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Townsend prepares for economic impacts of RY Timber closing saw mill

Posted at 7:05 PM, Feb 18, 2020
and last updated 2020-02-19 12:16:51-05

The City of Townsend organized a public meeting Tuesday to address the impacts of the RY Timber closing their saw mill in Broadwater County.

RY Timber announced the closure last month, causing 70 employees to be laid off.

“It will have an impact on expansion,” said Townsend Mayor Mike Evans. “We’ve got nobody to take up the gap.”

Evans said there are a lot of unknowns right now, but the City has been looking at what could be the biggest impacts.

The mill is a significant source of tax revenue and employment for the area, and this closure will be felt by every person in the community.

“We’ve got a hardware store up the street and RY Timber is their best customer,” explained Evans. “Same with the housing. You’ve got landlords that are used to getting rentals and might not have that anymore.”

According to the City of Townsend, there is a potential of 50 families that could leave the area. That also means around 60 kids may no longer attend Broadwater schools.

Bill Upthegrove with Broadwater Health Center Board of Directors says the closure will also have an impact on the hospital.

Less people using the facility means less revenue, and the hospital is already operating on a stretched budget.

“Right now we see around three people a day in the emergency room,” said Upthegrove. “It’s going to be harder and harder to keep the emergency room operating.”

RY Timber attended the meeting to answer any questions from the public and explain why the mill was closing.

Ed Ragen, RY Timber Resource manager, said there is a chance the mill may reopen down the road, but they would need to secure enough lumber to operate it effectively.

“If we had enough wood to run two shifts we wouldn’t be having this meeting,” said Ragen.

RY Timber said around 33 million board feet per year to operate the Townsend mill at full production. They’ve currently only been operating about half that.

Ragen said in the meeting that current litigation practices against Forest Service projects have not been working in their favor.

“We’ve had 24 of our timber sales, almost 100 million board feet, that has been tied up in litigation or delayed,” explained Ragen. “Try to find loggers that you can hire to go into these areas. They’re all looking for a job, they don’t want to sign a contract if there’s a chance the courts are going to shut them down.“

The public meeting was also attended by congressional representatives, the U.S. Forest Service, Montana DNRC and other state leaders who also expressed frustration over forest management lawsuits.

RY Timber says the Townsend mill will most likely continue to operate into April before shutting down.

The mill is not for sale at this time, and RY are looking for new timber sources for the mill. However, no potential new timber sources will be finalized in the immediate future.

The office will remain open and a minimal staff will be kept on to clean up and maintain the property.

RY Timber has offered severance pay or a position at their Livingston saw mill. Around 30 employees have expressed interest in relocating to Livingston.

Mayor Evans says the City will be actively looking at ways they can help get the mill back up and running, but worries if people leave it will be hard to build up a workforce to meet the mill’s demands.