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Idaho

Business and Industry Guaranteed Loan Programs

Outline of Need:
Unicep Packaging, Inc. is located in City of Sandpoint. The City, which is located on Lake Pend Oreille in North Idaho, has a population of 6,835 according to the 2000 census. The area has been affected by the decline in the logging industry and has an increasing reliance on the tourism industry for its economic base in addition to light manufacturing.

Dr. John Snedden, a second generation Sandpoint resident and graduate of Sandpoint High School started his business in 1990 in a Sandpoint business incubator that has received Rural Business Enterprise (RBEG) assistance. In 1995, with the help of a USDA Rural Economic Development Loan made through Northern Lights, Inc., the electric cooperative in the Sandpoint area, the company constructed its initial 9,500 sq. ft. manufacturing plant, becoming the first company to “graduate” from the incubator. The business’ original focus was manufacturing professional tooth whitening products. Since then it has shifted to unit-dose packaging and expanded its product lines and manufacturing capacity to include custom packaging and contract manufacturing for medical, dental, pharmaceutical, cosmetic, nutraceutical, and industrial customers.

How Rural Development Helped:
The RBS-guaranteed projects financed a major expansion completed in 2003, with the manufacturing facility now encompassing 64,000 square feet. Dr. Snedden and his wife own the land and building and lease the property to their business, Unicep Packaging, Inc. Originally projected to create 62 additional Full Time Equivalent (FTE) jobs, the company reports that the expansion has, to-date, resulted in the creation of 68 FTE’s. Unicep Packaging, Inc. was awarded $2,150,000 and Dr. John and Mary Jo Snedden were awarded $2,410,000.

The Results:
The applicant reports that the average projected wage to be received by new employees is $14 per hour plus benefits, which is 271% of the federal minimum wage. Additinally, premiums for the health, dental, life, and disability benefits are paid by Unicep Packaging, Inc. Employees may also participate in a 401(k) with Unicep Packaging, Inc., matching up to 2% of the wage plus a discretionary 2% contribution at the end of the year. As a result of this program, 68 new jobs were created and 58 jobs saved.

On November 10, 2004, Unicep Packaging, Inc., received the Business of the Year award from the Bonner County Economic Development Corporation (BCEDC). As stated by BCEDC Executive Director Mark Williams as he presented Dr. Snedden with a plaque at the award ceremony: “Over the past three years, manufacturing jobs in our county have increaqsed by 21 percent while Idaho has lost 14 percent and the nation 16 percent. This is particularly signinficant since these jobs pay 38 percent higher than other industries. We feel it is time to recongnize the impact of these employers, and Unicep packaging has been a shining example of job creation in the manufacturing sector.”

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Rural Business Enterprise Grant

Outline of Need:
The economic base of Washington County has typically been that of ranching and lumber processing. Accordingly, over the last decade most of the lumber mills have closed down and ranch land is owned by the “elite” few. The economy has further been strained as one of the local employers (Clearwater Research, Inc.) relocated to Boise in December, causing the unemployment rate to skyrocket. Residents are forced to drive further away for work and shopping needs, with local job creation looking bleak and causing an adverse effect upon the community.

In 2003, a local group, the “Upper Country Eldercare Coalition” (UCEC), a non-profit organization made up of volunteers, was mobilized to consider the possibility of building an assisted living facility in the City of Cambridge (Washington County, Idaho) as the elderly population in the community was being forced to move away from friends and family in order to receive needed health care and services. The Coalition, which represented the four rural communities in Washington and Adams counties, concluded that their first step was to determine whether an assisted care facility could be feasible. To help with the feasibility determination, in 2003 Business Programs approved a $37,500 Rural Business Enterprise Grant (RBEG) to the City of Cambridge to contract with a qualified independent firm to prepare an assisted living facility feasibility study.

