Update of attached Summary of Eastern MT Econ Strategy DRAFT

Eastern Montana people have taken part in numerous economic development
strategy and planning sessions. The following is a general summary of these
efforts. The list is not all-inclusive, but does provide an overview of the
primary strategies, goals, needs and a few opportunities consistently
identified across the region.

LINK: http://www.matr.net/files/EasternMontanagoals.doc

The Eastern Montana area is defined to include the 16 counties of Valley,
Daniels, Sheridan, Roosevelt, Garfield, McCone, Dawson, Richland, Prairie,
Wibaux, Fallon, Carter, Custer, Powder River, Treasure and Rosebud. These
counties, and the communities within them, have each undertaken some type of
economic development planning and strategy development in the last few
years. All such efforts have been combined into three regional
Comprehensive Economic Development Strategies (CEDS) documents. The
organizations that complete and maintain these efforts are the Southeastern
Montana Economic Development Corporation (SEMDC) covering Treasure, Rosebud,
Powder River, and Custer Counties and including a partnership with the
Northern Cheyenne Tribe; Great Northern Development Corporation (GNDC)
covering Valley, Daniels, Sheridan, Roosevelt, Garfield, McCone Counties and
including a partnership with the Fort Peck Tribes; and the Eastern Plains
RC&D, Inc. covering all 16 counties but serving as Certified Regional
Development Corporation (CRDC) for Dawson, Prairie, Wibaux, Fallon and
Carter Counties.

The purpose of this document is to indicate to the State of Montana, the
Federal Government and their related agencies the consolidated efforts and
teamwork being displayed by the eastern one-third of Montana. This area
includes less than 7.8% of the State’s population, yet produces over 30% of
the state’s ag cash receipts, more than 40% of all oil and gas receipts, and
nearly 40% of the state’s coal-related receipts. The area is critically
important to the entire economy of Montana, but is currently suffering
economically through out-migration of its residents and the resulting
decline in tax base and business activity. It has been oil and gas and the
income from oil and gas that has produced much of the States tax surplus.

The de-population of eastern Montana is a serious concern. These 16
counties lost an average of 9.16% of their population between 1990 and 2000,
and current estimates show an additional loss of 5% on average between 2000
and 2005. If the trend continues, the State of Montana as a whole will
gravely feel the loss. The communities all need and strive for more
family-supporting jobs, tax base and infrastructure to stop and to reverse
the decline of schools, hospitals and the other general needs of a healthy
community and economy. The region’s needs and goals for addressing economic
development are outlined below.

1. Value added Agriculture. Eastern Montana is a very large part of Montana
’s ag receipts. The area ranks 2nd in the NATION for Durum Wheat and
Flaxseed production; 3rd in Spring Wheat production; 6th in coal and sugar
beet production; and 8th in pinto bean production.

· NEEDS: Irrigation and water development; processor recruitment and market
development; marketing efforts; road and railroad improvements and general
community infrastructure improvements; more business-friendly environmental
permitting processes.

· POSSIBLE PROJECTS:
A. There are two new dairy operations. Recruit more dairy operations to the
area from California and other areas where they are being pushed out. Help
shorten Montana DEQ permit response time and review funding method of the
Milk Bureau and related activities.
B. Malt Barley processing plant recruitment.
C. Pea, Lentil and Bean processing plant recruitment.
D. Irrigation project development: Fort Peck Tribe North Sproll, Belle
Prairie, West of Crane and a number of others on the Yellowstone, Missouri
and tributaries.
E. The area has the base resources to support a fertilizer and/or chemical
plant.
F. Support all ethanol and bio-fuel development.
G. Support for the Sidney Sugar beet processing plant in Sidney.
H. Further develop the efforts of research and development, biotechnology
and related areas. More support for the Ag Research Centers in Sidney and
Miles City.
I. Continued support for the small ag-related processors and their efforts.
Marketing, capital and technical support.

2. Energy Development. This industry has the largest potential positive
impact for the region. With multiple and abundant sources of energy from
wind, coal, gas, oil, bio-energy and others, the area could support more ag
processing, light manufacturing and high tech industry (in particular to
serve farms).

· NEEDS: Promotion of the area for this purpose, assistance with legal
challenges, environmental permits and processes, transmission infrastructure
development and road and railroad development.

· POSSIBLE PROJECTS:
A. Great Northern Properties Nelson Creek coal project.
B. Wind Hunter LLC wind farm project.
C. Otter Creek tract development and related infrastructure.
D. Road, electrical and transmission infrastructure for the oil and gas
companies. Support to the counties, municipalities and schools for road and
service impacts.
E. Ethanol and bio-fuel development projects.

