MBAC seeking Community Development Block Grant to help prospective buyer purchase, grow Hi Country Snack Foods

The Montana Business Assistance Connection is seeking public comments on an application for a Community Development Block Grant for Economic Development aimed at helping a prospective buyer purchase and expand Hi Country Snack Foods, Inc.

MBAC's Community Development Program Grant Manager Eric Seidensticker presented information on the grant application, which requires local government sponsorship, at the Lincoln Government Day meeting Friday, April 6. The meeting served as the first of two required public hearings the application under the Montana Community Development Block Grant Program, administered by the Montana Department of Commerce.

Seidensticker explained that MBAC is working with a potential buyer for the business who is interested in expanding the Hi Country product line and adding approximately 30 new employees over a three-year period. Hi Country currently employs between 40 and 50 people.

"We're kind of building it as funding ... for the job creation piece and (for) purchasing existing and new equipment," Seidensticker said.

If MBAC is awarded the CDBG-ED grant, the money would go into the Lewis and Clark Revolving Loan Fund, which is designated for economic development in Lewis and Clark County. The money can then be loaned out to the prospective buyer as part of the purchase funding package. As principle and interest on the loan is paid back, it would go back into the Revolving Loan Fund, where it can be loaned out again for other projects in the county.

Seidensticker said as part of their research for the grant application, MBAC saw how much Hi Country has done for Lincoln in terms of job creation since it began in 1976.

"It's kind of a no-brainer for us to pursue this," he said.

Hi Country founder, owner and CEO Jim Johnson said he preferred not to comment on the situation until things are a lot further along. He pointed out that the prospective buyers are still working on financing and nothing's been finalized in respect to the sale of the business yet.

Seidensticker didn't identify the prospective buyer at Friday's meeting, but said the individual is from Bozeman and has a successful history running a specialty food and meat business there. He said they may be ready to announce names at the second public hearing scheduled to be held at the Lincoln Library, Tuesday, April 24 at 1:30 p.m.

Lincoln's Bill Cyr asked if there were any guarantees to prevent the potential new owner from moving the business out of Lincoln, if they're successful in purchasing it with a loan funded by the CDBG.

With rumors of a potential sale of the company swirling repeatedly in recent years, there have been concerns, fueled by more rumors, that a new owner might scale the business down, move it out of town or even close it and dismantle it for some reason.

"That would be a huge detriment. Not only would we lose our huge employer in town, you'd add all those people to the unemployment rolls. The county would not only lose that business here, they'd lose that tax base, everything," Lincoln Postmaster Zach Muse said.

Seidensticker isn't part of the lending program, which could potentially include such provisions to ensure the business stays here in the loan contract, but he said he's heard verbally that the plan would be to keep the jerky plant and the Trading Post operating in Lincoln.

Commissioner Jim McCormick likewise said he's heard - unofficially - that the prospective owners would commit to Lincoln if they're successful in buying the business.

"That's an attractive aspect of this particular proposal," he said.

"We have only been operating from a comfort level that it would be staying here in Lincoln, taking what's there in place and expanding it," Seidensticker said.