Industrial Park Development discussed
Improvements to Kootenai Business Park, former Champion Mill site
January 25, 2007
The second of two public hearings on a plan by the Industrial District to ask the City and the County each to sign on applications for Community Development Block Grants of $400,000 apiece were held. The Industrial District wants the $800,000 to make repairs and improvements in the Kootenai Business Park, formerly the Champion Mill site. The Industrial District plans to seek matching funds from the Economic Development Administration to provide additional money in excess of a total million dollars for the Industrial Park.
The total project cost is 2.5 million to fix the site's rail, water, sewer, roads, power and truck scale.
If successful in obtaining the multiple grants, the money will be administered by the Kootenai River Development Company under contract to the Industrial District. According to Paul Rumelhart, the Economic Development Administration mandates an 8 percent administration fee.
Lincoln County Commissioner Rita Windom endorses the plan. The roads on the site are the county's responsibility, and the paving of the roads on the site would exhaust the entire District One road budget for one complete year. The paving project will cost some $800,000 dollars alone. Windom says that the roads must be paved because of the dust created on an industrial site and Libby's fragile air quality. But it is not just air quality that is her concern. It is money. If the county cannot come into compliance with EPA air quality standards, the county would lose federal funds. The county already stands to lose substantial funding if the Secure Rural Communities and Schools Act is not renewed by Congress. And a significant portion of that money goes to the Lincoln County road fund.
Paul Rumelhart, Director of the Kootenai River Development Company, says the $2.5 million dollar project will not cost Lincoln County or the City of Libby a dime. But all the pieces of the convoluted funding scheme have to fall in place. Any one of the pieces: The two CDBG's, the Economic Development Administration grant, and a 10-year, zero percent interest Rural Electric Development loan through Flathead Electric, must all come through or the funding fails.
Qualification for the funding is largely based on 53 percent of the county households income is below the $25,000 a year median income of combined Libby and Troy. Libby has a 16.3 poverty level, while Troy has a 27.5 poverty level.
Once the infrastructure is in place, the area would be annexed into the city and no cost to the city for the water, sewer and road improvements. The city will benefit in an increased tax base when the property is sold, and would receive revenue from charges for water and sewer services.
It will not be known if the grants make it until April or May.
Story by KLCB Libby News Radio, www.bestcountryaround.com
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