Business briefs for July 2022 edition | Current Edition | wyomingnews.com

2022-08-01 11:12:45 By : Ms. Kate Wu

An impasse on liquor licensing, with some industry officials on one side and localities on the other, could possibly be overcome. Based on testimony to a Wyoming legislative committee hearing in early July and follow-up phone conversations with witnesses, a possible end may be in sight to the long-lived logjam over how to get extra liquor licenses to local businesses.

Officials in cities have sought to free up more authorizations. The overall aim is not to necessarily add more bars. Instead, stakeholders discussed goals of allowing businesses that don't solely focus on selling booze to sell alcohol in addition to their core focus. One example is Ace's Range. Its owners would like to sell drinks in addition to providing golf simulations and laser shooting-type games. Problem was, one of its representatives testified, Cheyenne had only a single retail liquor license to award recently. Yet there were about 10 applicants. As Cheyenne Mayor Patrick Collins noted, City Council members likewise were disappointed they could not award a full slate of approvals.

Rather than seeking to immediately free up additional full retail liquor licenses, participants in the talks said in interviews they are eyeing other types of licenses that could be more limited in scope. One such authorization could allow for taverns that need not sell food, and that would be barred from selling packaged/take-out liquor and that could not provide alcohol to catered occasions. As there is not complete stakeholder support for this, a couple of other alternatives also are under discussion and appear to have more support among the liquor and hospitality industries.

Ideas that stakeholders said have been getting more traction during private conversations prior to the hearing would include possible forthcoming legislation for more bar-and-grill licenses. Eventually, perhaps in 10-plus years, there could be an unlimited number of some types of liquor licenses in the state. 

"We’ve got some relative agreement from both sides … to essentially allow for more of those" bar-and-grill licenses, David Fraser, executive director of the Wyoming Association of Municipalities, said. Of adjusting liquor retail laws generally, he noted that it will be the decision of lawmakers, not the participants in the private-sector and municipality talks. "It does help the process if we're bringing a proposal" to lawmakers, he continued, "as opposed to hoping they will referee" an accord into existence.

As always with legislative issues that are under study, as well as with negotiations that are not yet finalized, details are in flux. No final pact among stakeholders appears to have been finalized.

Another idea that has been floated would let a business sell drinks if its entertainment and food sales comprised at least 60% of the company's total revenue. Alcohol would not be allowed to make up more than 40%, according to stakeholders, including Cheyenne Mayor Collins.

Some of the principal members in the negotiations over finding a compromise path ahead on liquor licenses include WAM and the Wyoming State Liquor Association, participants said. Others in the loop include the city of Cheyenne, some chambers of commerce and the Wyoming Lodging and Restaurant Association. 

Stakeholders noted that members of the legislative committee asked the Legislative Service Office to draft possible bill language along the lines of the bar-and-grill licensing expansion and for food-entertainment-alcohol venues. Any such proposals could be made public shortly before the committee's next meeting, which currently is scheduled for Aug. 25-26, and then members of the legislative panel could discuss it then, LSO spokesperson Ryan Frost said.

State and local efforts to attract more cryptocurrency and technology companies to the region, and to get them the electricity and other resources they need, have advanced. One Wyoming power utility has announced a long-anticipated contract to deliver the equivalent of about one-fifth of the energy the entire city of Cheyenne uses, on average. Some new jobs and other economic development may come along with this.

Black Hills Energy said a crypto mining company recently entered into a five-year service agreement involving up to 45 megawatts, with an option to expand to as much as 75 MW. By year's end, this facility "will represent one of the largest bitcoin mining operations in the region," according to the utility.

This appears to be the biggest such power deal in the state, at least that has been made public. This is according to past reporting by Wyoming Business Report and experts including the University of Wyoming's Steven Lupien, who is the director of UW's Center for Blockchain and Digital Innovation, as well as to an executive at the new mining company itself. Partly to stave off any deregulation of the overall power industry, this forthcoming agreement has been cited by utility stakeholders as evidence that existing law and regulations work as-is.

The new blockchain interruptible service agreement is with MineOne, a spokesperson for Black Hills Energy wrote in an email to WBR. "MineOne, the general partner, is a New York-based crypto mining company. There will be additional limited partners." The spokesperson said the local operations will be developed and run by BCB Cheyenne, doing business as Bison Blockchain, a Wyoming-based company.

"As part of operating the mine, Bison expects 20 new permanent jobs to be created in Cheyenne," Black Hills Energy's Laurie Farkas wrote to the WTE. "Bison has expressed a desire to provide learning sessions and facility tours to help educate various stakeholders and the public about the benefits of blockchain," she wrote. "They are interested in partnering with state universities to provide scholarships for students interested in blockchain technologies."

