News

Local public-private effort brings Navy technical contractor, Synesis7, to Butte

With help from local development agencies, Montana’s congressional delegation and a public-private loan mix totaling $1 million, a high-tech firm armed with a federal contract has begun work in Uptown Butte.

By Leslie McCartney of The Montana Standard

Synesis7, previously based in Cody, Wyo., announced Wednesday that it has moved its headquarters in the Thornton Building, Broadway and Wyoming. Initially, Synesis will bring 15 to 20 engineering, designers and support system jobs — paying an average of $50,000 with benefits — to the community.

MSE owns the historic Thornton Building, in which it has invested money to create a high-tech hub known as the Montana Information Technology Enterprise Center.

The recruitment of Synesis7 has been in the works for three years.

"This is a very exciting day for Synesis7 and myself," said the company’s founder and president, Allen Ellmaker, during a news conference. He was introduced by Butte-Silver Bow Chief Executive Judy Jacobson. "It’s been three-plus years with a lot of hard work, determination and cooperation," Ellmaker said.

Ellmaker said his company holds a newly inked $3.65 million research and development contract with the Navy, which is interested in Synesis7’s proprietary technology. Simply said, the company can build electronic tools, such as digitized manuals and technical material and various support systems for the military, other government agencies and private business.

He said that although other businesses are doing bits and pieces of what Synesis7 can do, no other company, public or private, offers complete end-to-end service like Synesis7.

A funding package assembled for Synesis7 enabled it to purchase equipment, hire employees and pay other start-up costs. Shortly before Wednesday’s news conference, the Urban Revitalization Agency provided a key piece of funding with a $300,000 loan over five years. The move also ensured Synesis7’s location in the Uptown area, within the boundaries of that agency’s responsibility.

Others providing key funding include the Butte Local Development Corp., which contributed $200,000 over five years. On a private level, First Citizens Bank approved a $500,000 loan for 18 months. President Herb Kelsey said the bank is comfortable with the company and its contract.

"I think this contract is a solid contract," Kelsey told the URA board.

He added that Butte’s MSE, which has years of experience with federal contracting, has looked over the contract as well.

Kelsey said the bank is thrilled to help with economic development that offers higher-wage employment.

"I’d rather have 15 to 18 $12-an-hour jobs than a bunch of minimum wage jobs," Kelsey said, referring to Destination Montana, the failed gambling project proposed for Butte.

Community Development Director Pam Haxby-Cote provided URA board members, who unanimously endorsed Synesis7’s loan package, with conservative projected financial statements for Synesis7. The numbers show a solid cash flow from its contract.

URA board members acknowledged that they are getting into an area of revitalization different from traditional methods of awarding grants to fix building exteriors.

"With greater risk comes greater, greater rewards," said Jack McCormick, a URA board member. "Let’s take a risk here and put it in a business that a bank and MSE believe strongly in."

Don Peoples, president of MSE, said his company has a vision to fill the Thornton Building with high-tech information technology personnel. MSE will coordinate development work with Synesis7.

"We are proud to be a part of this public-private partnership," Peoples said.

In his remarks, Ellmaker thanked several entities making the move possible, including the Butte Local Development Corp. and its director Evan Barrett, Sens. Max Baucus, D-Mont., and Conrad Burns, R-Mont., and U.S. Rep. Denny Rehberg, R-Mont., Merdi/MSE, especially Bill Robinson, and Butte-Silver Bow development officials Jacobson, Kathy Fasso and Haxby-Cote.

Barrett said that the Synesis7 announcement represents a diversification goal of the Butte economy. He likened Synesis7 as the young MHD effort that has evolved into MSE — still operating three decades later.

"This company is here for the long-term," Barrett said.

Synesis7 plans include landing additional contracts with the military and other work for both public and private sectors.

Chief Executive Judy Jacobson said, "Obviously, we’re eager for new business and jobs, but it is our responsibility to attract and assist those companies that can have a lasting, meaningful affect on our economy — this is an example of the good things that can happen."

Reporter Leslie McCartney may be reached via e-mail at [email protected].

http://www.mtstandard.com/articles/2003/05/15/newsbutte/hjjgjeiejcehfg.txt

Sorry, we couldn't find any posts. Please try a different search.

Leave a Comment

You must be logged in to post a comment.