Author: Evelyn Pyburn

Staatspolizei

10 November 2020
Evelyn Pyburn
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By Evelyn Pyburn

It is unspeakable, the assault on Montana’s small business owners that the Governor is perpetrating in what has to be the most disrespectful attack on citizens ever seen in this state.

For going on nine months now, small business owners of every size and industry have been struggling mightily to keep their heads above water, given the extreme restrictions that they have been working under, with claims that their sacrifices and the loss of their businesses are necessary to end the impacts of COVID-19.

Despite wide-spread compliance to the protocols that included months of closures, as well as social distancing, lines on floors, masks, plastic shielding, hand washing stations, constant cleaning, consumers staying home, quarantining  and cancelling of events, the virus has continued to spread. Concluding that the solution must be more of the same, Montana government and Governor Steve Bullock have doubled down and turned on the most vital of our citizens – those who provide the goods and services, jobs and income – and tax revenues —that sustain everyone.

It’s not that our business people don’t have enough pressure on them keeping up with the protocols, responding to divisive snitching, working 24-7, losing money, exhausting their savings and watching their businesses go down the drain – now they have to deal with a specially -designed force of secret police stalking their businesses and lives, who will force them into re-education programs with the threat of criminal charges if they don’t adjust their attitudes. (The enforcers are being called “liaisons,” an attempted slight-of-language that says they fully understand the nature of what they do and want to avoid clearly identifying it.)

As dire as the consequences of the disease, the consequences of governments such as this are far greater. The lack of individual liberty kills just as surely as any lethal virus.

The attack on businesses in Yellowstone County is all the more baseless given that the only rational excuse offered is that they want to reduce pressure on medical facilities that are at capacity, with no consideration given to the fact that more than half of the patients are from outside the county. People are coming to Billings, as they always have for medical care, from throughout dozens and dozens of counties, Wyoming, North Dakota. How is it effective or justifiable to penalize local business people for hospitalizations of people from other areas?

The question deserves an answer.

But more importantly our business people deserve to be treated with more respect. The citizens of the state are autonomous individuals, not vassals of  bureaucrats and political agendas and ambitions.

Manufacturing is a Ticket to Rural Prosperity

10 November 2020
Evelyn Pyburn
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By Dan Nordberg and Loretta Solon Greene

As the White House Proclamation stated earlier this month, “On National Manufacturing Day, we celebrate our dedicated American workers who carry on this legacy, recognizing that manufacturing is a cornerstone of our economic prosperity and national security.” Manufacturing businesses are essential contributors to our economic health and wellbeing, infusing $2.38 trillion annually into the national economy.

Manufacturing is especially important in rural America, where manufacturing plants and businesses can thrive due to generally lower property taxes, more reasonable land prices, and a unique quality of life. During a time when the coronavirus pandemic has created many challenges, rural economies are looking for new industry options, expanded manufacturing, and enhanced exporting avenues.  New policies implemented by President Trump’s Administration combined with the U.S. Small Business Administration (SBA) resources may provide rural America a boost for what it needs to regain revenues and support communities.

Prior to the COVID-19 pandemic, rural communities experienced an economic surge as manufacturing increased, creating new jobs and attracting top talent. The United States-Mexico-Canada Agreement (USMCA) that President Trump signed into law earlier this year further bolstered their ability to export across North America. Throughout the negotiations, SBA had a seat at the table, giving small businesses an amplified voice in crafting the policy that will drive continental trade for decades to come.

With manufacturing infusing new life into rural areas, streamlined export processes and SBA’s program resources, rural small businesses may now more easily act on their exporting goals. SBA has made a concerted effort to increase trade opportunities, ensuring small businesses access to international markets and the vitality of American manufacturing exports.

Created intentionally to assist small business exporters, SBA’s Office of International Trade offers financial assistance to businesses looking to expand trade opportunities. Through a suite of finance programs, including revolving lines of credit and loans that can be used for working capital, fixed assets, and debt refinancing, these programs are geared toward helping businesses increase their profits, reduce market dependence, and stabilize seasonal sales. Small businesses looking to export can apply for these products by contacting a local SBA Export Finance Manager<https://www.sba.gov/article/2017/nov/01/list-useacs-sba-staff>.

The State Trade Expansion Program (STEP) is another way the SBA assists small businesses. Through STEP, small businesses looking to export goods and products can use the grant funds to participate in foreign trade missions, develop and design international marketing campaigns, translate marketing materials into other languages, and more. Since its creation in 2010 as part of the Small Business Jobs Act, STEP has recorded over $3.8 billion in exports and awarded approximately $157 million in grants to fund export opportunities, increasing the footprint of American small businesses in countries worldwide.

Furthermore, the SBA’s Office of International Trade can help any small business that faces barriers in accessing international markets. The office publicizes the small business benefits of U.S. trade agreements and helps protect the rights of small businesses under these agreements. Small business manufacturers and other rural businesses looking for information and assistance on how to connect with more international customers can explore resources from SBA OIT and its partners at sba.gov/tradetools <http://www.sba.gov/tradetools>.

The SBA has worked diligently to direct financial support to manufacturing businesses critical to rural America throughout the COVID-19 pandemic response. Through the Paycheck Protection Program (PPP), manufacturing businesses received $54 billion, assisting more than 238,000 small businesses and retaining countless jobs. The impact of this aid was clear in September’s jobs report, which reported growth of 66,000 manufacturing jobs. The industry is bouncing back and driving job creation.

