ACKNOWLEDGEMENTS PETER FOX, NRMEDD EXECUTIVE COMMITTEE PROSPERA BUSINESS NETWORK Stuart Leidner, Executive Director Prospera Business Network U.S. Economic Development 2015 Charlotte Street, Suite #1 Administration, U.S. Department Bozeman, Montana 59718 of Commerce Phone: 406-587-3113 Fax: 406-587-9565 1401 Constitution Avenue, Suite 7800 Washington, DC 20230 STAFF SUPPORT Rob Gilmore, CDP, NRMEDD Executive Director Tom Rogers, AICP, Gallatin County Planning & Community Development Warren Vaughan, Gallatin County Planning & Community Northern Rocky Mountain Development Economic Development District David Fine, Park County Bozeman, MT 59715 (406) 763-4412 SPECIAL THANKS On behalf of the Staff a special thanks to members of the Report is hosted at: NRMEDD Strategy Committee who provided guidance, support, http://nrmedd.org/ outreach and technical knowledge to the creation of this Comprehensive Economic Development Strategy. And to Mr. Earl Mathers, Gallatin County Administrator, who was instrumental in rejuvenating the NRMEDD. Finally, to all the dedicated individuals who make the District a vibrant and productive economy. 2 | P age Northern Rocky Mountain Economic Development District Table of Contents Chapter 1: Introduction …….……………………………………………………………………………….………………………………….7 A. Background ........................................................................................................................................... 7 B. Who We Are ........................................................................................................................................ 11 C. NRMEDD Board of Directors………………………………………………………………………………………………………….11 D. Partner Development Organizations in the Region ........................................................................... 14 E. History of Economic Development in Region ..................................................................................... 17 F. Organization and Management of CEDS Process ............................................................................... 19 G. Strategy Committee……………………………………………………………………………………………………………………..22 H. Community Participation in the 2012 CEDS Process ......................................................................... 22 I. Organization of the Plan ...................................................................................................................... 24 Chapter 2: District Economy and Background Information.……………….…………………………………………………25 A. Background .................................................................................................................................... 25 B. Population & Demographics .......................................................................................................... 25 C. Socioeconomic Characteristics ...................................................................................................... 27 D. Existing Business, Industry Base, And Regional Clusters ............................................................... 43 E. Housing and Real Estate ................................................................................................................ 60 F. Healthcare ...................................................................................................................................... 63 G. Telecommunications ...................................................................................................................... 63 H. Transportation & Transit Systems .................................................................................................. 65 I. Education ....................................................................................................................................... 66 J. Public Services ................................................................................................................................ 70 K. Disaster and Economic Recovery and Resiliency Strategy ............................................................. 73 L. Wastewater Treatment ................................................................................................................... 87 M. Environmental Conditions………………………………….………………………………………………………………………89 N. Federal, State, and Local Resources………………………………………………………………………………………….105 Chapter 3: The NRMEDD Region: Economic Challenges & Potential…………………………....……………………107 A. Strengths / Opportunities ................................................................................................................ 109 B. Weakness / Concerns ...................................................................................................................... 112 3 Northern Rocky Mountain Economic Development District Chapter 4: Regional Goals & Implementation…………………………………………………………………………………….116 Chapter 5: Plan Evaluation ....................................................................................................................... 130 Appendix A: Resource Documentation & Bibliography……………………………………………………………………...131 Appendix B: Bozeman Meeting Summary………………………………………………………………………………………..141 Appendix C: SWOT Survey/Input Form……………………………………………………………………………………………150 Appendix D: MEDA – Livingston Assessment…………………………………………………………………………………..151 Appendix E: MEDA – Belgrade Assessment…………………………………………………………………………………..