Big Sky Economic Development Authority will receive up to $24,300 to support Meadowlark Brewery, LLC in completing a feasibility study. The grant was gained through the Montana Department of Commerce, which recently announced $275,000 in grants under the Big Sky Economic Development Trust Fund (BSTF) Planning Grant Program for economic planning, growth and development, including feasibility studies.
Author: Press Room
Colstrip Winning Through Diversification Strategy
To streamline the recruitment of new businesses to Colstrip, the City will soon have a cutting-edge site selection tool. The web-based system will give businesses direct access to a database of available industrial and commercial properties in Colstrip that describes the infrastructure available at each site, and business demographic information. Colstrip has the infrastructure and resources to support many types of businesses and this project will make it much easier for entrepreneurs to find sites for their companies.
The project is being spearheaded by Southeastern Montana Development Corporation (SEMDC) in partnership with private industry. The need for a site selection tool was first identified in the Colstrip Diversification Strategy and has since been funded by USDA Rural Development at no cost to the City or County.
“Building the Business Recruitment tool is a step toward positively marketing what Colstrip has to offer. No other town in Montana in similar size has the amenities and assets that Colstrip does – we just need to do a better job of telling people about it!”
Billings Building Permits 02-15-2020
Commercial
Montana Rail Link/Kirby Construction, 505 N 24th St, Com Fence/Roof/Siding, $21,000
Stone, Randolph D/Justin Jawort Construction, 1018 2nd Ave N, Com Fence/Roof/Siding, $3,000
Montana Rescue Mission/Bradford Roof Management Inc, 2902 Minnesota Ave, Com Fence/Roof/Siding, $46,600
Dan Palmer/Wood Framed Building, 1832 King Ave W, Com New Office/Bank, $0
TGC LP/Hulteng, Inc., 1127 S 31st St W, Com New Warehouse/Storage, $982,026
TGC LP/Hulteng, Inc., 1127 S 31st St W, Com New Warehouse/Storage, $360,076
TGC LP/Hulteng, Inc., 1127 S 31st St W, Com New Warehouse/Storage, $420,089
TGC LP/Hulteng, Inc., 1127 S 31st St W, Com New Warehouse/Storage, $324,069
TGC LP/Hulteng, Inc., 1127 S 31st St W, Com New Warehouse/Storage, $360,076
TGC LP/Hulteng, Inc., 1127 S 31st St W, Com New Warehouse/Storage, $252,053
TGC LP/Hulteng, Inc., 1127 S 31st St W, Com New Warehouse/Storage, $420,089
School District No 2/Star Service, Inc., 1315 Lewis Ave, Com Remodel, $95,000
Carol Brosovich/Yellowstone Basin Construction, 1231 N 27th St, Com Remodel, $92,625
Stockman Bank Of Montana/Hardy Construction Co., 402 N 28th St, Com Remodel, $40,000
Plaza Office Building LLC/Artisan Builders, 1629 Avenue D, Com Remodel, $200,000
Billings Heights VFW Post 677/Blackfoot Communications Inc, 618 Winemiller Ln, Com Remodel, $14,500
Dan Palmer/Neumann Construction, 1832 King Ave W, Com Remodel – Change In Use, $1,700,000 Johnson, Bob/Infinity Roofing & Siding Inc, 1650 Inverness Dr, Com
Residential
Tyrel Martin/Martin Built Home Llc, 2722 Hanover Cir, Res New Single Family, $266,397
Wells Built Homes Inc./Wells Built Inc., 6051 Canyonwoods Dr, Res New Single Family, $418,697
Langford, Leroy & Lee/Aaron Higginbotham, 1010 Yellowstone Ave, Res New Two Family, $518,904
NA/McCall Development, 6026 Elysian Rd, Res New Two Family, $259,243
Wells Built Homes, Inc/Wells Built Inc., 4210 Arrowwood Dr, Res Plan Revision, $5,450
Sponsor the Building Permits on our website and print editions? Call 406-259-2309 and ask for Dennis
Montana’s Biggest Counties
Data on personal income for Montana counties show that Yellowstone County remains the largest county economy at $8.381 billion (2018). Gallatin County ($6.123 billion) is now the second largest county in the state by this measure, ahead of Missoula ($5.879 billion).
Bakken Output Increases, Expected to Grow More
North Dakota’s Bakken Shale gas output increased by 20% in 2019, and the latest analysis shows it growing another 10% year over year in 2020. Due to limited downstream access, the additional production looks to take a greater share on Northern Border Pipeline.
