- CONGRESS ADDS $2 MILLION TO BLDC LOW-INTEREST
LOAN FUND TO BRING
TOTAL TO $3.25 MILLION FOR LOANS
- The corners and edge pieces
of the BLDC revolving loan puzzle are complete, and now action
in November by Congress has filled in the middle.
On September 29, the Montana Department of Commerce approved
a Community Development Block Grant of $314,700 to go to the
BLDC through Butte-Silver Bow as funds to match $943,300 in Revolving
Loan Funds(RLF)previously committed by the federal Economic Development
Administration(EDA).
On November 13, Congress directed the EDA to add another $2 million
to the fund, bringing the total fund value to $3.257 million.
Plans are for the full amount to be loaned to ASiMI as part of
their Phase 2 construction.
As ASiMI pays back the loan, the repayments will be "revolved"
into the economy as loans to new businesses and to help expand
existing Butte businesses. ASiMI repayments would be about $434,000
a year, making that money available to loan to others.
The additional $2 million came from funds previously granted
to Butte-Silver Bow to renovate the former Safeway warehouse
for Luigino's, Inc. After Luigino's fell through, the funds remained
tied to the warehouse because of federal funding regulations.
It took an act of Congress to set the money free to benefit Butte
businesses for years to come.
Evan Barrett, BLDC's Executive Director, estimated that the fund
could support asmuch as $5.5 million in business loans over the
next 10 years, in addition to the original ASiMI loan.
Bi-partisan Congressional support for this effort has been critical.
Senator Max Baucus was pivotal in obtaining the original $943,000
of EDA funds for the RLF, as well as the $2 million grant for
the Safeway warehouse in early 1995 through his efforts inside
the Clinton Administration. Senator Baucus got the former Secretary
of Commerce, the late Ron Brown, to intervene on behalf of the
Butte grant. Senator Conrad Burns and then-Congressman Pat Williams
aided in that effort.
The efforts of Senator Baucus and Senator Burns to secure the
$2 million for Butte in the fall of 1996 were foiled when the
appropriations process was altered at the last minute. Senator
Baucus, Senator Burns (who serves on the Senate Appropriations
Committee), and Congressman Rick Hill all worked together this
year to ensure that the $2 million dollars will now serve Butte
business development efforts for years to come.
Barrett expects funds to be available for loans to new and expanding
local businesses by the fall of 1998. Barrett said the fund will
give preference to labor-intensive basic sector businesses to
ensure that they create the maximum number of jobs for the local
economy. Loans will generally be made at 6 percent interest.
Barrett said the EDA was most patient while the Montana Congressional
Delegation advanced the effort, repeatedly extending the time-frame
for use of the funds. He also praised the coordination and cooperation
between local, state and federal officials, and the Congressional
delegation, along with the administration of Governor Marc Racicot.
- GOVERNOR TOURS BUTTE ECONOMIC PROJECTS
ON DECEMBER 10 VISIT
Governor Marc Racicot will spend a day in Butte on December 10,
touring project sites and visiting with several state-wide groups
and folks from Butte's economic development community. The highlight
of the Governor's visit will be the dedication of the newly paved
road to the ASiMI site, and a public meeting featuring an Economic
Roundtable and the opportunity for Butte folks to exchange economic
development ideas with the state's top elected official.
The road will be officially dedicated as "Rick Jones Way,"
in memory of the former State Industrial Recruitment Officer
who passed away unexpectedly during the ASiMI recruitment effort.
Jones, who was 37 at the time of his heart attack, was a partner
to all economic development efforts throughout the state.
"This is a small way for us to recognize the importance
of Rick's contributions to our development efforts. It also serves
to recognize the economic development partnership between the
local community and the state of Montana," said Evan Barrett
of the BLDC.
The public meeting and Economic Roundtable will be held at 3:30
P.M. at the Orphan Girl Theatre (Washington Street entrance)
at 315 W. Park St. All BLDC members and anyone else interested
in economic and business development are invited.
The Governor will also tour the WETO site at the south end of
Harrison Avenue, meeting with the Montana Manufacturing Extension
Service convention, sitting down with the Montana Economic Developers
Association Board of Directors. Also on the agenda for Governor
Racicot is a presentation on Butte's Silicon Mountain Project
(which will be featured in the next edition of JOBS for Butte).
