Great Falls Tribune from Great Falls, Montana • Page 5

Friday, March 2J, 196 Great Frill "1 SB TRIBUNE METROMONTANA Economic Growth Council scales down, ponders oblivion Bv JAY GOLF.Y By JAY GOLEY would set UD meetings with local onv. 4 Tribune Business Editor No vote was taken, but the board of directors of the Economic Growth Council made it clear Thursday that the council is living on borrowed time. The council, which has called itself the Venture Corporation in recent months, has spent itself to a point just short of oblivion. Expenditures such as a $500,000 investment in the Great Falls Capital Corporation and $210,000 for the FAA flight service center have consumed the lion's share of its financial wherewithal. With federal grants becoming increasingly hard to find, members of the board of directors appear to agree the only reasonable alternative is a drastic change in the EGC.

The most drastic, and the most likely, judging from comments made Thursday, is its deactivation. The board did not vote on that, but did vote to deactivate the client review team and eliminate the Venture Corporation name. Chairman Loy Ann Rembe polled the directors and found no one who believed the EGC could continue without change. "I would like to see this matter, painful as it is, disposed of as quickly as we can," said Stan Meyer. The board voted to adopt a time schedule put forward by Rembe, who 4 22 1,1, ti.V" Motel bond interest Fire outlines trees burning along the Missouri River near Ulm on Thursday evening.

Ten acres burn east of Ulm ULM About 25 rural firefighters battled an estimated 10-acre brush and timber fire fanned by high winds Thursday evening on the Anderson Ranch five miles east of here along the Missouri River. The Ulm and Gore Hill volunteer firefighters were hampered by 25 mph winds, which fanned the blaze JP4 six mm wr, jJZm- through brush and Cottonwood trees. Crews cut a fire line in front of the advancing fire, which was reported contained at 8:20 p.m. Rural Fire Coordinator Tom O'Hara requested a 10-man brush crew from Malmstrom Air Force Base at about 7 p.m. to relieve the rural firefighers.

the board agreed without discussion. Gilligan did not vote. Members apologized for violating the open meeting law. They said it was not intentional. "You know, the Fair Board is a voluntary board," member Sally McGregor said.

Members put in "hours and hours" of work in addition to their regular jobs, and have a hard time scheduling meetings, she said. Fair Board members actually are paid a small amount of money each year, but traditionally give it back to the fair as donations. The media may suspect the board holds secret meetings to avoid press coverage, McGregor said. "In reality we are not," she said. Fair Board members may meet at certain times when the press is absent, and make decisions if a topic comes up, McGregor said.

But any such decision would "not actually be an official vote," she reported. Members are "just trying to avoid having to call together" everyone at a formal meeting, she said. "And we don't mean to be leaving out the press," she said. Gilligan said the manager selec Webb named fair manager Mavor Roaer Anderson aurepri the city eventually must make some information public, but he said confidentiality can be observed until action must be taken by the commission. The city's planning and development people are "real level-headed," but business people are used to dealing with other cities where planners are "obstructionist," said Tom Thomas.

A "one-man EGC" and "everybody taking over a little bit of this" might be the answer, said Brad Tal-cott. EGC President Ron Oberlander told the directors he believes the council should be deactivated. When the council agreed to invest large amounts of its principal in development efforts, that was tacit approval of its eventual demise, said Oberlander. "That's not new news as far as I'm concerned," said the North Dakota native, who was hired two years ago. "I never did unpack all my boxes when I came here." Oberlander said the council could not dissolve itself, even if the board should desire that end.

It is being sued by Finn and Virginia Walstad, who blame the council for some of the financial problems that faced their defunct clothing manufacturing company, Nordak Industries U.S.A. Inc. unpaid $250,000 a year. The local Holiday Inn was in the news last November when Lingscheit and Brock's Tom Kelly sought to quiet rumors that the motel was in trouble. Some local bondholders apparently became concerned when the Wall Street Journal carried two articles about Brock's financial restructuring.

