board of directors - Bear Paw Development Corporation

BEAR PAW DEVELOPMENT CORPORATION
BOARD OF DIRECTORS
Shaud Schwarzbach, President
At-Large Member
Lesley Robinson, Secretary
Phillips County
Wayne Wardell
At-Large Member
Lorraine Mulonet
City of Chinook
Bill Taylor
City of Harlem
Stan Klimas
Chouteau County
Rhonda Brewer
At-Large Member
Richard Sangrey
Rocky Boy’s Indian Reservation
Ken Engellant
At-Large Member
Doug Kaercher
At-Large Member
Jeff LaVoi
Hill County
Rick Morris
City of Fort Benton
Debbie Callahan, Vice President
At-Large Member
Jim Ghekiere, Treasurer
Liberty County
John Allen
Fort Belknap Indian Reservation
Leona Kienenberger
Little Shell Tribe of Chippewa Indians
Tim Solomon
City of Havre
Shyla Jones
City of Malta
Charles Kulbeck
Blaine County
Rachel Ghekiere
Town of Chester
Curtis Starr
At-Large Member
Rob Moog
At-Large Member
Greg Kegel
At-Large Member
Colby Baumgarn
Town of Big Sandy
BEAR PAW STAFF
Paul Tuss
Executive Director
Michele Turville
Director of Community Development
Pam Lemer
Infrastructure Specialist
Tiffany Melby
Value Added Agriculture Coordinator
Michelle Burchard
Director of Operations
Brittnee Zanto-DeLaRosa
Director of Loan Services
Brent Melle
Loan Technician
Krystal Steinmetz
Director of Community Planning
Joe LaPlante
Small Business Development Center Director
Bear Paw Development Corporation’s mission is to be the most responsive and relevant nonprofit economic and community
development organization in Montana, focusing on our five-county, two-reservation region of northern Montana. Timely, courteous
and knowledgeable assistance to our customers with their project development needs – every time – will be the hallmark of our
commitment. Our services will be delivered with honesty and integrity and will always be client-focused.
2013 ANNUAL REPORT
BEAR PAW DEVELOPMENT COORDINATES $8.9 MILLION FOR NORTHERN
MONTANA IN 2013; LEVERAGES $99 FOR EVERY $1 OF LOCAL SUPPORT
In 2013, Bear Paw Development was pleased to work with entrepreneurs, local government leaders and others
in northern Montana to coordinate the investment of more than $8.9 million into our regional economy. This
investment, in total, represents the work we engaged in to help build the communities we serve. As a multifaceted economic and community development organization, our efforts are continually aimed at attracting
private and public financing to create jobs, rehabilitate aging infrastructure, grow our economy and make
northern Montana a great place to live, work and invest.
We know this level of investment, particularly in a rural area, doesn’t occur in a vacuum. Through active partnerships with state and federal funding agencies, area banks, local and tribal governments, private industry and
community leaders, we have been able to significantly and positively influence the economy of our area in
2013, but also for the past 45 years.
It is important to note that for every dollar of investment Bear Paw Development received in 2013 from our
local government partners, our professional staff of economic and community development practitioners was
able to leverage an additional $99 from other sources in order to assure the success of dozens of worthwhile
projects.
Bear Paw’s work in 2013 to foster
investment in our five-county
BPDC PROGRAM/ACTIVITY
INVESTMENT
region is summarized in this chart.
Value-Added Agriculture and Alternative Energy
$623,992
Infrastructure Construction
$7,150,457
Small Business Counseling
$908,710
Business Lending
$1,274,724
Regional Economic Development Capacity Building
$96,179
TOTAL INVESTMENT FOR 2014
$8,984,190
*Total does not equal the sum of
individual program/activity investments.
This is to account for the collaboration
between BPDC departments and personnel
on specific projects. Lower figure is used
to avoid double-counting investments
secured through BPDC.
BIG SANDY MEAT SHOP GROWS THROUGH COLLABORATION OF BEAR
PAW’S FOOD AND AGRICULTURE DEVELOPMENT CENTER AND LOAN
DEPARTMENT
In November of 2012, Big Sandy Meat Shop contacted the Bear Paw Food and Agriculture Development Center for assistance in completing a Growth Through Agriculture Program application for the purchase of a larger, more energy efficient freezer to be used in their operation. Big Sandy Meat Shop is located in Big Sandy
and serves a wide range of customers throughout the region, extending from the Sweet Grass Hills to eastern
Montana. They specialize in processing livestock for area ranchers and recently began carrying retail products
from Vaughn Meats that they are selling in-house as well.
