Continuing the Investment Success: Proven Programs for Montana’s Economy

Presentation Date Location

INTRODUCTION One Time Only or OTO refers to programs funded by the

legislature for a single biennium with no specific plans for continued funding.

Due to the demonstrated success of the these programs, MEDA and its partners will seek continued funding during the 2011 Legislative Session for the following: Food & Ag Development Centers

Workers Training Grant Program

Indian Country Economic Development Program

Montana Main Street Program

Montana Energy Promotion and Development Division

Incumbent Worker Training Grant Program

A Summary of Performance Measurements for each program…

Food & Ag Development Centers

Purpose of Program Created during the 2009 legislature as an answer to the continuous need for specialized

business development training in the food, value-added agriculture and alternative energy sectors

Designed to provide one-on-one technical assistance to small and expanding value-added agriculture and alternative energy businesses

Support critical infrastructure development needed for Montanans to process and distribute our agricultural products for markets in Montana and beyond

Risk if not Funded Failure to renew funding for the program would mean that small agriculture businesses

would struggle to find industry-specific training on business development activities in a challenging economic environment.

This will greatly decrease the likelihood for success of these entrepreneurs in a state that is dependent upon the growth of agriculture and small business to build and sustain its economic future. 

Food & Ag Development CentersStatistics from July 1, 2009 – June 30, 2010

Current Funding: $250,000 Number of Clients Served: 100 Number of Jobs Created/Retained: 189

(50 self employed) Total New Products brought to market: 56 Total Public and Private Sector Funds

Leveraged: $10,613,063

Food & Ag Development CentersSUCCESS STORY

Assisted:  Storm Water Construction, Inc. (23 employees)

Description of Need:  Business recognized that to continue to provide erosion control products (straw wattles and erosion control blankets), they would need to expand their operation to include erosion control products made with other materials (aspen products) to comply with new weed control mandates

Assistance Provided:  Helped business write a formal business plan that included their proposed expansion, obtain capital necessary to purchase equipment and complete the product line expansion, implement new business practices that would free up working capital

Outcome:  Business obtained funding to purchase additional equipment necessary for the product line expansion Business hired an additional 8 full time employees to supply raw materials and run equipment for the

expansion, increasing number of full time employees from 23 to 31 Business completed cash flow analysis and developed projections to assist them in implementing

practices that will help them free up working capital and increase efficiency

Dollars Leveraged:  $ 224,000

 

Worker Training Grant ProgramPrimary Sector Workforce, MT Dept. of Commerce

Purpose of Program Provide grant funds to existing and new Montana

businesses for workforce training and business expansion. Provide an essential incentive for new businesses to

locate to Montana Risk if not Funded

Loss of a competitive recruitment and retention tool that most states use to attract and expand businesses.

Loss of support for worker training programs which has already generated nearly 700 new jobs.

Worker Training Grant ProgramPrimary Sector Workforce, MT Dept. of Commerce

Current Funding: $2,526,626 per year Total Funds Awarded Fiscal Year 2009

through December, 2010: $3,421,148 Total Jobs Created: 844 Leveraged Funds Invested in Projects:

$89, 876,924 Annual Estimated Return to State General

Fund: $3,485,109

Indian Country Economic Development Program(ICED) Montana Dept. of Commerce

Purpose of Program Assist tribal members in Montana get hired into permanent full-time jobs, start their own

businesses, and improve their economic circumstances. Fund priority economic development projects identified by the Tribal Governments that

will allow the Tribal Governments to provide more employment opportunities and greater wages to their citizens over the long term.

Fund individual private businesses that are starting-up or expanding with small grants and technical assistance that helps to develop the private sector economy on the reservations in Montana and with the Little Shell tribe, and

Provide funding for entrepreneurial training to tribal members so that they have a better chance of success in starting and growing their own businesses.

Risk if Not Funded: The loss of support for new business and existing development on Montana’s

Reservations that have begun to show results in improving the economies of tribal communities.

Continuing issues with high under-employment, unemployment, poverty, and lack of economic opportunities on Montana’s Reservations.

