Virginia City businesses find themselves in a legal battle with the state Department of Commerce, drawing attention from state legislators and the city’s mayor. Twenty-four Montana House members sent a letter highlighting their “concern” over Commerce’s plan to “significantly increase lease rates” in Virginia City, urging a reconsideration. The town, a historic site and popular tourist spot, contributes $75 million annually to the economy, with $45 million benefiting Madison County.
Virginia City’s Mayor, Justin Gatewood, has also submitted a letter seeking court intervention to uphold existing leases managed by the Montana Heritage Commission. He expressed doubt over the city’s future and its long-standing partnership with the state due to the Department’s recent decisions. Commerce has yet to comment on the ongoing litigation.
In late 2023, the Montana Heritage Commission, citing financial strain, decided to cancel contracts with some Virginia City businesses, leading to a lawsuit filed by business owners Kirk Belding and Jason Lange. The suit aims to stop the state from ending concession contracts and questions the legality of the new contracts, labeling them “overreaching” and “oppressive.” The court is set to hear arguments on Feb. 23 regarding the injunction’s permanency.
Court documents reveal Belding faced a lease demanding 15% of gross sales, with potential increases threatening his business. Attempts to negotiate have reportedly met with resistance. The state’s response, filed Jan. 15, argues the business owners lack a valid claim and asserts the case should be moved to Lewis Clark District Court per contract terms, stating the action is “structurally flawed.”
Plaintiffs Emergency Petition
Request for Judicial Notice
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