Hub City Pioneers Newsletter – Mission: to build an economic hub in Glendive, Montana

WHAT IS THIS ABOUT? Hub City Pioneers, Inc., a committee of the DCEDC, was incorporated this fall. The mission: to build an economic hub in Glendive, Montana, as explored in the November 2006 Feasibility Report by Jon A. Rudbach, Vice President for Research, University of Montana. The extensively researched Report presented several recommendations, one of which was to “organize a citizen’s committee, with several subcommittees, for management of the processes required to create primary businesses in Glendive.” Among the “processes” suggested in the Report are recruiting businesses, and generating and promoting growth of local businesses.

Currently, the volunteers of the Hub City Pioneers are President/Secretary Ulric Ficek, Greg Hagenston, Steve Ficek, and Katherine Lee. This online newsletter is their effort to bring interesting and helpful economic information to Glendive area businesses. The newsletter will also identify government and other business opportunities the Hub City Pioneers come across in web searches. If such a newsletter has potential to be useful to the Glendive area business community, it will be posted to a community blog to be archived and commented upon. If you would like to read the articles upon which these synopses were based, please contact Katherine Lee, 365-3207. If you have a business news article of interest, please mail it to Katherine Lee, PO Box 1192, Glendive MT 59330.

ENERGY: The Tuesday, Dec. 28 issue of The New York Times has several interesting articles on alternative energy. First, Congress’ energy bill gives a giant boost to the research of processes and development of ethanol from cellulose, including corn stalks, wood waste, straw, switch grass and ag waste. Next, FutureGen Alliance is a consortium of 14 of the world’s largest coal producers and users, working to build a plant that cooks coal into a gas, creating a pure stream of hydrogen to be burned to make power, and a second stream of carbon dioxide to pump underground. Also, Nanosolar, a California innovator in solar panels, is developing a new manufacturing process to “print” photovoltaic material on aluminum backing, reducing cost of solar panels by more than 80%. The goal is a panel that will sell for less than $1 a watt, the price at which solar energy becomes less expensive than coal. The first panels will be installed in a one-megawatt facility in Germany, and will supply electric power for about 400 homes. Contributed by Katherine Lee.

Chuck Kerr, CEO of Great Northern Power Development LP, said in November there was an 80% chance that a coal-to-gas plant and coal mine would be developed in southwestern North Dakota. Billings Gazette, November 22, 2007; contributed by Ulric Ficek.

A front page article in the Billings Gazette, December 3, 2007, discussed petroleum geologist Richard Findley’s work developing horizontal drilling and fracturing for oil near Sidney: the largest on-shore oil discovery in the continental US in 20 years. In 2005, 32.8 million barrels of oil were pumped out of Montana, most from the Bakken Formation in the Elm Coulee area. In 1995 taxes on oil brought $13 million into Montana’s coffers; last year the taxes on oil were $92.7 million. The pipeline carrying the oil is at capacity and wells have been closed for that reason. Contributed by Greg Hagenston.

TRANSPORTATION: The Dickenson Press, November 25, 2007, described “overwhelming” Canadian support for a divided four-lane highway between Regina and US Highway 2 northwest of Minot. Response to the project, supported by the Soo Line Highway Corridor Association, is “lukewarm” in the U.S. Contributed by Ulric Ficek.

DEVELOPMENT: Fargo city commissioners approved a 10-year, multimillion dollar tax break to encourage Microsoft expansion of its facility. The expansion will add 207 jobs in 2009. Billings Gazette, Thursday, November 22, 2007; contributed by Ulric Ficek.

The Wall Street Journal, March 7, 2007, reported on growth in Quincy, Washington, as a result of computer data centers there. Quincy, population 5,300, is facing addition of 1,000 new homes, as land prices have quintupled and rents have doubled. The area’s big draw is abundant cheap hydroelectric power for operations of Microsoft, Yahoo, and Intuit. Contributed by Ulric Ficek.

The national housing slump has an upside in the cost of building materials (OSB down 40%, drywall down 35%) and availability of building trades, according to a recent article in The Wall Street Journal. Michigan, Ohio, Nevada, Florida and Arizona report their backlog of work shrunken as new projects dry up. Contributed by Ulric Ficek.

In August 2006, The Wall Street Journal reported on the North Dakota oil boom and the surge in population in Fargo to support the contention that the “Buffalo Commons” theory of Frank and Deborah Popper (irresistible regional decline where development was a mistake) is overblown given the region’s energy assets. In September 2006, the Poppers responded that there are still slow-leak losses in the countryside, feeding the growth of Fargo and Bismarck. The Poppers call for development of wind power, which could co-exist with Buffalo Commons. Contributed by Ulric Ficek.