Bakken gas production is expected to grow by 10% in 2020, before slowing down to about 4% annually from 2021 through 2025, according to a forecast by S&P Global Platts Analytics.
Last year, Bakken producers relied on well completions, or bringing drilled but uncompleted wells online, to keep production growing. However, one of the lingering constraints within the basin is insufficient processing capacity and natural gas takeaway, which has caused producers to consistently miss gas capture targets established by the North Dakota Industrial Commission.
To combat the issue there has been a push for additional infrastructure and as a result: four gas processing plants came online during the second half of 2019 and another five are in the planning stages with in-service dates spread out over the next two years.
With Bakken gas production growing faster than processing plants can come online, the region has come up short in meeting the state’s regulatory policy for gas flaring, which not only are set to tighten in 2020, but also are expected to be enforced more aggressively due to public pressure.
Recent enforcement of the regulations has not been strict, especially since the NDIC designated various extenuating circumstances and producer exemptions. The NDIC currently estimates more than 500 MMcf/d of gas is being flared at oil wells within the state with natural gas capture rates hovering around 83% in November 2019. This is a problem because the commission’s current gas capture target is 88% and increases to 91% in November 2020.
There is also a shortage of gas pipeline takeaway within the region. The main outlet for Bakken gas is Northern Border, where Western Canadian import volumes compete for space. Bakken gas has been increasing its market share of Northern Border’s capacity for the past several years. As of late, the percentage of Bakken gas on Northern Border’s roughly 2.5 Bcf/d capacity has approached 80%, according to Platts Analytics.
This means about.500 MMcf/d of Northern Border capacity currently being occupied by Canadian volumes that Bakken gas could potentially push out. In order to meet the current 12% flaring limit, operators in the Bakken need to capture an additional 200 MMcf/d, which is within the bounds of potentially available capacity on Northern Border.
However, about a quarter of the gas produced in the Bakken originates in the Fort Berthold Indian Reservation, where it is more difficult to obtain permits for building infrastructure such as gathering and takeaway pipelines. Per the latest state data, capture rates in the FBIR stand at 81%. While this marks a notable improvement since January 2019 when the FBIR capture rate registered at 73%, it remains unclear how much extra gas operators in FBIR can capture next year.
With no new announcements for imminent gas takeaway pipelines serving the Williston Basin, operators in the basin will need to maximize their footprint on Northern Border to meet the required capture rates.
Downtown Business Owners Want to Form a New TID
A group of property owners in the west end of downtown Billings want to create a new tax improvement district.
The proposed boundaries of the new district would be Division Street, 1st Avenue North and North 31st The pros and cons and options available to them was explained to a gathering of some 30 people at the Granite Tower building, a week ago, headed by one of the property owners Russell Fagg, whose family owns Granite Tower, as well as the Fratt Building, a former school, located just across the street.
“There are pros and cons,” said Fagg, “I think the pros out-weigh the cons.” While very supportive of the idea, Fagg credited Jeff Kanning, a principal of Collaborative Design, an architect firm, with initiating the idea.
Kanning said that the creation of a TIF would give the area a public investment tool to make improvements that would make the area and Billings more attractive. He said that Billings is in a competition with other cities in the state to attract a workforce – “and Billings is losing.”
“This is an undefined, hidden gem. It could be a lynch pin” to more downtown development. “Maybe we could get city hall to locate down here,” he said. It’s about “place making” and to help enhance the neighborhood. “It’s not to compete with One Big Sky District,” Kanning added.
Kanning said that one possible vision for the area was to build a trolley/bus system to serve the area and connect it to the hospitals and the rest of downtown. Fagg explained that the cost of improving property often exceeds what the market can afford to pay in renting or leasing. Being able to tap into TIF funds to build some of the basic infrastructure for a project, such as a street, helps make the development economically feasible.
“This is about what do you want Billings to look like in 20 or 30 years?”
In consideration are two options for a TIF. One to become part of the existing downtown TIF and the other is to be a stand-alone district. Fagg said his preference was to be a stand-alone district because that would give them control to assure that future tax revenues would be spent at that end of downtown. But it depends on what other property owners want, he said.
The proposal will go to the planning board and then for a final decision by the city council which would have to approve an ordinance creating the district. The process could take up to nine months. It was suggested that the district would be called Founders’ District after Founders’ Park which lies within the proposed district (the triangular park at 1st Avenue north and Division Street, has the lighted Christmas Tree.)
