Our 6th Meet Up of WREIN (Women Real Estate Investors Network) gathered at Justine Colan’s beautiful home and one of the first Silver Bow County community development package recipients in 2005. The “package” is now a beautiful 3 bedroom home overlooking the lights of Butte and the Continental Divide. Our speaker for the night, Karen Byrnes, the Butte Silver Bow, Director of Community Development and Urban Revitalization Agency (URA) remembered assessing the blighted property for the CD package and thinking, “No one will buy this”. Luckily, the opportunity was put out there. This vision for community development has allowed for slow sustained growth: Justine’s property is one successful example.
Karen was asked to explain the URA and community development planning programs and how real estate investors can access them. Karen encourages investors struggling to put together proposals to come to see her. She knows how to get things done. Here is an excerpt from the Community Development website explaining the goals of the program:
The Community Development Department leads community and economic development efforts for the City-County of Butte-Silver Bow.
The Community Development Department’s mission is to promote, grow and preserve the assets of Butte-Silver Bow related to both economic and community development. It is responsible for addressing pressing community needs through the preparation and administration of grant applications and the implementation of programs.
The Community Development Department oversees the functions of three Tax-Increment Financing Development Districts; the Urban Revitalization Agency (URA), the East Butte Renovation and Rehabilitation Agency (RRA), and the Montana Connections Business Development Park, an industrial development district, often referred to as the TIFID.
For more information on community development in and around Butte, refer to the Butte-Silver Bow Community & Business Development website and the Montana Connections Business Development Park website.
So, what are our community’s pressing needs? We talked about this. We are an urban/rural place where 2 interstates intersect. We have been able to avoid the box store trend (the narrow platting out our main business street may be the reason for this). Sometimes, a community which has been “left behind” can actually be ahead if the last trend would have left yet more vacant buildings. Are we prepared for the next step for goods distribution and complementary industries? Would other disruptive technologies benefit us? To address these concerns, our meeting was also benefited by Krista Rosa: Community Development, TIFID Administrator.
Taken from the TIFID web site: “Montana law enables local governments to use tax revenue in designated districts (Tax Increment Financing Districts, or TIFs) for development and redevelopment activities and to pay for public infrastructure needs of projects. The Butte Tax Increment Financing Industrial District (TIFID) focuses on the Montana Connections Business Development Park, providing financial support to help with adding capacity, building facilities, and site development. Funds are available to help qualified candidates. Assistance levels are based on total project investment and job creation”.
Karen and Krista brought to the meeting, years of community development planning experience. Investors were able to ask about trends of investment and goals of the government. This stimulated funding and strategy ideas for property procurement and business development. Loved talking about developing businesses which complement the successful ones already in the area. Once again, I am so grateful to this group for coming together! Thanks to all who attended.
This is how to connect with our featured guests for the 6th WREIN Meet-Up:
155 W. Granite St.
Butte, MT 59701
Met at 827 W. Park, Butte Montana at the “Buttification” home featured in HGTV pilot, July 26th 6:00 to 7:30. Thank you Kathleen for hostessing! Topic for the evening was “financing options”. The group consisted of investors experienced in financing with other people’s money including investing with: family, a contractor to decrease amount for construction loan, traditional bank loans, lines of credit, solo 401k, solicited investors for down payments. Presented basic information on difference between recourse and non-recourse loans. There was also experience in the group with buyers using owner financing and suggested terms to use when owner is elderly.
Attendees touched on the difference between self-employment income tax and passive income tax. S-corp formation suggested as a way to stratify taxation of income generated by a sole-proprietor business. Presented rationale for WREIN being set up as an S-corp.
We talked about the difficulty of “hospice” properties. Properties which have been vacant a long time due to difficult owner relationships. Approaching the owners requires investment in patience, time and focus on win/win. 30% vacancy rate in housing stock in uptown Butte means opportunity for those skilled in difficult conversations with owners.
At each WREIN Meet Up, I ask each person for an “ask”. Asks from this group included: rehab estimation cost calculator, carport strategy solutions, how to monetize WREIN, certified historic brick repair contractors and what was the last…a request for the next group meet up! Feeling that this group is very well appreciated and will continue.
Next meet-up is: August 8th at 6 pm located at Sage Mountain Retreat: http://sagemountain.org/
Will be looking to car pool!
Address: 79 Sage Mountain Trail, Whitehall, MT 59759