Big Sandy Meat Shop has had three different owners since its founding in
2006. When current owner, Jim Dumas, first contacted Bear Paw’s
FADC, the operation had increased production numbers substantially and
was beginning to find it difficult to keep up with demand. Minimal freezer
space was also hampering their ability to keep up with customer requests
for the high quality service of the business. Given the constant traffic, it
was imperative that Big Sandy Meat Shop have both of its butchers on the
floor for as many hours as possible throughout the work day, and not
spending up to six hours every shift moving product between freezers. In
January of 2013, Big Sandy Meat Shop, through the assistance of Bear
Paw’s FADC, submitted an application requesting GTA funds for $7,700
for the freezer expansion and was successful in securing the funding. The
freezer was delivered in August and set-up and installed in October.
Jim Dumas, Big Sandy Meat
Shop owner, butchers a
local 4-H steer
In September of 2013, Big Sandy Meat Shop decided that their operation
was in need of an operating note and contacted Bear Paw’s FADC again.
Our FADC worked with the business to compile the necessary financial
information to complete a loan application, which was then submitted to
Bear Paw Development’s Loan Department. In December 2013, Bear
Paw’s RLF Loan Review Committee approved the application for funding.
Bear Paw looks forward to continuing to work with Big Sandy Meat Shop as they plan for their next stage of
expansion.
FINANCING AND BUSINESS COUNSELING HELP CREATE OR RETAIN 78
JOBS FOR REGION
One of the key indicators of the important role that Bear Paw Development plays in growing our regional
economy is the work that is accomplished with our business partners to help them secure the financing they
need to start-up or grow their enterprise. We accomplish this
goal in a number of ways, including direct investments
through our revolving loan fund, financing for our clients by
area banks, business plan development assistance and other
counseling services and by providing access to public programs that are designed to help worthwhile, job-creating projects succeed.
In 2013, through Bear Paw Development’s Small Business
Development Center, Loan Department and Food and Agriculture Development Center, we were able to assist the region’s business community create 30 new jobs and retain another 48 existing jobs. This work was often accomplished
through collaboration between the departments of Bear Paw
and always involved an existing business owner or aspiring
entrepreneur wanting to start or expand a private enterprise in
our region.
“A total of 78 jobs either being
created or retained by private
industry in our rural area is
significant and speaks to the health
of our regional business community
and the value of the work our
organization engages in every year
to help Main Street businesses
succeed and grow.”
- Paul Tuss,
Executive Director
Bear Paw Development
“A total of 78 jobs either being created or retained by private industry in our rural area is significant and
speaks to the health of our regional business community and the value of the work our organization engages in
every year to help Main Street businesses succeed and grow,” Paul Tuss, Executive Director of Bear Paw Development, said. “The partnerships we have nurtured with our small business clients have helped them be successful, and there’s hardly anything more important and rewarding than knowing that our work is making a
difference and providing jobs to families right here in northern Montana.”
QUILTERS CORNER OPENS ITS DOORS IN HARLEM
Tameria Perry was referred to Bear Paw Development’s Small Business Development Center by another client
of the SBDC, given Tameria’s interest in starting a sewing and quilting business in Harlem. Tameria wanted a
store where she could sew and sell her star quilts, but also retail various other Native American items. Her
needs included developing a business plan, financial projections and assistance in completing her loan application.
Within a couple of weeks, Tameria had her business plan completed and was requesting feedback from Joe
LaPlante, Bear Paw’s SBDC Director. She made changes to her marketing analysis and better defined her target market. She next worked with the SBDC to compute and fine-tune her financial projections. With the
SBDC’s assistance, she was able to determine the dollar amount and time that was required from her to complete one star quilt. This helped to discover what price to charge and how many quilts she needed to sell to
break even.
Having finished her business plan and financial projections, she was ready to begin completing the paperwork
required to obtain financing through Bear Paw Development’s Loan Department. Through several meetings
and ongoing communication, Tameria finished her paperwork in quick order and her
loan request was ready to be considered by
Bear Paw’s loan review committee, which
approved her request.
After receiving financing, Tameria opened
Quilters Corner in time for the holiday shopping season, and she was able to complete
orders locally, regionally and across the
United States. She has also exported her
quilts to Canada. She is currently building her Tameria Perry opens Quilters Corner in November 2013
business by expanding her retail offerings and continuing to produce one-of-a-kind star quilts. In the future,
she hopes to offer quilting classes to community members. Quilters Corner has one full-time and one part-time
employee.