…212 List of Charts Chart 1: Gallatin County Demographics. Source: U.S. Census………………………………………………………………..26 Chart 2: Park County Demographics. Source: U.S. Census…………………………………………………………............26 Chart 3: Components of Employment, Gallatin County MT……………………………………………………………………28 Chart 4: Components of Employment, Park County MT…………………………………………………………………………29 Chart 5: Number of Jobs per Sector, Gallatin County 2009…………………………………………………………………….29 Chart 6: Number of Jobs per Sector, Park County………………………………………………………………………………….29 Chart 7: Average Earnings per Job & Per Capita Income, Gallatin County MT………………………………………..32 Chart 8: Average Earnings per Job & Per Capita Income, Park County MT…………………………………………….32 Chart 9: Wages and Employment, Services Industry vs All Other Industries, Park County 2010……………..33 Chart 10: Components of Personal Income, Gallatin County MT……………………………………………………………34 Chart 11: Non-Labor Income Share of Total Personal Income, Gallatin County MT………………………………..34 Chart 12: Components of Personal Income, Park County MT…………………………………………………………………35 Chart 13: Non-Labor Income Share of Total Personal Income, Park County MT……………………………………..35 Chart 14: Average Annual Unemployment Rate, Gallatin County MT…………………………………………………….36 Chart 15: Average Annual Unemployment Rate, Park County MT…………………………………………………………37 Chart 16: Inflow & Outflow of Earnings, Gallatin County MT………………………………………………………………….38 Chart 17: Inflow & Outflow of Earnings, Park County MT………………………………………………………………………38 Chart 18: Employment Change During Recessions & Recovery Periods, Gallatin County MT………………….39 Chart 19: Employment Change During Recessions & Recovery Periods, Park County MT……………………...39 Chart 20: Population, Gallatin County MT Compared to Montana………………………………………………...........40 Chart 21: Employment, Gallatin County MT Compared to Montana……………………………………………...........40 Chart 22: Personal Income, Gallatin County MT Compared to Montana………………………………………………..41 Chart 23: Unemployment Rate, Gallatin County MT Compared to Montana………………………………………….41 4 Northern Rocky Mountain Economic Development District Chart 24: Population, Park County MT Compared to Montana……………………….……………………………………..42 Chart 25: Employment, Park County MT Compared to Montana……………………………………………………………42 Chart 26: Personal Income, Park County MT Compared to Montana……………………………………………………..42 Chart 27: Unemployment Rate, Park County MT Compared to Montana………………………………………………43 Chart 28: Number of houses sold 2005-2010, Gallatin and Park Counties……………………………………………..61 Chart 29: Number of houses sold 2005-2010, Gallatin and Park Counties……………………………………………..62 Chart 30: Airplane Deboardings by Location Source: Bozeman Yellowstone International Airport………..65 List of Tables Table 1: Age Ranges, Gallatin and Park Counties (Source: U.S. Census)………………………………………………...27 Table 2: Top 20 Private Employers in Gallatin County……………………………………………………………………………30 Table 3: Top 20 Private Employers in Park County…………………………………………………………………………………30 Table 4: Annual Average Labor Force – Gallatin County…………………………………………………………………………35 Table 5: Average Annual Labor Force – Park County………………………………………………………………….............36 Table 6: Gallatin County Employment 2010…………………………………………………………………………………………..44 Table 7: Park County Employment 2010………………………………………………………………………………………………..45 Table 8: Gallatin County Retail 2010………………………………………………………………………………………………………48 Table 9: Park County Retail 2010……………………………………………………………………………………………………………49 Table 10: Gallatin County Agricultural Statistics…………………………………………………………………………………….50 Table 11: Park County Agricultural Statistics……………………………………………………………………….…………………52 Table 12: Lodging Facility Use Tax (4%) Collections, 2006…………………………………………………….………………..55 Table 13: Yellowstone National Park Visitors……………………………………………………………………….………………..56 Table 14: Big Sky Resort and Bridger Bowl Visitors…………………………………………………………………………………57 Table15: Bank Deposits in Gallatin County – June 2011…………………………………………………………………………58 Table 16: Bank Deposits in Park County – June 2011……………………………………………………………………………..59 Table 17: Single Family Residences in Gallatin and Park Counties………………………………………….………………60 Table 18: Residential Distressed Sales in Gallatin and Park County (Short Sales)………………….………………..61 Table 19: Residential Distressed Sales in Gallatin and Park Counties (Foreclosures)………………………………61 Table 20: Population, Households and Housing Units in Bozeman and Gallatin County, 2010……………….63 Table 21: Broadband Providers in Gallatin and Park Counties………………………………………………………………..64 Table 22: Schools in Gallatin and Park Counties…………………………………………………………………………………….67 5 Northern Rocky Mountain Economic Development District Table 23: MSU Enrollment – Fall 2011……………………………………………………………………………………………………69 Table 24: Critical Services and Facilities, Gallatin and Park Counties……………………………………………………...70 Table 25: Gallatin County Hazard Mitigation Plan Summary of Hazards…………………………………………………76 Table 26: Park County Hazard Mitigation Plan Summary of Hazards………………………………………………………78 Table 27: Gallatin County Disaster Recovery Actions and Priorities……………………………………………………….82 Table 28: Park County Disaster Recovery Actions and Priorities…………………………………………………………….83 List of Maps Map 1: Overview of the Northern Rocky Mountain Economic Development District region……………………9 Map 2: Overview of the Northern Rocky Mountain Economic Development District…………………………….10 Map 3: Gallatin and Park Counties: Shaded areas represent broadband coverage. Source: Montana Broadband Project…………………………………………………………………………………………………………………………………65 Map 4: Northern Rocky Mountain Economic Development District general environment……………………..89 Map 5: State and National Parks, NRM EDD……………………………………………………………………………….............90 Map 6: Wilderness Areas, NRM EDD………………………………………………………………………………………………………91 Map 7: Farmland Classification, NRM EDD…………………………………………………………………………………………….93 Map 8: FEMA Floodplains, NRM EDD……………………………………………………………………………………..