Montana CDC's $17 million Stinger Welding expansion project in Libby, Montana received the top award for best use of New Markets Tax Credits among projects from across the country. The award was presented to Montana CDC by the Novogradac Community Development Foundation during its annual New Markets Tax Credit Conference in Chicago last week.

Novogradac & Company LLP is one of the leading New Markets Tax Credit accounting firms in the nation.  The Libby project won the top award for Operating Business of the Year.  The award recognizes Montana CDC's vision and outstanding contributions in the field of community development.  "Truly representative of some of the best the industry has to offer, [Montana CDC and other award winners] are testaments to the strength and caliber of all involved in the New Markets Tax Credit program," says Michael J. Novogradac, managing partner of the Novogradac & Company LLP. 

Along with the significant economic and social impact to the community of Libby, the award celebrates the creative collaboration and financial innovation that made the project possible.  Carl Douglas, owner of Stinger Welding, had been working with local and state enitites to put a financing package together.  When lending constraints brought about by the recession threatened to derail the project, Montana CDC stepped in with the tax credits and a tax credit investor willing to invest in Libby.

The tax credit investor for the Libby project was the Urban Investment Group at Goldman Sachs.  Montana CDC first sat down with Goldman at Senator Max Baucus' Butte Economic Summit last year.  Goldman's analysis of the Libby project confirmed what people in Libby already knew - that the skilled and dedicated workforce in Libby would be a huge asset for a new industrial employer in their community. 

Since the deal closed in July, Stinger has put 40 people to work, bringing total employment to 86, with plans to hire more.  Eventually, Stinger will employ one out of ten people in Libby.  The catalytic effect of Stinger's investment in Libby includes ancillary job creation, an increase in local spending, and tax revenues to improve infrastructure and social services.  It also serves as an example for additional private investment in Libby. 

After suffering decades of economic decline and serious environmental issues, the community of Libby has found a way to reverse its fortunes and rebuild econonomic vitality and return civic pride.  It is exactly this type of impact that the tax credit program is designed to create and the reason the Stinger project was singled out for a top award. 

Montana CDC is honored by the Award and grateful to all of the people that made it possible;  Senator Max Baucus who made this financing tool applicable in rural states, our partners on this project, Stinger Welding and Goldman Sachs, the Kootenai River Developoment Council, the Montana Department of Commerce, Lincoln County, Lincoln County Port Authority and the City of Libby who worked together to lay the groundwork for this project.   

Through collaboration and access to the latest financing tools, Montana entrepreneurs can do truly great things for themselves and their communities - truly, great, award-winning things.

View award video that was presented at Novogradac NMTC conference last week.