MULTIPLE PROJECTS UNDERWAY AS CTEP COMES TO AN END
The Montana Department of Transportation’s Community Transportation Enhancement Program (CTEP) has
been a well-used funding mechanism in the Bear Paw District for many years. Communities in the Bear Paw
District have utilized the Program in the past to complete sidewalks, walking paths and bike trails, and historic
preservation projects related to transportation. As the federal government did not reauthorize the program in
their most recent transportation bill, the Program is now winding down and communities are planning projects
to use their remaining funding. Numerous projects throughout our five counties were completed in 2013, with
several more in the planning stages for 2014.
Turner’s sidewalk project was an undertaking that was near and dear to former Bear Paw Development Board
Member and Blaine County Commissioner Vic Miller. Years in the making, the project finally went to construction in the spring of 2013, and was completed in July. The Blaine County Commissioners held a special
dedication ceremony on July 17, during which the sidewalks of Turner were dedicated in Vic’s memory.
The Havre Atrium Mall has been looking for ways to improve their sidewalks for several years, and the City of
Havre sponsored a CTEP application that allowed them
to complete the renovation in the summer of 2013. The
Atrium presented a bit of a challenge, as it resides over a
part of the Havre Beneath the Streets underground tunnel
system, originally built in the early 1900’s, and written
records of exactly what was beneath the sidewalks could
not be found. Fortunately, with the exception of one
concrete wall that was built into the existing sidewalk
structure, no unique challenges were found, and the project was completed in July.
New sidewalks around the Atrium building in
downtown Havre
The Malta Trails organization has partnered with Phillips
County to construct bike paths and pedestrian bridges in
Malta. They received a Recreational Trails Grant from
Montana Fish, Wildlife, and Parks to assist in funding the
project. The project is currently in the design phase, and
is slated to be completed in 2014.
Two communities in the Bear Paw District chose to repair their sidewalks at City Hall with their CTEP allocation. Fort Benton recently completed sidewalk construction and landscaping in front of City Hall, and Harlem
New sidewalks and banister at Harlem City Hall
awarded their City Hall sidewalk project in July of 2013,
and was substantially completed in November. The Senior Citizens Center in Havre also recently completed additional repair work on the sidewalk areas around the
building.
As with all projects, planning is a large portion of the
overall success of CTEP. The City of Chinook is currently reviewing plans to replace sections of sidewalk on
Indiana Street, and Hill County is in the planning stages
of restoring the terra cotta exterior of the Hill County
Courthouse. The City of Havre has also committed CTEP
funding to the Hill County Courthouse project, as well as
landscaping and sidewalks at the Havre slow-pitch softball fields.
In addition to these new projects, several communities
are also scheduling public hearings to determine the best
use of their remaining CTEP funds.
BEAR PAW FOOD & AG CENTER
RECERTIFIED BY DEPARTMENT
OF AGRICULTURE
The Montana Food and Agriculture Development Center
Network has experienced
much success over the
course of the past several
years. Although statewide
Network impact figures for 2013 have not
been tallied as of this writing, the 2012 figures
showed a 24% overall increase in clientele.
The FADC Network is the only economic development program in Montana that specifically
targets regional food and value-added agriculture business development, and farm-derived
renewable energy projects. In 2011, the Montana Legislature cut funding for the program
from the originally appropriated amount of
$250,000 to $195,000. As the Network has
continued to grow and thrive across the state
it became apparent that more funding was
needed. Following a significant and coordinated effort by economic development professionals and clients during the 2013 Legislature,
the appeal to increase funding to the FADC
Network was successful. The final result last
year in the Montana Legislature was an appropriation increase of an additional $105,000 to
the Network for the 2014-2015 biennium.
After the additional funding was secured, the
Montana Department of Agriculture issued a
Request for Proposal for the four Network centers. Bear Paw’s FADC submitted a proposal
and was successful in retaining its designation
as a Food and Agriculture Development Center. We look forward to continuing to serve
the needs of northcentral Montana’s agricultural entrepreneurs in 2014 and beyond and
thank those of you who supported the FADC in
the last legislative session and as part of Bear
Paw’s response during the RFP process.
BROWNFIELDS SUCCESS IN BEAR PAW DISTRICT LEADS TO NEW
$400,000 GRANT PROPOSAL
The federal Environmental Protection Agency first awarded Bear Paw Development Brownfields Assessment Grant funds in 2009. These funds have been used to
assess commercial properties for environmental contamination or suspected contamination. The assessments have taken place throughout Bear Paw’s five-county
region, including the Rocky Boy’s Indian Reservation. The program was successful enough that it was necessary for Bear Paw to request additional funds in 2011,
which were awarded. Bear Paw recently applied for its third assessment grant to
the EPA and will know the result in the spring of 2014.
