Montana Legislature concludes session, approving approximately $124 million in state spending plus up to $40 million in federal funds for behavioral health improvements. This includes $26.5 million for a new mental health facility in eastern Montana with forensic beds.
The funding addresses longstanding waitlists, facility shortages, and backlogs of criminal defendants awaiting psychiatric evaluations—some experiencing jail holds exceeding one year.
Read full article →NAMI Montana releases statement celebrating DPHHS Director Charlie Brereton's announcement that Billings (Yellowstone County region) has been identified as the likely location for the new facility.
Charlie Brereton (DPHHS Director):
"Right now we are focused on identifying a site for the facility and it looks more and more like the Billings region will be the location."
Purpose:
The facility will serve criminal defendants who require intensive psychiatric treatment in a secure setting.
NAMI Montana leadership expressed enthusiasm for the development, stating it would improve access to critical mental health services for those involved in the criminal justice system.
Read full article →📧 COMMUNICATIONS DISCOVERY
BOI Executive Director Dan Villa emails both Kurt Markegard (Laurel CAO) and Chris Kukulski (Billings CAO) inviting them, their staff, and their respective councils to site tours in Yellowstone County.
Villa's Email (July 10, 2025):
"In an effort to gain more understanding from your communities, I'd like to invite you, your pertinent staff and your respective councils to site tours in Yellowstone County for areas that are being considered for the new Behavioral Health Facility authorized in HB5 (2025)."
"We will meet at 1PM at the Rimrock Road MSU B Parking Lot and carpool/caravan from there."
"Input from local officials is not only necessary to a success siting process, but also sincerely appreciated."
⚠️ Villa's Invitation Instructions:
Villa explicitly asks recipients to "invite you, your pertinent staff and your respective councils to site tours in Yellowstone County."
Question: Did Kurt extend this invitation to Laurel City Council members or city staff? No evidence suggests he did.
Significance: Villa invites both Laurel and Billings leadership to tours of Yellowstone County sites. This establishes that Kurt was engaged by the state early in the process - but whether he involved Laurel's elected officials remains unclear.
📧 COMMUNICATIONS DISCOVERY
BOI Executive Director Dan Villa schedules a Microsoft Teams meeting titled "Boi/Laurel Intro Call" with Kurt Markegard to discuss a site north of Laurel (near airport/Veterans Cemetery area). Kurt doesn't receive the invite notification and misses the meeting.
📧 Email Exchange (July 15):
Kurt: "I missed the meeting. I hadn't received the invite, so I thought it was canceled."
Villa: "Give me a ring whenever you have a sec and we can chat through potential Laurel options."
DPHHS advances plans for new state behavioral health facility. Legislators and state officials tour potential sites in Yellowstone County on July 24. CAO Kurt Markegard attends tour and points state representatives toward property west of Laurel.
🚨 Kurt's "For Sale Sign" Story (As Told at October 21 Council Meeting):
Kurt claims that while walking down a hill during the tour at the Skyway Drive site, he casually mentioned to state representatives:
"Well, how many acres are you looking for? They said, 'Well, we need at least 10.' I said, 'Oh, I think there's a site west of Laurel that probably would fit that. I happen to drive by and there's a for sale sign.'"
Kurt says state representatives looked it up on their phone app, confirmed it was 10 acres, then "had to catch an airplane and they left and that's the last they heard of."
Updated Facility Details:
Sites Toured During July 24 Visit:
Tour attendees included Senator Vince Ricci, Commissioner Morris, Billings council members, Billings Mayor, and BOI representatives.
⚠️ Laurel Council Excluded:
Billings brought: Multiple council members and their Mayor
Laurel brought: No council members documented as attending
Villa's July 10 invitation explicitly asked Kurt to "invite you, your pertinent staff and your respective councils." Despite this instruction, there is no evidence Kurt invited any Laurel City Council members or staff to participate in this tour - even though one of the sites visited was near Laurel.
Local Officials' Response to Tour:
County Commissioner Mark Morse:
"There's a lot of, what are we trying to do here? There's just a lot of unanswered questions."