A TIF is a designated area, usually one considered in need of infrastructure improvements or deemed as blighted. Future increases in property taxes paid by the property owners within that district are directed to be spent on improvements within that district. The idea is that the improvements will generate greater development and economic growth, and more tax revenues in the future. Improvements are usually directed at building streets, curbs and gutters, parking garages, utilities, etc.
The city currently has three TIF districts, a downtown district, the east urban renewal district, and the South Billings Boulevard District.
Those in the audience asked “what about the downsides to creating a TIF district?”
There seemed to be few, as far as the organizers were concerned, but from the audience came comments that readily identified some of the typical complaints about TIF’s, including comments from one city council member Chris Friedel, who said that TIFS were “counter productive.” He went on to claim that the downtown TIF, which will expire in 2038 is evidence that TIFs do not achieve what they are meant to achieve.
Others comments were made to point out that tax revenues that are directed to a TIF, do not go into the general funds of other taxing jurisdictions, such as the city, which means that in order to maintain the same level of revenues to fund their functions, those governmental bodies must increase levies on taxpayers outside the TIF districts to compensate.
For taxing jurisdictions which have limited ability to increase levies, such as schools, this can be a problem.
Some property owners commented that whether a project or development is viable in the market is something that should be determined in advance of buying it. Said one woman, “You have to pencil out the thing. That’s what I did. I don’t look to government and taxpayers to do it.” Another commented, “this is cronyism.”
Montana Highlights Feb 1 2020
Ceres Bakery in Kalispell has re-opened after a two week closure for a remodel. The bakery has become popular throughout the valley for its fresh-baked goods and its wholesale business. They are celebrating the 14th year in business.
White Raven Winery will introduce their community to wines made at the winery. The Columbia Falls winery will use Montana grown grapes. The winery will carry wines from grapes grown on Finley Point, around Flathead Lake, in Billings and elsewhere in Montana.
Passenger numbers at the Missoula International Airport set a record in 2019 topping 900,000 for the first time. The airport handled 907,777 people boarding and getting off planes. That’s a 7% increase.
Several new businesses are planning on opening in Missoula: A new pizza delivery restaurant called Headies Brick Oven Pizza will open at 1250 W. Broadway; Crumbl, a Utah-based company that sells fresh-baked cookies will open at 3075 N. Reserve St., Suite J; Pangea, a new two-floor full liquor bar and restaurant concept is being built at 223 N. Higgins; the Cambie Taphouse and Coffee is to open at 2413 S. Higgins Ave
CryptoWatt in Butte has re-opened. Federal District Judge Brian M. Morris was asked to appoint a receiver to run the company’s affairs. Morris named Butte native Jeremiah Lynch, a longtime federal magistrate judge, as receiver. A timeline featured the quick re-opening of the plant was necessary to save the megawatts reserved for the company.
The median price of a home sold in Gallatin County in 2019 reached $400,000, up 6.2% from 2018’s median price of $377,500. According to a report by Big Sky Multiple Listing Service, the price of homes has grown since 2018 in almost every part of the city.
Hess Corporation is using a new well completion design to boost its Bakken well performance, one that the company projects will allow it to increase Bakken production in 2020 while still running the same number of rigs as it did in 2019. Hess has announced 2020 capital expenditures of $3 billion ahead of its third-quarter earnings call.
The historic Irish Times bar in Butte was gutted by fire on Jan. 23. Located at Main and East Galena, other businesses were also impacted — including The Muddy Creek Brewery and The Post and UPTOP clothing.
Big Sky was named to the list of Most Popular Ski Resorts and Destinations of 2020 by Vacasa. The travel company looked at data from visitors/bookings from December 2019 through February 2020 and compiled a list of ski towns that are seeing the biggest influx of guests this year.
Montana Studios is a media production company in Butte, that will be locating in NorthWestern Energy’s old office building at 40 E. Broadway. The county is selling the building for $1 to Missoula-based Bitterroot Gateway Development LLC.
Since 2018, POLICOM Corporation has ranked Bozeman as the strongest economy in a city with fewer than 50,000 residents. The group uses 23 different factors over a 20-year period, including wages, unemployment and welfare. Bozeman has ranked consistently in the top 20 since 2011.