Through these two prior grant awards, Bear Paw was able to conduct 18 Phase I and 18 Phase II environmental assessments. We also helped property owners leverage an additional $318,264 from the State of Montana’s Petro Fund and another $399,424 in funds from the Montana Department of Natural Resources and
Conservation.
Currently, Bear Paw has just a small amount of assessment funds remaining. Hence the need to apply to the
EPA for an additional investment of funding that will allow us to continue this important and popular service
we provide to our region to truly determine the extent of environmental contamination that may exist at sites
that are abandoned or underutilized.
In late 2013, Bear Paw engaged the services of NewFields Environmental to assist in developing a competitive
grant application to replenish the funds in our assessment program. This was made possible through a generous grant by the DNRC. As part of this grant application process, Bear Paw completed an extensive outreach
effort in December to the communities of our Economic Development District to collect ideas about sites that
are known to be contaminated or are perceived to be contaminated that would be good candidates for an environmental assessment. This outreach component included meetings with business groups, bankers, environmental and civic organizations, education leaders and interested residents of our area.
Through these conversations, approximately sixty sites were identified as locations that could be considered
for future assessments, with an eye toward the potential redevelopment of these locations, or taking them from
sites that are currently underutilized to sites that would be attractive for business development and economic
revitalization.
Bear Paw Development looks forward to continuing to manage a robust and successful Brownfields Program
in our region for years to come.
LOAN DEPARTMENT APPROVES $861,010 IN BUSINESS FINANCING IN 2013
Bear Paw Development saw an increase in requests for small business financing through our Loan Department
in 2013. For the year, we managed to assist several area entrepreneurs with business purchases, expansions,
and updates. In total, Bear Paw Development, through its revolving loan fund, approved $861,010 in financ-
ing for ten businesses in northern Montana. This amount leveraged an additional $413,714 through owner equity and bank financing. This lending activity helped the private sector to create 10 new jobs and retain another 39.
The business lending activity of Bear Paw in 2013 increased
62% when compared to 2012.
“Six of the ten loans approved in 2013 occurred in the last
quarter. However, the trend remains similar to that of 2012,
which is that potential borrowers are requesting relatively
small loan amounts, but the number of applications we received seemed to increase on a monthly basis,” said Brittnee
Zanto-DeLaRosa, Director of Loan Services. “It is also apparent that our bank partners continue to recognize the importance of the financing that Bear Paw Development offers
to businesses, as many of the loans we approved also included bank financing.”
Zanto-DeLaRosa also noted the important relationship be-
“Six of the ten loans approved in
2013 occurred in the last quarter.
However, the trend remains similar
to that of 2012, which is that
potential borrowers are requesting
relatively small loan amounts, but
the number of applications we
received seemed to increase on a
monthly basis.”
- Brittnee DeLaRosa,
tween Bear Paw’s Loan Department and the organization’s
Director of Loan Services
Small Business Development Center. “When our business
Bear Paw Development
clients receive a loan from Bear Paw Development, it’s important for us to provide them with all the resources they may need to be successful. Technical assistance and
business counseling through the SBDC is a critical component in helping our small business customers know
we care about them and have the resources to answer their questions and help them on their journey of entrepreneurial success,” she said.
Last year also saw the trend continue of a large number of Bear Paw’s clients paying off their loan with the
organization. During the year, 14 small business loans were repaid in full, which resulted in over $1.8 million
of principal repayments to Bear Paw. This demonstrates the success of these businesses, but also allows Bear
Paw the opportunity to re-lend these funds to other entrepreneurs in Bear Paw’s region. Of the 14 businesses
that paid off their loan with Bear Paw, six qualified for traditional bank financing, two paid off as per the
original term of the loan agreement, five businesses were sold or liquidated and one business paid their loan
ahead of time due to increased cash flow.
One particularly noteworthy loan from 2013 is the investment Bear Paw Development made in Triple Dog
Brewing of Havre, which is opening its doors in early 2014. Please see the story later in this Annual Report
that highlights Triple Dog Brewing.
CITY OF CHINOOK ADJUSTS PROJECT SCOPE TO ASSURE HIGH QUALITY
DRINKING WATER
In 2011, the City of Chinook hired Morrison-Maierle to complete a Preliminary Engineering Report (PER) for
the City’s water system. With assistance from Bear Paw Development, the City submitted applications to the
Treasure State Endowment Program (TSEP), Renewable Resource Grant and Loan Program (RRGL) and
USDA Rural Development (RD) to fund the approximately $3.2 million project.