 

Indian Country Economic Development Program

(ICED) Montana Dept. of Commerce

Current Funding: $800,000 per year Funds awarded through the three categories of ICED

activities for FY2010: $703,000 Funds leveraged from ICED (includes award from

First Interstate Bank Foundation): $5,682,427 Jobs Created, Retained, or Trained (does not include

numbers from the Indianpreneurship Training: 228 Matching Tribal Funds: $8.08 per dollar awarded

Montana Main Street ProgramMontana Dept. of Commerce

Purpose of Program Help communities strengthen and preserve historic downtowns by focusing on economic

development through organization, design, and promotion. Stimulate business investment, assist in retaining existing small businesses, promote new

businesses, strengthen the local tax base, create employment opportunities in downtowns, and generally enhance the economic vitality of downtowns and historic districts.

Provide downtown development and historic preservation technical assistance and expertise to communities of all sizes, based on their individual needs, without a requirement for paid staff.

 Risk if Not Funded Lower the tax base for municipal governments; decrease property values in the

downtown areas. Decrease the ability of local residents to maintain their community’s historic integrity

and residents’ sense of place and belonging. Small communities would not be able to afford to pay for the technical services that Main

Street communities currently receive. 

Montana Main Street ProgramMontana Dept. of Commerce (2009 Data)

Current Funding: $125,000 per year Net jobs created/retained: 106 Net businesses assisted: 45 Number of public improvements: 25 Value of public improvements: $2,985,768 Number of building improvements: 72 Value of building improvements: $1,047,375 Number of volunteer hours: 5,353

Montana Main Street ProgramMontana Dept. of Commerce (2009 Data)

Current Funding: $125,000 per year Net jobs created/retained: 106 Net businesses assisted: 45 Number of public improvements: 25 Value of public improvements: $2,985,768 Number of building improvements: 72 Value of building improvements: $1,047,375 Number of volunteer hours: 5,353

Montana Main Street ProgramSuccess Story

Assisted: Stevensville Main Street Association (SMSA)

Description of Need: To make Stevensville’s downtown more physically appealing, functional, and safe for pedestrians, cyclists, and motorists.

Assistance Provided: SMSA and WGM Group in Missoula developed the first phase of a much larger project that will initially cover the four blocks along Main Street from the junction with the Eastside Highway to the old feed mill building. The proposed design includes implementing pedestrian safety elements, such as extended sidewalks at the four intersections to assist pedestrians in crossing busy streets, new crosswalks, and repair of some slumps in the sidewalk. Eventually, the project will include new street lighting, benches, planters, and signage.

Outcome: SMSA and WGM secured $432,900 in Community Transportation Enhancement Program (CTEP) funds to develop design improvements for the downtown. Locally, SMSA raised $67,100 in matching funds to bring the project total to $500,000. Work is scheduled to begin in 2011.

Montana Energy Promotion and Development Division Montana Dept. of Commerce

Purpose of Program EPDD works with energy developers and producers both in the state and regionally to

expedite the growth and development new ‘clean and green’ energy efforts and the further expansion of existing ‘clean and green’ energy development.

Reflects State’s commitment to “clean and green’ energy development, conducts analyses of complex energy issues

Balances interests of private developers and the public sector Prepares and delivers written and oral communications intended to resolve conflicts

and achieve resolution to challenges effecting the development of energy projects.  Risk if Not Funded

Failure to renew funding for the program would result in the loss of efforts to coordinate and expedite the present and future development of energy production development for the benefit of Montana’s economy.

 

 

Montana Energy Promotion and Development Division Montana Dept. of Commerce

Statistics from Calendar Years 2009 – May 2010 Current Level Funding: $455,000 per year Number of Jobs Created Construction: 1680 Number of Jobs Created Permanent: 93 Number of projects completed: 11 Estimated capital investment in energy projects:

$2.049 billion Power generation capacity increase: 1073mw

Montana Energy Promotion and Development Division Montana Dept. of Commerce

Assisted: Tonbridge Power Corporation, parent company Montana Alberta Tie Line Limited (MATL).

Description of Need: Tonbridge has looked to the Energy Promotion and Development Division for assistance and guidance to successfully navigate through state and federal regulatory processes as well as other challenges. The MATL project is a 230 kV transmission line connecting Great Falls Montana with Lethbridge Alberta. The transmission line project will be the first completely private or otherwise known as “merchant”, power line to be built in the western US. The line has a bidirectional capacity of 600 MW and all of the line’s capacity is contracted to wind farms. Naturener USA will be constructing its 309 MW Rim Rock Wind Farm located in Toole and Glacier Counties with construction projected to commence in the second quarter of 2011.