Lucky’s Market is closing 32 stores following the announcement of a primary investor, Kroger, in December that it planned to divest its investment in Lucky’s. Closures included its stores in Missoula and Billings, leaving open seven stores primarily in the mid-west. Lucky’s is headquartered in Niwot, Colorado.
Businesses have been mixing it up in Missoula, with some closing and others opening. Following the closure of Herbergers in 2018, JCPenney in Missoula will be closing soon, joining other locally-owned businesses that are also closing as The Green Light and Pita Pit. But, while Shopko closed in Missoula (and Billings) last year in Missoula, grocery store, WinCo will buy that property with plans to open in 2020. In 2018, another large retailer, Herberger’s, closed down in the mall. Herbergers also closed in Billings in 2018, as did Sears.
Nielsen Commercial, Inc. (NCi), a general construction firm serving the Northwest United States, announced expansion into Montana and a new office location in Great Falls. The company looks to establish a strong local workforce delivering a diverse collection of construction projects throughout Montana. Jeffrey Nielsen, founder of Nielsen Commercial and former co-founder of BNBuilders, has deep ties to the state of Montana.
The board of directors of ONEOK, Inc., on Jan. 16, increased ONEOK’s quarterly dividend 2 cents per share to 93.5 cents per share — resulting in an annualized dividend of $3.74 per share.
Montana Craft Malt, Butte, will produce thousands of tons of malt from Montana-grown barley. The facility, inspired by a market analysis report and a variety of grant and technical assistance programs through the Montana Department of Commerce, will employ approximately 20 people and provide high quality and specialty malt to the brewing industry.
With the Montana State Legislature approving a set of incentives in 2019 for the film industry, filmmakers are expecting a new wave of activity in the state over the next few years, and a recent workshop in Bozeman was held to prepare crews for the projects.
Susan Beckman was appointed by the White House in January 2020 to serve as Regional Director of the U.S. Department of Health and Human Services (HHS) for Region VIII. Beckman provides regional executive leadership for Region VIII encompassing Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming.
The Gallatin Ice Foundation in Bozeman received $120,000 in state grant money from Tourism Advisory Council to buy a third compressor that will allow the Haynes Pavilion to offer ice all year round. The skating rink at the Gallatin County Fairgrounds, currently has to close during the summer months. The rest of the needed funding will be acquired through fundraising.
Billings Building Permits 01-15-2020
Commercial
- HM Holding Company Llc/Jones Construction, Inc, 5360 Southgate Dr, Com Addition, $596,470
- Yellowstone County/Hardy Construction Co., 3165 King Ave E, Com Addition, $300,000
- Wilson, Andrew E & Laura L/Stewart Construction & Remodeling, 2311 Monad Rd, Com Fence/Roof/Siding, $95,000
- Soelter Properties Llc/Art Work Builders, 1942 Clubhouse Way, Com Fence/Roof/Siding, $15,000
- Jorden, Edward/Kirby Construction, 1632 Gleneagles Blvd, Com Fence/Roof/Siding, $17,000
- Jessen, Richard D & Janice M/A And B Construction, 1943 Clubhouse Way, Com Fence/Roof/Siding, $53,840
- McCall Development/McCall Development, 6020 Elysian Rd, Com New 3+ (Multi Family), $515,000
- Swenson, Randall D & Beartooth Holding & Construction, 1537 41st St W, Com New Store/Strip Center, $701,170
- School District #2, 3700 Madison Ave, Com New Warehouse/Storage, $35,850
- Hm Holding Company Llc/Jones Construction, Inc, 5360 Southgate Dr, Com Remodel, $65,000
- Rimrock Owner Lp/Rolo Construction Inc, 300 S 24th St W, Com Remodel, $250,000
- Clock Tower Inn, Llc/Cucancic Construction Inc., 2511 1st Ave N, Com Remodel, $500,000
- Fagg Family Properties Llc/Jones Construction, Inc, 222 N 32nd St, Com Remodel, $95,000
- Temple Corporation Of The Chur/Westland Construction Inc, 3100 Rimpoint Dr, Com Remodel, $1,300,000
- CTA Building LLP/T.W. Clark Construction Llc, 2202 1st Ave N, Com Remodel, $100,000
- Glacier Bank/Dick Anderson Construction, 2401 Grand Ave, Com Remodel, $292,527
- Billings Builders Exchange Inc/Yellowstone Basin Construction, 2050 Broadwater Ave, Com Remodel, $188,042