With 95 percent of the world’s consumers living outside our borders, American products have more potential than ever before when businesses venture into international markets. Now is the time for community leaders to further invest in manufacturing and small businesses to tap into the exporting resources to grow hometown businesses and communities. To talk with someone about your exporting potential or manufacturing idea, visit sba.gov/oit<http://www.sba.gov/oit>, or to find more resources available for small businesses in rural America, visit sba.gov/rural<http://www.sba.gov/rural>.

(Dan Nordberg serves as SBA’s National Director for Rural Affairs and Region 8 Administrator based in Denver. He oversees the agency’s programs and services in Colorado, Montana, Utah, North Dakota, South Dakota, and Wyoming.  Loretta Solon Greene is the Associate Administrator for the SBA’s Office of International Trade.)

SD2 Stadium at Metra Park?

10 November 2020
Evelyn Pyburn
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By Evelyn Pyburn

It’s been rumored for some time now that Billings School District 2 officials are interested in exploring the possibility of building a new stadium at Metra Park.

Although mentioned with some frequency at Metra Park Advisory Board meetings and presented as a possibility in the master planning process, Manager Bill Dutcher reported that both his staff and SD2 officials are now digging into the details and exploring the pros and cons of the idea.

SD2 Superintendent Greg Upham assured that SD2 board members are serious about exploring the possibility, adding that “the motivation is to look for a win-win.” He said, “We are not looking for someone to pay our bill.”

During the Metra Park monthly advisory board meeting on Tuesday, one board member, Mike Mayott stated that he believes other options should be explored because he doesn’t think that a stadium belongs at Metra Park. It gives up too much in other opportunities for Metra Park.

Mayott suggested that SD2 take a hard look at the possibility of locating on city-owned land adjacent to Amend Park, a non-profit soccer complex administered by the Amend Park Development Council (APDC), about which Mayott conceded he has a conflict of interest since he serves as manager of Amend Park.

“We should look at that before settling on Metra,” he said.

One advantage he pointed out is that the area is within the South Billings Boulevard Urban Renewal District (SBBURD), which has funds and bonding authority which could possibly remove the need for a stadium project to have to go out for county-wide bond approval.

Also, at the MP meeting was Jim Tevlin, SBBURD Controller, who explained to the board that the tax increment district has $24 million and it is part of their capital improvement plan to develop a recreation center, which could include the “the possibility of a combined football stadium and a gymnasium of sorts.”

Upham said that while he had some brief conversations about that possibility, he has not had an opportunity to explore it with the SD2 board or others. He said that being a public entity they would be open to exploring all possibilities.

MP Advisory Board Chairman Charlie Loveridge said that it is something to be explored in planning for Metra Park, which is still developing proposals as part of the master plan. “Hopefully we can figure out the stadium and the rest will fall into place,” he said, emphasizing that they want to have community discussions. “We want what the community thinks is awesome.”

Metra Park staff has been asked to stake out a possible area for the stadium on the Metra Park grounds to give everyone an idea of what a stadium might look like on the campus. It was noted, however, in discussions with county commissioners last week that where facilities will be located at Metra Park must await the finalization of plans of the Montana Department of Transportation which is in the process of designing a new intersection at 1st Avenue North, Exhibition Drive and Highway 87. The design is expected to provide a gate into Metra Park while closing two other gates. The new intersection is expected to have some overlap with Metra Park.

“We have a lot of things to talk about,” said County Commissioner John Ostlund.

For example: How a stadium will be financed and what will be the structure of the use agreement between Metra Park and SD2. Whatever agreement they have it will undoubtedly be very different than any other that Metra Park has with other users.

Ostlund emphasized that however it is built it will remain in county ownership.

Ostlund commented that an important financing concern is how it will impact other county taxpayers, most especially those in Lockwood. “Lockwood just built a new facility, and we have heard some concern that they would have to be paying taxes on two facilities.”

County Finance Director Kevan Bryan pointed out that the school district and Metra Park might encounter conflicts with having two mill levies on the ballot at the same time. Coordinating that would be an important part of the planning.

“Are you talking about the school district building it?” questioned Commissioner Don Jones, to which the answer seemed to be “maybe” – that’s among the things that have to be ironed out.

SD2 Athletic Director (AD) Mark Wall said, “We want this to work for everybody.” He reminded how well it worked out for all schools in the South Central area when track and field events were held at Metra Park.  “We believe that a stadium and a track can bring all kinds of benefits to our community….There are all kinds of ways to use the field.”

Wall said he has had discussions with South Central Montana AD’s and “with the exception of Lockwood everyone is well behind this.” He noted that Huntley Project and Shepherd could also use the facility, and expressed confidence something would be workable to accommodate Lockwood’s situation.

Wall suggested that the school district “would be responsible for track repair. It would be our obligation …  we would have to do that any way no matter where it is located.”

One of the biggest benefits of having the stadium at Metra Park would be the availability of parking.

Other issues that must be ironed out are events with conflicting schedules. Metra Park does not want to lose any of its long-standing users or events. A high school’s sport schedule is very busy and intense.

The school would probably be responsible for managing the scheduling of events.

Ostlund emphasized that Metra Park would also be just as adamant as ever about collecting capital improvement fees (CIP) fees as a part of ticket sales or compensated for in some manner. “We charge those for capital repair,” he said, “We have come a long ways and I don’t want to slide back,” referring to Metra Park’s ongoing maintenance program.

Wall explained that the CIP conflict that Metra Park has had in the past has been with the Montana High School Association and their events. It would not be an issue with SD2 and their ticket sales. Capital improvement costs has always been important to the SD2, too, he said and the manner in which SD2 has dealt with MHSA could be applied at Metra Park.

