County purchase of National Guard facility: It's a done deal

Since a spring, 2015 announcement the National Guard facility in Chinook would be closed and declared surplus by fall, the fate of the two buildings on the east edge of town has been unclear. The National Guard offered Blaine County the first option to buy the complex, county commissioners began to explore possible uses and how the purchase could be financed. The commissioners voted on November 24 to purchase the surplus facility.

Run up to the purchase

County commissioners, several months ago, asked county department heads to submit possible ways their departments might utilize the buildings. Four departments submitted proposals. In late October commissioners hosted a public meeting and propsed how the purchase could be financed and how the space would be used if the site were purchased.

The proposed use would allocate the shop building to the road department and the smaller, armory building, would be split between the bridge department and weed control. One climate-controlled area, in the smaller building, would be used by the Clerk and Recorder to store microfilmed county records.

Commissioners fielded a number of questions about the condition of the buildings, the threat of possible flooding and considered issues not previously in play. One of the results of the public meeting was a request for an opportunity to tour the building. The tour was held in early November with a number of county employees and public visitors inspecting the buildings and site.

Decision to purchase

by the county

The county commissioners announced that a discussion and vote on purchasing the armory was set. The announced meeting was held on November 24 with all three commissioners and a few county department heads in attendance.

Commission Chairman DePriest chaired the meeting, first explaining some of the details of how the National Guard facility came to be available. He noted a representative for the Guard had said, early on, that the purchase price would be based on an appraisal, which was completed in the early fall. The 140-page appraisal concluded the selling price would be $385,000 for the 5.1 acre plot and accompanying buildings and paved areas. DePriest noted a state official who served as a liaison between a potential purchaser had said the purchase price was firm.

DePriest then explained how the county would finance the purchase, if it were to happen. He explained that the county in its last budget cycle, anticipating the Guard facility might be available, budgeted $350,000 for the potential purchase. He noted, "We had no solid figures to base our budgeting for the purchase. We had to make an estimate." DePriest added, "The county had $350,000 from PILT (Payment in Lieu of Taxes-from the federal government) that we could make available. I also applied to Montana's INTERCAP loan program (makes low interest loans to local governments) managers and they assured me they would finance the entire purchase if the county asked. He added some additional savings were available when a roofing bid was lower than the budgeted amount, by about $50,000.

DePriest then addressed a couple of other concerns brought to the commissioners during the evaluation process. He said he had approval from the engineering firm that manages the county's flood plain issues that fill rock could be added around the existing paved area to park heavy and large equipment. That had been an earlier question. All underground tanks, per an earlier environmental study conducted for the Guard, had been removed and no hazard from that source was of concern.

DePriest then said, "I think the purchase would be a good investment for the county." He laid out a proposed method to finance the purchase. He explained, "My formula is to use the $350,000 from the current budget and take a three year loan, from INTERCAP, to finance the rest. There is no penalty if we pay off the state-backed loan earlier. That would allow us funds to fix something unanticipated and would not burden future commissions with a large loan. If funds become available to pay off the loan, we could also do that." The state loan fund (IMPACT) currently charges 1.25% and requires two annual payments that coincide with property tax receipts.

Commissioner Dolores Plumage said she was in favor of the purchase as well. She added, "I took the tour of the buildings and heard all the issues and answers to the issues. I also agree to the proposed means of financing the purchase." Commissioner Charles Kulbeck said he agreed with the purchase proposal. Kulbeck motioned that the county purchase the facility, use $350,000 from PILT funds already budgeted for the purchase and borrow $35,000 on a three year loan with the option to pay it off in a year. Plumage seconded and the vote was unanimous. Both Plumage and Kulbeck thanked DePriest for his work to make the purchase happen. After the vote, DePriest announced, "It's a done deal."

What's next?

The Montana Legislative Council was apprised of the possibility of the sale. DePriest said, "Just last week the Council approved the proposed sale. Now it goes to the State Land Board, a board made up of the top five statewide elected officials in Montana. The State Land Board makes the final decision about state lands and their disposition. The Board is likely to take up the request at their December meeting, then a notice of the sale must be posted for 60 days." DePriest said he didn't anticipate any problems with the sale being approved at the state level.

Commissioners are hopeful the Guard facility will be available sometime in March, after the official posting of the sale notice is completed. The proposed use by county departments remains as first proposed in the October meeting and described above. As to an exact timeline when departments could begin moving, DePriest said he thought things would begin to happen in early spring. The commissioners have no current plans for how the abandoned shop will be used, those decisions will have to come later.