Billings City Council Member Jennifer Owen:
"I can't stress enough how frustrated people are in Billings with the state dumping its problems on us."
Owen also noted officials "received little information about what the facility would look like or even the potential number of beds."
Governor Greg Gianforte pauses State Board of Investment's leadership role in planning the facility. BOI asked to step down as lead agency. Previously reviewed sites, including Skyway Drive location, no longer viable given local concerns and infrastructure considerations.
Yellowstone County Commissioner Mark Morse:
"Extremely grateful...that the governor listened to the community and that they were unhappy and he hit the pause button."
BOI Executive Director Dan Villa:
Board received direction requiring a "pause" due to differing interpretations between executive and legislative branches regarding BOI's construction authority.
Villa's Statement Includes Two Key Commitments:
1. On Previously Reviewed Sites:
"If due diligence resumes upon receipt of written guidance, no previously reviewed sites—including those on Skyway Drive—are viable, given local feedback, infrastructure costs, local zoning regulations, impacts on targeted economic development districts, and state land leasing processes."
2. On Moving Forward:
"If BOI is to engage further, our future work must begin with clarity on services and siting from our partners..."
Villa also specifically thanks "Laurel City Administrator Kurt Markegard" for "candid input."
Billings City Council Member Jennifer Owen:
"Slowing the assessment down, getting a lot more community and stakeholder input is a really smart way to go."
Key Issue: Local officials raised concerns about insufficient information. Questions remained unanswered about facility specifications, operational scope, staffing models, and implementation details.
No timeline provided for resuming the project.
CAO Kurt Markegard sends email to DPHHS Director Charlie Brereton, BOI Executive Director Dan Villa, and Ryan Osmundson, explicitly stating he is acting "on behalf of the City of Laurel's Mayor." Email includes detailed site maps, zoning information, and infrastructure details. CC'd to City Mayor.
Key Revelations from Email:
Dan Villa's Reply (3:11 PM same day):
"Thank you, Kurt. Appreciate it. We will be in touch once we have more guidance. Have a good weekend. Best to the Mayor."
Timeline Significance: This email was sent on August 22, 2025 - two months BEFORE the October 21 "informational only" council workshop, and nearly three months before the November 10 proposal deadline. Markegard and Mayor Waggoner were actively pitching a specific site to state officials without informing City Council or the public.
After three-week pause, Governor Gianforte directs state agencies to resume planning for the facility. BOI remains lead agency, working with DPHHS to determine facility type and location.
Governor Gianforte's Letter (Sept 10, 2025):
"I share the goals of the Legislature to complete this project quickly while also ensuring transparency, fairness, and public involvement."
"In proceeding with this project, public participation should play a critical role as it moves forward. Engaging the public and stakeholders will ensure that these decisions are made in the open, allowing Montanans to have a voice in how their hard-earned tax dollars are spent."
What Changed:
After local officials expressed feeling "blindsided" by the state's process, restart now emphasizes public participation and transparency.
BOI Director Dan Villa:
Received instructions to "move forward with the proposed mental health facility, just to be more public about it."
Communities Already Requesting Consideration:
Notable: Article states Laurel, Stillwater County, and Big Horn County "have already requested consideration" - though Laurel officials previously stated they did not submit formal proposal.
Mayor Dave Waggoner confirms to Q2 News that a 10-acre vacant property on Old Highway 10 (outside city limits) is being considered for the facility. He promotes the economic benefits while claiming any decision requires resident and city council approval.
Mayor Waggoner's Public Statements:
"It would be great for Laurel, bringing jobs and adding to the economy."
Emphasized "any decision requires resident and city council approval"
Property Details:
⚠️ Critical Contradiction:
September 30: Mayor publicly says decision "requires resident and city council approval"
October 21: Just 3 weeks later, Kurt tells Council state "probably doesn't have to comply with local zoning laws" and land decisions "are not covered by our insurance carrier" at "informational only" workshop
Montana Legislative Services Division Staff Attorney Julie Johnson issues memo to Speaker Ler concluding the behavioral health facility directed to BOI under HB 5 would "most likely constitute a security" under state and federal law.
