Sawmill grant is secured

Kootenai River Development Council of Libby has received $17,800 in grant funding from the Big Sky Economic Development Trust Fund of the Montana Department of Commerce for the purpose of bringing a sawmill to Libby.

The grant request was written by Paul Rumelhart, the KRDC’s executive director.

The agency received the funding to complete a conceptual and schematic design for the installation of a small-band sawmill capable of processing large-diameter timber.

According to the funding request, the mill would be located in the Kootenai Business Park, and once developed, would bring five new jobs.

The mill is the brainchild of John Guiliani, a Montana native, who is CEO of Montana Timber Products of Anaconda. 

Guiliani, 34, a former banker turned timber businessman, operates a high-end timber products company that features stained flooring and siding.

Guiliani said he is looking for the proposed mill in Libby to supply him with niche lumber he can find few other places.

“Libby has seen some hard times. I am looking to supplement our supply chain, and what better a place than an economically  challenged place like Libby,” Guiliani said.

Ideally, the grant would provide two-thirds of the funding necessary with the Port Authority supplying the final third or about $8,450. The mill could be in operation by April.

“We say four or five jobs, but who knows. We could see this thing bring eight, 10 or even 20 jobs,” Guiliani said.

Tom Horelick, who owns North Fork Forestry, is concerned about state money coming to Libby for the purpose of adding a sawmill to compete with private enterprise for business.

“I just don’t think it’s right,” Horelick said. “Bringing a sawmill here to Libby to compete with me. That’s just not right.”

Guiliani said Horelick should not look at it as competition.

“We’re not looking to compete with mom-and-pop sawmills like Mr. Horelick,” Guiliani said. “We need kiln-dried lumber, and I don’t think he has that. Plus, what’s their delivery radius? Fifty miles max. We’re not competing with them.”

Doug Chapel, of Chapel Cedar in Troy, does have “several kilns” and would be willing to accept more work, but he admits he has not heard from Guiliani.

“I get probably 80 calls a day, and as a businessman I try to return every one. I can tell you this: If I had a message from Mr. Guiliani, I would have returned it.”

Guiliani said he had tried to contact Chapel Cedar but did not get a response.

Told about that, Chapel simply said I don’t want to get in a pissing match about that. If you do you only get all wet.”

Guiliani said the government investment in Libby is $26,250, well worth the money for the potential jobs that could be brought to Libby.

The project has widespread support from principle timber industry persons in and around Libby, including Paul Bradford, supervisor of the Kootenai National Forest; Mark Peck, unit manager of the Department of Natural Resources and Conservation of the Libby Office; Chuck Roady, general manager of the F.H. Stoltze Land & Lumber Co. of Columbia Falls; Josh Anderson, of Vaagen Brothers Lumber, Inc., and a letter of endorsement from Lincoln County Commissioner Tony Berget, all of whom have written letters to Dore Schwinden, director of the Montana Department of Commerce in support of the project.

“Hey, we’re just trying to bring jobs to the area,” Berget said. “If we can help Tom (Horelick) in any way, too, we will,” Berget said.