How Rural Development Helped:
The initial $37,500 RBEG-funded study concluded that the facility was feasible. In 2005, with the RBEG-funded feasibility study in hand, UCEC proceeded toward making the facility a reality, and began working with the Rural Development Community Facility Program Division to obtain financing for construction of their project. The USDA, Rural Development Idaho, Community Facility Program Division has approved a Direct CF Loan ($500,000), a Guaranteed CF Loan ($100,000), and CF Grant ($30,000). Additionally, to assist with project development financing, Business Programs has approved additional RBEG assistance to the City of Cambridge of $40,000 for the purchase of equipment that will be used in the facility when construction has been completed. Other project funding includes: Applicant Cash ($99,689), Idaho CDBG Grant ($200,200), Foundation donations ($315,193), and a State of Idaho Grant ($25,000).

The Results:
The UCEC, as a non-profit, intends to operate the facility and provide services for community members and have the facility employ members of the community. UCEC reports that the assisted living facility, when completed, will have 15 rooms, and will employ 7 individuals.

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Outline of Need:
The economic base of Gooding, Jerome and Twin Falls Counties has typically evolved around the agriculture and dairy industries. Over the last decade there has been an increase in the number of dairies, feedlots and an overall increase in the number of bovine in the Magic Valley area. Because of this, there have been many attempts to address the environmental, water and air quality issues caused by the growing stockpile of animal waste.

The Dairy Industry has developed to the point where it is truly significant to Idaho’s economy. In 2002, Idaho Milk Production exceeded 8 million pounds, which placed Idaho 6th nationally. In Idaho in 2002, Milk ranked 2nd only to Beef Cattle in Cash Receipts by Commodity (the first time in 4 years that Milk was not #1).

How Rural Development Helped:
The concentration of large numbers of large dairies around large processing plants has created environmental problems that no one foresaw. One of the environmental problems that have become increasingly contentious is that of air quality. For the past several years, a wide spectrum of interested citizens and government agencies (Idaho Dairymen’s Association, Milk Producers of Idaho, Individual Dairy Farmers, All four Congressional Offices, the Governor’s Office, The Idaho House Agriculture Committee, USDA Rural Development, Natural Resources Conservation Service, Environmental Protection Agency, State Department of Agriculture, Idaho Energy Office and others) have been working on a concerted effort to resolve the dairy odor issue in the Magic Valley.

The State of Idaho Department of Commerce received a Rural Business Enterprise Grant in the amount of $25,000 to assist with the funding of a feasibility study. The study had been spearheaded by the Anaerobic Digester Working Group to assist with the dairy waste issue. The working group began seeking solutions on dairy odor issues several years ago, and in November of 2003 approached several interested parties for funding the project. The funding partners are Bonneville Power Company, Idaho Dairyman’s Association and Rural Development, and the consultant selected is Mountain View Power, Inc. The working group invested a substantial amount of time seeking a qualified consultant to work on the project and working with the funding partners to organize the project financing. In March, 2004, a Scope of Work was agreed upon by the different funding partners, applicant and the consultant and upon approval of this grant the project will move forward.

The goal of the project was to determine if a methane gas electrical generation project is financially feasible in the Magic Valley. The study addressed the large supply of dairy waste and how it can be used to produce energy in turn allowing for additional energy during peak agricultural seasons. Of critical importance to the study was the availability and reliability of the generation unit during peak power demand periods.

The Results:
The impact of the dairy industry to Idaho’s economic is significant. If successful, efforts to sustain the industry, including the RBEG-funded study, will result in the strengthening of an industry that: Increases retail sales in Idaho by $317.8 million. Increases Idaho Personal Income Taxes by $23.8 million. Increases Sales Taxes by $18.3 million. Increases Idaho Corporate Income Taxes by $3.2 million. Affects local Property Taxes by $25.1 million. Magic Valley, which is home to 68.9% of all cows in the State, feels the significance of the Dairy Industry even more: The impact of dairies and milk processing in the Magic Valley is comparable to 10% of total non-farm employment. The disappearance of these two industries from the Magic Valley would have the same effect in south central Idaho as the simultaneous closure of Micron and Hewlett-Packard on the Treasure Valley.