At the time, Kelly and Lingscheit said the motel was not in financial trouble. Lingscheit said this week that he intends to see the project through. "I feel obligated to get the people their money back," he said. Gene Hufford, head of the bond department at D.A. Davidson said he was optimistic that Lingscheit would put together an arrangement that would protect the bondholders.

The Davidson firm was the underwriter for the bonds. No one was available to comment for First Trust Montana, the trustee for the bondholders. So far, First Trust has allowed Lingscheit time to arrange for payment of the motel's indebtedness. The trustee has the power to demand acceleration of payment, and could eventually foreclose on the property if payment is not made. from the current spot, which will be a "sizable investment." Building a new northside approach to the bridge.

Building a lengthy new south-side approach. The city apparently will be stuck with costs of building a new Ninth Street South approach. Don Harriott, administrator of the department's engineering section, said federal bridge replacement money cannot be used to build approach roads. City Public Works Director Bob Duty, who earlier said he thought federal money would pay for the approach work, predicted the cost of a new approach would not be a "stumbling block" to the project. "We feel we can work that on our own," Duty said.

The city has an oral commitment from Burlington Northern Railroad to obtain an easement for the new approach, Harris said. Harriott also said the new bridge may require a full environmental impact statement rather than a less extensive report required under the old plan. "That introduces certain time delays," he said. Harriott said he has no "love affair" with the old bridge, and noted it is obviously in poor shape. "The deck of the old bridge, it's just rotten, that's all," he said.

By JAY GOLEY Tribune Business Editor Last December's interest payment on industrial development revenue bonds issued for the Holiday Inn renovation project has not been paid. Dick Lingscheit, owner of the motel, said Wednesday bondholders have had to wait because of a disagreement between him and Brock Hotel Corp. of Dallas, Texas, which had been his equal partner in the project. Lingscheit, who said he was dissatisfied with Brock's management of the motel, has signed an agreement with the firm giving him sole ownership. That arrangement won't be final, however, until negotiations are settled for transfer of the Holiday Inn franchise and the liquor license.

When that has taken place, Lingscheit said, the payment to bondholders will be made. Industrial development revenue bonds provide a means of financing projects such as the Holiday Inn remodeling at relatively low interest rates because bondholders get tax breaks on their interest income. The City of Great Falls approved issuance of the Holiday Inn bonds, but is not financially responsible for ernment officials and the Great Falls Area Chamber of Commerce to discuss the assumption of some EGC functions by other organizations. Rembe suggested the EGC board make its final decision May 22. Bob Retz, who said he believed the council had been trying to "be too many things to too many people," said he was leaning toward the EGC's running a small-scale operation and shifting the Foreign Trade Zone to the Airport Authority.

Clyde Neu said he doubted that even a scaled-down version of the council would be able to last more than a year with the present funds of about $175,000. Neu said he would probably go along with moving the FTZ to another jurisdiction. "If that can go to the Airport Authority for an efficient operation, I think I'd favor that," he said. Bill Harp, chairman of the Chamber of Commerce, suggested that a one-person EGC keep an office in the chamber. Harp argued that business people considering new operations in a new city aren't comfortable dealing with governmental offices.

"They like confidentiality. They like privacy," he said. Perhaps, Harp said, the city could administer the loans still owed to the EGC. their repayment. Lingscheit said he had expected Brock to make the payment, but learn ed in late November that the company was not going to do so.

The motel makes its interest payments quarterly, and bondholders receive their payments semiannually. Lingscheit said the first quarterly payment of $159,000 was paid, but the second for $106,000 was not. He said he has the money, but doesn't feel he should make the second payment until he has clear ownership of the motel. Renovation of the Holiday Inn, including addition of a "Holidome" over the pool area, was paid for by the 1983 bond issue of $3.5 million. Lingscheit says the motel's income has grown substantially since.