The Howey Test Analysis:
Key Conclusion:
"It is reasonable to infer that the Legislature intended the board to charge whoever occupies the behavioral health facility a rent that yields a rate of return."
Supporting Evidence:
Implications: If the facility is a security, BOI will charge rent to DPHHS (the operator), which could complicate federal Medicaid reimbursement and means the facility is intended to generate investment returns for the state's unified investment program, not just provide healthcare services.
Context: This memo was prepared at the request of the Legislative Finance Committee to clarify the legal nature of the project and BOI's authority under HB 5.
📄 Read Legislative Legal Services Memo (PDF) →DPHHS Director Charlie Brereton sends formal letter to BOI Executive Director Dan Villa specifying a 32-bed forensic facility and authorizing a formal Due Diligence Questionnaire process for Eastern Montana communities.
Key Quote - Open Process:
"While DPHHS remains interested in site opportunities in Yellowstone County, it is important that all Eastern Montana communities equipped with adequate infrastructure and a potential workforce are afforded the opportunity to submit proposals for hosting our new facility."
"Working together, I am confident that both of our agencies will facilitate robust engagement with local stakeholders when appropriate and prior to final site selection."
⚠️ Timeline Context - Process Still Open:
Critical Detail: Letter authorizes BOI to proceed with Due Diligence Questionnaire process "on our behalf" - establishing formal process for community proposals.
📄 Read Full DPHHS Letter & 14-Page Analysis (PDF) →📧 COMMUNICATIONS DISCOVERY
Kurt sends email to Commissioner Mark Morse (copied to Lee Deming and others) responding to October 6 DPHHS announcement, spinning his involvement as casual observation of a "for sale sign."
Kurt's Email (October 8, 2025):
"The only thing I passed along to the state was that there was land listed for sale at the tour that you and I was on in and around Billings. Vince Ricci was standing right beside me when I told the state representative about a 'for sale sign' that I had seen on my way to the family farm."
"The state followed up a few weeks later with the mayor and all the Mayor and I wanted was more information to make informed decisions."
"This is the first response we have received from the state."
⚠️ Timeline Contradicts Kurt's Narrative:
Significance: Kurt's email creates a narrative of casual, innocent involvement - but the July 14 "Boi/Laurel Intro Call" and August 22 email show active, intentional engagement with the state about Laurel as a site.
CAO Kurt Markegard hosts Senator Vince Ricci and Representative Lee Deming at council workshop for "purely informational" discussion, presenting facility as beneficial for Laurel. Kurt and Mayor Waggoner frame proposal positively while City Attorney Michelle Braukmann expresses concern about the informal presentation process.
⚠️ Kurt's Problematic Statements to Council:
Kurt frames these as reasons Council should be cautious, but simultaneously advocates for considering the facility as job creation opportunity.
City Attorney Michelle Braukmann's Response:
"There is not a formal agenda item in front of you. This is a workshop to discuss issues and you should absolutely discuss these issues. But I invite council to consider very carefully the things that are said on the record..."
"I didn't know this would be a big topic area tonight. I had not educated myself for that. Kurt and I have had several discussions about this issue. I wasn't aware that it was quite right for city council discussion..."
"We all know that it's not good to approach these things informally."
Michelle repeatedly warns Council about creating a legal record and suggests formal agenda item and public hearing process would be more appropriate.
Mayor Waggoner's Statement:
"I will say when we were approached both Kurt and I immediately said it's not our decision... But I will tell you as mayor, I feel it was my job to entertain the thought because I was voted in to help build Laurel... And if it were to happen, we don't have the land, but you know, that would help that land owner if he sold that property. It would help our restaurants. It would help our motel..."
Key Documents Provided to Council:
Critical Context: Workshop held less than one month before November 10 proposal deadline. Kurt characterizes meeting as "informational only" but admits he was contacted by state "about two months ago" and encouraged them to consider Laurel location. City Attorney clearly uncomfortable with informal process and lack of proper legal framework for discussion.
