County denies $50,000 port request seeking more details of proposal

By BRENT SHRUM Western News Reporter

The Lincoln County Commissioners voted 2-1 on Wednesday against granting a $50,000 funding request from the county's port authority but agreed to reconsider the request pending the submission of a more detailed proposal.

Port authority board chairman Jim Mayo told the commissioners the money is needed to help with improvements and maintenance at the former Stimson mill site. Stimson donated the property to the port authority, but a recently formed industrial district — governed by a five member board whose members also sit on the larger port authority board — now oversees the property. The primary reason for the creation of the industrial district is that the new entity can sell property to a buyer of its choosing, while the port authority is legally required to sell land by public auction.

Pressing needs at the site include improvements to the rail system, estimated at $200,000, and upgrading the electrical system to include individual meters for each tenant, expected to cost between $70,000 and $90,000, Mayo said. Roof repairs represent a significant ongoing cost, Mayo said. Fixing the roof on the central maintenance building this year cost $45,000, he said.

Efforts are continuing to bring more tenants to the site, Mayo said. The best thing that happened this year was when Luck-E-G Post & Rail started operations on the old mill property, he said, and the hope for next year is to bring a small-diameter wood mill to the site.

Some money is being kept in the bank to meet the needs of new tenants, such as erecting a new building, Mayo said.

Commissioner Marianne Roose said the commissioners granted $50,000 to the port authority last year "on a one-time basis only" in lieu of a 2-mill levy for port authorities allowed under state law. When the port authority board learned that the 2 mills would have to be cut from elsewhere in the county budget, it elected not to enact the levy and to take the one-time allocation of $50,000 — roughly equivalent to 2 mills — instead, Roose said.

"In my mind, I hope that we didn't lead you to believe that that was something that we were going to do every year or that would go on forever and ever," she said.

Roose said she supports the port authority but wants to see it "move forward on its own merit."

Commissioner Rita Windom questioned the legality of the money flowing from the port authority to the industrial district. Attorney and port authority board member Amy Guth said the port authority can give money to the industrial district to promote economic development.

Commissioner John Konzen said he was opposed to granting the 2 mills to the port authority until he saw the progress that has taken place at the old mill site.

"I see some activity, and that's the only place where I really see that kind of activity going on," he said. "I think it's a good investment for us to try to promote that."

Windom said she would have to see a more detailed proposal on exactly how the money would be spent before considering approving the port authority's request.

"This is maybe, possibly," she said.

Other counties fund economic development, Konzen said. He suggested that Lincoln County become involved in the issue with more than a one-time commitment.

"Do we want to do that so we don't go through this kind of process every time?" he asked.

Port authority and industrial district board member Stan Kargol suggested that instead of granting the port authority's funding request, the commissioners consider funding an economic development position. The industrial district is currently considering a proposal to fund just such a position, under the auspices of the Kootenai River Development Council, "to the tune of $50,000," Kargol said.

While the position would be needed indefinitely, the county would not necessarily have to fund it forever, Kargol said. He suggested that the county commit to funding the position for one year, after which the industrial district might be able to provide funding with proceeds from the sale of property.

Konzen moved to approve the port authority's request as submitted, but Roose and Windom voted against the motion, holding out for a more detailed proposal.

"I don't want to micro-manage the industrial district," Konzen said. "I think those people were appointed by us to do a job and we either have to support them or not, but we don't need to tell them how to do their business."