Blockchain is the underlying technology concept for virtual currency, in which a widely distributed electronic ledger tracks transactions.

The tech company's initial operations will be at the North Range Business Park, which is owned and operated by Cheyenne LEADS, the local economic development organization. The head of this group told WBR there are no tax incentives or discounted land prices.

The crypto tech company will likely start hiring in 2023's first quarter, Betsey Hale, CEO of Cheyenne LEADS, wrote in an email to WBR. "At full build out, there will likely be 20 jobs. The hiring timeframe will also depend on industry growth." Starting annual salaries could average $60,000.

The crypto mining will take place in modular units. Although plans are not final, there may be several employees on the site at all times, and they may work in an actual building, while bitcoin is mined in the modular units, Bison Blockchain's Michael Murphy said by phone. "Our goal is to be up and running at the full 45 megawatts" by Dec. 31, Murphy, one of three co-founders of Bison Blockchain, said about the power pact.

While MineOne is the owner-investor, Murphy's business will operate the tech mine. "We are, like, the local presence. We are the ones that are active in the community" and hiring, he said.

A major building in Cheyenne's downtown that some consider to be blighted and underdeveloped may be sold, the mayor has revealed. There are some caveats, however, and a sale is not guaranteed.

The owner of the Hynds Building and city officials had been butting heads over the future of the building, and whether the municipality might essentially force its sale. Now, it appears, there are at least some tentative sale plans.

The "building is under contract," Cheyenne Mayor Patrick Collins wrote in his weekly update on city happenings. "The buyers are local and experienced. They have 45 days to do their due diligence, before the deal will close."

Collins noted that he and Domenic Bravo from Visit Cheyenne and the Downtown Development Authority have met with the would-be buyers "to learn what we can do to make this deal happen and their project successful." Bravo said he could not comment further when reached by WBR.

Pointing to the tentative nature of any preliminary pact, the mayor wrote, "Fingers crossed that this deal will happen." Real estate purchases often include a period of time where the buyer can back out.

"The Hynds has been mostly empty for almost 40 years now," Collins noted. "It will be a great addition to downtown to see it filled and adding to our economy."

Individuals involved in the potential property sale would not immediately provide information, such as the name of the buyer, the price and other terms of the real estate transaction. Collins declined to comment further.

Officials have broken ground on the 416-mile Gateway South transmission line project in rural Carbon County with promises that it will reinforce Wyoming’s legacy as one of the nation’s leading energy producers.

Rocky Mountain Power notes the project, which is part of the company’s Energy Gateway transmission expansion initiative, will extend from the Aeolus Substation near Medicine Bow to the Clover Substation near Mona, Utah. The high-powered line may create 1,300 construction jobs.

The new line, coupled with the completion of the Gateway West D.1 segment, “supports Wyoming’s energy policy by increasing the reliability of the Wyoming transmission network,” according to the company. Once completed, the projects will “enable the interconnection of the additional generation resources customers will need in the coming years.”

“This is a PacifiCorp investment of nearly $2.5 billion all told for Gateway South and other adjoining transmission projects,” said Gary Hoogeveen, president and CEO of Rocky Mountain Power, during a late June groundbreaking ceremony. “It will help the U.S. open a new chapter in expanding and modernizing the regional energy network.”

Gov. Mark Gordon said that Wyoming’s abundant natural resources of wind and solar, along with potential for advanced nuclear power, provide distributable, dependable electricity that is necessary in powering the nation. Wyoming generates a lot of electricity, with about 80% for out-of-state use, the governor said.

“Those electrons are going to come from a variety of sources,” Gordon said. “People can be assured that whatever those electrons are, they are going to be focused on not only making sure homes are cool or warm as needed, and that lights stay on, but that we are focused on climate solutions.” Wyoming is the first state to discuss creating a carbon-negative future, Gordon said.

In late May, the U.S. Bureau of Land Management issued the final approval for the 416-mile transmission line, which also will pass through Colorado. Transmission service could begin in late 2024.

In an already challenging industry, farmers in southeastern Wyoming are feeling the brunt of inflation and record-high fuel prices. The average diesel fuel price in Wyoming was up to $5.64 per gallon as of July 14, according to AAA. Feed and fertilizer costs have risen sharply, as well.

Farmers in Albany and Laramie counties told WBR that while their profit margins are decreasing, they are not yet in a spot where they need to shut down. They are making adjustments so that doesn’t happen.

Brian Lee, a University of Wyoming research scientist in the Department of Agricultural and Applied Economics, said he has not heard of producers who are thinking of renting their ground or not farming it. “For this year, I think producers will … absorb the increased costs,” Lee said. “I don’t see any short-term changes in farming or decisions to farm based on the increased prices from this year.”