“Our activities are mostly funded by ticket fees and activity fees,” explained Wall. Each school makes about $40,000 a year they use for equipment, etc. 

Jones urged SD2 officials to talk to other school districts in the county to “get their buy in.” He said, “I want to make sure we aren’t undercutting ourselves within the community and we could all work together.”

Charlie Loveridge spoke to other issues that must also be discussed and agreements reached upon such as sharing sponsorships, maintenance fees, ticket sales, concession sales. About concession sales, Loveridge pointed out that having the regular attendance that the stadium would bring, could result in a great opportunity to greatly enhance concessions in a way that “would make it amazing,” generating more revenue and more ticket sales for events.

A “myriad” of issues involving unions and contracts and other legal issues must also be dealt with, reminded Ostlund.

City Gets $90,000 Rebate

9 November 2020
Evelyn Pyburn
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NorthWestern Energy awarded the City of Billings $90,000 in E+Business Partners Energy Efficiency incentives for the installation of energy efficient equipment last week, underscoring the opportunities available for any commercial, or even residential, energy projects to recapture some of their investment costs.

The City of Billings’ adoption of the technology and working in partnership with Northwestern Energy, over the past three years, in building a $75 million upgrade to its Wastewater Reclamation Facility, not only saved the city money but demonstrates the opportunities available in almost any energy project.

The upgrades result in Billings producing even higher quality water that returns to the Yellowstone River. Part of the upgrade included constructing a state-of-the-art aeration system that maximizes energy efficiency. Aeration is the most energy intensive process required in wastewater treatment, accounting for approximately half of the electrical load used.

It’s not the first project that the city has done in cooperation with NorthWestern Energy. The City and NorthWestern have worked in partnership for years to improve the energy efficiencies in city facilities and to reduce energy consumption while reducing operating costs.

“The City of Billings has been a leader in energy management, by looking for opportunities to make strategic investments in energy saving projects and participating in the utility’s energy efficiency incentive programs. This $90,000 E+Business Partners incentive awarded to the water reclamation facility is one of the largest incentives we have awarded in recent years,” said NorthWestern Energy Senior Key Account and Economic Development Specialist, Deborah Singer.

The Billings aeration system upgrades are estimated to save about 743,000 kilowatt-hours (kWh) per year, resulting in about $57,300 in annual electric cost savings based on today’s electric costs. 

The aeration system uses turbo blowers, much like a turbo charger in a sports car, that rotate at speeds of over 30,000 rpm. These high speeds allow the rotating shaft to literally levitate in air creating very little friction resistance. This results in lower energy requirements. And, all this means less energy required to produce high quality water for the Yellowstone River.

The project was initiated by a team composed of City of Billings staff, NorthWestern Energy  representatives and consultants working together to identify energy savings opportunities for the City of Billings.. 

During the last 10 years the City of Billings implemented 62 energy efficiency projects; qualifying for $967,050 in energy efficiency incentives from NorthWestern Energy.  These projects resulted in an estimated 5.82 million kWhs saved per year, equating to about $455,000 in annual electric cost savings.

In addition, the City of Billings has received $612,257 in Large Customer Universal Systems Benefit funding for 14 energy efficiency projects. These projects resulted in an estimated 1.37 million kWhs saved per year, equating to about $104,500 in annual electric cost savings.

The City of Billings has also been awarded $171,823 in NorthWestern Energy E+ Renewable Energy incentives funded by Universal Systems Benefit credits for the installation of solar photovoltaic systems at Fire Stations 3 & 6, the Billings Parks & Recreation Community Center, the downtown MET Transit Center, and the new library. 

For more details about E+ Energy Efficiency programs go to E+Programs@northwestern.com or (800) 823-5995.

Forging Future for State Requires Look at Past

21 October 2020
Evelyn Pyburn
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By Evelyn Pyburn

Due in part to the impact of COVID-19 on the meat processing business, there is a shifting going on in the industry. Business people and investors are looking with new interest at Montana’s beef industry. Where it’s leading is uncertain but that there will be changes is certain.

Because the COVID crisis squeezed a narrow distribution system that left meat counters empty, it lifted the veil on an already troubled industry that had been undermined by regulations and protectionism for decades. It has prompted a transformation which will hopefully benefit Montana.

Local processing plants are changing ownership, others are expanding, and investors are proposing new plants. What the future prospects are for the industry might best be understood by looking at the past and understanding the problems, and asking “why?” suggests Taylor Brown, who experienced a very “expensive” lesson regarding the industry some years ago.

Taylor Brown, a very prominent figure in Montana agriculture and owner of Northern Ag Network, was one of nine investors in Meats of Montana, which opened in the fall of 1990. It was a venture aimed at rejuvenating the meat packing business in Montana, after the closing of Pierce Packing and Midland Packing in Billings, and after a period of closures of smaller operations throughout the state.

The company invested substantial sums to refurbish the Midland Packing plant, “the last big packing plant in Montana.” The plant “was a good facility” — still very useable once it was updated and re-equipped.

Meats of Montana entered the business as a medium-size operation, not as large as Midland or Pierce which might have drawn attention from the larger players like Iowa Beef Processors (now Tyson Foods), but it was larger than the small-town processors who serve local consumers and livestock growers. They planned to process about 250 head a day purchased locally in the region.

Whether that is the size of plant that can be successful in serving the market now is yet to be seen, but there are investors actively exploring the possibilities of starting such operations in Montana.  There is a difference in what is required of the different size facilities and the challenges that each must face.