Early rankings from both TSEP and RRGL resulted in the project being funded by both programs. To further
emphasize the importance of the project, the Mayor of Chinook and water plant operator testified before the
Joint Committee on Long Range Planning during the 2013 Legislature. Within a few weeks of the hearing that
included Chinook’s project, the Committee recommended funding all TSEP and RRGL projects. The House
and Senate overwhelmingly supported this recommendation, and Governor Bullock signed legislation in May
2013 to fund these local government infrastructure projects.
During the spring and early summer of 2013, the area received higher than normal amounts of rainfall. This
proved to be very troublesome to the operators of Chinook’s water plant. As a result, the City needed to expedite implementation of the Phase 2 recommendation of the PER to maintain the ability to produce quality
drinking water. The City, with assistance from Bear Paw, coordinated an effort to explain the difficult situation to its funding agencies. Unfortunately, TSEP guidelines require significant justification to alter the scope
of work approved by the Legislature. However, the City was able to slightly alter the budget for its RRGL
grant to use funding to adjust the project. RD allowed the City to submit an updated PER and application,
combining Phase 1 and Phase 2 into one complete project.
Throughout the summer and fall of 2013, the City worked with their engineers to develop a comprehensive
FINANCIAL INSTITUTIONS CONTINUE SUPPORT OF SMALL BUSINESS
DEVELOPMENT CENTER
In 2013, commercial banks in Bear Paw Development’s region, who also encourage their clients to use the
services of the Small Business Development Center, contributed over $6,000 in funding to help provide
the matching funds that are required by the U.S. Small Business Administration. The SBA provides Bear
Paw’s SBDC with an amount that must matched dollar-for-dollar, and an important part of this match
comes from these contributions. This generosity by our region’s banking community allows the SBDC to
continue to provide free counseling and training activities to clients, enabling them to reach their preventure and expansion goals.
Bear Paw Development and its Small Business Development Center would like to thank the following
financial institutions for their continued support:
• First Bank of Montana - Chinook
• First Security Bank of Fort Benton
• Independence Bank of Havre and Malta
• US Bank of Havre
• Montana Community Finance Corporation - Helena
project that would not only solve the issue of disinfection by-products the City has been experiencing, but also
provide pre-treatment measures to ease the wear and tear on the water plant. The new project consists of improvements to the raw water intake, the addition of a pre-sedimentation basin, and the replacement of the
package filtration system, as well as electrical and plant control systems. The project is now estimated at $5.2
million.
While the City recognizes the necessity of the comprehensive project, the City Council is sensitive to the resulting debt that will be required and the impact that will have on users of the system. The City continues to
work with their engineers, Montana Rural Water and Bear Paw Development to ensure that Chinook residents
receive high quality water at an affordable rate.
CARTER-CHOUTEAU COUNTY
WATER AND SEWER DISTRICT
COMPLETES DRINKING WATER
PROJECT, RETAINS EPA
COMPLIANCE
The Carter-Chouteau County Water and Sewer
District has been diligently working for many
years to improve their water system. The District’s
2004 Preliminary Engineering Report (PER) and
2006 PER Amendment recommended various improvements. The District completed these improvements during 2006-2008. While this was a significant step forward for the District, there were still
federal compliance issues to be addressed.
In July 2009, the Environmental Protection
Agency (EPA) issued an Administrative Order to
the District requiring filtration with disinfection at
the infiltration gallery within 18 months or to permanently disconnect from the water source, which
is the Missouri River. With no alternative water
source available, the District is obliged to provide
the required treatment or no longer serve drinking
water to its users. The District was successful in
extending the EPA’s deadline to allow grant applications to be submitted to fund the required additional treatment.
In 2010, the District submitted applications to the
Treasure State Endowment Program (TSEP),
SBDC PROVIDES ESSENTIAL SMALL
BUSINESS TRAININGS
In 2013, our Small Business Development Center offered
QuickBooks training in Fort Benton, as well as customer
service and social media trainings in Malta. The Introduction to QuickBooks training was held over five weeks and
16 individuals learned about payroll, customization, lists,
setting up new asset and liability accounts and working
with all built-in reports. Triangle Communications partnered with the SBDC by allowing use of their mobile computer lab so participants could learn from a hands-on approach. Partnering with Phillips County Economic Growth
Council (PhillCo) in Malta, the SBDC held monthly customer service workshops, where more than 40 participants learned to create a better customer experience and
work environment. These classes focused on segments of
the hospitality industry, including retail, lodging and restaurant businesses. The lessons included how to deal
with extreme customers, and how to make a great first
and last impression.
