OPINION: Why Northwest Drywall doesn't want to move
We take issue with several statements made in response to our withdrawal of support for the Kalispell TIGER grant, specifically these:
Statement: “It’s disappointing and rather surprising.”
Response: While it may be disappointing, there should be no surprise with the withdrawal of support. A June 4, 2015, draft of the withdrawal letter which was circulated but not sent is what prompted the meetings between Northwest Drywall and the committee comprised of the mayor and FCEDA board member.
Statement: “... multiple options were proposed, including paying for trucks to ship products from Northwest Drywall’s current facility to the future industrial park where it could be loaded onto rail.”
Response: Northwest Drywall doesn’t manufacture or ship out any products. We only receive drywall and building products. The suggestion to transload incoming products was considered but found to be unsatisfactory because of the additional damage to drywall occurring every time it’s moved and concern for the loss of control over the timing of trans-loaded shipments. The notion that Northwest Drywall out-ships products shows an indifference or lack of understanding of our business model.
Statement: “The definition of a financial win for them changed about every other week.”
Response: Northwest Drywall has been consistent it its desire not to be harmed from a move from their present facility, and that we would consider an “apples for apples” move. On Dec. 10, 2012, Northwest Drywall presented 12 specific qualities that they have in their present facility and sought in a new facility. Those same points were recited again in a May 7, 2015, letter to the FCEDA consultant where it was said:
“The Mowers reluctantly are willing to consider relocation under the same circumstances that we communicated to you in our meeting in 2012; essentially that it would require no cash contribution and would include: [the 12 specific qualities.]”
Those same specific qualities were again articulated in our Aug. 13, 2015, letter to Secretary of Transportation Foxx. What has also been consistent is that Northwest Drywall has yet to receive a formal offer or even been told where in the rail park Northwest Drywall would be located.
We are disturbed by the economics of the proposed rail park from either a lease or purchase standpoint. The lease rate was promoted to us in our 2015 discussions as 40 cents per square foot per annum with a 3 to 5 acre minimum. This puts the lease at $17,424.00 per acre per year, well over double (almost triple) the price we pay to lease bare railroad property on which we built our facility and business in another Montana market. The sales price is $220,000 per acre. We cannot imagine other businesses being enticed by those rates.
It is unfortunate that due to this poor execution of the planning phase for this taxpayer-funded project, we (stakeholders) must aggressively defend and protect our business and its very foundation by pulling support for the TIGER grant as promised in our letter dated June 4, 2015.
Montana West Economic Development is a publicly funded nonprofit organization whose mission includes “providing quality job growth and retention.” We guess they are referring to their own jobs, not those provided by small businesses like ours. Did MWED forget that small businesses are the economic engine that drives growth in not only the Flathead Valley but also Montana and our country?
Pam and Mike Mower, of Kalispell, are the owners of Northwest Drywall and Roofing.