Company negotiates for former Walmart property

The founder of a Maryland-based company that plans to manufacture an “off-grid” power system is pursuing negotiations to lease or purchase the old Walmart building on U.S. 2 in Evergreen.

Martin Cain, the chief executive officer of Dylan Energy, said he hopes to finalize a deal for the building within the next 60 days. He plans to hire about 50 people in the next nine months and up to 150 people within a year.

“It’s the only large facility in Kalispell that can handle our production,” Cain said in an interview Tuesday.

Dylan Energy is a startup company based in Salisbury, Md., that over the last several years has developed a high-efficiency, combined heat and power system capable of powering about 600 homes as well as commercial or military complexes. “The Dylan” can burn natural gas, chopped wood and cardboard while coal is being tested as another fuel source.

Cain has been working with Montana West Economic Development to make local business contacts. He recently signed a representation agreement with Dave Stone, a Realtor with West Venture Real Estate in Kalispell.

Stone said negotiations for the Walmart building, which closed in June 2010, will not be simple. The retail giant is paying a lease on the 130,000-square-foot building through 2015 and the building is owned by a New York investment firm.

“Several things have to happen. We have to negotiate with Walmart on their lease and we have to negotiate with the owner on a lease or purchase,” Stone said. “Obviously, negotiating with Walmart and a New York holding company is not very straightforward but it is doable.”

Stone said Dylan Energy would be a great benefit to the Evergreen area, which has a commercial environment that has been challenged in recent years by the closure of the old Costco store and then the Walmart store.

“They have an exciting concept,” Stone said of Dylan Energy. “And I just think it could be a real boost for the economy here, because it’s all about job growth.”

Stone has talked with the Flathead County Planning Office about another hurdle for the venture, a required zone change.

Planning Director BJ Grieve said he and Stone have discussed a change from the current “general business” zoning classification to a light industrial zone, but an application has yet to be submitted.

Grieve said the general business designation was appropriate for the Evergreen business corridor about 20 years ago, but now structures in the area may be suited for different purposes.

“Obviously we are very anxious and willing to work with groups to some of those commercial structures repurposed and get some jobs in them,” Grieve said.

Cain does not hold back in declaring his plans, predicting that after the zoning process and about three months of renovation, Dylan Energy could take occupancy of the Walmart building by January or February.

The building will serve as the company’s headquarters and research and development facility and it will house a media production operation aimed at promoting the company and its products. He said the company will be transplanting about 15 families.

Dylan Energy recently awarded a contract to a Suffolk, Va., company called Allfirst LLC to manufacture certain components of The Dylan power system. Allfirst will manufacture components for Dylan Energy in Virginia until a facility is online in the Flathead, and then some Allfirst employees will relocate, Cain said.

The Suffolk News Herald recently reported that Allfirst intends to add 10 to 15 new positions to its current work force of 85 to handle the new business with Dylan Energy.  

Cain said Dylan Energy will be working with other companies.

“There will be several manufacturing companies moving to the area to keep up with our production and we will be working with local companies to push Dylan Energy products,” Cain said. “I think this is going to be big for Kalispell. You guys can use the jobs.”

Cain said a long-term plan is to open a mass manufacturing plant within three years, but it may not be located in the Flathead. Cain is exploring tax advantages for possibly locating the facility in Lethbridge, Alberta.

Cain, who has a 35-year background in construction, has been working with private investors to finance the Dylan Energy enterprise.

Reporter Jim Mann may be reached at 758-4407 or by email at jmann@dailyinterlake.com.