Boise and Colorado Springs Big Sky EDA Executive Director Joe McClure recently traveled with a Celebrate Billings delegation to Boise, Idaho, and Colorado Springs, Colo., to learn how those cities have handled economic development issues. The trips allowed economic development specialists from our region to learn about the mistakes and successes of both cities. '~/Ve have a lot in common with both Boise and Colorado Springs," said McClure. "This was a great opportunity to exchange ideas, and discuss issues that effect economic development, but mostly just to learn." The group first met with Jeff Jones, economic development manager for the city of Boise. He discussed the city's economic development plans and the vadety of related tools they have in place. One of the most impressive was the workforce training dollars provided by the state of Idaho. Jones also discussed the city's long-range development plans, including a downtown business park and current development agreements in the works. "Jeff felt that Boise has an attractive quality of life, and that is very true," said McClure. "They also have a tremendous amount of company headquarters facilities, which, of course, creates opportunities for further economic growth." During the tdp to Boise, McClure learned that the business community and educational community were not "on the same page" as early as five years ago. Dr. Larry Bamhardt of the Boise College of Technology commented on the Celebrate Billings delegation and was very impressed with the fact that the Billings educational, business and economic development communities were working so closely together. "Dr. Barnhardt felt that we were ahead of Boise in that sense, and that Billings would experience a lot of success in the future if we continue on that course," McClure added. The group also met with the Capital City Development Corporation (CCDC). This agency is very similar to the Downtown Billings Partnership, with its responsibility of development activity. CCDC Planning Director Pamela Sheldon explained the "up and down" history of the CCDC, including a mission15 years ago to develop four blocks in the downtown area. That project called for the demolition of buildings in the downtown area to make way for a shopping developer. However, the project fell through, and the CCDC then turned four blocks of vacant area into a beautiful - and much-needed - downtown gathering space. "That was a perfect example of how one city made lemons into lemonade," McClure stated. "They tore down four blocks of existing buildings, only to discover that a mall developer was never identified. The city then created what has to be one of the most beautiful downtown green spaces I've ever seen." "This first trip was extremely successful," said McClure. "We learned that our community is essentially set up for success. The current working relationships among key community stakeholders, including education, 4/1/03 Big Sky EDA - News from the Executive Director Page 6 of 7 business economic development and local government is the key to our future success. We also learned that economic development is a way of life, and that long-term diversification and stabilization occur over decades." The lessons learned in Boise were reiterated in Colorado Springs. The Celebrate Billings delegation met with Gary Cuddeback of that city's economic development department. Cuddeback discussed the city's business incentives and coordination with other economic development partners. Colorado Springs provided a list of nine business incentive programs to prospecting businesses, including a Rapid Response Team, Pemonal Property Tax Credits, El Paso County Enterprise Zone, Business Development Loan Programs, Industrial Revenue Bonds, Foreign Trade Zones, and the Alternative Rate of Tax Exemption for Manufacturing Equipment Program. "Many of these same financing programs are now being developed by Big Sky EDA, or are already in place through the Billings HRDC, Beartooth RC&D, or the Downtown Billings Partnership," McClure added. The group then met with Frank Barber, Director of El Paso County Economic Development. This county's major economic development effort is focused on their Enterprise Zones, typically located in run-down industrial areas, and industrial Revenue Bonds. This office also works in the Community Development arena and serves as the County Finance Department. Barber also commented on the thoroughness of Big Sky EDA's web site. He sa d 'Why are you here. We saw your web s~te, and we should be coming to learn from you!'" McClure added. The Billings delegation met with Pikes Peak Workforce Center Director Peggy Herbertson, who discussed the workforce center's role in preparing a qualified workforce for El Paso and Teller Counties. The Workforce Center acts as the "one-stop" job and career center for Colorado Springs and provides the same services as the Billings Job Service Center: training seminars, hiring sessions, industry information session, interview rooms for use by employers, job fairs and layoff assistance. Unlike Boise, Colorado Springs' workforce center is an integral part of training and re-training the local workforce. The group also heard from the Pikes Peak Community College Corporate Workfurce and Economic Development Center's executive director, Debbie Sagen. Unlike Montana, Colorado has a statewide network of 13 community colleges that is governed by a nine-member board. The community college administers the Colorado First Training Program, and the Colorado Existing Industry Training Program. These programs offer a $400 per employee training grant for existing and new employers. The grants are available statewide and funded annually with $4 million in state general fund dollars. The community college network and the workforce center team up together to provide workforce training and hiring assistance to new and existing businesses throughout the state. That type of relationship is also being developed in Billings. McClura said that he feels this trip was extremely successful as well. "Not only were the lessons learned in Boise reiterated, we also discovered that a vibrant, expanding University complete with a college of business and administration, and an MBA program, is an excellent resource for the business community and a business attraction tool. We also saw first-hand that it is essential to have cooperation between education and workforce centers to provide a seamless workforce training system. Top of page 2003 Economic Development Summit to be held in Billings May 28 and 29 Big Sky EDA is assisting with plans for the 2003 Economic Development 4/1/03 Big Sky EDA - News from the Executive Director Page 7 of 7 Summit, which will be held on May 28 and 29 at Montana State i~,~ ~ Univemity - Billings. The summit will ~~ be jointly hosted by Gov. Judy Martz, U.S. Senators Max Baucus and Conrad Bums, Congressman Dennis Rehberg, and the Economic Development Action Group. The goal of the summit is to boost Montana's economy and create more good-paying jobs in the state. The summit will focus on business recruitment, business retention and "clustering." This key initiative of the Governor's Office of Economic Opportunity helps to identify and group together related companies in a particular field and geographic region, and then creating inter-related groups of companies to grow entrepreneurial activity. More than 1,300 people from around Montana attended the first two economic summits in 2000 and 2001. For two days, attendees gathered to hear keynote speeches, and to break into smaller groups to discuss economic growth and job creation ideas. These ideas were passed to the Office of Economic Opportunity and its Economic Advisory Council, as well as the Economic Development Action Group, a private-sector statewide employment advisory panel appointed by Baucus after he held the first economic summit in 2000. Public and private sector leaders and any individuals from across the state are invited to participate in the summit, which is free of charge and open to the public. To register for the 2003 Economic Development Summit, click here or visit www.montanajobs.org. Top of page We respect your privacy and will never share your e-mall address without your permission. Ify*ou do not want to receive occasional news such as this in the future, send an e-mail to director~bigskyeda.org. 4/1/03