Author: Evelyn Pyburn

City Gets $90,000 Rebate

9 November 2020
Evelyn Pyburn
No comments

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
No comments

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
No comments

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

.

City Administrator Wants County Commissioners to Share Future Tax Revenues

21 October 2020
Evelyn Pyburn
No comments

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
No comments

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
No comments

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
No comments

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.”

Pursuing a Lose-Lose Strategy

23 September 2020
Evelyn Pyburn
No comments

By Evelyn Pyburn

It’s a sad lesson of life, but there is always those among us who strive every day to acquire the unearned.

In my world, that is the real definition of greed – much more so than people working hard to make money.

The reach for the unearned is seen all around us, and while much of its cost often falls to taxpayers in general, a more favored target is “greedy” money makers, ie. businesspeople. The “reach” always involves laws that force the money-makers – business owners, employers, producers, job creators – to comply just in case they should have other ideas and resist the theft. The coercion comes in laws that set minimum wages, mandated family leave, restrict management decisions to favor employees, control prices, or mandate benefits, etc. – issues that could, and should, more legitimately  be negotiated voluntarily between concerned parties. The latest is the requirement that employers pay employees who are quarantined by government decree, due to Covid-19, above and beyond their sick pay benefits.

One trial lawyers association recently advised employees to make sure they know their rights, implying that employees have a right to be protected from contracting COVID. What rights? Rights aren’t guaranteed outcomes or gift cards, rights are a freedom to act. The employee is always free to leave a job and find another if they don’t like the conditions of the job, whether it has to do with health measures, the work asked of them, or compensation. To be able to legally impose obligations on an employer or anyone else, is to have the power to enslave one person for the benefit of another. That is NOT a RIGHT!

The requirement is destroying just as many businesses now as were destroyed with the closure mandates. Small businesses lose all their employees for weeks on end, which means usually they cannot operate – they cannot “make money.” Some employees think it is a lucky break, getting to stay home while still getting paid, and they milk it for as much as they can. In the meantime, the costs mount for the business owner who has no income.

Of course, if the consequences of the COVID edicts were allowed  to fall directly upon the workers they might not be so tolerant of the situation. They might interpret the validity of the mandate differently and weigh the consequences more incisively. So, since employee numbers are greater than those of employers, their political clout is greater, and it becomes politically necessary to shield them from reality, and force the impacts upon the employers.

The situation does not have to last long before it destroys many businesses, but that consequence is never understood to the now- unemployed, who believe, along with the politicians and bureaucrats, that it is possible for an economic system to thrive treating businesses as though they are philanthropic organizations – as though they have the same bottomless pockets that government thinks it has.

The grab for the unearned is ratcheting up, as the almost-immoral philosophical perspective is extended to the idea that employers should be held liable if their employees contract the disease. It doesn’t take much imagination to see how broadly and unjustly lawyers and the legal system will seize the opportunity this affords them to enrich themselves, in their perpetual quest for the unearned.

Consequences far less evident will be the changes business owners will make in how they operate to reduce their exposure to liability – some of those changes will not be foreseeable as creativity is brought to bear – but be assured the adjustments will not result in improved products, services, convenience or value – or jobs. Be assured that to hold businesses liable for employees or customers contracting COVID or any other disease (as it will surely be expanded to include), will be to the detriment of all of our society in many ways.

It has been through a system of voluntary exchange of value for value – without coercion and with incentives aligned with achievement – that we have come to enjoy a standard of living beyond any ever before known in the world, with the expectation that it will grow ever greater. But if this process of granting the unearned on the backs of the productive continues, it means, not only will many businesses fail, but our standard of living will decline – the wellbeing of the general population will diminish.

It is a lose-lose strategy for all.

Pharm406 Promises “to do things better”

23 September 2020
Evelyn Pyburn
No comments

by Evelyn Pyburn

“Because Montanans deserve better.”

That’s the reason that Kyle Austin has started a new business called Pharm406.

As a pharmacist who has served in a number of capacities in hospitals, ambulatory services, and retail settings, Austin saw there is a lot of room for improvement in how pharmacy and other health care services are provided. “We strive to do things better than everybody else,” is the motto of his business which provides a number of services at competitive prices while going the extra distance of providing delivery services and other conveniences that make it easier for their customers.

‘At first I decided to do mobile immunizations and then discovered the former Rocky Mountain Bank location—  1410 38th Street West — and decided there was more I could do.” Although some aspects of the business are already open, a Grand Opening is planned for September 24.

