Richland County opts out of Certified Regional Development Corporation program

County is one of two in Montana not in Certified Regional Development Corporation

Richland County is one of two Montana counties which has opted out of a partnership to form the Certified Regional Development Corp., which replaced the Montana Certified Cities Program in the 2003 legislative session, and is now dividing the $425,000 among 12 regional partnerships in Montana that was once divided among 76 communities.

By Ellen Robinson

Sidney Herald

http://sidneyherald.com/articles/2004/05/17/news/news01.txt

Richland and Flathead counties are the only two in Montana that didn’t join a regional partnership, which receive a minimum of $30,000 a year to help with regional economic growth.

"I believe by not joining it makes us (Richland County) less competitive with other counties. As counties we all compete at some level. If everyone has access to all of this except us, we have to work that much harder and commit that much more of our resources just to stay even with everyone else, let alone get ahead," Ray Trumpower, chairman, Eastern Plains RC&D and executive director of Fairview Chamber of Commerce, said. "One of the advantages of joining a partnership is the CRDC will create revolving loan funds in these counties which can be used for further development. Instead of the money going back to the state, it will stay in the region for development. Whereas counties not in regional partnerships, the revolving loan funds will return to the state."

The final decision not to participate was reached after a meeting May 4 with Mark Simonich, director of Montana Department of Commerce, Helena, explaining details of the CRDC program to Richland County commissioners, Richland Economic Development and other concerned parties.

Leslie Messer, executive director of Richland Economic Development, said Richland County decided in January to follow the direction of the Richland Economic Development board of directors who decided against the partnership. After receiving pressure to join the partnership from various parties, Messer arranged the meeting with Simonich to give county commissioners an opportunity to hear directly from the Department of Commerce about the program in order to better understand and make an informed decision.

"I see Sidney could benefit from the CRCD. I anticipate Sidney and Richland County to directly benefit from this if we participate," Cal Oraw, Sidney City Council member, said at the May 4 meeting. "Bill Barr from the Eastern Plains RC&D was flabbergasted that Richland County opted not to join when there was no cost associated with joining and it’s an opportunity to directly benefit. He didn’t understand why Richland County was opposed to joining the region."

"I see Sidney could benefit from the CRCD. I anticipate Sidney and Richland County to directly benefit from this if we participate," Cal Oraw, Sidney City Council member, said at the May 4 meeting. "Bill Barr from the Eastern Plains RC&D was flabbergasted that Richland County opted not to join when there was no cost associated with joining and it’s an opportunity to directly benefit. He didn’t understand why Richland County was opposed to joining the region."

"The legislature developed a new state effort to regionalize the allocation of the money based on the idea that more could be accomplished with cooperation through regions," Simonich said. "To improve our certified community program we created a regional economic development to maintain a larger funding level instead of inadequately funding each individual community."

Montana Department of Commerce is using the same money once used for the certified community program, which area cities once received, and dividing it up among the 12 regions because they decided larger sums of money given to regional areas would be more effective instead of the small sums of money to individual communities.

"We do not feel that as a county we would want to jeopardize the level of sponsorship that our local people support our county wide economic development organization," Richland County Commissioners said in the May 5 letter to concerned parties.

Richland Economic Development’s purpose is to retain its focus on Richland County – it has been one of the most successful economic development programs in eastern Montana.

"We don’t believe we are missing out on anything by not joining," Tim Feeley, Richland Economic Development board member, said.

Jim Nelson, board member, Richland Economic Development, said, "We are strictly interested in Richland County. We’re not a regional group."

Richland Economic Development’s mission statement says, "The ultimate goal of any action taken by Richland Economic Development should be focused on long-term expansion or strengthening of the economic base of Richland County."

"We don’t want to do anything that would potentially dilute funds from Richland County to another county. We are concerned with the perception of the taxpayers’ money being spent outside the county," Feeley said. "There are a lot of local individuals and businesses that have invested huge dollars into creating and supporting Richland Economic Development. We want to keep our internal focus because that’s what our original purpose was and will continue to be."

"Our intention was never to take away from already successful economic development programs, but to help them grow. We want to develop regional capacity so we can provide services locally when it comes to loans and business growth," Simonich said. "We are not suggesting Richland Economic employees work in other counties nor are we suggesting to take away any of the resources that go to Richland Economic Development."

The Eastern Plains RC&D Area Inc. submitted a Certified Regional Development Corp. proposal to the State of Montana Department of Administration in January 2004 written for Carter, Dawson, Fallon, Prairie and Wibaux counties.

According to Eastern Plains RC&D, their organizational goal is to help build self-reliant rural communities and businesses supported by a sustainable and diversified economic base, with an adequate and reliable taxable valuation to afford the public services the area’s citizens have declared as essential.

The purpose of Eastern Plains RC&D is to improve economic and social conditions in the area through development of existing natural and human resources, to help secure technical, financial, educational, and other services needed to develop and carry out the area plan of action.

The five-county region plans to continue with development, and will hire a person to increase business development and help new and existing businesses in the region.

"Richland County provides us with office space here in Sidney, so we aren’t sure what we will do in regards to the new position which will be serving the five-county partnership," Mike Carlson, coordinator, Eastern Plains RC&D, said. "I hope we won’t have to end up moving to another county which could result in the loss of the four jobs here at Eastern Plains RC&D in Sidney."

"Currently, there is one person sponsored by Great Northern’s Economic Development District out of Wolf Point that serves all 16 counties in eastern Montana," Trumpower said. The job of that individual is to deliver up-to-date counseling, training and technical assistance in all aspects of small business management including, but not limited to, assisting small business with financial, marketing, production, organization, engineering and technical problems and feasibility studies to existing businesses and new businesses in the eastern 16 counties of Montana, which includes Sidney.

"The five-county region will hire someone to do those things within the region. That will be one new position somewhere," Trumpower, said.

According to Messer, Richland County was to be included in the original proposal. Eastern Plains RC&D received letters of support from the five counties and the cities and chambers of commerce within those counties. The cities of Sidney and Fairview, along with their chambers of commerce, also expressed support.

"We do not feel that our lack of participation on the part of Richland County would in any way negatively impact the remaining counties with their endeavor," Don Steppler, Richland County Commission chairman, said in the May 5 letter.

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