City considers grant proposal for old mill

By BRENT SHRUM Western News Editor

Libby City Council is considering a proposal to apply for a $400,000 federal Community Development Block Grant to help fund improvements at the former Stimson mill site.

Now under the ownership of the Kootenai Business Park Industrial District and managed by Kootenai River Development Council, the site is in need of significant upgrades to its rail, sewer, water, road and electrical systems, KRDC director Paul Rumelhart told the council.

With administration and contingency costs factored in, the total project budget is more than $2.5 million. That includes $739,580 for roads, $688,730 for the water system, $529,195 for the sewer system, $298,886 to improve rail lines, $200,000 for electrical improvements and $75,000 to upgrade and move the scale.

Proposed funding includes a $1.5 million grant from the federal Environmental Protection Agency, $400,000 block grants to be obtained by both the city and county, and $231,391 in an interest-free economic development loan KRDC plans to seek through Flathead Electric Cooperative, Rumelhart said.

The site's water and sewer lines need upgraded and the rail system is in disrepair, Rumelhart said. The electrical system was designed for one user and needs to be re-engineered for multiple users, he said.

As part of the project, the industrial district would like to turn the site's sewer system over to the city and the electrical infrastructure over to the co-op, Rumelhart said.

"That's not what we do," he said. "That's what municipalities do. We don't want to own the electrical system, and that's what electric companies do."

The industrial district will begin working with the county on a grant application next month, Rumelhart said.

Mayor Tony Berget said the city supports the industrial park but will need to take some time to review the proposal in detail before making a commitment.

"There's not necessarily a downside for us to apply for this CDBG that we can see right off the bat," Berget said.

However, the council needs to make sure the grant wouldn't prevent the city from applying for funds for another project, he added.

Council members also expressed concerns about taking over the site's sewer system.

Rumelhart pointed out that the site currently supports 363 jobs - not all of which are on-site - and could someday support as many as the 1,500 that were associated with the site in its heyday.