……………104 6 Northern Rocky Mountain Economic Development District Chapter 1: Introduction A. Background Gallatin and Park Counties serve as southwest Montana’s economic hub. A variety of high-tech and professional service businesses, a robust tourism industry focused on Yellowstone National Park, and many large working farms and ranches provide an economic base that has become increasingly diverse over the past several decades. Montana State University brings over 14,000 students to the District as well as significant economic and cultural value, and the District’s residents are among the most educated in the state. The Northern Economic Development District (the District) was originally formed in 2002 to facilitate actions to protect, sustain, and advance the economies of Park and Gallatin Counties. The District was rejuvenated in 2011 after a year of dormancy, reforming its board and hiring an executive director in early 2012. The principal task for the NRMEDD during the initial phase of the rejuvenated District has been to populate the Board of Directors with diverse and highly competent individuals representing a broad spectrum of economic sectors, hire an executive director, to produce this Comprehensive Economic Development Strategy (CEDS), and begin immediate implementation of its goals and objectives. The District’s CEDS document is a planning and implementation tool for the communities in the District and replaces the separate Park and Gallatin County CEDs dated 2002 and 2005 respectively. This document will be instrumental in evaluating the success of the District’s work. The goal of the CEDS is to guide and coordinate efforts of various public and private entities in economic development and to provide measurable criteria for the work of the District. In preparing the 2012 CEDS, the objective was to identify the strengths and weaknesses that influence the two-county economy; then build strategies to bolster opportunities and hopefully, begin the work to convert weaknesses into opportunities. The search for all things that mattered to the economy included federal, state and local sources not-with-standing private, nonprofits and arts and culture partners. It was indeed a regional collaboration. The CEDS process used modern survey instruments, collection of census and other data, and IMPLAN based analysis. It also involved old-fashioned face-to-face meeting in remote town halls and throughout the District’s quiet corners. The search for CEDS projects and priorities involved the not only a list of capital improvement projects but also the broader vision of that only comes when economies are dismantled, studied and considered from a variety of angles. The process engaged peers from development organizations around the State that actually participated in the input process through outside assessment, as well as review of dozens of previous CEDS documents from programs across the nation. The 2012 NRM EDD CEDS document is a unique and tailored document that will guide economic development work across the District for the next five years. The District is greatly indebted to the staff and volunteers who worked tirelessly to prepare this document. Thousands of miles and hundreds of discussion hours, input, and analysis were necessary. To these many, the District remains truly thankful. 7 Northern Rocky Mountain Economic Development District The District’s economy today is no longer identified only by businesses up and down its main streets, a few high-tech industries, and a handful of manufacturers. There are new and growing industry sectors and recent major acquisitions. There are also economic influences that lack a typical geographic boundary, global tourists, shared railroads, highways, rivers and economic forces with epi-centers hundreds of miles distant. Because business owners and workers in many modern companies can live anywhere they choose, and because Gallatin and Park counties are desirable places to live, there is now a growing and vibrant community of nontraditional economic forces complementing our traditional sectors. There are a number of organizations in Gallatin and Park counties that, for several years, have been successfully supporting economic development in the region. The District hopes to build on and complement that existing work by structuring complex economic development projects in two significant ways: 1. Building and filling in the gaps of economic development infrastructure – creating cooperation among programs, cooperation among economic assets (MRL, NWE, hospital, airport, MSU, industrial parks, available land, developers, retail centers etc). 2. Serving as the area’s entrepreneurial coach for more complex business clients. The District’s mission it to provide a team of professionals that quickly ascertains then builds solutions around the weaknesses and strengths of client businesses using its own staff as well as a deep and growing network of professionals that can be efficiently introduced to quickly advance local businesses. The 7 goals guiding the District over the next five years are: Goal 1: Promote economic diversity, entrepreneur growth, and business retention and expansion throughout the District Goal 2: Foster effective transportation access and support development of major transportation assets like the railroad, airport and highways systems Goal 3: Expand the capabilities of a skilled, highly educated, permanent, and full time workforce for local businesses Goal 4: Serve as a District-wide forum for coordinating economic development discussion and initiatives Goal 5: Promote the use of technology to advance economic development activities including better tools to measure and evaluate economic impacts Goal 6: Build on our unique natural assets to develop and enhance our tourist industries Goal 7: Maintain and enhance the District’s physical infrastructure Considerable effort was made in this process to choose the strategies and priorities most likely to produce these outcomes and offering the best returns on investment of time, money, and staff 8 Northern Rocky Mountain Economic Development District resources. Priorities reflect the input provided by individual counties and communities in our region concerning their goals and concerns. Map 1: Overview of the Northern Rocky Mountain Economic Development District Region 9 Northern Rocky Mountain Economic Development District Map 2: Overview of the Northern Rocky Mountain Economic Development District 10