While profit margins are frequently small in ag, this year is particularly hard, many farmers said. To counteract this, they are trying to plan farther ahead, adjust their business model and be extra conscious about costs.

High fuel prices are one of the biggest issues farmers face because they impact just about every aspect of their operation. For some, total diesel fuel costs could range from $40,000 to $80,000 this year, compared with $20,000 to $30,000 in years past, said Brett Moline, director of governmental and public affairs with the Wyoming Farm Bureau Federation. Moline noted trucking and freight costs are increasing, as well. He said farmers typically pay for the cost to bring goods in and send product back out.

Jim Lerwick, co-owner of Lerwick Farms in Albin, said farmers always “try to be positioned for whatever happens.” Lerwick said he contracted enough fuel last year for a supply of about 1 and 2/3 years, so he made it through 2021 in good shape and will make it through most of this year. His fuel price is still higher, but it has not increased as much as it could have.

“There’s not much to do at this point,” Lerwick said. “If you don’t have (fuel) secured, you either use less by driving less and farming less, or you just hope you cover the costs.”

BJ Bender, co-owner and founder of Taste of the Wind farm in Laramie, said she is trying to take fewer, more efficient trips into town and line up animal feed ahead of time to cut costs so she doesn’t have to raise her own prices too much. She said she will have to raise her prices starting in the second half of the summer.

“We’ve eaten a lot of the costs because we know it’s hard for everyone right now,” Bender said. “That’s something I’m pretty passionate about is making sure people have access to good food. It’s a bummer that cost is a barrier, but we’re trying to keep it as manageable as we can.”

The federal government is paying some $31.5 million in total to 23 local governments in Wyoming in order to help make up for lost land taxes for some tax-exempt federal lands.

The Department of the Interior’s late-June announcement noted that these payments in lieu of taxes – which, in this case, are meant to cover funding for fiscal 2022 – are made for tax-exempt federal lands administered by the DOI’s agencies, along with some other agencies.

Laramie County is getting $27,934, the lowest dollar amount among the Wyoming counties listed by DOI. Several counties were getting millions of dollars each. At the high end, above $3 million apiece, were Sweetwater and Natrona counties.

“Payments are calculated based on the number of acres of federal land within each county or jurisdiction and the population,” the news release stated.

Western governors have formally approved Wyoming Gov. Mark Gordon as their new vice chair, the Western Governors’ Association has announced.

The association also elected Colorado Gov. Jared Polis as the new chair, according to the WGA. The association held its annual executive session, timed to coincide with the end of the organization’s fiscal year, at the end of June.

At their gathering, the Western governors also came up with some policy resolutions. Some may be of interest to Wyomingites.

“Western governors support building on the 1970 Mining and Minerals Policy Act with legislation and policies that unlock our domestic mineral potential and ensure access to metals critical to U.S. economic and national security, in part by addressing the critical issue of permitting delays and the timely processing of mining permit applications,” according to a summary of one such resolution.

Laramie County Community College is not immune to the impacts of inflation.

Although the college expected to start construction on one of the oldest buildings on campus this September, any efforts to expand the Recreation and Athletics Complex will be delayed due to rising costs in materials and labor. LCCC President Joe Schaffer said there is a chance the board of trustees may have to decide to abandon the project completely if additional funding can’t be secured.

That would mean the nearly $20 million for renovations would no longer go toward addressing the lack of the building’s electrical capacity, air conditioning and aging infrastructure.

“Within the current environment, we have not been able to get that project within budget,” Schaffer told the Wyoming Business Report. “It’s at the point where the gap is growing even as we value engineer aspects out of the building. Most recently, we received a bid, and only one bid, for a major component of the project that was millions of dollars higher than what was estimated.”

He said the expansion is currently $3 million to $5 million over budget, and LCCC leadership has to go back to the drawing board. Schaffer has already begun discussions with legislators, the State Construction Division and the Wyoming Community College Commission to find additional funding. This will set back construction by months.

Without the updates to the sports complex, student-athletes and their teams will use Laramie County School District 1 facilities in the 2022-23 season. They use the facilities to practice and train, and competitions will take place off of LCCC’s campus.

The U.S. Department of the Interior announced last month that $25.5 million in infrastructure law funds for WaterSMART Water and Energy Efficiency Grants will go to safeguard local water supplies in the face of severe Western drought. Fourteen projects in eight western states, including Wyoming, will be awarded funding to help communities improve water use efficiency by lining canals, upgrading water meters, installing automated gates to control water flow and making other infrastructure improvements.

