A Well-Timed Affordable Housing Conversation Annoys Council President, Gwen Jones

by Travis Mateer

I continue to appreciate the actions of City Council member, Daniel Carlino, as he highlights the leverage bestowed on private developers by our elected leaders. The latest move from Carlino, which incensed Jones, was a simple little amendment to extend the fig leaf of affordable housing from 35 years to 70 years. That, according to Jones, was a TERRIBLE deviation from business as usual. Here’s some reporting from Missoula’s favorite propagandist, Gomer Kidston, laying the groundwork for this giveaway (emphasis mine):

Members of the Missoula City Council on Wednesday gave preliminary approval to vacate a sliver of road in the Midtown district to accommodate a residential and commercial project planned by an affordable housing developer.

The $30 million development, proposed by Casa Loma LLC, will include 132 units of housing at the corner of South and Stephens avenues. Given the city’s vacation of public right-of-way, 20% of the rental units within the project must be reserved as affordable housing for a period of 35 years.

“We didn’t want to restrict the entire project, even though our intent is to make this affordable and attainable,” said developer Nate Richmond. “We have to maintain some flexibility for the fluctuating construction market out there right now, materials and labor being the big unknown.”

I bolded the name of the developer because Nate Richmond is mostly known for his development work under name Blue Line. That’s the name of the company that wanted to develop Larchmont Golf Course and the name of the company building the Trinity Apartment complex by the jail. And you better believe Richmond knows how to ENRICH these deals with public financing. I assume this project is no different.

Where you at, Missoula Redevelopment Agency?

The project will also include a handful of for-sale units and 18,000 square feet of commercial space. The Missoula Redevelopment Agency is contributing to the project, which also includes a roundabout, a cycle track and new public infrastructure.

The emphasis is definitely mine because I want to ensure these schemes are properly identified. Now, let’s take a look at the conversation Gwen Jones didn’t want to have:

While the number of units weren’t an issue, Ward 3 council member Daniel Carlino sought to require the developer to subsidize the project’s 22 affordable units for a period of 70 years, not the 35 years requested by the city.

However, his proposed amendment failed on a 9-1 vote and received scrutiny from some peers. Fellow Ward 3 council member Gwen Jones said the city would be setting bad precedent if Carlino’s 11th hour amendment were to pass, potentially scuttling the entire project by altering its delicate financial model.

“It’s bad practice to try to steer a ship of this size in a completely new direction after so much work has gone into it – work that’s all based on solid policy that council has created over the years,” Jones said. “Frankly (Carlino’s amendment) is not based on any type of financial analysis related to the reality of this project. I’m concerned this sends an incredibly bad message to the development community that changes of this magnitude can be made at the last minute.”

I’m excited to see Gwen Jones mention FINANCIAL ANALYSIS because the entire premise of using MRA funding should be called into question, considering the ZOOM BOOM Missoula continues to experience. But that will never happen under the coming reign of Engen’s groomed replacement, the Ice Queen.

I do appreciate Carlino doing his best to expose these schemes, especially right now. Why? Because we have a VERY convenient article that shows what happens to these properties when developers don’t give a shit about them because poor people live in them. Here’s what a big apartment complex is going to need to stay affordable and NOT falling apart:

A nonprofit that builds and maintains affordable housing in Missoula plans to apply for state tax credits to rehabilitate Creekside Apartments, a facility that plays a central role in the city’s housing portfolio.

Heather McMillan, housing development director with Homeword, said the property is seeing a number of issues arise simultaneously, from failing roofing to deteriorating infrastructure.

She placed the estimated cost of repairs at around $9 million.

Yep, $9 million is now needed because this property is a total piece of shit and might go on the market if MORE MONEY isn’t found to keep the affordable scheme going. To accomplish this, some fancy bond called a CONDUIT bond was used, and more tax credits will be needed. From the link:

The project was built using Low Income Tax Credits in 1996 and the developer took steps toward efficiency in an effort to reduce costs. The period of affordability was set to expire in 2026 and the owner had considered placing the property on the open market at that point in time.