Given that social media has grown rapidly in the last few
years and is now a key to small business success, the
SBDC again partnered with Triangle Communications and
PhillCo to help coordinate training on this hot topic.
More than ten entrepreneurs mastered the skill of navigating Facebook for their business, including setting up
their own accounts. These business owners also learned
how to utilize social media to boost their bottom line,
while keeping expenses to a minimum.
SBDC COUNSELS 70
ENTREPRENEURS, SECURES
$903,000 IN BUSINESS
FINANCING IN 2013
In 2013, Bear Paw’s Small Business
Development Center counseled 70 clients,
helping them with all aspects of their small
business start-up or expansion needs. Of
these 70 clients, 29 were long-term clients
and 19 were extended engagement clients.
The SBDC assisted with one SBA loan that
was approved for $160,000 and helped to
secure multiple other loans with a total
value of $743,710. Thus, in 2013, the SBDC
helped small businesses secure $903,710 in
financing. This assistance helped to start six
new businesses, while creating or retaining
22 jobs. The State of Montana’s Incumbent
Worker Training Program also continues to
be a success in our region, as the SBDC
approved seven applications last year to
help existing businesses further train their
existing workers.
SBDC 2013
BY THE NUMBERS

70
Clients Counseled

$903,710
Regional Economic Impact

6
New Businesses Started with
SBDC Assistance

7
Incumbent Worker Training
Grants Approved
USDA Rural Development (RD), the State Revolving Loan
Fund (SRF), and sought a federal appropriation (WRDA) to
construct a new water treatment plant to address the filtration
issues and treat for arsenic. The proposed project was expected to cost the small District $1.9 million. The 2011 Legislature approved the application submitted to TSEP for
$750,000. While this amount of grant funding represented
over one-third of the project cost, the remainder of the funds
would need to come from loans.
The District’s Board of Directors expressed concern that the
users of the system would not be able to afford the water rate
increase required to service that amount of debt. The District
and their engineers, Great West Engineering, worked with
the EPA to develop a less-expensive alternative, while still
meeting the compliance requirement set forth in the Administrative Order. In 2011, the EPA recommended and approved the installation of a cartridge filtration system instead
of a new water treatment plant. This new alternative greatly
reduced the scope of the project as well as the projected cost,
which was now approximately $341,000.
The next step was to convince TSEP that the cartridge filtration system project would solve the issues outlined in the
grant application. In November 2011, TSEP approved funding the new project, awarding the District $252,000. This
amount was 50% of the total project cost. The District would
finance the remaining amount through an SRF loan, with
50% of the new loan amount forgiven as part of the SRF Program’s loan forgiveness program.
During the process of finalizing the design and specifications
for the project as well as coordinating the financing, the District was notified by Senator Max Baucus’s office that they
would receive an $85,000 WRDA grant. With these additional grant funds, the District was more confident that the
users would be able to afford the necessary monthly rate increase of $45 per user.
With all funding in place and with support of the water users,
construction began on the project in late 2012, continuing
through the early part of 2013, with Substantial Completion
issued in April 2013. Throughout construction, the District maintained contact with the EPA to report progress. Final close-out of the project was granted in October 2013.
Through the hard work and dedication of the District’s Board of Directors, the engineering firm, federal and
state funding and regulatory agencies, and financial coordination and management by Bear Paw Development,
the District is now in full compliance with all state and federal drinking water guidelines.
BEAR PAW HELPS YOUNG ENTREPRENEUR BUILD TRIPLE DOG
BREWING COMPANY, REGION’S FIRST MICROBREWERY
In September 2013, Bear Paw Development helped
make Michael and Erin Garrity’s dream of owning a
microbrewery a reality. With the expected opening
of Triple Dog Brewing in February 2014, there is
much anticipation in Havre and the entire region.
The thrill of this unique social setting, along with a
locally brewed micro-beer seems to have grabbed
the attention of many individuals in the area. Triple
Dog Brewing will be conveniently located on US
Highway 2 in Havre at 675 First Street West.
As the success and popularity of microbrews has grown, Triple Dog Brewing will be the only brewery offering homemade microbrew products within 110 miles of Havre, and will be the only microbrewery in
northern Montana between Wolf Point and the Flathead Valley. The brewery will offer seven different
beers, all manufactured on site, with the option of purchasing either pints or growlers.