In comparison to the rest of the country, Brown emphasized that “the amount of beef we process in Montana is tiny, tiny.”

The segment of the industry that has felt a huge demand in Montana is the local small processing plants that are scattered about the state.  The demand for their services has been exceeding capacity for quite some time, but it was exacerbated during the meat shortages brought on by the impacts of the virus. When consumers turned to local retail meat stores and the slaughter plants in their hometowns they were surprised to confront long wait periods. Some were booked out for a year or more.

While the local plants, usually family-owned businesses, were striving to expand they reported that one of their biggest stumbling blocks was finding the labor they need. It’s quite likely that most of them received quite a boost in their expansion efforts, a few weeks ago, when they received grants from Coronavirus Relief Funds. A total of some $7.5 million was awarded through the Montana Department of Agriculture, to dozens of plants throughout the state. Awards typically ranged from about $50,000 to $150,000 for each business. More recently it was announced that more funds are available for applicants.

Brown believes that growth will be seen in the state in the operations of the small plants, as they respond to a changing market in which consumers are more focused on locally produced products, custom products, and seem willing to pay for quality. It will likely be these producers coming with new ideas and taking advantage of new technology who will grow and reshape the future of the industry for Montana.

 Larger operations will face greater hurdles and risks. Brown worries about them. He points out that “very smart”, knowledgeable people have tried to launch a number of meat processing ventures in various locations in the state and they failed. “Why haven’t they been successful?” ponders Brown, believing that the future success of such enterprises could very well lie in answering that question.

Brown said that the investors in Meats of Montana were experienced, and thought they had done their homework and thought that they were adequately capitalized, but neither assumption proved true. The industry is far more complicated than it appears on the surface and to do a large volume of production takes a lot of money – [italics] a lot of money, emphasized Brown. And, an operation needs very good money management, because the process of buying and selling in large quantities every day, means that money moves “at the speed of light,” explained Brown.

It didn’t take long for Meats of Montana’s weaknesses to become evident – the venture only lasted for about two months. But, that is not to say that they didn’t have a lot of good things going for them. “We had an available work force of trained and experienced people, and we put out a quality product. We had good production management – smart guys who knew how to do it.. And, we had more cooperation than I expected from USDA.” USDA (US Department of Agriculture) oversees the federal inspection of meat processing plants that ship product across state lines.

They slaughtered about 5200 head of cull cows and bulls, processing about 43 car loads of lean beef – about $2.5 million worth in large box containers that were shipped “all over the west coast, and into the upper midwest.”

There were advisers who said that they should have planned to operate on a bigger scale, “and maybe we should have,” said Brown, “but that would have taken a whole lot more capital.” And, a larger scale packing plant in Montana would encounter the problem of not having enough local supply of finished cattle. While Montana raises a lot of cattle, there aren’t a lot of finished cattle because the feed – corn — is not available here. The big feed lots and big packing plants are located in the mid-west and the high plains because that’s where the corn grows.

“At larger scales, it is a really complicated business,” said Brown. “Just finding the amount of skilled labor you need. And, timing the supply so you have it when you need it. If you are going to sell rib-eyes and t-bones, where are you going to get a dependable supply of finished cattle? At a competitive price? And, do you have a reliable market?”

“Timing is important. You have a perishable product, which is especially critical at times when the market is working against you,” he continued.

Brown feels that people sometimes overestimate the added price that consumers will consistently pay,  in order to have a product that is “Made in Montana”.   He says Montana Beef is a great niche, but it’s hard to find the scale that is profitable enough to be economically sustainable. 

One of the biggest issues that must be dealt with is what to do with the “offal” or byproducts, including organ meats and the hide. The sale of these materials often represents the company’s profit, which reflects how tight the profit margin is in the business. Finding a market for these products can be challenging, especially if located in a low population state like Montana.

For example, Brown said that they discovered there was a big demand for tripe (stomach meat) in Korea, and buyers liked the Meats of Montana product.  However, “It’s surprising how much tripe you have to store up, to accumulate enough to fill a shipment.”

A lot of things have changed since 1990 and there will be even bigger changes in the future, so Brown says the experiences of their group might not be quite as applicable today; though similar concerns likely still confront those who wish to ratchet up the industry in Montana.

“With the right scale, and enough capital and industry expertise, someone could successfully expand and revolutionize Montana’s meat processing industry”, says Brown, “but like many things, it is a lot harder than it looks.”

Company Explores Gypsum Mining at Pryor Mountains

21 October 2020
Evelyn Pyburn
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A Mexican –based company, Grupo Cementos de Chihuahua (GCC), has filed a plan with the Billings Field Office of the Bureau of Land Management to explore the extent of a gypsum deposit in the foothills of the Pryor Mountains south of Gyp Springs Road and west of its intersection with Crooked Creek Road.

The environmental assessment is available for public comment until November 5.

The project proposes to drill 10 holes about 70 feet deep on 10 claims, which are on public domain land in southern Carbon County. BLM must approve the proposal and determine any mitigating requirements, as well as approve the plan of operation as meeting performance standards.

GCC is a multinational company, with plants in South Dakota and Colorado, but also owns another plant in Montana. GCC purchased the cement plant at Trident, Montana in 2018.. In total the company operates eight plants in the US and Mexico producing about 5.8 million tons annually.

Gypsum is a soft sulfate mineral composed of calcium sulfate dihydrate, which is widely mined and is used as a fertilizer and in manufacturing cement and is the main component in many forms of plaster, blackboard/ sidewalk chalk, drywall, etc.