"In a down market, we see increases," he said, citing a fourfold increase in food sales. Lingscheit said the motel is in better financial condition now than it was last fall when he and Brock decided to split up. "Everything that has gone on in the past four months has been positive," said Lingscheit, who estimated that elimination of Brock's charges for management services will increase he motel's bottom line by that a new bridge could feasibly be built atop the old arches, Harris said. "We've got to overcome that," he said. Officials will now have the burden to show there is no reasonable and prudent alternative to destroying the bridge.

Harris said that, at the least, the bridge may have to be photographed extensively before it is torn down. If the historic bridge must remain standing, "somebody's going to have to assume some responsibility" for it, Harris added. Approaches to the bridge would have to be removed in any case so no one could drive on it. State Highway Department officials say they want no part in maintaining the bridge, and county officials say the same. The bridge eventually will fall into the river without maintenance, officials say.

Jumping the historical hurdle will not be the only new challenge for officials. Erecting a new, angled bridge likely will cost more than the $5 million estimate if the old bridge is torn down, state officials said. The new bridge itself may cost the same, Harris said. "To say that the whole bridge is going to cost the same, we know that's not true," he reported. He cited additional costs of: Moving traffic signals west KYOT off air "It was a bad time for me," Kimball said, though he expressed optimism for the Great Falls economy.

He said he foresees business picking up in six months, but "I can't hold out that long." Kimball said he has found other jobs for three of the station's nine employees. However, he said he doesn't know what he himself will do. KYOT, established in the late 1940s, previously went by the call letters KARR and KXLK. Kimball said the station has had about five owners through the years. Bridge's history a dilemma Tribune Photo by Stuart S.

White No buildings were jeopardized by the fire and no injuries had been reported, a Cascade County sheriff's dispatcher said. A crew was assigned to monitor the fire through the night. The dispatcher was uncertain how the fire started. It was reported at 4:44 p.m. tion action was an "honest mistake" at a meeting in "which three board members and two commissioners were present.

"It was really my fault," Grasseschi said. "I said, 'Let's get this meeting over Following the meeting, Tribune Managing Editor Terry Dwyer said Fair Board members are not the only volunteers on public boards. Volunteers serve on numerous city advisory boards and the Great Falls school board without pay, "but they generally meet the conditions of the state Open Meetings Law, and we feel the Fair Board should do the same." Meanwhile, Keith Haugland, Tribune marketing director, told board members the newspaper's survey of 1,264 persons in a 14-county area, showed Great Falls is "an incredibly-powerful regional center." Many people use the airport, medical facilities, shop here and visit the Four Seasons Arena. Of all persons surveyed, 45 percent said they had attended at least one event at the Four Seasons Arena in the past year. nomic policies should not be placed in the constitution.

But Baucus said he supports "the meat" of the amendment, which would require a three-fifths majority of Congress to approve a budget deficit. Baucus also noted that a constitutional amendment might take seven years to ratify, adding that the need to balance the budget is more pressing. "If Congress is really serious about having a balanced budget, we should roll up our sleeves and start working on one now," he said. Baucus was the only member of the Montana congressional delegation to vote for the Gramm-Rudman budget-reduction law. He also has advocated an immediate, across-the-board budget freeze as a start toward balancing the budget.

ag in Europe time to begin discussions. He said Common Market policy is in a period of adjustment because Spain and Portugual were recently admitted into the economic alliance, and because there is definite European producer resentment over recent Common Market policies. The United States is in a good position to enter such talks, he said, because the 1985 Farm Bill contains export provisions to counter Common Market subsidizing of exports. Marlenee said he intends to discuss the Common Market's beef imports to Canada. budget votes split By RICHARD ECKE Tribune Staff Writer The State Fair Board went through the motions Thursday of affirming Harold "Hal" Webb as its new State Fair manager.

Board members announced Monday they were hiring Webb to replace the resigned Clatyon Linebarger, and said they chose Webb privately earlier in the day. After Monday's announcement, board President Peter Gilligan Jr. offered to hold a public vote if requested. The Great Falls Tribune asked for a new meeting, claiming in an editorial the board violated the state Open Meetings Law. The Fair Board had closed its doors for interviews with candidates, and cited privacy exceptions to the open meeting law.