3. Community Infrastructure. To support future growth and ensure quality of
life for existing residents.

· NEEDS: Road and railroad infrastructure upgrades; continued improvements
and funding support for communications infrastructure, especially in the
areas of broadband and wireless; housing development and improvement; rural
regional water system infrastructure; downtown revitalization and
development; nursing home, hospital and healthcare support and improvement;
financial and outreach support to high school and community colleges;
workforce training dollars available to smaller businesses.

· PRIORITY PROJECTS:
A. North to South corridor development through completion of a paved
Secondary Highway 323. Better use and promotion of 24 hour port of entrance
at Plentywood and traffic flow to all points, especially Denver, Co; Salt
Lake, UT and south. Upgrade of east to west Highway 2 corridor.
B. Support of the Universal Service Fund (USF) and other rural issues at the
Federal and State levels.
C. More and more affordable low and moderate income housing is a dire need
throughout these communities.
D. Support Dry-Prairie and Dry-Redwater regional water system projects.
E. Support from the MT Department of Transportation for parking and traffic
flow that benefit business people and entice them to invest in declining
towns.
F. Support for professional service and other recruitment, such as doctors,
nurses, dentists, veterinarians, and so on are needed. Support for aging
services and infrastructure, including funding support for new assisted
living, retirement and nursing home facilities.
G. Educational outreach effort to high schools and community colleges for
eastern Montana businesses and individuals. Support for more business
development and entrepreneurship training in the High Schools.

A. Continued job training programs and long distance training opportunities.
B. New resident recruitment efforts or incentives to locate in Eastern
Montana.
C. Multi-family and rental property investment and development.
D. Assisted living and senior apartment assistance.
E. Continue support and development of the communications network,
facilities and capabilities.
M. Leadership and community awareness programs and efforts.

2. Tourism Development. Eastern Montana’s has a rich history, paleontology
resources, and many other potential tourist-attracting assets that are
underdeveloped and under-marketed.

· NEEDS: Road and related upgrades & development; increased marketing
efforts targeted directly at Eastern Montana; continued support to
businesses attempting to develop tourism business opportunities; access to
capital and technical support; signage and related assistance and guidance;
support to local tourism infrastructure projects.

· POSSIBLE PROJECTS:
A. Promotion of open spaces, Cowboys and Indians, bird watching, hunting,
fishing, photography, and especially Dinosaur resources.
B. Fairview Bridge Project
C. Fish Hatcheries
D. Museums & other dinosaur exhibits along the Montana Dinosaur Trail –
expansion & promotion.
E. Evelyn Cameron Museum & related efforts in Terry area.

3. Business retention and recruitment. Necessary to provide better-paying
jobs to existing residents and offer better economic opportunity to
returning youth and new residents.

· NEEDS: Access to capital and financial resources; access to marketing and
management support; access to better methods of providing health care to
employees for small and self-employed businesses; continued support for
local economic development efforts. Incentives to invest into the frontier
businesses. It is difficult for a frontier business to take the risk of
investment in their business in towns and communities that are shrinking.
Support for regional resources like cooperation, training, networking, and
expensive technical support and revolving loan fund resources are needed to
support the local efforts due to the expense and required technical
knowledge.

All State and Federal resources need to look at the frontier area of Montana
and try better to truly understand the challenges and opportunities faced
here. Many of the businesses are very small – 21% of workers in these
counties are self-employed (compared to 12% throughout the state and 7%
nationwide)), and on average about 70% of all farm and non-farm businesses
have no paid workers. All programs need to take this into consideration and
adopt policy and guidelines to allow broader access to resources for
businesses and communities of these small sizes. Including out-migration
and aging of the population as reasons for assistance should be continued
and deserves further consideration.

If the State is to succeed economically, its help is needed to address the
issues faced by the frontier areas of Montana. If a plan could be fully
supported by a majority of local and state resources, as this one is, the
chances of success greatly increase. It is felt that the development of
irrigation projects, energy projects, tourism destination opportunities and
value-added ag processing industries combined with needed business and
community infrastructure, education and community service development to
help eastern MT is needed. Only with these types of larger projects can
living wage and related jobs be created to help stop the loss of the people
in our frontier area. Your continued support, guidance and efforts to
assist eastern Montana is much needed and appreciated. We all welcome your
input and continued participation. The entire communities of eastern
Montana look forward to working with you on solutions to our frontier
ch
allenges.

Thank you,

The Eastern Montana Economic Development Coalition,
A team approach by all Eastern Montana economic development groups and many
citizens.

Contact Point: Tod Kasten 406-485-3374