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Outline of Need:
In a news article dated January 24, 2005, The Times-News wrote and article about the Mill Park industrial project, with an excerpt as follows:

“Local developers hope to change all that (lack of local jobs in the City of Fairfield) with 20 acres on the west side of town designed for light industrial business. Currently none of the 37 lots in Mill Park Subdivision houses a business, but two have been sold and four reserved. Numerous other sites have potential buyers.”

Additionally, the Mayor of Fairfield noted additions to the community such as the newly constructed Senior Center, the newly constructed addition to the public school and the renovation of an existing building in downtown that will be utilized as a daycare/pre-school.

Several housing developments are in the works in the community as well, such as an additional 100 homes to the Soldier Mountain Subdivision and another potential planned development of approximately 565 condos/town homes.

How Rural Development Helped:
The City of Fairfield received a grant in the amount of $24,000 in FY 03 and $24,000 in FY 04 to fund the installation of a sewer lift station in the mill Park Industrial park in June of 2003. In 2004, a subsequent grant was approved to the City to complete the installation of the lift station. Other contributions to the Mill Park Industrial Project were provided by an Idaho Department of Commerce Gem Community Implementation Grant of $50,000 and Grantee funds of $20,500.

The added capacity afforded by the Lift Station will enable the lots to be sold or leased to private business enterprises, space that is currently in high demand in this area and the immediate surrounding counties. The ability to provide the needed space will in turn add local jobs to the economy, as industry moving into the park will most likely need to hire additional help to manufacture their products. Business locating in the industrial park will offer needed jobs to community members and add more diversity to the job market through increased industrial park space to small & emerging entrepreneurs. The project will provide a significant benefit to small and emerging businesses in both Fairfield and Camas Counties, and the immediate surrounding counties as well.

The Results:
This project could potentially create 90+ jobs when all commercial lots are sold and utilized. In addition, at least three businesses would be helped in this endeavor.

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Outline of Need:
Historically, the Duck Valley Reservation has had a significantly higher percentage of families below the poverty level and unemployment rate when compared with the State of Idaho. At the time of grant approval, unemployment rate on the Duck Valley Reservation was estimated at 24.7%, which was 475% of the State Rate. There are few employment opportunities available on the Reservation. It is estimated that 20% or more of those Tribal members employed are required to travel off of the Reservation for their employment. The Tribes have estimated that 95% of all Tribal members’ retail dollars leave the Reservation.

The shopping center, or mall, is a high priority among Tribal members. The RBE project has resulted in a significant contribution toward the goal of improving the conditions on the Reservation. The facility will be Tribal-owned. Initially, the grocery store will be operated by the Shoshone-Paiute Economic Development Corporation, a Tribal-owned economic development corporation. Ultimately, it is anticipated that the facility will house a variety of retail businesses, providing jobs and needed services for the Tribal members.

How Rural Development Helped:
A Rural Business Enterprise Grant (RBEG) in the amount of $91,595 was used to purchase additional equipment needed for the Duck Valley Retail Commercial Development project on the Duck Valley Indian Reservation. Previous RBEG funding for this project included a $165,000 grant in 2001 for equipment and a $25,000 grant in 2003 for technical assistance.

RBEG funds were used to leverage additional funding in the amount of $2,550,000 (U.S. Department of Commerce, Economic Development Administration, grant in the amount of $2,000,000 to assist in project construction; HUD, Indian Community Development Block Grant (ICDBG) grant funds in the approximate amount of $550,000 to assist with project construction and other project costs). In addition, the Tribes committed land valued at $250,000 to the project.

The Results:
The facility has opened and has proven to be a valuable asset to the community. The expectation is that this project will create 19 jobs and will ultimately assist 6 businesses.