Following the October 1 legal memo from Legislative Services staff attorney Julie Johnson concluding the HB 5 facility would "most likely constitute a security," Speaker of the Montana House Brandon Ler formally requests an Attorney General opinion on the question of law. This is a significant escalation — the top elected leader of the Montana House is asking the state's chief law enforcement officer to weigh in on whether the legislature's own bill is being executed lawfully.
⚠️ Why This Matters:
DPHHS and BOI release "Montana's New Behavioral Health Facility: Frequently Asked Questions" document providing official details about the facility, staffing, security measures, and discharge protocols.
Key Details Released:
Official Purpose:
"Provide secure, therapeutic care for individuals with serious mental illness who are in the criminal justice system" including those awaiting trial evaluation, found Unfit to Proceed (UTP), or Guilty but Mentally Ill (GBMI).
⚠️ Timeline Question - When Did This Information Exist?
During the July 24-28 tour, state officials shared facility details (50 beds, ~1,000 employees). Kurt attended that tour.
October 21: Kurt holds "informational only" workshop with Laurel Council - 10 days before this FAQ is publicly released.
October 31: State finally releases detailed operational information publicly via this FAQ - 3 months after Kurt heard it during the July tour.
State deadline for facility site proposals. Big Horn County (Hardin) and Custer County (Miles City) submit comprehensive proposals meeting all 7 due diligence requirements. Billings declines. Laurel does not submit proposal.
Required Proposal Components (7 Categories):
Big Horn County (Hardin) Proposal:
Custer County (Miles City) Proposal:
⚠️ Laurel's Non-Submission:
Kurt Markegard: "From my understanding, they wanted an invitation from the community. And as a municipality, from the city of Laurel, we had no land that would have been able to meet it."
Contradiction: Kurt's November 17 letter (7 days later) reveals he and Mayor Waggoner gave state officials a summer tour of a specific site just outside city limits and had been coordinating with the state since July.
📧 COMMUNICATIONS DISCOVERY
Kurt emails Mayor Waggoner asking him to review draft letter to Dan Villa about Laurel's interest in the facility. Mayor responds "Looks great Kurt" at 8:57 AM. This becomes Laurel's official submission.
Email Exchange (November 17, 2025 - Morning):
Kurt (8:54 AM): "Mayor, Can you read this and see if you want any changes? Kurt"
Mayor Waggoner (8:57 AM): "Looks great Kurt"
Kurt's Follow-Up Email to Villa (9:16 AM):
After getting Mayor's approval, Kurt sends letter to Villa with additional message:
"My schedule is open this Friday if anyone from the State would like to meet in person."
"I also have some thoughts on zoning laws I would like to discuss. I believe state law has some exemptions for certain types of government facilities."
⚠️ Working for the State on City Salary:
Kurt is proactively offering to help the state identify zoning exemptions that would allow them to bypass local regulations. Instead of protecting Laurel's regulatory authority, he's strategizing with the state about how to circumvent it.
This directly contradicts his role as City Administrator, which is to serve Laurel's interests - not help outside entities avoid local oversight.
Letter signed by:
Significance: This official letter, approved by the Mayor in 3 minutes, explains why Laurel didn't submit a formal proposal by November 10 deadline but reveals behind-the-scenes dealings. Kurt's offer to discuss zoning exemptions shows he was working to advance the state's interests rather than protecting the city's authority.
Seven days after the November 10 deadline, CAO Kurt Markegard writes to Dan Villa explaining why Laurel didn't submit a formal proposal - but crucially reveals private dealings with the state that occurred without public knowledge or input.
⚠️ Not a Proposal - Yet Listed as One:
Kurt's letter contains NONE of the 7 required proposal components that Hardin and Miles City submitted:
Yet the state website (hb5.mt.gov) lists:
This presentation misleadingly suggests equivalence between comprehensive proposals with documented community support and Kurt's post-deadline explanation letter.
Key Revelations from Letter:
Critical Quote:
"I applaud the efforts to get community involvement in choosing the location for the facility, but I believe the process did not allow the location I pointed out to you during the summer tour to be nominated."