The proposition sent off alarm bells in the affordable housing community. The threat of displacing so many families and losing a key piece of the city’s housing inventory prompted Homeword and the city to secure a conduit bond to purchase the property, which it did in 2017 for roughly $12 million.

“We assessed the property then and it was at risk of going to market,” McMillan said. “We knew a lot of the building materials and building systems would be close to the end of their useful life. We knew we’d have to rehab. We were keenly aware this was going to be an issue.”

Now, McMillan said, the time for “wholesale” rehabilitation has come. Homeword hopes to secure a combination of both 4% and 9% tax credits to complete the work.

Yes, all this additional money will have to be used in order to keep from LOSING affordable housing stock. Fantastic. And this same scenario is being set up with Nate Richmond’s latest development project, which he describes in the first linked article:

Richmond said the industry standard of 35 years is generally tied to the amortization period of conventional financing. At that point time, a property of this size generally needs to be financially restructured to complete significant rehabilitation that generally includes new roofing and a new physical plant.

“In the affordable housing industry, that’s typically when you go back in and re-up the affordability period as well,” said Richmond.

Given the city’s housing needs, council member Mike Nugent said Missoula can’t rely on nonprofits alone to provide affordable housing. Private developers will be key if such housing is produced.

Yes, private developers will be key, but more importantly, YOU THE TAXPAYER will be ESSENTIAL in subsidizing the profits of the private sector because without your tax dollars, these developers wouldn’t dare wade into the affordability racket.

Thanks for reading!

A Question Of Worth And Cost As It Relates To Selling Our Community Out To Costner’s Yellowstone

by Travis Mateer

How much is this picture worth, Missoula?

The question of what the man on the right (Kevin Costner) can do for our community is being discussed in Helena in preparation for pushing through a bigger tax credit next session. Here are some numbers from a well-timed Missoulian article that came out on the heels of the above photo-op.

An economic impact consultant gave a presentation showing how 195 different productions have filmed in Montana since the law was created, and they spent $192 million in the state. Film industry advocates strongly urged the committee to explore raising the cap to between $50 million and $150 million to allow Montana to compete with other states. They claim that’s necessary to encourage further growth of the industry, which they say supports Montana businesses, creates local jobs and doesn’t pollute the state’s treasured outdoor areas.

I did a little unintentional research over the past 48 hours during a brief getaway into the mountains. Before heading to the hills, I lunched in Hamilton and inquired how the feelings on the Yellowstone production were.

The response was positive regarding the impact on local business, but when I mentioned the cultural impact of bringing more people to Montana amidst the housing crisis, the servers all referenced family and friends who have moved away because they can’t afford to stay. I wonder if this reported tourism boom has anything to do about it (from Newsy at Missoula Current, emphasis mine):

report by the University of Montana’s Bureau of Business and Economic Research found “Yellowstone” brought more than $85 million in additional spending to Montana, with nearly $100,000 alone spent on parking.

The report, funded in part by Paramount, also found season four of the show meant a collective $25 million in income for some Montana residents. 

Tourism spending wasn’t included in the study, but economists say it’s big.  

“It’s tangible, whether people like it or not,” said Patrick Barkey, with the Bureau of Business and Economic Research. “There’s a lot more people that know about Montana, at least from an imagery point of view, than did before this series really took off.”

On top of tourism, the University of Montana report found 233 people moved to Big Sky country to work on the show, but there’s more: Fans are also calling realtors

Getting back to the Missoulian article, here’s how two Republicans are thinking about subsidizing Kevin Costner and his buddies in these tough times:

Two Republican members of the committee, Sen. Greg Hertz and Sen. Mike Lang, both expressed support for the idea of at least maybe introducing a bill next session to raise the cap.

“This is a difficult industry,” Hertz said. “It’s got a lot of competition across the United States. It’s a good clean industry. It helps Montana, it helps a lot of rural communities. The question here is how do we continue to nurture this industry without getting too excessive and having a big impact on our treasury?”