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Outline of Need:
Over the past 3 years Bonner County and the City of Sandpoint have experienced a fundamental structural change in the economic base due to a decline in the logging industry.

How Rural Development Helped:
Unicep Packaging, Inc., a company owned by Dr. John Snedden, is located in City of Sandpoint. Dr. Snedden, a second generation Sandpoint resident and graduate of Sandpoint High School started his business in 1990 in a Sandpoint business incubator that has received Rural Business Enterprise (RBEG) assistance. In 1995, with the help of a USDA Rural Economic Development Loan made through Northern Lights, Inc., the electric cooperative in the Sandpoint area, the company constructed its initial 9,500 sq. ft. manufacturing plant, becoming the first company to “graduate” from the incubator. The business’ original focus was manufacturing professional tooth whitening products. Since then it has shifted to unit-dose packaging and expanded its product lines and manufacturing capacity to include custom packaging and contract manufacturing for medical, dental, pharmaceutical, cosmetic, nutraceutical, and industrial customers.

The RBS-guaranteed projects financed a major expansion completed in 2003, with the manufacturing facility now encompassing 64,000 square feet. Dr. Snedden and his wife own the land and building and lease the property to their business, Unicep Packaging, Inc., originally projected to create 62 additional Full Time Equivalent (FTE) jobs, the company reports that the expansion has, to-date, resulted in the creation of 68 FTE’s.

The applicant reports that the average projected wage to be received by new employees is $14 per hour plus benefits, which is 271% of the federal minimum wage. Additionally, premiums for the health, dental, life, and disability benefits are paid by Unicep Packaging, Inc. Employees may also participate in a 401(k) with Unicep Packaging, Inc., matching up to 2% of the wage plus a discretionary 2% contribution at the end of the year.

The Results:
As stated by BCEDC Executive Director Mark Williams as he presented Dr. Snedden with a plaque at the award ceremony: “Over the past three years, manufacturing jobs in our county have increased by 21 percent while Idaho has lost 14 percent and the nation 16 percent. This is particularly significant since these jobs pay 38 percent higher wage than other industries. We feel it is time to recognize the impact of these employers, and UNICEP packaging has been a shining example of job creation in the manufacturing sector.”

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Section 9006 Energy Grant

Outline of Need:
On September 3, 2003, Idaho's U.S. Senators Larry Craig and Mike Crapo announced three U.S. Department of Agriculture grants totaling more than $1million for renewable energy systems in Idaho. "These three projects will be greatly enhanced by the grants announced today, and I am very proud of the forward-thinking efforts these gentlemen have undertaken to expand the role of renewable energy in our state," Senator Craig said.

In September of 2003, RBS approved an Energy Grant to Leroy Jarolimek. Mr. Jarolimek owns and operates a 1,900 acre farm located in Cassia County and has been farming for the past 40 years. He became interested in the potential of utilizing the wind resource on his farm several years ago and has been collecting wind resource data on his farm through an anemometer which was obtained through the Idaho Anemometer Equipment Loan Program, operated by the Idaho Energy Division, the Bonneville Power Administration, and the Idaho National Engineering and Environmental Laboratory.

How Rural Development Helped:
Energy funding in the amount of $10,000 was used to purchase and install a 20 kW wind turbine. The turbine was installed and began producing power in June of 2004. The power produced by the turbine is sold to Idaho Power through a “net metering” arrangement. It is anticipated that the wind turbine will supply the majority of power consumed by Mr. Jarolimek’s farm machinery repair shop as well as his residence.

The Results:
Title IX of the 2002 Farm Bill established the Renewable Energy Systems and Energy Efficiency Improvements (Energy) Program. Through the Energy Program, Rural Business-Cooperative Service (RBS) provided grants to agricultural producers and rural small businesses to purchase renewable energy systems and make energy efficiency improvements. The Energy Program is designed to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the nations critical energy needs.

This Energy project will meet the objectives of this Executive Order.