Economic development leaders in Yellowstone County and members of the Lockwood Targeted Economic Development District (TEDD) were excited this week to be informed by the federal Department of Economic Development Administration that they have been awarded a $4.6 million grant for water and sewer infrastructure improvements.

U.S. Secretary of Commerce Gina Raimondo said the grant will support business development and disaster resiliency in the region. This grant will provide critical water and sewer infrastructure to the Lockwood TEDD to spur economic development.

The grant will fund a $5.3 million project that will extend water and sewer service under Interstate 90 in conjunction with the Johnson Lane Interchange reconstruction, allowing easier connection for development in the area.

Woody Woods, Chairman of the Lockwood TEDD, said “We have been trying to get something accomplished to get utilities for seven years.”

They applied for what they hoped would be a $2 million grant. Needless to say, to be informed that they would actually be awarded $4.6 million was most welcome news.

The EDA investment will be matched with $1.1 million from the property owners within the TEDD.

The Lockwood TEDD was created by the Yellowstone County Commissioners in 2016 to foster secondary, value-adding manufacturing in the region, creating good paying jobs and a stronger tax base.

The TEDD allows for the use of tax increment financing to help offset the cost of public infrastructure that serves the district.

“We are grateful to the Economic Development Administration for this grant and the tremendous opportunity it provides,” said Yellowstone County Commissioner John Ostlund. “Yellowstone County and our partners at Big Sky Economic Development and Lockwood Water & Sewer District now have the means to implement the critical infrastructure needed to begin additional planned development in this emerging area.”

“This EDA investment will ensure that Yellowstone County has the infrastructure needed to attract new businesses in critical industries and create good-paying jobs in the region.” said Secretary Raimondo.

Deputy Assistant Secretary for Policy and External Affairs Cristina Killingsworth added, “This project will provide the foundation for Yellowstone Country to encourage industrial and manufacturing business development and increase disaster resiliency for the region.”

Woods said that the TEDD would be sharing a casing under the interstate highway with Lockwood Water and Sewer District (LWSD) through which water and sewer lines will be “threaded” to serve not only properties in the TEDD but other properties along the frontage road as they want to connect for services with LWSD. LWSD will pick up costs associated with a pump station and a force main.

LWSD will oversee the project. Woods said that now that they have received news about the grant, he thinks LWSD will issue a request for bids next month, and the hope is to be able to begin construction in the spring.

This project was made possible by regional planning efforts led by Beartooth Resource Conservation & Development Area, Inc. (Beartooth RC&D). Beartooth RC&D brings together the public and private sectors to create an economic development roadmap to strengthen the regional economy, support private capital investment and create jobs.

The funds were made available under the Disaster Relief Supplemental Appropriations Act, 2023, which provided EDA with $483 million in additional Economic Adjustment Assistance (EAA) Program funds for disaster relief and recovery for areas that received a major disaster declaration under the Robert T. Stafford Act as a result of wildfires, flooding, and other natural disasters occurring in calendar years 2021 and 2022.

Yellowstone County established the Lockwood Targeted Economic Development District (TEDD) to help foster planned, ready-to-go industrial space. Located just east of Billings, the area offers over 1200 acres of land along the BNSF railroad and with easy access to the highway system from the Billings Bypass (currently under construction).