TEDD OK'd by state, paving way for SmartLam expansion

The City of Columbia Falls is one step closer to being able to foster development of an industrial park north of Railroad Street. City Manager Susan Nicosia told the council last Tuesday night that the state Department of Revenue had approved the city’s targeted economic development district for the industrial park.

SmartLam, a company that makes high-strength wood panels from local timber, is expected to be an anchor tenant at the park. The development district creates a framework to attract businesses to the park.

The district allows the city to use tax revenue to attract and retain businesses at the park and to serve and create infrastructure. It does not increase taxes on the businesses, but allows additional tax revenue from growth in assessed value to be used for enhancements at the park.

Nicosia said she expects to meet with the owners of the industrial park and its businesses at the end of the month to try to hammer out a schedule for the development. The city needs to provide the park with sewer and water and the cost of that infrastructure will cost about $1.2 million. The city doesn’t have that kind of cash on hand, but if a company like SmartLam times its building with the infrastructure, then the city can float bonds on the buildings to pay for the sewer and water.

Over time, the district would pay off the bonds.

But the timing is a critical function, she noted. The businesses need the infrastructure, but the district needs the buildings to bond out the infrastructure.

“It’s almost a chicken and the egg thing,” Nicosia told council.

One key permit has been granted — Burlington Northern Santa Fe Railway recently OK’d the permit to drill under its tracks to run the water and sewer lines to the site. The site already has city water, but the lines are too small for industrial uses.

Last year, council changed the zoning on 26 acres of the site that would accommodate a SmartLam expansion, from light industrial to heavy industrial.

SmartLam already has a plant in Columbia Falls behind Super 1 Foods, but the new plant would be a major expansion, employing about 50 people and indirectly employing 250 more.

SmartLam plant uses local wood from neighboring forests to make super-strong panels that are used in everything from building construction to pads for oil wells.

In addition to SmartLam, the city has identified several industries it hopes to attract to the park, including a machine shop, industrial building construction, meat processing from carcasses, except for poultry and small game, truss manufacturing, wood and window manufacturing and other millwork and wood related businesses. 

The meat processing would not be a slaughterhouse, but would be from “purchased meats.”

The valley already has several companies that make products like jerky, sausage and cured hams and there has been an interest in relocating to the site.