AGRICULTURE: The United Nations Food and Agriculture Organization has announced a crisis in the world food supply, with supplies dwindling rapidly and prices at historic highs. The agency states that the food price index worldwide has risen by more than 40% this year. Reserves of cereals are severely depleted: wheat stores declined 11 percent, to the lowest since 1980, with 12 weeks of the world’s total consumption in storage. Corn supplies are at 8 weeks, compared with 11 weeks over the past 5 years. High oil prices have doubled shipping costs. Unusual droughts, floods and storms have decreased production in exporting countries like Australia and Ukraine. The organization asks developed countries to revisit ag and aid policies, for example to focus on helping farmers grow food locally. The organization plans a new voucher program providing seed and fertilizer to farmers in poor countries. The New York Times, Tuesday, December 28, 2007. Contributed by Katherine Lee

The oilseed camelina has “a lot of upsides” in its potential for growth in Montana, according to Senator Jon Tester in the BillingsGazette, November 26, 2007. Tester, Senator Max Baucus and Governor Brian Schweitzer have announced a joint venture to produce 100 million gallons of biodiesel fuel from camelina. Green Earth Fuel of Houston has a biodiesel plant in Texas, and is considering building a plant in Montana in the next couple of years. Contributed by Greg Hagenston.

HEALTH CARE: St. Joseph’s Hospital in Dickinson is seeking status as a Medicare Critical Access Hospital, to obtain enhanced reimbursements and respond to Medicare cuts and inequities. Dickinson Press, December 9, 2007; contributed by Ulric Ficek. Mercy Medical Center in Williston is considering layoffs and closing its wellness center in response to “difficulty in recruiting physicians, and the level of reimbursement for services”, according to CEO Dennis Goebel. Dickinson Press, December 7, 2007; contributed by Ulric Ficek.

EDUCATION: According to a presentation based on data from AmericanSolutions.com/Research, there will be four to seven times more scientific innovation in the next 25 years than there was in the past 25. Contributed by Greg Hagenston, who sees this as support for potential for developing Glendive State University.

QUALITY OF LIFE: Trappist monks in Belgium have developed a prized beer that can be purchased only from their front gate, by appointment, in limited quantities. The brew is reported to be “addictive, like chocolate”. The monks will not increase production in response to demand, in order to maintain their way of life. “We sell beer to live, and not vice versa,” explains the brewmaster. The Wall Street Journal, November 29, 2007, contributed by Ulric Ficek.

GOVERNMENT BUSINESS OPPORTUNITIES recently listed on FedBizOpps, http://www.fbo.gov:

The Western Montana Acquisition Zone anticipates awarding a fixed price contract for the services of one or more outfitter(s) to perform the duties of wilderness treks (backpacking, horseback/packing, llama packing) for the National Wilderness Stewardship Training Session conducted by the Arthur Carhart National Wilderness Training Center. This contract will be awarded as a Commercial Item. Martin Schmidt, Contracting Officer, Phone 406-329-3988, Fax 406-329-3876, Email [email protected] – Theresa Peterson, Procurement Technician, Phone 406-329-3990, Fax 406-329-3876, [email protected]

Fence Construction at National Wildlife Refuges and Fish Hatcheries and other sites located within the eight (8) states of U.S. Fish & Wildlife Region 6 that include North and South Dakota, Montana, Wyoming, Utah, Colorado, Nebraska and Kansas. Contact the Administrative Contracting Officer, Albert J. O’Mara via email: [email protected] (preferred), telephone (303) 236-4335 or fax (303-236-4791); Procurement Contracting Officer Obeid J. Shaikh: http://www.fedbizopps.gov, Solicitation 601818R501.
Replace Family Housing, Phase 7A at Malmstrom Air Force Base, Montana. Project consists of the demolition of existing duplex houses and the construction of 46 new duplex housing units. Estimated dollar value is in the range of $10,000,000 to $25,000,000 and the completion period is estimated at 540 calendar days. Shannan Lewis, 206-764-6806; [email protected]

Janitorial services for the Bureau of Land Management, Malta Field Office, located at 501 S 2nd St. East in Malta, Montana: 5000 square foot main office building; 2) the law/shrub and sidewalk areas; 3) the two non-public restroom facilities located in two warehouse buildings; and 4) the fenced paved warehouse yard area; policing of corridors, lobbies, and restrooms, servicing of restrooms, washing of exterior windows, lawn moving and weed. Response date for quotes will be on/about December 28, 2007; Charlene Gunther Purchasing Agent 4068965195 [email protected]; [email protected]

Noise mitigation, National Institutes of Health (NIH) Rocky Mountain Laboratories (RML) in Hamilton, Montana, includes the removal and replacement of existing rooftop exhaust and duct silencers to reduce noise generated by equipment; test and balance work associated with restoring proper air flows after modifications. Requests for bid documents may be made by fax or e-mail. No phone requests please. Linda Shaw, Contract Specialist, [email protected] – Casey LaFran, procurement technician, Fax 206-615-2466, [email protected]

USEFULWEBSITES:

Many websites are set up for selling handmade goods nationally and internationally. Check out handmade-treasures.com; flickr.com/groups/craftershq; craftersclosets.com; etsy.com.

Interesting, detailed free business courses from Hewlitt Packard and Intuit: http://www.buscourses.com. Offerings change monthly.

Hub City Pioneers, Inc.; e-mail [email protected]