The plan that BLM is considering would require that a paleontology consultant monitor any ground disturbance to mitigate potential damage to fossil resources that have been identified in the area. A botanist would also have to be onsite to oversee the protection of some rare plants that have been identified in the area, which BLM designated as of critical environmental concern and a natural area.

No drilling is proposed during the grouse’s mating and nesting season since the sage grouse is known to use the region.

The anticipated area that will be disturbed by the drilling is small – less than seven acres total, so the BLM is not proposing that any further impact study be required.

In June 2018, Grupo Cementos de Chihuahua received regulatory approval for the purchase of the cement plant from CRH in Trident, a gypsum mining operation near the headwaters of the Missouri River, which was started in 1908 by Don Morrison and a group of investors.

 Known then as the Three Forks Portland Cement Co., its production was used in many regional construction projects, including Holter Dam, Morony Dam, the Heart Mountain project in Wyoming, Fort Peck Dam, Grand Coulee Dam, and Polson Dam.

On Jan. 1, 1948, the Three Forks Portland Cement Company was consolidated into the nationwide Ideal Cement Co. In the 80s, Ideal Cement Co. sold the plant to a Swiss based cement company. In 1990, the plant at Trident was renamed Holnam, short for Holderbank North America. In 2002, the facility was again renamed, Holcim Trident Plant

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City Administrator Wants County Commissioners to Share Future Tax Revenues

21 October 2020
Evelyn Pyburn
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By Evelyn Pyburn

The advisory board and officials who administer the TEDD in Lockwood are urging the county and city to come to an agreement soon about the terms under which to extend sewer to the TEDD (Targeted Economic Development District).

The most recent stumbling block is an unexpected proposal from the Billings City Administrator to the Yellowstone County Commissioners to “share” potential tax revenues from the TEDD. Administrator Chris Kukulski explained in a discussion session with county commissioners on Oct. 8, that property tax revenue sharing with the city is what he means with his frequent requests for better cooperation between the city and the county.

A commitment to be more “cooperative” in the future was one of the terms included in a tentative agreement between city council members and the county regarding the TEDD, discussed in a city council work session several months ago.

The City Council is scheduled to revisit the issue during their meeting on October 26.

It’s been a year-and –a- half of trying to resolve the issue of how the TEDD can become part of the Lockwood Water and Sewer District without the necessity of the property owners waiving their right to protest future annexation proposals, Woody Woods told Yellowstone County Commissioners. Woods heads the advisory board appointed by the commissioners who are the official authority of the TEDD.

“We are losing opportunities,” said Woods about the TEDD whose purpose is to attract new and growing industrial and manufacturing businesses to the community. Woods said there have been potential businesses that have come and gone because the TEDD was not ready.

Steve Arveschoug, Director of Big Sky EDA, expressed frustration that at one point they seemed to have reached an agreement among all parties, although not voted upon, which involved charging TEDD property owners a surcharge of 18 percent to have their sewage treated by the City of Billings, and that TEDD property owners would not in the future, should they need a new source for water, get it from the Heights Water District, and that the county commissioners would commit to being more cooperative with the city as new areas are developed at its borders.

In the agreement, the City abandoned its effort to require all TEDD property owners to waive any future rights to protest annexation, which the property owners unanimously refused to do. Having to be subject to such municipal costs defeats the purpose of an industrial park, which is hoped to attract manufacturing — capital –intense businesses that usually need to avoid high municipal taxes in order to be feasible.

County commissioners said they were puzzled about what was meant by being more cooperative, since they have no authority to require property owners to agree to annexation and they believed they were cooperative as much as possible.

That Kukulski was thinking of revenue sharing was a surprise to everyone. At no point during their discussions with city council members was there any mention of the county sharing tax revenue with the city, said Arveschoug.

Arveschoug said that if there is no resolve soon, he and his agency will start looking for another alternative for a turn-key ready industrial park.  He underscored that he did not mean to say that they would abandon the TEDD.

Commissioner John Ostlund asked Arveschoug what areas he was thinking about. Arveschoug said that while he didn’t know what may have changed in the interim, the study that EDA conducted of potential sites identified a promising site near Laurel.

Both Ostlund and Commissioner Don Jones voiced “major concerns” about the idea of sharing future tax revenues with the city. Commissioner Denis Pitman asked, “How would that work?”

It was noted that it could be as long as 20 or 30 years before there would be any tax revenues, and since the language proposed is so vague there would surely be problems in the future, dealing with such a stipulation. Pitman commented rather facetiously, “I guess we could say ‘yes’, and say it will be someone else’s problem.”

Also, there is a legal question about the ability of this board of county commissioners to make commitments on behalf of future boards.

Also, the unprecedented concept would have statewide ramifications, said Jones, and it “makes problems down the road.”

The agreement encountered another delay early last month when the draft document was reviewed by the board of the Lockwood Water and Sewer District (LWSD). LWSD Manager Mike Ariztia explained that they had anticipated seeing an addendum to the contract that the district has had for years with the city, but there were surprise changes in the contract. The board decided they needed to speak to legal counsel about it.  Ariztia said that the board did not want their support of the TEDD to impose any additional burdens on customers of the district.

Ariztia told commissioners on that those issues have been resolved, and the board will discuss accepting the agreement at their next meeting.

One of the surprise changes to the contract was a requirement that LWSD, too, would not be allowed to consider getting water through the Heights Water District should they need to find an additional water source. Kukulski defended his efforts saying, “I have to get six council members to say yes,” to the agreement.

Kukulski emphasized that the City of Billings requires that any entity getting water or sewer service must be annexed into the city. Since the Heights Water District gets its water from the city, that was the issue he was trying to address.

