To: Cascade County Commissioners:

Peggy Beltrone, Chair

Lance Olson

Joe Briggs

From: Aart Dolman

Date: December 27, 2006

Re: Industrial Tax Increment Financing District Ordinance 06-04

As a Cascade County tax payer and residing in Cascade County, I was really surprised to read that on November 29, 2006, you created the new Cascade County Industrial Park and that you are asking approval from the Montana Department of Revenue for approval to establish a TIF district.

Due to the recent notice of shortening comment period, I do not really have the necessary time to examine the positives or negatives of the TIF issue. My preliminary findings and remarks are that it can be an experience to haunt the taxpayers of this county. Not all TIF projects have been successful and especially if this project fails to receive federal support for it would be difficult to attract private investors. However, I wish to keep my remarks short and to the point, and I apologize for this extensive memorandum for it is difficult to generalize this issue.

Yet, I wish to make the following points:

First, I am not an attorney but an academic historian/ political scientist who specializes in International Law and currently serves as an Adjunct Professor at Troy University, Ala. I do not claim to be sufficiently knowledgeable about domestic and Montana law in regard to the TIF and neither to be a scholar of Lewis and Clark History but am an academic researcher and teacher. In addition, I have been involved for several decades in local historic preservation, protection, and restoration in the Golden Triangle, and I was the person who wrote the historical statement of the Transmission Line between Havre and Glasgow.

As a concerned citizen of Cascade County, long time resident, and a taxpayer, I continue to protest the procedures you have been following in the recent rezoning process and strongly disagree with your decision because it negatively impact a national historic site. I realize that this was done at the sole request of a landowner and the result has been that our county, in reality, has no longer a Growth Policy as required by Montana law. The main reason for this zoning change was to build a coal-fired electric generating plant to be located directly on and astride of the Great Falls Portage National Historic Landmark and the National Historic Lewis and Clark Trail.

In addition, this zoning change from prime agriculture to heavy industry resulted in the creation of a new industrial park, entitled Cascade County Industrial Park, which has only one service plant. The erection of the Highwood Generating Station (HGS), partially owned by the City of Great Falls and Southern Montana Electric Generation & Transmission Cooperative (SME), which has a limited benefit for the largest share of electricity is transmitted to other parts of our state. It is shortsighted to assume, in the face of other negative costs such as health, loss of established livelihood, etc. that a TIF project is successful. Many communities have discovered that a TIF investment might not be the tax windfall as is advocated by its supporters. In any case, it should be carefully examined by those who have expertise in that area.

Second, the creation of the Cascade County Industrial Park for the sole purpose to benefit a single industry on a single partial of land outside of a municipality cannot be considered to be as “urban renewal” outlined in the Montana Codes Annotated. (7-15-4201 Urban Renewal Law and 7-15-4203. These laws and statutes deal with the need for redevelopment and rehabilitation of blighted areas, and I can assure you that this rich grain producing area is far from being a “blighted area.”

In addition, the Montana Attorney General stated in his opinion to the Yellowstone County Attorney, September 6, 2006, that industrial areas outside of municipalities do not qualify for “urban renewal” under the current Montana Codes Annotated. (MCA 7-15-4206 (8)

Third, the Cascade County Industrial Park consists of a single coal-fired electric generating plant. The legislative intent when it passed the Tax Increment Financing Industrial Development Act, 1989, was to assist municipalities in acquiring a “secondary value adding industry” in order to be competitive in today’s world economy. (MCA 7-15-4298-4). The attraction of Pasta Montana to Great Falls is a very good example of a successful TIF qualifying project. It is located, near grain silos, transportation network, gainfully employs local citizens, and its product reaches a global market. The production of the HGS coal-fired generating plant meets some of the demand of Montana entities and, perhaps, if there is a surplus it will send some of it out of state; however, this is not its main purpose. Since the plant produces a set production of electricity, its demand for Montana Communities is much less for it has to prepare for a spike in demand and might have to send some of its produced electricity out of state, or at least some of its produced surplus must be sold on the “open” market for it cannot reduce its productive capacity. In any case, it cannot be argued that its surplus electricity is consumed in the global market place as compared to Pasta Montana. The latter sends its local produced grain products to other parts of the world.

In short, it is very doubtful that the proposed HGS electric generating plant meets the intent of the Montana legislature and the conditions/qualifications as outlined in the Montana Codes Annotated or Taxation and Revenue regulations for a TIF status.

Again the federal National Research Council (NRC) has classified electric generating plants in the category of “public works infrastructure” and certainly not members of a “secondary industry.” This federal agency refers this type of plant operation into the same category as a component of a service infrastructure such as airports, water supply and resources, garbage and wastewater management, and solid-waste treatment and disposal. They do not manufacture products for a national, or global, market.

Fourth, if the Montana Department of Revenue approves the TIF and places an industrial value on the land, consideration must be given to the fact that the National Park Service could remove this historic site from its national listing. It has protested to the RUS that the placement of this coal-fired electric generating plant be mitigated for its satisfaction of all parties. The fact is that the HGS plant destroys the landscape integrity of the Great Falls Portage National Historic Landmark site and this cannot be mitigated. (See Stewart, NPS, letter to Fristik, RUS-USD, 09-10-06).

Thus there exists a very strong possibility that the above stated position by the National Park Service will be upheld by the RUS, USDA. This would mean that one federal agency is funding the destruction of an historic site if it approves the federal loan. Is the RUS going to approve such type of financing in violation of the 1906 Antiquities Act, the 1966 Historic Preservation Act, and subsequent statutory legislation?

On the contrary, the Guide for Preparing an Environmental Report for Categorical Excluded Projects, USDA, RUS Bulletin 1794A-600 (Revised) clearly states that the funding agency will adhere to federal laws dealing with historic preservation, protection, and restoration.

Fifth, since the official Cascade County Commissioners Minutes, December 12, 2006, clearly state that the TIF process “will take effect 30 days from now,” many citizens assumed that this would be a 30-day comment period. However, I do understand that the County Commissioners wish to participate in the 2007 Tax year and had to shorten the comment period in order to qualify. But this creates a hardship for many citizens because they are not familiar with the subject, issue, regulations, and rules applicable to this project. In fact, the vast majority has never heard of TIF in the first place and it is an unreasonable request to state a position on this issue in public hearing of such a difficult issues. The shortening of the comment period is not fair and is unreasonable. Therefore I the shortening of the public comment period by the Cascade County Commissioners, and request that citizens be granted the full 30-day comment period.

Since there is current litigation about the rezoning of this parcel of land and there is an apparent violation of Montana Laws and Statutes in the establishment of the TIF district, I request that the Cascade County Commissioners either table the motion or reject it by voting no.

Thank you very much for your cooperation and interest. In addition, I wish to thank you for the courtesy and consideration you have given the public during the rezoning hearings.

Sincerely yours,

Aart Dolman

3016 Central Avenue

Great Falls, MT. 59401

Copy to: Montana Department of Revenue

Helena, Mt.

Mark Plank, RUS, USDA

Washington, DC

Dan Wiley, NPS

Omaha, NEB.