To the people pushing tax breaks for film makers like Kevin Costner, people eager to say things like NO POLLUTION and IT’S A GOOD, CLEAN INDUSTRY, explain to me the benefit of employing private security dudes like this guy:

This dude approached me on June 1st on a public sidewalk after I wrapped up a brief segment of on-the-ground reporting. I asked him why he seemed to be trying to detain me on a sidewalk and he said I was being very loud, to which I asked him if he was a cop or private security. He wouldn’t answer that question, and because I noticed real cops crossing the street toward me, I decided to leave. I recorded a second brief segment as I was returning to my studio to capture the dark SUV lurking in the alley.

After that daytime interaction with this alleged private security dude, I saw him between Reds and the Bodega, so I took this pic of him, which he didn’t like and let me know by trying to physically intimidate me. I’d love to know which private security firm this joker works at.

Before getting to the footage I recorded on June 1st, I’d like to remind readers (especially new ones) that private security in Missoula has been a growing interest of mine and because of my tenacious interest the city has been doing damage control since March.

Now it’s June, and NBC Montana reported a few weeks ago about some well-deserved skepticism amongst a few members of City Council. From the link (emphasis mine):

In August, the city of Missoula will look at renewing its contract with Rogers International to patrol and provide security around the Poverello Center, Johnson Street shelter, and authorized campsite.

City Council received a presentation Wednesday on how the first contract is working out and areas that can be improved with the next contract.

Rogers began providing security about 10 months ago, and in that time there have been four use-of-force instances with tasers.

None of the incidents resulted in criminal charges against Rogers International.

If the measure of success for Rogers International is that their staff remain free of criminal charges after zapping homeless people who step out of line, well, RENEW THAT CONTRACT!

And how about those detractors? How much space did they get in the article? Was it a sad little tag at the bottom?

Some City Council members disagree with having armed security guards patrol these areas and would like to see changes going forward.

Yep, that little quote is at the end of the article, and it’s the beginning AND end of how Council criticism was depicted. Considering internal changes at NBC Montana, I’m not surprised.

Getting back to Yellowstone, I was returning yesterday from the wilderness and got a chance to see, near Darby, the spot where all the production staff are living. There was private security at the gate AND a Sheriff deputy across the street parked on the shoulder of Highway 93 like it’s his job. Maybe it is.

A Republican who seems to take his job seriously did offer a different perspective on the tax credit. From the Missoulian article:

Sen. Brian Hoven, also a Republican, said he is opposed to the tax credit because the amount of tax revenue generated to the state by only the film companies that utilized the tax credit was just $7.8 million. Therefore, in his view, the state is losing money because the tax credit cost the state $20.3 million.

“I think the film industry is very glamorous,” he said. “The film stars are here, they show up, they bring people to rural communities, there’s a lot of money. It’s exciting, it’s great. But unfortunately, it doesn’t bring money into the state treasury.”

Hoven said he’s read articles in the Wall Street Journal that provide evidence that film tax credits don’t pay for themselves. Hoven said the state’s director of the Department of Revenue under the administration of former Gov. Steve Bullock insisted on having a cap on the credit because he “knew it would be a drain on the treasury.”

I don’t know about a drain on the treasury, but on June 1st the whole charade provided a major drain on my patience, which you can see here.

Thanks for reading. And watching!

Is It All Just Money, Honey, For Montana Sheriffs And Their Budget To Search And Rescue?

by Travis Mateer

Money is often the boring and predictable motivator in all kinds of crimes and inclinations toward corruption. I say boring because this article and the reason behind a $3.4 million dollar settlement for financially aggrieved Missoula County Sheriff Deputies is not easy to grasp. From the link:

Citing the confines of a shady 42-year-old state law, Missoula County commissioners on Thursday reluctantly approved a $3.4 million settlement stemming from a wage claim brought by current and former deputies of the Missoula County Sheriff’s Department.

According to Erica Grinde, the county’s director of risk and benefits, deputies allege they were entitled to three years’ worth of unpaid wages based upon the earnings of the county sheriff and his additional pay earned through special certification.