Wyoming will receive $2 million for the Owl Creek Irrigation District, which will be impacted by a water delivery and efficiency improvement project.

The projects overall are anticipated to save more than 12 billion gallons of water annually – enough to fill over roughly 880,000 swimming pools – through reductions in residential water use and improvements to increase irrigation efficiency. Including non-federal funding contributions, the projects represent more than $130 million in water management improvements.

The infrastructure law allocates $8.3 billion for Bureau of Reclamation water infrastructure projects to repair aging water delivery systems, secure dams, complete rural water projects, protect aquatic ecosystems and fulfill Indian water rights settlements. The newly announced funding is part of the $160 million in WaterSMART grants provided by the law in 2022.

Local governments in eight states set to receive funding must complete their project within three years.

Local politicians were among those receiving annual awards at an evening event from the Greater Cheyenne Chamber of Commerce. At the group's annual dinner last month, those who were recognized with top honors in their categories included Laramie County Commissioner Gunnar Malm and Cheyenne Mayor Patrick Collins. Malm was named business advocate of the year, while Collins is the local Chamber's person of the year.

The emerging leader award went to Jera Likely. The student of the year is Hollie Baca, while the teacher of the year is Kendall Ceballos. Committee of the year honors went to Vickie Peth.

"At our Chamber of Commerce, we believe that our community is preparing for an awakening. It truly is morning in Cheyenne and Wyoming, and our future looks bright," the group said in a written announcement after the awards ceremony.

Also getting awards were My Front Door for nonprofit of 2021; #1 Properties for the community service award; small business of the year honors went to Chronicles Distilling; and the large business of the Year is Western Vista.

"Each of these businesses and individuals have been endlessly devoted to making our community into a great place to live, work and do business," said the chamber's announcement.

Amanda Winchester is the director of the meat science program at Central Wyoming College, CWC noted recently. A news release said the school is launching the program this fall. Students can get an associate of science degree. A meat processing certificate is also offered, in a one-semester program. Meat science program classes start Aug. 22. Winchester started at CWC in February 2021, her school biography says. “She has been involved in meat judging individually and as a coach for more than 40 years. Before coming to CWC to teach meat science and agriculture, she owned a business in Lander, Main Street Books and Himark Rentals.”

Bryce Freeman, the administrator of the Wyoming Office of Consumer Advocate, has been awarded the Robert F. Manifold Lifetime Service Award by the National Association of State Utility Consumer Advocates, Freeman announced this summer. The association gave him the honor at its recent mid-year meeting. Freeman plans to retire on Sept. 2.

Matt Marsh of the federal Bureau of Land Management has become the district manager for the Wind River/Bighorn Basin District of Wyoming. He comes from BLM Idaho, and he retired in 2016 as a lieutenant colonel from the U.S. Marine Corps, according to an announcement from his current employer dated June 10. “As district manager, Marsh oversees activities on approximately 5.7 million acres of BLM-managed public lands within the Cody, Lander and Worland field office areas.”

Lt. Dustin Ragon of the Wyoming Highway Patrol and from Cheyenne has been named, in its 21st year, the Wyoming Trucking Association Highway Safety Person of the Year. The award was given by WTA at its convention in Casper, WTA announced in June. “Our winner prides himself on education before enforcement. He has branched the relationship between industry and officers to reach a new level of highway safety,” the truckers’ group said.

Omar Mandeel has been hired by the Wyoming Stock Growers Land Trust as conservation and stewardship associate, the nonprofit organization announced on June 3. He previously worked on international development, conservation and environmental issues, “including renewable energy projects in Colombia and soil conservation/sustainable agriculture in sub-Saharan Africa,” according to his new employer.

At its annual spring conference in Laramie, the University of Wyoming Extension recognized 2021 award recipients.

Megan Brittingham, a Goshen County 4-H educator, got the Jim Debree Excellence in Extension Award. This is the Extension’s highest honor, and it cited “her outstanding performance, leadership and professionalism.”

Joddee Jacobson, who is the Natrona County 4-H youth development educator, received the Newer Employee Award. This goes to people with “excellent performance” and who have worked for the Extension for no more than six years. “During the height of the COVID-19 pandemic, her dedication and ability to think outside the box ensured that 4-H participants didn’t have to miss out on the annual county fair,” the award announcement said.

Scott Cotton, David Keto, Kristi Hansen, John Hewlett and Jennifer Thompson have been members of the Agriculture and Horticulture Online Convention 2021 Coordination team, and now they are getting the Creative Excellence Recognition Award. “Faced with a global pandemic,” they “leapt into action, designing a multi-day web-based conference.”

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