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New firm, Teletech Inc. calls on Kalispell – could initially provide 125 jobs

A major customer service firm wants to open a new call center in Gateway West Mall.

Kalispell officials announced Thursday that Teletech Inc., a billion-dollar firm based in Englewood, Colo., wants to occupy the city-owned space in Gateway West that was previously leased to Stream International.

By William L. Spence
The Daily Inter Lake

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The company would initially provide 125 jobs, including 100 full-time positions. That would eventually climb to 425 jobs and 340 full-time positions. The minimum pay would be $8 per hour, plus benefits.

Teletech offers the same kind of customer support and technical services that Stream did before it closed in August.

It recently signed agreements with electronics retailers Best Buy and Circuit City to provide product inquiry, availability, order tracking, warranty and delivery information to customers via Internet and telephone.

The company reported a net loss of $38.9 million on revenues of $731 million through the third quarter that ended Sept. 30.

Under a proposed lease agreement, Teletech would occupy Kalispell’s Gateway West space for a minimum of five years, beginning on Feb. 1.

The company would receive a 100 percent rent abatement from the city, in exchange for creating a minimum of 125 jobs the first year, 250 jobs the second year and 425 jobs in the following years. At least 80 percent of the positions have to be full time, with a minimum wage of $8 and a benefits package equal to 20 percent of that.

The Kalispell City Council will hold a special meeting on Monday at 7 p.m. to consider the lease proposal.

As part of the deal, Stream International would buy out the remainder of its financial obligations. Specifically, the city would receive:

• A lump-sum payment of $1.36 million to cover rent for 6 1/2 years;

• $767,000 to cover the balance of a $1 million loan the city provided to Stream;

• Up to $50,000 to cover any transaction costs associated with this deal.

• Stream also would pay the brokerage fee the city incurred when it hired an outside firm to look for a new tenant; this fee could be as high as $300,000.

• Teletech would also guarantee a minimum property tax payment to the city of $140,000 per year.

In return, Kalispell would make two financial commitments.

First, it would provide Teletech with a 10-year, $1.18 million loan, at 4 percent interest, to be used to upgrade the call center space.

Second, to meet Teletech’s parking requirements, the city and Flathead County port authority (which co-owns the mall space) would purchase about two acres of nearby property and create 250 additional parking spaces.

Kalispell’s portion of this cost would be $200,000 to $300,000. That money would come out of the west-side urban renewal district’s tax increment funds.

Kalispell officials could not be reached for further comment.

When Stream closed its Kalispell call center last summer, it put 330 people out of work.

Stream opened in Kalispell in August 2000, helped by $4 million in government incentives.

When it closed — years before its commitments in exchange for the incentives were to expire — the company blamed dwindling demand for its services that forced parent company Solectron to consolidate operations and close call centers around the world.

Reporter Bill Spence may be reached at 758-4459 or by e-mail at [email protected]

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