Stinger Plant
Partnership with Goldman Sachs Brings Innovative Financing and 100+ Jobs to Libby, Montana. Photo courtesy Montana Community Development Corporation.
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New facility
New fabrication facility in Libby nearing ompletion. Photo courtesy Montana Community Development Corporation.
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$17 Million New Market Tax Credit Project in Libby
by Montana Community Development Corporation
July 25, 2011
Montana Community Development Corporation (MCDC ) is excited to announce the closing of its biggest New Markets Tax Credit project to date - a $17 million industrial construction project in Libby, Montana. The partnership between MCDC, Stinger Welding, Inc, and Goldman Sachs will create over 100 new jobs at Stinger's steel fabrication plant, returning a major industrial employer to Libby.
After years of tough economic times and widespread health problems related to its history of vermiculite mining, residents of Libby, Montana received some great news this week. Stinger Welding Inc. will move forward with its plan to build a 105,000 square foot steel fabrication plant, bringing hundreds of jobs to this small rural town. The project was made possible through a partnership between MCDC, Stinger Welding and Goldman Sachs, and through the continued efforts of U.S. Senator Max Baucus to deliver Montana businesses the tools they need for economic development.
Construction of the new facility began in 2009, but has been delayed due to financing challenges. The deal came together as a result of the federal New Markets Tax Credit program written by Senator Baucus and through the Senator's efforts to profile Montana's business opportunities to national investors including Goldman Sachs at his 2010 Economic Development Summit. Alicia Glen, Managing Director and Head of the Urban Investment Group at Goldman Sachs, is pleased with the new partnership with MCDC, stating that "this is an ideal project for us to expand from our traditional expertise of urban investing to a rural community because of the rapid and significant impact it will have on the ongoing revitalization of Libby, Montana and the surrounding areas."
The New Markets Tax Credit program is a federal tax credit tool that provides incentives for private investment in projects that help revitalize low-income areas. Prior to 2008, the program had been used primarily in larger urban areas. Due to changes in the program, spearheaded by Senator Baucus in 2007, a portion of the tax credits were required to be invested in rural states.
"Folks in Libby need jobs more than ever and I couldn't be more pleased to see this opportunity going to work for a community that deserves an economic boost. MCDC has done a great job making the New Market Tax Credit program a viable option for Montana businesses to grow and prosper," said Baucus. "I'm thrilled they were able to impress one of the world's largest financial firms at our jobs summit and come up with this innovative way to create good-paying jobs here in Montana. This is great news for Libby and the future of Stinger Welding in the region."
Stinger chose Libby over several other plant locations because of its proximity to potential markets in the Northwest, direct access to rail line in the Kootenai Industrial District, lower comparable labor costs for skilled labor and the economic incentive package offered by Lincoln County, Libby and the State of Montana. "We are excited to move forward in the completion of our new fabrication plant in Libby," said Stinger President Carl Douglas. "Libby's workforce is full of the type of tough, hardworking and highly skilled individuals it takes to fabricate major steel bridges in the United Sates. We are proud of the support from the people of Libby, Lincoln County, and the State of Montana."
Stinger will hire workers at various skill levels, including those that have recently taken welding classes from the Flathead Valley Community College (FVCC). Stinger expects to hire over 100 workers providing excellent wages and benefits. Hiring has begun with applications taken through the Kootenai Job Service in Libby. Stinger expects the new construction to be complete in August with production to begin in the fall.
MCDC President David Glaser says that the Libby project is a perfect example of the New Markets Tax Credits at work. "This is a project that will have a huge impact in turning around the fortunes of this town that has seen its share of hardships. But it's a town that has so much potential. The business and community leaders of Libby recognize this potential, and with the help of the New Markets Tax Credit program they have been able to put their innovative plans to work for the whole community. MCDC is pleased to deliver the benefit of this program that Senator Baucus fought so hard to bring to Montana."
The Stinger Welding plant is MCDC's 6th New Markets Tax Credit Project overall with previous projects completed in Missoula, Butte, Bozeman and Helena.
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