Timeline Contradiction: This letter confirms Markegard and Mayor Waggoner were privately showing the state a specific site during summer 2025 - months before the September 2 "informational" council workshop and the November 10 proposal deadline. The public and City Council were not informed of these dealings.
Legal Justification: Markegard cites City Resolution R08-22 and MCA requirements for annexation, claiming Laurel must follow public participation and hearing requirements. However, this doesn't explain why he was privately touring the site with state officials without public knowledge.
📄 Read Full Letter from CAO Markegard (PDF) →CAO Kurt Markegard and Mayor meet with Dan Villa (BOI Executive Director) and state team at Laurel City Hall. Text records confirm Villa traveled to Laurel for this meeting.
Key Facts:
DPHHS and BOI representatives spend full day touring sites in Miles City and Hardin - the two communities that submitted formal proposals.
State Sen. Gregg Hunter (Glasgow):
"If you're going to put it in some place where the community doesn't want it, you're going to be fighting those battles forever. So, I think this is a step ahead of a lot of other places and sites that they've looked at."
BOI Director Dan Villa:
"This is generational, so how does that scale over the next 50 years?"
Lawrence Killsback (Big Horn County Economic Development):
Said Hardin meeting went well, believes state officials giving them good chance
State officials planned to decide by Wednesday (Nov 26)
Article notes: "Even though DPHHS and BOI did not travel to Laurel Friday, the city is still in the running for the state forensic mental health facility as well."
📰 Read Q2 Article →DPHHS Director Charles Brereton and BOI Executive Director Dan Villa submit formal proposal to State Budget Director Ryan Osmundson for a 32-bed forensic mental health facility in Laurel, Montana.
📋 Critical Statement on Local Approvals:
"BOI and its contractors will obtain all required permits, annexations, zoning, and other local approvals in full compliance with applicable ordinances and resolutions."
Key Details:
⚠️ FAQ on Community Involvement (Attached to Proposal):
Question 14: "How will the selected community be involved in the planning process for the facility?"
Answer: "Once a site and location for the facility are formally selected, a series of local meetings will explain the process for designing, building, and operating the facility and gather feedback from community members and leaders."
Community involvement planned AFTER selection, not before - contradicting Governor's September 10 promise about public participation "as it moves forward" and decisions being "made in the open."
Day after Thanksgiving - Montana DPHHS announces Laurel chosen for 32-bed facility. Location not specified.
Charlie Brereton (DPHHS Director):
"Laurel provides access to a critical health care workforce and infrastructure necessary to ensure the facility's success. Laurel's geographic location is ideally situated for improving access and transportation logistics."
State Sen. Vince Ricci's account:
"I got a call from the state warning me that, 'Laurel's been selected, we just want to let you know before it hits the press.'"
Local lawmakers and Laurel City Council learn from press, not through official consultation
Fact: Laurel did NOT submit formal proposal (unlike Hardin and Miles City who did). Decision followed approval from Office of Budget and Program Planning based on collaborative plan from DPHHS and BOI.
Counties that submitted formal proposals express disappointment and confusion.
Custer County Commissioner Jason Strouf:
"To have a decision made that site was selected that was not one of the two proposals submitted seems a little disingenuous in regards to the process that the state chose to put forward."
Big Horn County Economic Developer Lawrence Killsback:
"I think the state overlooked us and saw what it could have did for us generationally. The impact would have been great."
Yellowstone County Commissioner Mike Waters:
"I was surprised. And I think my colleagues were surprised."
Counties had hoped facility would provide economic boost to rural eastern Montana
📰 Read Q2 Article →Council members question the recent state announcement. This is the first documented City Council discussion of the facility after the November 28 announcement.
CAO Markegard's Statement:
"It is the State's decision to choose the facility's location. As I had previously briefed Council, the City cannot be considered under their process because we do not have property within our jurisdiction to propose. At this time, the City has not received a request for annexation."
City Attorney Michele Braukmann's Instructions:
Public Reminded:
"The State is a separate governmental entity. The City does not control what the State does. Just because the Council may not respond does not mean it lacks care. All information on the project can be found at https://hb5.mt.gov/."
