Special to the Inter Lake

LIBBY - A $2.5 million redevelopment plan for the former Stimson lumber mill site has the support of the Libby City Council and Lincoln County commissioners.

The commissioners recently approved a $400,000 federal Community Development Block Grant application to help fund the project, and last week the City Council did likewise.

If approved, the two grants would fund nearly one-third of the cost of the proposed project. Additional funding would include a $1.5 million grant from the federal Environmental Protection Agency and $231,391 in an interest-free economic development loan through Flathead Electric Cooperative.

Donated by Stimson to the Lincoln County Port Authority in late 2003, the 400-acre former mill site is currently under the ownership of the Kootenai Business Park Industrial District and managed by Kootenai River Development Council.

Last month, development council director Paul Rumelhart briefed the council on the redevelopment plan, which includes improvements aimed at making the site more suitable for multiple tenants.

The budget includes $739,580 for roads, $688,730 for the water system, $529,195 for the sewer system, $298,886 to improve rail lines, $200,000 for electrical improvements and $75,000 to upgrade and move the scale.

The industrial district also would like to turn the site's sewer system over to the city and its electrical infrastructure over to Flathead Electric.

According to Rumelhart, the site supports more than 360 jobs - not all on-site - and could someday support as many as the 1,500 that were associated with the site when mill operations were at their peak.

The council approved the grant application by a 5-1 vote.