Broadwater County and The TEDD
 | Author:
Victor Sample
Vic Sample: MT43 News Treasurer |
In a previous article, we discussed the creation of the “J24” line that divides Broadwater County special districts with the north side of the line going to Broadwater County and the south side going to Three Forks/Gallatin County. The school district, fire district and hospital district are all split along the J24 line.
The sudden, explosive growth of the Wheatland area has added a lot of pressure to many services in Three Forks – most notably the school district. Even though the Wheatland area is in the Three Forks school district and the residents do pay taxes to the Three Forks school district, many people in the area do not realize that Wheatland is part of the Three Forks school district rather than the Townsend School District.
Several years ago, Bridger Brewing purchased 240+ acres just east of Highway 287 in the Wheatland area with the intention of building a large commercial brewery, taproom, restaurant and amphitheater. Bridger Brewing intended to sub-divide the area and create a commercial development area with retail businesses, hotels, restaurants and light manufacturing.
However, Bridger Brewing needed a lot of infrastructures to be able to fulfill its plans: a municipal-style water system and sewer system; high-speed internet; natural gas; phone lines. All of that is very expensive and would be extremely prohibitive for Bridger Brewing
The answer to the problem was to create a Targeted Economic Development District (TEDD). A TEDD is a legislatively created entity intended to increase economic development (businesses and jobs) to underserved rural areas. The creation of a TEDD is very regulated and must be approved the State Legislature.
I have heard (and read) that companies in the TEDD do not pay property taxes during the life span of the TEDD – in this case, 15 years. That is absolutely not true! The businesses in the TEDD are assessed taxes and they pay property taxes – just like everyone else in the county. They do NOT get a tax abatement.
Of course, there are benefits to being in the TEDD. There would be no reason to have the concept of a TEDD if there was no benefit to creating a TEDD. The benefit to the TEDD is that the property taxes paid (in full) by the businesses in the TEDD go to building the infrastructure needed to create and attract commercial businesses to the area. The money does not go into the county general fund or into the special districts - it goes into a fund managed by a TEDD supervisory board.
Why would the Broadwater County Commissioners approve a TEDD if the property taxes are going to build infrastructure in the TEDD and not into the general fund? The TEDD life span is 15 years and after that, all property tax money will go to the county general fund and to the special districts.
One County Commissioner told me they expect just the Bridger Brewing property assessment to be over $20 million dollars by the end of the TEDD. If other companies take advantage of the TEDD, the amount will be much higher.
That will add a lot of money to the county tax base and to the school district, fire district, etc.
The special districts (like the school district) still continue to get money from the property taxes in the TEDD, but only at the level that they were getting before the TEDD was created. So, the taxes on the 200+ acres acquired by Bridger Brewing amounted to a few hundred dollars a year with some of that money going to the school district. That same amount of funding continues during the life of the TEDD.
So how much does the TEDD affect the Townsend School District? It does not affect the school district at all. The TEDD is below the J24 line and is therefore in the Three Forks school district and the Three Forks Rural Fire District. The Three Forks school district will still receive the same amount of tax money they were receiving.
The real impact on the Three Forks area, and especially the school district, is the growth in the population of the area. If the TEDD does attract retail and industrial businesses to the area and brings jobs to the area, the population will continue to grow at an accelerated rate. That will continue to put pressure on the Three Forks School district, fire district and other services like the library.
When the TEDD ends in 15 years both Broadwater County and the Three Forks special districts will see a great increase in their property tax funding – but in the meantime, Three Forks will be absorbing a lot of demand for services.