Legal Positioning: Attorney Braukmann's guidance suggests the city is preparing for potential legal proceedings by instructing preservation of all communications and limiting Council responses.
Laurel officials react to selection. Governor Gianforte makes contradictory claims about community support. CAO Markegard confirms city learned of decision from press, not from state.
Governor Greg Gianforte's Full Statement:
"We're not going to go someplace where it's not wanted. It's certainly needed in all of Eastern Montana, and there was a site visit with the city council, and they were very encouraging."
Context: This statement was made on December 4, 2025, after selecting Laurel - a city that did not submit a formal proposal and whose Mayor formally opted out of the application process in November. The "site visit with the city council" refers to a September 2 informational workshop with state legislators (not state officials), which was described as "purely informational and in response to recent rumors via news articles."
CAO Kurt Markegard's Response:
"The state did not send me information on it. I had to go seek it once it went to the press."
City Attorney Michele Braukmann:
"That project has not been presented to the city nor has gone through any of the uniform channels that are required to go through here."
Contradictions:
Officials acknowledge the $27 million ($26.5M + $700K increase) approved by Legislature will not cover actual construction costs. No timeline for final cost estimate.
Funding Situation:
Dan Villa (BOI Executive Director):
"We will know more once we've worked through design, site identification..." - cost estimate timeline remains uncertain.
Sen. John Esp (R-Big Timber):
Acknowledged the $27M figure was estimated based on similar past projects, noting forensic facilities cost more than originally envisioned.
Matt Kuntz (NAMI Montana):
"Our state desperately needs a forensic facility...and it's going to cost what a forensic facility is going to cost."
Context: Existing Galen facility houses 54 people with waitlists exceeding 100 patients. State faces potential federal intervention if crisis continues.
Note: Article mentions facility will require additional operational costs beyond construction, though health department states they "would not have proceeded independently without consulting the Legislature."
📰 Read MSU Exponent / Missoulian Article →📧 COMMUNICATIONS DISCOVERY
Villa emails Kurt requesting Zoom link for "tomorrow's Council meeting" (December 9). Villa and Director Brereton want to provide public comment to Council and staff.
Villa's Email (December 8, 2025 - 7:42 AM):
"Good morning, Kurt. Is there a Zoom link for tomorrow's Council meeting? Director Brereton and I would like to provide public comment to Council and staff."
Significance: Villa coordinating directly with Kurt about council access rather than going through official channels. This sets up the December 9 public meeting where Villa makes transparency commitments.
BOI Executive Director Dan Villa and DPHHS Director Charlie Brereton address Laurel City Council during public comment period. Villa makes explicit promises about transparency and following local processes.
Villa's Key Commitments:
1. Council Will Hear First:
"When and if BOI enters into a contingent buy-sell agreement with the property owner, the city council will hear about it first. You will hear about it during the public comment period of a city commission meeting. You will not read about it in a press release. You will not see it covered by news media before you have been informed directly by me."
2. Will Follow Local Processes:
"BOI will follow every existing city resolution, ordinance, and process that governs land use in Laurel. If annexation is required, and it likely will be, we will file an annexation request through the proper channels. BOI does not intend to circumvent city governance. We intend to work within it."
3. Current Status:
"No land has been purchased. No offers to purchase land have been made to any property owner. We are conducting preliminary discussions regarding potential sites, nothing more."
⚠️ Promises Immediately Broken:
December 30: Villa privately emails Kurt requesting meeting to discuss "annexation process, zoning regs, basically all of the city requirements" - no public notice
January 6-7: Villa schedules and holds secret meeting with entire city leadership at private construction company offices in Billings
January 19: Press reports state advancing plans - Mayor Waggoner says "haven't heard from state since Dec 9 meeting" and they're learning from media (breaking Villa's "hear about it first" promise)
Significance: Villa's public transparency commitments on December 9 establish a clear standard that his subsequent private coordination with Kurt and city leadership directly violates. These promises were made to Council and public, then immediately broken.
Montana Attorney General Austin Knudsen responds to Speaker Ler's formal opinion request about whether the behavioral health facility constitutes a "security" under state and federal law.