Arveschoug commented, “Kudos to Chris and his team. They were willing to take the waiver off the table.”

As an example of the county’s lack of cooperation, Kukulski cited that the county commissioners have been “resistant” to changes in an area where the city was proposing assessing service costs based on property values, “…and we have been struggling about how to pay for it.”

Ostlund asked if he was talking about the BUFSA (Billings Urban Fire Service Area), about which proposed fee increases are currently in negotiations. While the agreement for the city to provide fire service to areas just outside its borders has been mutually beneficial, Ostlund said the city’s proposed changes results in a 35 percent increase in what will be paid to the city, which would wipe out BUFSA’s reserves.

“It seems as though the city is trying to make a profit on county residents,” said Ostlund, referring to other dramatic fee increases recently being requested by the city, such as landfill fees.

Kukulski said, “We want to continue to figure out how to work through this. Neither one needs to lift our fist to get our way.”

Ostlund reminded that no matter whether an agreement is reached with the city, the TEDD will still develop, only it will develop in a less desirable manner. With a sewer system it “will be a different kind of development.”

Having a sewer system is important to assuring development happens in an environmentally sound manner. It was in fact the point made by the state’s Department of Environmental Quality, years ago, when they came to the city to implore that they iron out some kind of agreement with Lockwood, reminded Jones, who was on the city council at the time. “Septic systems are not good for the whole Yellowstone community.”

“An industrial park has enormous benefit for both the city and county,” Ostlund pointed out, “… and in fact the city will get more benefit….it’s like the refineries.” Ostlund explained that the kinds of enterprises they hope to attract could well employ “400 or 500 people” – people who will buy homes and pay taxes in Billings.

Businesses Pressured to Reduce COVID or Face Closures

21 October 2020
Evelyn Pyburn
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Felton Calls on Businesses to Step-up Safety Efforts

For the time being most businesses in Yellowstone County can breath a sigh of relief –  at least until November 9. In a press conference on Oct. 12, County Health Officer John Felton did not shut down business activity as he said he would, if the number of COVID-19 cases in the county hit 565 or 50 cases per 100,000.

When the number of COVID -19 cases reached 598 on Oct. 9, the business community worried that Felton would put the brakes on all business, reducing capacities to a point that many would have to close and maybe end business permanently. However, Felton focused primarily on reducing the size of gatherings that will be allowed and called for a renewed emphasis on wearing face masks, physical distancing and hand washing, with the goal of “slowing the spread of the virus by the end of October.”

He said that in four weeks he would re-evaluate the situation.

Only a week before Felton threatened to reduce capacity limits and re- impose other restrictions that would essentially put businesses back into the closure mode they endured at the beginning of the COVID crisis – a disruption that some did not survive and that many are still trying to overcome.

Felton explained that county health officials wanted to give time for the public to respond to the earlier plea to heighten safety compliance, and for the effort to take effect, so they set “what seemed a very high bar of 565 cases.”

“It seemed very high, yet we eclipsed it the very week we set it,” said Felton.

As of Friday, the number of new positive cases of COVID not only reached 50 of 100,000 but exceeded it by 20 percent.

“It tells the story of how dramatically our situation has worsened,” said Felton. In fact, Yellowstone County ranks second highest in the nation in the rate of infection. “It is growing at an alarming rate.”

The greatest concern is that hospitals may not have the capacity to treat all the patients that need hospitalization. “The impact on hospitals is tremendous,” said Felton, adding that the number of hospitalizations has hovered between 81 and 96 for several weeks. Over half of the patients are from outside Yellowstone County, reflecting the fact that Billings is a regional health care center. It was stated during the press conference that local hospitals have been getting patients from North Dakota where hospitalizations are also at full capacity.

Felton said, “I applaud the many people in the community who are wearing masks, physically  distancing, and washing hands. We need more people doing that.”

“It is up to all of us to do what we know is right to stop the spread and death,” said Felton.

He also said that he was impressed with the commitment that business people expressed to him to escalate their efforts, during a special meeting hosted by the Billings Chamber of Commerce. It seemed that it was largely that determination and other focused efforts by the Chamber and Big Sky Economic Development to urge the business community to step up efforts to make a difference, that influenced Felton.

The Billings Chamber issued a statement thanking Felton “for listening to the business community and adjusting the restrictions to responsibly address the pandemic and support our businesses.”

Besides adhering to the mandates that Felton issued, the Chamber added one of their own – asking businesses and workers to, as much as possible, work at home.

To go into effect as of Oct. 14, Felton ordered that all restaurants, food courts, cafes, coffee houses, bars, brew pubs, taverns, breweries, microbreweries, distilleries, wineries, tasting rooms, special licensees, pubs and casinos shall be required to close for inside business no later than 12:30 am as issued under the Governor’s  directives. All such business shall continue to maintain all social distancing, masking requirements, and commitments made under approved Yellowstone County reopening plans for dine-in services.

Drive-through and delivery for food service only can continue past 12:30 am.

Except as otherwise indicated, all group physical gatherings, including but not limited to all businesses, organizations, and private gatherings shall be limited to no more than 25 individuals, regardless of the ability to physically distance. This restriction applies to both indoor and outdoor events.

Felton said churches are being asked to hold attendance at 50 percent of capacity, primarily because, their membership “tends to be an older population and more at risk.”

Media asked about why they haven’t called on the National Guard to set up their mobile station for medical care, as was set up in a training exercise at Metra Park this summer.