“The deputies allege the base amount Missoula County used for the deputies didn’t account for parity pay and certification pay, which was included in the sheriff’s salary,” Grinde said. “The claim alleges that because those factors weren’t included, it decreased the deputies’ earnings.”

Now, if you’re like me, you saw a phrase “parity pay” and immediately recoiled. Like hell am I going to wade through the HR wizardry that compensates our serving and protecting members of law enforcement.

Instead I’ll use the magic of search engines to find this article from 2017 about our then newish Sheriff, T.J. McDermott, and his DOUBLING of overtime pay from his predecessor:

In 2014, the last year under former Sheriff Carl Ibsen, his three captains earned combined overtime pay of approximately $33,000, with roughly half of that paid to then-captain Mike Dominick, then the head of detectives.

The next year, under McDermott, overtime compensation for captains more than doubled, according to records obtained by the Missoulian.

In the note sent to the Missoulian with the results of its records request, Undersheriff Rich Maricelli said captains were historically able to work overtime for on-call coroner activities and special traffic law enforcement activities.

Until 2012, sheriff’s office captains did not qualify for overtime under the county’s policy. That year, Ibsen secured permission from the Missoula County Commissioners to pay overtime to captains and the undersheriff at their normal hourly pay rate.

I added the emphasis to “on-call coroner” because, while I am sympathetic for needing to pay for having staff on-call (I worked without pay to be on-call at a certain shelter, but that’s in the past), I’ve already described the problems that can arise when the Sheriff is also the Coroner.

Problems like a Missoula County Coroner being in the room while Sean Stevenson was removed from life support without his family having been notified. Stuff like that.

When I think about money and over-time pay, I think about the young black man who allegedly sent Sean Stevenson into that coma, Johnny Lee Perry, and how his machete play came in to 911 dispatch around shift-change. I suspect a lot of over-time pay occurred waiting for the helicopter to take his body to the same hospital Sean Stevenson was euthanized in.

I also think about all those search hours in the allegedly EXHAUSTIVE search for Rebekah Barsotti referenced in this September article from the Missoulian:

Mineral County Search and Rescue, Missoula County Search and Rescue (SAR), and members from Kootenai County and Flathead County Search and Rescue began an extensive search in and around the Clark Fork River. Combined, over 2,000 hours have been dedicated to the search, the release said. While Missoula County SAR conducted their search Missoula County Sheriff’s Office Detective Division investigated all other potential leads. 

The search for Barsotti has been extensive in terms of resources and hours spent, Mineral County Sheriff Mike Toth said in the statement.

I had to use EXTENSIVE emphasis in this quote to match the EXTENSIVE bullshit that comes from anything Sheriff Toth says in regards to anything Barsotti-related. It’s that bad.

Circling back to that $3.4 million dollar settlement, a source of mine indicated legal counsel on that nice payday includes Lance Jasper, a lawyer who is also getting serious with the Mineral County Attorney’s Office. Here’s a question that post seemed to generate:

I don’t know about Lance Jasper backing Funke, but public records show who Lance Jasper IS backing.

I see definite support for Missoula County Sheriff candidate, Jeremiah Petersen, so that’s fun. Even MORE fun, though, is how County Treasurer candidate, Jill Betts, references her experience with Walmart in a Monte Turner Q&A. I swear I’m not making this up.

What qualifications do you possess for Treasurer of Mineral County; explain your work experience and how it would benefit this county and its residents.

Betts: I worked for Walmart my entire adult life until deciding to move back home, and I have held many different positions with the company. I moved up quickly, taking on more challenging roles as I moved all over the US. The last position that I held for over 5 years was as a Store Manager. A Walmart Store Manager is solely responsible for a +$80 million budget, over 300 employees, profit and loss, customer satisfaction, and human resources, among other things. I feel that this experience will allow me to manage county tax dollars and motor vehicles very effectively.

I think this is a good place to stop, for now. But don’t worry, this rabbit hole shows no sign of a bottom.