- Billings Heights Post #6774 -Wireless Telecommunication Facility, 637 Anchor St, Com Remodel, $25,000
- Soelter, Jonathan R & Heather/Art Work Builders, 1932 Clubhouse Way, Com Remodel, $8,000
- Jones, Patrick & Linda/One Source Construction Llc, 220 Grand Ave, Com Remodel, $625
- Seder, Ron/Wild West Construction, 1515 Central Ave, Com Remodel, $30,000
- Ziegler, Jack R & Michelle L/No Construction, 1760 Monad Rd, Com Remodel – Change In Use, $2,000
Residential
- Blewett, William/Ahoulihan Construction, 224 Wyoming Ave, Res New Accessory Structure, $16,000
- Wagenhals Land And Livestock/Wagenhals Enterprises Inc, 1122 Daylight Ln, Res New Single Family, $260,000
- Parks, Trent/Billings Best Builders LLC, 632 Claremont Rd, Res New Single Family, $216,964
- Parks, Trent/Billings Best Builders LLC, 634 Claremont Rd, Res New Single Family, $216,964
- Bob Pentecost/Bob Pentecost Const, 5131 Amherst Dr, Res New Single Family, $309,900
- Yellowstone Property Solutions LLC/Yellowstone Property Solutions LLC, 5215 Amherst Dr, Res New Single Family, $248,579
- McCall Development Inc/Mccall Development, 6028 Norma Jean Ln, Res New Single Family, $269,512
- McCall Development Inc/McCall Development, 6039 Norma Jean Ln, Res New Single Family, $236,011
- Magnus Land Development/Brown Builders Inc., 6337 Absaloka Ln, Res New Two Family, $327,260
- Marsich Investments Inc/Marsich Investments, 123 Twin Pines Ln, Res New Two Family, $408,078
When and Where: January 1 2020
The Platinum Anniversary of Business Days at the Capitol is coming on January 6 & 7 at the Best Western Premier, Helena Great Northern Hotel. It begins with lunch at 12 pm. Seminars are held from 2 to 4 pm. From 6 to 9 pm will be a Lawmaker Appreciation Reception & Banquet. On Tuesday, Jan. 7 the program will begin at 7:30 with Eggs & Issues Breakfast, followed by seminars and with The Last Word Closing Luncheon. For more information contact Stacye@MontanaChamber.com.
The Montana Outfitters and Guides Association is hosting their 45th Annual Winter Convention, January 9-11, in Bozeman. MOGA’s yearly convention draws more than 100 outfitters and guides for education, advocacy and networking. This year’s conference also includes a Gubernatorial Forum on Saturday, January 11, with all leading candidates for the upcoming race for Montana Governor participating. All events will be held at the Best Western Plus GranTree Inn and Holiday Inn, in Bozeman. https:// one.bidpal.net/ 2020mogaconvention/ browse/ fixedPrice
The 45th Annual Economic Outlook Seminar will be held in Billings on February 4 at the Northern Hotel. This year’s half day seminary, annually presented by the Bureau of Business and Economic Research will focus the challenge of finding good workers. “The economic success of local communities and the entire state depends on making the best match between workers and workplaces. Montana has some advantages in attracting talent, but there are plenty of things we could do better.” The event will is held in ten Montana communities. Details are available at http:// www. economicoutlookseminar. com/ s
The Montana Society of Certified Public Accountants will hold their annual industry conference in Helena on March 18 and 19. Registration information may be accessed at www.mscpa.org/ professional_ development/ course/ 0320/ industry_ conference
Unemployment Benefits Assessed: Montana Ranks 20th
Montana has the 20th best structured Unemployment Insurance (UI) tax in the nation, according to the Tax Foundation in its examination of the five major components of the 2020 State Business Tax Climate Index. Montana has hovered at about the same level over the past four years.
The states with the best-scoring UI tax systems are Oklahoma, Florida, Delaware, Louisiana, Mississippi, and Arizona. The worst are Massachusetts, Kentucky, Idaho, Nevada, Alaska, and New Hampshire.
Unemployment insurance is a joint federal-state social insurance program that finances benefits for recently unemployed workers through taxes on employers. State UI tax systems are often quite complex, using variable-rate structures that impose different rates depending on how well-established a business is, its layoff history, and the health of the state’s UI trust fund, among other factors. All 50 states and the District of Columbia levy UI taxes, but some states structure their systems better than others.