Dr. Michael Bush, St. Vincent Health Care, said that they had looked at it, and “we appreciate what they did, but there are a lot of parts to that, such as how to supply and staff it. There are steps we can still take without that facility which would bring its own challenges with it.”

What it Takes

20 October 2020
Evelyn Pyburn
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By Evelyn Pyburn

Shortly after the break-up of the Soviet Union, I read about how the US was sending advisors to Russia to tell them how to do it – how to build an economy. One was left to assume that meant a free market economy, but when one saw who all was involved, it was puzzling what the US government was really up to.

There was no doubt that none of the advisors being sent to advise had anything to do with free markets, entrepreneurship or business enterprise… they were all bureaucrats and politicians of one sort or another. They were undoubtedly experts on top-down, control and command economies. What they thought they could teach the communists about that is unfathomable.

It wouldn’t have been surprising to learn that the expert advisers involved believed their regulations, taxes and edicts were the reason the US had a strong economy. It is scary how few people understand what makes for a strong economy or what it takes to run business.

It is truly sad to realize how few people recognize the beauty of free markets and Capitalism.

Nowhere in the reports did it mention the basic element that Russia or any nation has to have in order to have a vital, vibrant economy – freedom.  There was no mention of advising Russia about the need to establish a foundation of individual freedom that would allow citizens to pursue dreams.

That is the secret that was discovered with the establishment of the world’s strongest and most successful economy in all history.

As we celebrate the entrepreneurship of Montana business people in this issue, we are fundamentally celebrating freedom. To encourage entrepreneurship and nurture businesses to great heights requires the freedom to make choices and decisions. Individuals have to be free to try, to succeed and to fail and to start all over again, if they choose. None of that requires government intervention – in fact, quite the contrary.

Successful businesses need an environment in which the law of supply and demand rules rather than rules and regulations and skewed tax laws, through which government picks winners and losers. Entrepreneurs need a society in which citizens are free to act and to conduct voluntary exchanges of value for value.

A system that results in a strong, rich economy is one in which government is restrained to a very few basic roles, the most important of which is shoring up and protecting private property rights. Without private property rights there is no chance for the country or its citizens.

Part of the protection of private property rights includes protecting all citizens against criminal acts and fraud and the use of force one against another, except in cases of self-defense.

And a vibrant economy needs government to recognize and enforce private contractual agreements.

Only when government performs its legitimate roles in those regards, only then do citizens have the predictability, security and confidence to take risks, to explore, to create and to labor in ways which result in new products and services and efficiencies that raise the standard of living for all, including surpluses so large that they overwhelm private and institutional benevolence.

When we celebrate those among us who take it upon themselves to start and manage a business, to produce and to employ, it is all those things that we celebrate, in addition to their creativity, hard work, courage and achievements.

So to all of you, thank you. Thank you for all that you do and most especially for having the audacity to pursue your dreams and to affirm the freedom to do so.

Businesses are Still Struggling through the COVID Crisis

20 October 2020
Evelyn Pyburn
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By Evelyn Pyburn

While most businesses have been able to reopen following their forced closure because of concerns about COVID-19, the struggle and uncertainty about their future fate isn’t over for many business owners. Economic commentators say it will probably take two years before the full impact on businesses will be known.

It’s true that many businesses dealing in products and services that have come into high demand are doing very well – but even they struggle with meeting those demands while still maintaining health and safety protocols. Not being able to fully reopen because of those protocols has kept some businesses teetering on the edge and for others new impacts of COVID are placing even more stress on their business.

The new worry is about an employee testing positive for COVID and having the health department put everyone under quarantine, effectively re -closing the business. Besides lost business, the employer is required to continue paying the employees even though there is no income. So while the employees are made whole, there exists the possibility that the economic damage done will leave them with no job if their employer goes out of business.

Some state and federal programs have helped in sustaining businesses and provide funds to help in paying employees, but the disruption still takes a toll and in some cases there is a stigma attached to the virus that dissuades the return of customers or clients. Because of that, many businesses are reluctant to even talk about their dilemma.

Everyone was well aware from the very beginning of the impact on restaurants and bars. A general count seems to indicate that about a dozen restaurants have closed in the Billings area. Others are hanging on but it is difficult for those with limited space. Being able to operate at 50 or 75 percent capacity, which is one of the restrictions under which they must operate, just isn’t enough to cover basic operating costs for some and so they remain closed.

While the cancellation of events like concerts, fairs, trade shows and arts/crafts shows may at first blush seem just a disappointment for spectators they also reflect lost business for many whose livelihoods are  event- oriented, which include not only the hospitality industry but also those who provide the infrastructure for such gatherings and those who sell their art and products through those venues.

At the same time, almost any kind of business that has anything to do with construction or selling equipment and materials for that industry, have exploded and can hardly keep up.

Each business has their own story to tell.

Q Art & Framing

By the time the Governor closed businesses in the state, it didn’t make much difference to John Armstrong.  “My business was slowing way down just because people were getting apprehensive,” he said. Armstrong owns Q’s Art and Framing at 1511 6th Avenue N. in Billings, a business that sells fine art and art supplies and does framing. It also features weekly art classes.

“Business was so dead I didn’t think it was worth it to stay open.” Besides closing the doors for a couple months, Armstrong cancelled all art classes.

“It was scary,” he said.

Armstrong owns the building in which his business is located and he has tenants with businesses. “We were all in the same boat,” he said. One of his tenants had to quit, leaving him with a vacancy. “So I kinda got hit with both barrels.”