Ironically, Thursday's meeting took place in the Tribune Building, where the Fair Board also heard results of a Tribune survey that touched on use of the Four Seasons Arena. The board's formal hiring of Webb was uneventful. Member Ernie Grasseschi moved to hire Webb, and Balanced By PETER JOHNSON Tribune Staff Writer Montana's two Democratic senators split during Tuesday night's vote on the proposed constitutional amendment requiring a balanced federal budget. The measure received 66 votes, falling one vote short of the needed two-thirds majority. Sen.

John Melcher voted for the constitutional amendment, while Sen. Max Baucus voted against it. Melcher traditionally has favored a constitutional amendment requiring a balanced federal budget over the Gramm-Rudman amendment, which attempts to balance the budget by statute over five years, his administrative assistant Ron Richards said Wednesday. Melcher believes a constitutional amendment is a more precise and Forecasters said the Kalispell and Helena records were the highest temperatures recorded so early in the season at each of those stations. Winds gusted to 48 mph in Great Falls at 4 p.m.

and reached 70 mph during the afternoon at East Glacier Park, NWS said. Heavy winds were reported along the Rocky Mountain Front, and extended east to the Glasgow area. By RICHARD ECKE Tribune Staff Writer Scrapping the old Tenth Street Bridge for a new one will not be a simple task, a state Highway Department official said here Thursday. "The removal of that old structure is not all that easy," said L.S. "Buck" Harris, chief of the department's planning and statistics bureau.

City and county officials have signed a letter asking that a completely new Tenth Street Bridge be built, in order to eliminate a dangerous S-curve on an approach road to the south. An earlier plan endorsed by local officials called for building a new bridge atop the old bridge's arches. But when nearby railroad tracks were removed, a new and safer approach to the bridge was possible, city officials said. To line up with a new south approach, the new Tenth Street Bridge would need to be angled differently, meaning the old bridge could not be used. Harris said the old bridge is one of few remaining bridges in the state with concrete arches, and is listed in a state historic bridge book.

"So it has special significance," he said. In addition, engineers hired by the department have already reported Finances force Cash-flow problems forced radio station KYOT off the air Thursday. Owner-manager Don Kimball, who took over KYOT in December, said he expects the station to be back on the air under new management in four to six months. The country-western station will be turned back to Harold Erickson of Billings, owner of Christian Broadcasting, because Kimball could not make payments as scheduled. Kimball, a previous owner of the Plush Pillow, said he sold his stock in that company to get into the radio operation.

enforceable method than Gramm-Rudman, which sets up a complex procedure that may be easier for Congress to frustrate or get around, Richards said. Melcher also believes it would be easier to raise revenue with the proposed constitutional amendment in place if Congress later decided it was absolutely necesary, the aide said. The amendment would permit Congress, by a three-fifths majority to approve a budget deficict. In a statement issued before Tuesday's vote, Baucus said he is strongly committed to balancing the federal budget, but does not think a constitutional amendment is the right approach. "People balance budgets, not constitutional clauses," Baucus said, adding that "many eminent constitutional scholars" believe specific eco Marlenee talks Rep.

Ron Marlenee, R-eastern district will meet with European Economic Community trade representatives in Europe for a week of discussions on agricultural trade, starting next Tuesday. Marlenee, ranking Republican member of the House wheat subcom-ittee, Kika de La Garza, chairman of the House Agriculture Committee, and two other committee members will meet with Common Market officials in Brussels, Belgium, and Madrid, Spain, for what's being called the first Interparliamentary Agriculture Summit. Marlenee called it an opportune Heat records fall Four Montana high temperature records fell Thursday as the mercury reached 73 degrees in Great Falls to erase the March 27 record of 72 set in 1946, the National Weather Service said. Helena reached 75 to pass its record of 73 set in 1946. Kalispell's 72 topped its previous record of 65.

Missoula recorded 73 for a new mark. The previous Missoula record was 70. The previous Missoula and Kalispell records were set in 1978..