- BLDC BOARD ELECTS NEW OFFICERS, WELCOMES
NEW DIRECTORS FOR 1997-98
Four long-time directors have gone off the BLDC's board to be
replaced by four new faces. Directors stepping down at the end
of their terms on the board are Judie Tilman of Headwaters RC&D,
Pam Miller of the United Food and Commercial Workers Local 4,
and Harp Cote of Christie Transfer. Tom Hochwalt of St. James
Hospital has moved from the area and has resigned from the board.
Joining the board are Bob Rodgers of St. James Hospital, Marilyn
Maney of AFL-CIO, Gary Rowe of MERDI, and Rick Griffith, Bert
Mooney Airport Manager and Chairman of the Board for the Port
of Montana.
The Executive Committee of BLDC's board of directors is now composed
of President Larry Walter of Norwest Bank; Vice President Irene
Humber of Harrison Avenue Realty; Secretary/Treasurer John Murphy
of the Montana Power Co.; Past President Dr. Tom Waring of Montana
Tech; Committee-member Bill Kebe of the law firm of Corette,
Pohlman and Kebe; and ex officio member Jack Lynch, Chief Executive
of Butte-Silver Bow.
- BLDC HELPS MYCOTECH TO GROW FUNGI AND
BUSINESS
MYCOTECH, a privately held corporation with 39 employees in its
three Butte offices, continues to expand its production capability
at its newest facility in the Butte Industrial Park.
MYCOTECH produces mycoinsecticides that use fungi to naturally
control pests in crops. They now produce 500,000 quarts of material
a year. One quart is enough to treat two acres. MYCOTECH broke
ground on its new $5.5 million Butte production facility in 1995.
According to Bob Kearns, MYCOTECH's President, "At the time
we were getting ready to build our new production facility, the
BLDC provided a small portion of the funding we needed but it
was the catalyst to get other funding sources involved. Their
involvement was critical.
"Without the help of the BLDC we would be somewhere else
or at least six months behind schedule," Kearns added. "MYCOTECH's
expansion in Butte has been made possible by a number of funding
sources.That is ideal because it helps spread the risk so that
no one funding source carries the entire burden of expansion,"
said Evan Barrett.
Barrett explained that the continuing expansion of MYCOTECH's
production capacity at its new facility was funded by more than
$2 million dollars of the corporation's own equity but it also
included $79,000 from the Southwest Montana Development Corporation,
$37,000 from the Anaconda-ARCO Fund, a $37,000 loan from the
Butte-Silver Bow county government, $340,000 from the Montana
Economic Development Administration (already paid back), $150,000
from USDA Rural Development funds through the BLDC, and financing
of $2.5 million dollars by the First National Bank.
MYCOTECH has 3.6 acres for its facility in the Butte Industrial
park and has optioned two adjoining acres for future expansion
which they may choose to use to consolidate their Butte operations
at the one site. With the introduction of a new product next
year for use in controlling pests in corn crops, this expansion
may not be too far away.
- EXECUTIVE DIRECTOR EVAN BARRETT WINS MEDA
PRESIDENT'S AWARD
At the most recent state-wide meeting of the Montana Economic
Developers Association (MEDA), BLDC Executive Director Evan Barrett
was awarded recognition by his peers for his contributions to
the area's and the state's economic development. Barrett was
the first recipient of MEDA's President's Award. This special
recognition award is the highest honor the organization has ever
bestowed upon one of its members.
In a letter to then-BLDC board president Tom Waring, Governor
Marc Racicot credited the work of Barrett and the BLDC with helping
not only the economy of Butte but of the whole state as well.
"Evan's experience in community building helps us better
understand what the state should be doing to help our local professionals,"
said Racicot. Racicot added "Montana would not be the special
place it is without people, like Evan, who are able to see the
big picture and willing to work hard to make dreams become realities."
At the same meeting, Jim Smitham of Butte, an economic development
specialist with the Montana Power Company and Jim Davison, Executive
Director of the Anaconda Local Development Corporation, were
elected officers of MEDA for the coming year -- Smitham as President
and Davison as Vice-President.
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