Friday, 07 August 2009 07:47
A lot of issues were covered in the course of this month’s regular meeting of the joint boards for the Big Sky Economic Development Authority (BSEDA) and the Economic Development Council (EDC).
BSEDA/EDC Director Steve Arveschoug reported that the Montana Business Incubator needs to be looked at and perhaps revamped. The incubator, which is located on the MSU-Billings campus lacks funding to continue, said Arveschoug. It’s former director Dave Stoltenberg has resigned.
Arveschoug said that he has met with Chancellor Ron Sexton to discuss the matter and to “look at planning money to re-do it.” Over the past several months, said Arveschoug, the University has been doing most of the work associated with the incubator.
He said that the incubator has a vested interest in three to four companies, and if they grew it would have some financial return. One board member said that it needed those kinds of revenues to sustain it’s self, otherwise it is just “pie in the sky.”
Dale Dietrich, Field Engineer for the Montana Manufacturing Extension Center, has said that the incubator could benefit his clients “if it was focused in a certain direction,” said Arveschoug.
Two members of the BSEDA board are supposed to be on the Incubator’s board, but they have not been active. Arveschoug said they need to appoint two people to assume those positions.
Having hired a new staff member to assist the BEAR (Business Expansion and Retention) program, they are now planning to hire an assistant for Brandon Berger who manages EDC’s loan department.
It was noted that a loan from the Revolving Loan Funds has been paid off early by one business.
Berger reported to the board that the SBA (Small Business Administration) is insisting that EDC get their board structured to meet their requirements to be a certified loan agency for SBA. The SBA rejected a proposal to phase in membership changes as they make their yearly board changes. SBA requires that the EDC board be comprised of members representing, equally, four different groups – local business, finance, community, and government. Currently, 11 of EDC’s 15 board members represent businesses.
In order not to have to ask board members to leave, the only solution is to increase the membership of the board, appointing the new members from the under represented categories.. Berger said that the organization’s bylaws allow up to 21 board members. Board members were asked to consider who they would like to nominate.
EDC has 92 members, currently, reported Shari Nault, just a few short of their goal of 100 members.
Finance officer, Jim Tevlin, in reviewing the budget was asked where the $450,000 proceeds from the sale of the MDU building were. He said that it is in an interest bearing account at First Interstate Bank. He said he would like to see it earning more interest and would be working on that over the next couple of weeks. In the mean time it awaits a “worthwhile endeavor.”
Arveschoug reported that BSEDA is getting an increase in rent for their offices in Granite Tower. He explained that the previous contract was a very good rent and the increase brings it up to the market rate. He noted that paying $70,000 a year would be “more than enough” to justify the agency owning its own offices.
The master plan for the East Billings Tax Increment Finance District has been completed and is being reviewed by city and county officials to be included as a part of the Growth Policy. The final document is available on line at BSEDA’s website.
Patty Nordlund said that the next step for the development of the east end is to come up with recommendations for projects that should be first steps in its development. Among some of the initial recommendations are to remove barriers to development such as building infrastructure or adjusting the parking regulations in the zoning code.
The two boards will meet on Monday morning, Aug. 27, 7 a.m. to review their plans for the future which have been compiled by staff following a couple of planning sessions with board members.