Thanks for reading!

The Story Of Homeless People Dying Of Extreme Heat In A Missoula Newspaper Comes From Phoenix Because Corporate Media

by Travis Mateer

I was a little confused at a recent headline in the Missoulian because sweltering heat is NOT the weather situation right now in Montana, more like unseasonably wet (historic flooding wet) and cold. It made more sense when I realized the story was from AP out of Phoenix.

When I see geographical cut-and-paste headlines like these I think simple thoughts, like FUCK corporate media. If there was actual intent to report actual reality, then names like Sean Stevenson and Johnny Lee Perry, when I speak them locally, wouldn’t illicit so many blank stares.

For some different reporting a little closer to home (more like Johnny’s neck of the proverbial woods), RealClear Investigations has piece worth reading, titled The Criminal Order Beneath the ‘Chaos’ of San Francisco’s Tenderloin. From the link:

Taken together, the dealers, boosters, and fences comprise a vast illicit industry that generates the cash that pays a Mexican drug cartel to import narcotics into San Francisco’s streets. Those drugs kill two people a day directly. The organized robberies and thefts they spawn create thousands more victims, from targets of muggings, burglaries, and home invasions to working class, elderly San Franciscans whose local pharmacies keep shutting down or reducing hours, to retail employees who are laid off as those stores are closed.

Here’s another quote I think is applicable to our little Zoom Town microcosm:

“Everyone knows what’s going on. The cops, mayor, and D.A.,” said Tom Wolf, a recovering addict. “Everyone knows it’s organized and cartel-backed. They just don’t think it’s worth it to stop it, because nothing’s going to change anyway. They’ve surrendered.”

Here in Missoula, it took years of diligent work by a local community organizer to finally shame local officials into declaring an emergency regarding a local homeless encampment and cleaning shit up.

In my own coverage of this issue, I have tried to call into question how much the supposed “disorder” of addiction and mental illness is actually a convenient cover (though no less real) for the order of organized criminal elements.

Corporate media in Missoula has been doing a piss-poor job of informing us for years, but transplanting a story about lethal heat while our state floods is a new low, especially considering how much effort went into the FINDING GOVERNOR GIANFORTE question that so consumed Montana Twitter for days and days.

For stories about REAL things happening in our actual town, stay tuned here. And if you’d like to help out financially, I’m still recouping costs for a Engen’s Missoula. Any little bit helps.

Thanks for reading!

Adios, Humanitarian Beer Peddlers!

by Travis Mateer

Ten years ago, at a different blog, I wrote about a new brewery attempting to leverage the owners’ humanitarian work in order peddle alcohol. Here’s how I opened the post in 2012:

Helena native Robert Rivers and his partner Fernanda Menna Barreto Krum are trying to monetize 25 years of working for global peace by opening another brewery in Missoula.

But this won’t be your average brewery. No, it’s going to be a conflict resolution brewery, because nothing makes people more peaceful than alcohol, right?

This obnoxious marketing of a brewery in a brewery-saturated market is probably going to continue under the new owners, who got their very own fluff piece from Gomer Kidston’s digital rag, the Missoula Current. From the link:

Imagine Nation has often collaborated with local non-profits, allowing different organizations to design a label for their beer, and thus, spreading their message to a larger audience.   

“The beer is a vehicle for something bigger than itself,” said Rivers.

This schtick of leveraging humanitarian work in order to make and sell alcohol was bullshit ten years ago, and it’s bullshit now, so I’m glad the originators of this bullshit are running to Europe to get their war itch scratched.

So, What’s next for Krum and Rivers? They plan to relocate to Europe to pursue the type of work they were doing before opening Imagine Nation, international humanitarian work in places like the Middle East, Africa and South Asia

For fans of this brewery, don’t worry, it sounds like the new owners will continue propping up the illusion that buying their booze leads to awesome social change. Just drink enough of their product and see for yourself how the humanitarian magic of beer changes lives!

Have a great week, and thanks for reading!