Bear Paw Development’s Small Business Development Center and Loan Department worked side-by-side
with Michael for over a year to help prepare a well developed business plan that will help guide him to
success. This included researching other microbrewery operations and local competition to develop a
pricing strategy. Bear Paw also assisted in locating equipment and supplies that would be necessary for
this start-up venture. Michael has relied on area investors, including family members, to also help launch
this exciting new business opportunity.
Once Triple Dog Brewing is off and running, Michael has plans to grow the business to allow for his beers
to be distributed statewide. In the meantime, Havre and the region anxiously await the opening of our
first microbrewery.
BEAR PAW DEVELOPMENT RECERTIFIED AS HOST OF SMALL BUSINESS
DEVELOPMENT CENTER BY MONTANA DEPARTMENT OF COMMERCE
The Montana Department of Commerce recertified Bear Paw Development Corporation in 2013 as the regional host for the Small Business Development Center that serves a large five-county region of northern
Montana. The Department of Commerce approved Bear Paw’s recertification application for a seven year period, or through 2020. Bear Paw Development is one of nine regional host agencies spread throughout Montana and has served in this capacity since 1993. The services of the SBDC are available free of charge to aspiring entrepreneurs and existing business owners and provides area financial institutions with a centralized
location in which to send their clients to receive business counseling.
BEAR PAW DEVELOPMENT AWARDS $133,600 BROWNFIELDS RLF TO
BULLHOOK COMMUNITY HEALTH CENTER FOR ASBESTOS AND
LEAD-BASED PAINT CLEANUP
For years, the residents of Havre and the surrounding area have recognized the need for additional affordable healthcare options to be offered to local residents. Bullhook Community
Health Center (BCHC) is doing just that, but is now constructing a new facility in which to operate. The new BCHC will be located in the heart of Havre at 521 Fourth Street, directly across
from City Hall. The clinic will offer both medical and dental services under the same roof for
the residents of Havre and Hill County. Bullhook’s staff is currently made up of one Board Certified Family
Practice Physician, one Family Nurse Practitioner, one part-time Pediatric Nurse Practitioner, two Dentists and
one part-time Hygienist. Including clerical staff, Bullhook has a total of 29 employees.
The BCHC purchased the Heberly
Engineering office building, a former
church, and a garden shed that were
all built in the 1930s, a time during
which many buildings were constructed with materials that contained
asbestos, lead, mercury, and PCB’s.
Environmental testing of the site was
completed by Safetech, a firm from
Billings. The testing confirmed the
presence of environmental contami- An architect’s rendering of the new Bullhook Community Health
nants, and so an action plan was de- Center, which is expected to be complete by July 2014
vised to remove the asbestos and lead-based paint in the older structures prior to them being demolished to
accommodate the new clinic building.
Bullhook applied to Bear Paw’s Brownfields Revolving Loan Fund for a loan to cover the abatement cost to
remove the asbestos and lead-based paint. Bear Paw approved a loan to Bullhook in the amount of $133,600
for this purpose, with the work to commence prior to the demolition of these structures. The Montana Com-
munity Development Corporation of Missoula also assisted the BCHC with this aspect of the project by
awarding $33,400 under New Market Tax Credit financing to meet the 20% match requirement that is part of
the Brownfields RLF guidelines. The federal Health Resources and Services Administration awarded Bullhook
a grant of nearly $5 million to construct the new health center.
Demolition of the buildings took place in August 2013 and there is an expected completion date for the new
clinic of July 15, 2014.
INFRASTRUCTURE ENHANCEMENTS HIGHLIGHT 2013 FOR COMMUNITY
DEVELOPMENT DEPARTMENT
Bear Paw’s Community Development Department experienced a full array of project activities in 2013. From
writing planning grants and coordinating legislative activities for early-stage project development to preparing
final documents for project close-out, the Community Development Department had a very active year in
2013.
The year began like every one in which the Legislature is in session,
including following the status of funding bills for the Treasure State
Endowment Program (HB 6) and the Renewable Resource Grant and
Loan Program (HB 11). When initial project rankings were released,
the Bear Paw District had three projects recommended for funding by
TSEP and three by RRGL. During the week of January 14, all projects
were represented at the hearings of the Joint Committee on Long Range
Planning. By January 25, the Committee had recommended all projects
be funded under TSEP and RRGL. While this was a gracious step forChinook representatives, with
RRGL staff, preparing to testify
ward, the bills still needed to pass the full House and Senate. Bear
at the 2013 Legislature
Paw’s local government member entities did a great job contacting area
legislators to encourage support of HB 6 and HB 11. Both bills passed by large majorities in both houses and
were signed by Governor Bullock in May. Below are the projects funded and the grant amounts awarded:
Project
Chinook Drinking Water Improvements
Havre Wastewater Improvements
Fort Benton Wastewater Improvements
Malta Drinking Water Improvements
Harlem Wastewater Improvements
Hill County (North Havre) Wastewater Improvements
Blaine County Bridges
Chouteau County Bridges
Hill County Beaver Creek Dam
Total
TSEP Awarded
RRGL Awarded
$750,000
$625,000
$750,000
$500,000
$625,000
$211,500
$254,000
$178,920
$100,000
$100,000
$100,000
$100,000
$98,321
$3,894,420
$498,321
Our Community Development staff also assisted the above water and wastewater improvement projects to secure additional funding through the submission of applications to USDA Rural Development (RD) and Montana’s Community Development Block Grant Program (CDBG). By the end of 2013, the Hill County (North
Havre) Wastewater project had also been awarded $211,500 in CDBG funds, making this project fully grant
funded.
