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Market Watch

Regional Economy is Thriving

Posted on June 28, 2017

At the end of last month, I had the opportunity to attend an Economic Development Update Seminar hosted by the Bozeman Area Chamber of Commerce. The quantity and quality of pertinent information from an array of speakers provided much food for thought, and I wanted to share some of the highlights with you. Quality schools are paramount for a town to attract and sustain an educated workforce and community. Rob Watson, Superintendent for the Bozeman Public Schools, and Steve Johnson, Deputy Superintendent of Operations, both spoke about the public school system.  Bozeman currently serves over 6,700 students and consists of eight elementary schools, two middle schools, a high school, and a charter program. The passing of the bond for the construction of a second high school was necessary for the steadily growing enrollment. Exciting plans were unveiled for the creation of another top notch high school which is scheduled to open in the fall of 2020. Bob Hietala is Dean of Gallatin College MSU, and he presented an overview.  Considered the fastest growing college in Montana, it offers a well-rounded selection of programs that can result in Workforce Degrees. The latest enrollment statistics show more than 900 total students, with 300 seeking degrees.  Course offerings range from two-year Associate of Applied Science degrees in categories such as aviation, design drafting technology, interior design and photonics, as well as one-year Certificate of Applied Science degrees in bookkeeping, CNC machining technology, medical assisting, welding technology and more.  The selection keeps growing with two new programs - culinary arts and information technology technician - being introduced this upcoming fall. The success of Gallatin College shows the need for non-university learning opportunities and enhances our community with a highly trained workforce. Bozeman Health offers a myriad of services throughout southwest Montana including Bozeman Health Deaconess Hospital, the newly opened hospital in Big Sky, urgent care clinics, outpatient facilities, and a professional physician network. John Hill is the President/ CEO of Bozeman Health. He shared that the non-profit, tax-exempt hospital has been essential to the local community for 106 years by providing care and healing to all patients without regard to their financial situation. The economic impact of the organization is huge. The figures include 2,200 employees, an average salary of $51,000 per worker, $145 million in payroll, and an overall economic impact of $376 million. With changing times, they have added a new IT platform to help alleviate duplication of services. They work closely throughout the community to integrate the many aspects of healthcare such as mental health, dental health, education, and environmental factors. Brian Sprenger, Airport Director of the Bozeman Yellowstone International Airport, spoke to us about the large strides that have been made over the past several years. The airport has surpassed Billings in the last few years and hit another record high 1 million passengers in 2015. The growth chart for the airport correlates with those of local population, number of Yellowstone National Park visits, Montana State University enrollment, ski days, lodging tax revenue and bank deposits. Projected figures for all of these categories show continued growth. The economic impact in 2016 was valued at $717 million dollars. All of this growth must be sustained, and future expansion plans include a parking garage, runway improvements and concourse expansion.  Bozeman Yellowstone International Airport has the land and capacity to keep up with this growth as it continues to add flights bringing visitors and locals alike in and out of southwest Montana. Robin Hoover, Executive Director of Yellowstone Country Montana, gave a brief overview of how this organization works to support area tourism. They receive revenue from the region's lodging tax which is then utilized for marketing purposes highlighting why visitors should chose to come to this premiere leisure destination. They work with the five counties under their umbrella and do great things as we are the smallest geographic region, yet Gallatin County is the #1 bed tax collector in the state. Bozeman City Commissioner Chris Mehl and Gallatin County Commissioner Steve White each took the opportunity to speak. Mr. Mehl pointed out that 4.5 million people drive through Bozeman annually and 1.3 million stay locally. An additional 1.1 million stay in the county.  Our economy is diverse, our workforce is skilled and very educated, and our age demographic is quite young as we are a retail and adventure hub that appeals to the 18-34 year old group. Mr. White added that the county is fiscally strong and highly rated. The county is geographically shrinking as the cities grow due to annexation. One highlight is the success of the Logan Landfill which requires no tax dollars to fund, and it has substantial assets. Kevin Hinkle is the Vice President and CFO of the Yellowstone Club in Big Sky. Yellowstone Club was established in 1997 and acquired by CrossHarbor Capital in 2009. This year marks the celebration of 20 years of private powder as well as a success story in the resort industry.  Luxury living in the Montana mountains is achieved from a combination of custom homes, condominiums, duplexes and triplexes, and all include access to 2,200 private acres for outdoor pursuits. The impact on the economy stretches from Big Sky throughout Gallatin Canyon to the greater Bozeman area.  In 2017, the associated payroll was $40 million. But even more so, the contractors and vendors that service the club have large economic impact. The Village Core project began in 2016 with a $300 million budget making it the largest real estate project ever in the state of Montana. It will include four separate buildings, commercial amenities, and 48 residential condos. Alex Iskendarian of Lone Mountain Land Company, which includes the Spanish Peaks Mountain Club and Moonlight Basin, highlighted many Big Sky statistics relating to the area's growth. Ski visits during the 2016-17 season were up to 478,000. Local public school growth has increased to an enrollment of 360 students. He acknowledged the success of the Big Sky Medical Center which sits just east of Town Center. There is much anticipation for the upcoming Wilson Hotel, a 126 room Marriott Residence Inn, which will be yet another step in the direction to develop a true epicenter to give Big Sky a heart and soul and downtown presence. It was clear to those in attendance that Bozeman and the surrounding area is poised for more years of growth and expansion. In June of 2003, I was asked by the Bozeman Daily Chronicle to write an article about the good news in area real estate. Since that time, I have had the great privilege to be one of the monthly contributing authors to the Business Journal publication. As this is the final issue, I thank you all for your readership over the years and hope that you have enjoyed the content and value I have aspired to bring monthly.
 

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All property data and market statistics are pulled from Big Sky Country MLS.

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