HomeMy WebLinkAboutEDC Memo RE Bozeman Business Energy Program 10-31-13Page 1 of 2
Bozeman Commission Memorandum
REPORT TO: Economic Development Council
FROM: Brit Fontenot, Director of Economic Development
Natalie Meyer, Sustainability Coordinator
SUBJECT: Bozeman Business Energy Program
MEETING DATE: November 7, 2013
AGENDA ITEM TYPE: Action
RECOMMENDED MOTION: I move to recommend approval of the Bozeman Business
Energy Program to the Bozeman City Commission.
BACKGROUND:
The Northern Rocky Mountain Resource Conservation and Development (the “NRM
RC&D”) is a non-profit rural development organization incorporated in the State of Montana on
September 5, 2001. The NRM RC&D was authorized to receive federal funds by the U.S.
Department of Agriculture on January 11th, 2002.
In general, RC&D’s are a blend of private enterprise and government in a nonprofit
public/private partnership. Program activities are initiated and directed by a volunteer Council
consisting of local representatives of government, business, development organizations, non-
profit organizations, conservation districts, and individuals.
The vision and mission of the NRM RC&D include provision of services in Park,
Meagher and Gallatin Counties as a regional community where people, through cooperation,
develop and maintain:
a. A sustainable economy;
b. Healthy, empowered, rural communities with a strong sense of place;
c. Exceptional quality of life;
d. Diverse, viable locally owned agriculture;
e. Well managed, sustainable use of resources;
f. A desired level of infrastructure and technology; and
g. Vision to pursue new opportunities
The NRM RC&D serves as a catalyst to empower rural communities to develop and
conserve natural resources and enhance economic prosperity.
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Unfortunately for the clients they serve, the NRM RC&D is dissolving and operations
ceasing with assets being returned to the funding organizations from which they came.
For several years the City of Bozeman and the NRM RC & D have maintained a
contractual relationship for the management of the Big Sky Energy Revolving Loan Fund (the
“BSRLF”). The BSRLF was funded with dollars collected from the City’s Big Box Economic
Development fund and intended to incentivize the completion of energy related projects. An
example of a BSRLF funded project are the solar hot water panels on the roof of the Buggy Bath
carwash located on East Main Street. The BSRLF program never reached its maximum potential
due to the relatively small loan amounts available for projects, competitive interest rates from
other organizations and a lack of marketing of the program.
In the years since its inception the BSRLF has funded one project, which has since
completed repayment of the loaned amount to the fund. Currently there are no outstanding loans
on the BSRLF. Due to the dissolution of the organization the BSRLF dollars, capitalized at
approximately $50,000, are being returned to the City as required by the contract.
The City of Bozeman through the combined efforts of the Offices of Sustainability and
Economic Development seek to re-establish a program aimed at incentivizing local businesses to
upgrade systems for energy efficiency and long term cost savings. The proposal is to capitalize
the proposed Bozeman Business Energy Program with the funds formerly allocated to the
BSRLF. Details of the program are provided in Attachment 1.
UNRESOLVED ISSUES: None
ALTERNATIVES: As proposed by the EDC.
FISCAL EFFECTS: To be determined.
Attachments:
1. Bozeman Business Energy Program Proposal
Report compiled on: 10-31-13