VIRGINIA CITY — Historic concessionaires in Virginia City are grappling with proposed lease agreements that would increase their rent from 3-4% to 15% of gross revenue, threatening the viability of businesses that help bring the old west mining town's history to life.
The Montana Heritage Commission, part of the Montana Department of Commerce, terminated existing lease agreements without notice several weeks ago and issued new contracts with significantly higher rates for restaurant owners, theater operators, and hotel proprietors operating out of state-owned historic properties.
"If they put this 15% on our business, we'll be in the negative $20,000," said Bill Koch, who operates the Virginia City Players and Opera House with his wife, Christina. "We won't even be able to ... it's not even worth it."
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The Kochs say their theater business has never made them wealthy, but they continue operating for their love of art and community.
"We're only here because of the people of Montana," said Becky Digiovanna, another concessionaire. "Gold was discovered here, and that's what brought us all here, but now we have our history, which is the gold for what we have."
Jason Lange runs a high-end steakhouse in a building that once housed a Wells Fargo stagecoach office in the late 1800s. The building is part of a living-history museum designed to educate the public through artifacts and interactive experiences.
"It just takes the air out of my lungs," Lange said. "I think it's absolutely ridiculous, and it just feels like they don't even want us here, like they just want to get rid of us and have us go away."
Kirk Belding has operated the town's pizza place for almost three decades and calls the price increase unsustainable.
"It's super sad and disappointing, really," Belding said. "Somebody who got that kind of rent increase in Bozeman would be out on the street, which is probably what's going to happen here."
The impact extends beyond individual businesses. Virginia City welcomes half a million visitors during the summer months, and concessionaires typically operate for only about 100 days during that season.
"It's affecting everyone in a trickle-down effect," Digiovanna said. "If we don't have a theater, no one is gonna come spend the night. If the restaurants close, I have guests coming in who have no place to eat. The people of the town have no place to eat."
According to Montana Heritage Commission spokesperson Mitch Staley, several concessionaire contracts are causing the commission to lose money, impacting their ability to meet preservation and development requirements.
The state determined the 15% gross revenue rate for businesses where the Montana Heritage Commission has made large capital investments to make them "turn-key," including equipment, machinery, furniture, furnishings, and liquor licenses.
Commerce officials say they must maintain consistency through the process, with contracts containing uniform provisions where possible. Negotiation will be limited and will not include uniform provisions such as rent amounts.
The state is offering contract lengths based on how long concessionaires have operated with the commission: one year for businesses operating five years or less, three years for those operating between five and 10 years, and five years for those operating at least 10 years.
* This broadcast news story has been lightly edited for online publication with the assistance of AI for clarity, syntax, and grammar.