Construction began or resumed on several projects in 2013. Progress continued on Big Sandy’s Wastewater
Improvement Project as the construction contract was awarded in April. Work continued through the middle of
October, when the contractor requested a winter shut-down. Construction is set to resume in May 2014.
Blaine County continued their effort to upgrade
their bridge system. Phase 3, consisting of Yantic,
30 Mile and Forgey Bridges, was completed and
final close out was issued in the early part of the
year. Phase 4, consisting of Corral Coulee, People’s Creek and Battle Creek Bridges, began construction during the latter part of the year. Improvements on Corral Coulee Bridge were completed with the placement of a 3-sided concrete
culvert and the road restored. Battle Creek Bridge
Work on Corral Coulee Bridge in Blaine County
needed to be fully replaced, and preliminary work
has been completed with the new bridge scheduled to be installed in February 2014. Work on People’s Creek
Bridge will begin in spring 2014, as soon as weather permits.
The North Havre County Water District saw their project move to construction by awarding the contract in
early winter. The contractor is now working to submit all required documentation, and construction is expected to begin in early spring 2014.
While the plan is for all projects to go smoothly, complications seem to be a normal part of many of the complex and multi-faceted projects Bear Paw works on. During the final design of the roof and boiler replacement
project at the Havre Eagles Manor, asbestos was discovered in the roof and in the insulation of the large boiler
pipes. Staff members from Bear Paw’s Community Development and Loan Departments worked with the Eagles Manor and Hill County Commissioners to submit an application to Bear Paw’s Brownfields Program to
assist with the asbestos abatement. The Eagles Manor was awarded a $48,000 sub-grant for this purpose and
progress has resumed on the project. Construction is expected to be completed before the fall of 2014.
Bear Paw’s Community Development staff also wrote planning grants to TSEP and RRGL for the preparation
of Preliminary Engineering Reports for the following three projects:
• City of Havre Storm Water Improvements
• Town of Big Sandy Drinking Water Improvements
• Chouteau County Bridges, Phase 2
In addition to these projects, Bear Paw has also begun the process of preparing grant applications for improvements to the Town of Chester’s wastewater system.
Our Community Development Department would like to thank all of our local government member entities for
their ongoing dedication to their projects. We have seen great progress in the past year on important infrastructure improvements in our region due to the steadfast support of our local government partners. We look
forward to continuing this progress in 2014.
COUNTYWIDE GROWTH POLICY UNDERWAY IN BLAINE COUNTY
Blaine County will soon have a countywide Growth Policy. The Blaine County Commission and the Blaine
County Planning Board are working with WWC Engineering to develop the policy, also referred to as a Comprehensive Plan. Bear Paw staff is helping to administer the project, on the County’s behalf.
A Growth Policy is essentially a roadmap for the County
to envision its future and work proactively to achieve it,
rather than reacting and moving from one short-range,
quick-fix solution to another as events occur. A Growth
Policy is an official public document adopted and used by
a local government as a general guide for development
and conservation decisions. It is not a regulatory effort;
rather, it is an official statement of public policy to guide
growth and change. The document addresses a number of
elements, including, but not limited to, the following:

Community goals and objectives

Maps

Descriptions and trends for land use, population, housing needs, economic conditions, local services, public facilities, and natural resources

Strategy for development, maintenance and replacement of public infrastructure

Implementation policy
In an effort to gather public input for the document, the Planning Board hosted a series of countywide community meetings in October. A needs assessment survey was also distributed across Blaine County, and made
available electronically using SurveyMonkey.
The Growth Policy is financed, in part, by a $27,285 Community Development Block Grant, in addition to
County funds and in-kind contributions from Bear Paw Development Opportunity Link.

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