Libby officials approve Community Development Fund policy
May 23—After more than a year of vocal debate about the deployment of money in the Libby Community Development Fund, a new policy was quietly approved at the May 19 city council meeting.
Councilor Gail Burger made a motion to approve the new policy, Kristin Smith seconded it and the vote was unanimous. Councilor Melissa Berke and Mayor Peggy Williams were absent from the meeting.
The Community Development Fund balance currently sits at nearly $1.6 million.
The money originated in 2001 when the city received $11.5 million from a federal earmark led by former U.S. Sen. Conrad Burns. The money was intended to assist in economic stimulation after the collapse of the timber industry and the discovery of asbestos in the community.
While $3.5 million went to the hospital, the other $8 million went to the Libby Area Development Company (LADC). It has helped pay for, among other things, the expansion of the Cabinet View Golf Course and the building of the club house. It also helped pay for new playground equipment in Fireman's Park and the refurbishing of an old gymnasium now known as the Memorial Center.
The city took over administration of the money in 2005 and LADC dissolved in 2015.
Discussion about revising the policy began after two local entrepreneurs trying to renovate properties sought money from the fund.
The Libby Lofts' Zach and Tracy McNew and the Friends of Historic Hotel Libby's Gail Burger were seeking money for their respective projects. Burger is renovating the Hotel Libby on California Avenue and the McNews are trying to renovate the old high school.
Libby Lofts sought $138,000 while Burger's ask was $9,000.
But council members voted against the requests and a discussion ensued at how the money should be spent, through loans or grants, and whether someone should be hired to administer the fund and seek grants to grow the pot of money.
The city has developed an application for those seeking money from the Community Development Fund. It is available at city office building at 952 E. Spruce St., Suite 100.
Some of the information sought is a short description of the project, its cost, other funding sources and how much is being sought from the current fund.
Councilors did decide that loans wouldn't be made, but the money will come in the form of grants.
In the projected use of funds section, money may be used for project that enhance the city's recreational and tourist opportunities, enhance the city's appearance and functionality or to buy land, building or real estate with a goal of re-investment.
Fund money won't used for buying equipment, general operating expenses and infrastructure.
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