Besides a pharmacy, Pharm406 provides a cryo chamber – -an alternative to pain management, and the services of a chiropractor and of a massage therapist.  They can also do rapid COVID testing with results in 13 minutes, and in November they will be able to provide testing for COVID antibodies.

Pharm406 will also include a walk-in clinic as soon as Austin engages a physician’s assistant or nurse practitioner. Other services include out-patient hydration therapy, Ketamine Infusions, and potentially other treatments.

And just to inject some fun into the whole process of health care, Austin delivers what may be the ultimate in convenience and enjoyment into the annual tedium of the annual flu immunization with “Get a brew and not the flu.”

At designated times and places customers may get their flu shot and a free beer – and not just in Billings! He’s already held a mobile flue immunization clinic in Red Lodge at the “Bull and Bear Saloon.” And, in Billings it’s been held at the Den with others scheduled throughout the city and still others in such places as Great Falls, Glasgow, Wolf Point, Bozeman, etc. “We bring our immunization equipment and we will bill insurance or collect cash payment and the patient gets a free beer,” explained Austin, “It helps the people who have establishments that have gone through the COVID closures.”

Located in a former bank building with three drive up windows, Pharm406 is probably the only pharmacy in the country with three drive-thru windows, said Austin. No more waiting in a long auto-line to pick up or drop off your prescriptions.

But even picking up prescriptions may be unnecessary, because Pharm406 is providing free delivery service, and not just for Billings, but for the Heights, Lockwood and Laurel. They will deliver free on specific delivery days and if it works out maybe at other times as well. And, they will deliver over- the –counter items, too.

Pharm406 will also “bubble pack” prescriptions, so they come in a packet that contains all the medications that the customer needs to take at one time. Like delivery, that service is also free of charge. Austin said that in the beginning to introduce customers to his business the services will be free and he hopes to be able to continue to provide the services free of charge, but it may become necessary to eventually charge for them, but it remains their goal to still be competitive. “We will match anyone’s prices,” he said.

No Account of Human Nature

21 September 2020
Evelyn Pyburn
No comments

By Evelyn Pyburn

The official status of COVID in Montana, as of last weekend was 7,063 confirmed cases and deaths hit 100 with 242,875 people having been tested. That means that of those people who have tested positive with the disease 98.6 percent have survived, but what is the survival rate of all the people who have actually contracted the disease?

The number of cases is, without doubt, much higher – maybe very much higher – even though not much is being said about it anywhere.

Given the pressures that are being brought to bear on citizens, assessments of their likely reactions should probably consider the nature of those citizens – ie. the nature of human beings. One must realize that just as much as human beings would want to avoid the negative impacts of getting the virus, so they would want to avoid the adverse impacts of “the long arm of the law.”

And, as much as the media and political blitz has served to obscure the fact that most people survive the illness, most people see beyond the programming and know that the disease is not a death sentence for most – so to become ill, if they are not in a high risk group, does not send them into a panic. And, because they do not want to deal with the county health department or be the cause of hardships for their fellow workers, friends and family, they do not get tested.

As one said, “Who wants to be responsible for putting their employer out of business? Who wants to lose their job or be responsible for putting their friends out of work?”

People with greater income security or who are unware that actions have consequences, will probably react differently, but necessity will force a more pragmatic reaction from the other half of the world, so common sense says there are more people than those being counted who have had the virus. At least one case for each official case, and the ratio is undoubtedly greater than that.

One must believe that “officialdom” knows that this is going on but say nothing about it, although County Health Officer John Felton, at one press conference, hinted that the process of contact tracing is made difficult because people do not answer the phone when they see that it is the County Health Department calling.

This too is an example of typical and natural human behavior, especially for human beings who are used to the idea that they have the right to live life on their own terms.

But that can be changed, the bureaucrats, health experts and officialdom have been heard to strategize. It’s just a matter of getting people used to it and they will eventually acquiesce, especially the young ones.

That there is resistance to the Governor’s edicts shouldn’t be surprising, but apparently the Governor himself is surprised. Whether true or not I am unsure, but I was told by one individual who was in a meeting with the Governor, that the Governor expressed surprise, saying, “It seems like there are people who are refusing to wear masks simply because I told them to.”

If he is truly surprised, then one has to conclude that his bubble has left his arrogance intact and his understanding of “commoners” exists not at all.

Whether it’s avoiding contracting a disease or having to deal with government bureaucrats, most people do what is in their best interests to do, that is why coercion was never necessary and persuasion would have worked better – but persuasion requires respecting “commoners.” That our leaders had no interest in that approach says all that needs to be said.