Assistance Provided:  Quote from Tonbridge Power CEO Johan Van’t Hof : “Our company worked very closely with the Energy Promotion and Development Division over the last few years and we have benefitted consistently and greatly by the capable assistance the office has provided. It would have been almost impossible to navigate the approvals and other challenges that new project proposals face without such centralized support and assistance. Time and again we found the need for counsel, guidance and advice and found such to be invaluable in the Energy Promotion and Development Division.”

 Outcome:  The MATL line is currently being constructed with expected completion by the fourth quarter of 2011. 55 construction jobs and 10 permanent jobs; $730,000 in annual property tax payments; 

Dollars leveraged:  Total project investment is $209 million; with a $161million ARRA loan to the project by the Western Area Power Administration. The MATL project enables the Rimrock Wind Farm which will result in $800 million of investment, over 500 construction jobs, 30 permanent jobs and bring in $2 – $3 million in annual local property tax payments and an estimated $775,000 - $1.2 million in annual landowner lease payments.

Incumbent Worker Training Grant ProgramAdministered by Montana Dept. of Labor and Industry

Purpose of Program Provide training grants as an answer to the documented need for incumbent worker training for small

business employers. (Businesses with less than 20 employees in one location and not more than 50 statewide.)

Works with small business to provide training dollars to improve the job skills for incumbent workers, improving job security, and salary improvement. Provides grants to clients of the BEAR Program, MMEC, and/or SBDCs in the amount of

$1000 (part time) and $2000 (full time) per year to individual workers, and Provides grants to business with less than 20 employees in one location and or less than 50

employees statewide. A 20% match is provided by the employer.  Risk if Not Funded

Failure to renew funding for the program would mean that small businesses, hard pressed by a challenging economy, would continue to struggle to find adequate funding to provide training to improve the job skills and employability for incumbent workers.

 

 

Incumbent Worker Training Grant ProgramAdministered by Montana Dept. of Labor, in partnership with Governor’s Office of Economic Development, Montana Dept. of Commerce and Montana Economic Developers Association

Statistics from April 16, 2010 – September 10, 2010 Current Level Funding: $599,000 per year Number of Grant Applications Processed April 16 –

June 30, 2010: 46 (2.5 months in FY 2010) Number of Grant Applications Processed July 1 –

September 10, 2010 (2.5 months in FY 2011): 72 Total Amount Expended in six months: $117,000**

**Due to the rules process, the program could not be launched until April 16, 2010.

Incumbent Worker Training Grant ProgramAdministered by Montana Dept. of Labor, in partnership with Governor’s Office of Economic Development, Montana Dept. of Commerce and Montana Economic Developers Association

Statistics from April 16, 2010 – September 10, 2010 Current Level Funding: $599,000 per year Number of Grant Applications Processed April 16 –

June 30, 2010: 46 (2.5 months in FY 2010) Number of Grant Applications Processed July 1 –

September 10, 2010 (2.5 months in FY 2011): 72 Total Amount Expended in six months: $117,000**

**Due to the rules process, the program could not be launched until April 16, 2010.

Incumbent Worker Training Grant ProgramAdministered by Montana Dept. of Labor, in partnership with Governor’s Office of Economic Development, Montana Dept. of Commerce and Montana Economic Developers Association

Assisted: Timberline Fencing (total of 6 employees)

Description of Need: Timberline Fencing recently expanded and constructed a new manufacturing facility in the South Butte Industrial Park. As part of their expansion they purchased two new pieces of machinery, a chain-link weaving machine and a vinyl fencing double-headed router. The employees required training on the new manufacturing machines.

Assistance Provided:  The IWT program helped offset the cost of bringing in factory representatives to Butte to train the employees.

Outcome: 

The productivity of the employees increased dramatically

Proper operational training increased the safety for employees operating the machines

The training on the chain-link weaving machine allowed the production to double and allowed Timberline to fulfill an order of 400 panels used during the National Folk Festival in Butte

The training on the double-headed router will allow workers to double the production of vinyl fencing.  

Dollars leveraged:  The IWT grant of $8,000 helped offset a total training cost of $8,235

Continue the Investment Success:Proven Programs for Montana’s Economy

Thank You!