VIRGINIA CITY — Virginia City's historic charm faces an uncertain future as several businesses operating in state-owned buildings grapple with dramatic rent increases that could force them to close by 2026.
The Montana Heritage Commission recently offered new lease agreements to concessionaires that would increase rent from 4% to 15% of their gross revenue to operate in the state-owned historic buildings. The businesses face tight deadlines to sign the new contracts, with some questioning whether they can afford to continue operating.
"This Christmas I've been seeing a lot more Grinches around Virginia City than Santa Claus," said Allyson Adams, proprietor of the Montana Picture Gallery established in 1864. "It's not a happy time."
Virginia City businesses are fighting to stay open as lease changes threaten their future
Adams spends Saturdays in December photographing families in Victorian period clothing for old-time Santa portraits at Montana's oldest photo studio. While her business isn't subject to the rent increase, she worries about the restaurants, hotels and theaters facing the price hike.
"If they leave, then what does that mean? Do they want to get some corporate concessionaire that's going to come in here? Some cookie-cutter?" Adams said. "That's not going to fly. It just won't."
The uncertainty extends beyond individual businesses to community events. Virginia City Chamber of Commerce Executive Director Christina Koch says the chamber cannot begin planning volunteer events like poker runs, ghost walks, parades and fun runs until concessionaires decide whether to sign the new contracts.
"I feel like we're stuck in a bad Hallmark movie, like this big corporation is coming into this little town at Christmas time and trying to destroy everything and the town members are banding together to try to save Virginia City before Christmas," Koch said. "So, help us, please!"
Adams, a member of the local chamber of commerce, believes the changes threaten the town's unique character.
"I mean, we are a unique, quirky, historic town, and the Montana Heritage Commission is here to preserve it," Adams said. "This was never supposed to make a lot of money. It belongs to the state of Montana, and Montana is starting to look less and less like Montana every day."
In an email, a spokesperson for Governor Greg Gianforte said the decisions relating to this matter lie in the hands of the Department of Commerce and the Montana Heritage Commission.
"The decisions relating to this matter lie in the hands of the Department of Commerce and the Montana Heritage Commission. As Commerce has discovered and reported, there has been financial irregularities and criminal activity associated with the work of the commission. The actions taken by Commerce are aimed at repairing the financial mismanagement and to improve fairness for all parties involved," Kaitlin Price wrote.
Auric Road, a corporation that operates resorts like Lone Mountain Ranch and recently took over the contract for Montana's oldest saloon, declined to comment through a spokesperson.
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