He has reopened, but business is slow in re-building – the sale of art is “zero”, and “We just don’t have the foot traffic.” Armstrong says he is hopeful and, “I think we are going to make it through.” That wouldn’t be the case though if it were not for the state and federal funding programs … and a $250 credit from Northwestern Energy.

The framing part of business has been doing well, and art classes have resumed, but remain constrained because of spacing issues.

“I feel very blessed to be on as solid ground as I am,” said Armstrong, expressing gratitude. ”I feel that the community is supporting me. A lot of the business that came in August was people wanting to support me.”

Black Dagger Tattoo

Gyms, salons, barbers and tattoo parlors were especially hard hit.

Sean Sapone, a co-owner of Black Dagger Tattoo in downtown Billings, 2914 1st Avenue N., is still only partially open. He is accepting only one appointment a day, whereas a normal schedule would be two or three appointments a day, and walk-in traffic is curtailed completely. So business has dropped from 10 – 15 clients a week to only five, at the most.

Being self-employed, Sapone has relied on his savings to make it through a two –month business-closure. Sapone said that because of having a family member who is highly vulnerable, he imposed greater restraints on himself, and continues to do so. He noted that given how close people must be in his business, the safety and cleanliness protocols are of great importance and they have strictly adhered to them which makes their work difficult.

Black Dagger Tattoo was started in 2016, and was doing very well and growing, according to Sapone. So, the COVID crisis was a devastating blow to a new and vital small business. Functioning very much like hair salons do with subcontractors leasing space and cultivating their own clients, Sapone said that those individuals, being self-employed are having to fare on their own, perhaps getting some benefits from the government programs. They may be in an even more perilous position, he noted, since some were likely just building their clientele and were more dependent on the public exposure of an open shop.

About the future, Sapone said that he is “not necessarily optimistic.” “I am worried about it,” he said. He doesn’t see a lot of options, but “I think we will survive it.”

R &R Salon

It was the first time since she was 15 –years- old that Rachel Markowski had a whole month off. Markowski owns R & R Salon, a hair and beauty salon at 1001 S. 24th Street, which includes a small retail outlet for jewelry, some clothing and gift items. Having to close the business was an immediate end to her income, as well as for the beauticians who sub-contracted with the business.

Worry about what the future held was probably the worst of the situation for Markowski, who at least had the financial backup of her husband’s job, which was categorized as “essential.” They own a small acreage just outside of town and Markowski said, “I was glad to have the farm to tend to, to keep me busy and keep me from worrying.” Markowski said that she used the time to do things that she hadn’t been able to do when working full time and enjoyed being able to do things like gardening and food preservation.

She also used the time to develop a website for the retail sales part of her business.

The landlord of her business location reduced rent by half for the month of May, which was very helpful, said Markowski, who otherwise relied on savings she had for such emergencies. She did not apply for any of the government programs. “I just toughed it out,” she said.

While they cut back on spending, when the Markowskis did spend money – like so many others they tried as much as possible to support local small businesses.

Most of her clientele has come back in force. Their pent-up demand has kept Markowski and the others in her shop very busy, working overtime because of the need to space out appointments to keep the number of people in the shop at a minimum. “I’m just tired of having to wear a mask,” she lamented.

Lackman Cattle

Being able to get assistance from the first round of federal funding under the CARES Act was vital for sustaining his business of farming and feeding cattle west of Billings, Luke Lackman told members of the Chamber of Commerce’s Ag Tour on Friday.  Lackman’s family business was staggered by the unexpected cancellation of a contract for barley by a brewing company, just days after having invested the cost of planting it.

He wasn’t the only farmer in Montana who was broadsided by such contract withdrawals, which without the government rescue funding would probably have bankrupted many of them. Brewing companies were concerned that because of the COVID crisis beer consumption would be far less than projected – although one member of  the tour group told Lackman that he and his friends were trying to do as they could to support that aspect of the economy.

Western Romance

Without doubt the hardest hit industry sector was tourism, which included motels, restaurants and bars, but also included businesses like Western Romance Company in Huntley, which since 1999 has contracted with bus tour companies to provide an evening of entertainment, cowboy poetry, and singing and yodeling around the campfire, accompanied by an old-fashioned cookout.

Owners, Dennis (also known as Pappy) and Norma McNiven, were stunned this past summer to lose essentially all of this year’s business. Normally, they are booked from May through October with about 56 events with 30 to 54 people in each group. This year started out with 56 bookings scheduled, of which all but one cancelled. Not only did the McNivens lose a significant source of income so did two subcontractors and some eleven part-time employees, as did the local motels, and many other aspects of the hospitality business in Billings.

“First we were notified by Trafalgar Tours and Discovery Parks Tour in March that they were cancelling everything globally because of COVID until June 30, and then they notified us they were cancelling everything until September 2,” explained Norma. Then in the latter part of July they cancelled everything else through October 28. It totally wiped out the whole season,” she lamented.

Only one scaled-down booking in August moved forward, for which the McNivens hosted eleven guests rather than their minimum group size of 30. That event was able to be held because the booking company used their own buses; the other events were booked through companies that leased their buses from transportation companies that had to cease operations through the whole summer since they couldn’t meet the requirements for social distancing.

Whether Western Romance Company will continue business come next summer is uncertain. The McNivens are not particularly optimistic. “We just don’t know what will happen,” said Norma.

While they have applied for some assistance, what they have received has been minimal, and while they qualify for more, they have been told they are on a waiting list of some 7 million businesses and “we will contact you.”

Asked how they have survived, Norma said that they were prepared for adversity. “I never counted on Western Romance to do stuff. We have a commercial loan at the bank, which we renewed, and we hope we can make it through.”