⚠️ Critical Limitation - Not a Formal Opinion:
AG provides a "letter of advice" rather than formal Attorney General Opinion because "the specific financial instrument(s) evidencing BOI's investment has not been provided for consideration."
"This response shall be construed as a letter of advice and shall not be cited and/or presented as controlling authority nor carrying the force of law."
AG's Partial Analysis:
Key Context from October 1 Legal Memo:
"If the building rent is reimbursed with federal funds, it is not clear how the Board of Investments can maximize profits while adhering to strict policies for federal reimbursement."
Significance: The AG's inability to provide a definitive opinion leaves uncertainty about the facility's securities classification and its implications for federal reimbursement and BOI's profit requirements.
📧 COMMUNICATIONS DISCOVERY
BOI Executive Director Dan Villa emails Kurt requesting a meeting to discuss Laurel's annexation process, zoning regulations, and city requirements. Villa asks about meeting at a private construction company's offices in Billings.
Villa's Email (December 30, 2025):
"Would you and any members of your team you'd like to add be available to meet team on January 7 at 6PM at Dick Anderson Construction's offices in Billings? We want to get a good understanding of the annexation process, zoning regs, basically all of the city requirements."
📧 COMMUNICATIONS DISCOVERY
Villa sends meeting confirmation for January 7 at 6PM at Dick Anderson Construction's offices in Billings. Attendees include Kurt and Mayor Waggoner.
⚠️ Private Meeting Location:
Meeting scheduled at Dick Anderson Construction's offices - a private construction company in Billings, not at Laurel City Hall or any public building.
Attendees: Kurt Markegard, Mayor Dave Waggoner, and state officials
Kurt and Mayor Waggoner meet with state officials at Dick Anderson Construction's offices in Billings to discuss annexation process, zoning regulations, and "basically all of the city requirements."
Timeline:
📧 COMMUNICATIONS DISCOVERY
Morning after the private meeting, Villa emails Kurt thanking him for the "very helpful and informative" session and requests the official forms needed to submit annexation and zoning change requests to the city.
Villa's Email (January 8, 2026 - 8:55 AM):
"Good morning Kurt,"
"Thanks for the time yesterday. Very helpful and informative."
"Can you please direct me to the forms we will need to submit to the city to request annexation and a zoning change?"
⚠️ State Formally Pursuing Local Approvals:
Villa is now requesting the official forms to formally apply for:
Charlie Brereton presents draft plans to legislators in Helena on Dec 17. Laurel and Yellowstone County officials learn about plans from Q2 News.
Mark Morse (Yellowstone County Commissioner):
"The first I was aware of them was when Q2 made me aware of them this morning. So that's not open, honest or transparent."
Mayor Dave Waggoner (Laurel):
Haven't heard from state since Dec 9 meeting - "very interesting that they want to be here, without saying anything."
Cost Update:
Brereton estimates $30M-$50M needed (original appropriation: $26.5M)
Broken Promise: Dan Villa previously told City Council they'd hear about buy-sell agreement first, not from press. BOI now nearing agreement - city officials learned from media.
📰 Read Q2 Article →During a city council workshop, Dan Villa of the Montana Board of Investments (BOI) formally notifies the council that a buy-sell agreement has been executed for a 114-acre property west of Laurel. He states that with the agreement in place, the BOI will now begin the formal process of requesting annexation and zoning from the city.
Dan Villa (BOI) to Council:
"The Montana Board of Investments has executed a buy-sell agreement to purchase approximately 114 acres located west of Laurel along Highway 10. With this agreement in place, BOI will now begin the formal process of requesting annexation and assignment of zoning from the city of Laurel."
Following the announcement to city council the previous night, news breaks publicly that the state has a buy-sell agreement for a 114-acre plot along Old Highway 10. For the first time, the specific location and property owner are publicly confirmed.
Location Details:
Property Owner Confirmed:
Miller Trois LLC (per Montana Cadastral property database)
Mark Morse (Yellowstone County Commissioner):
"People should not mince words. People who go there, their freedoms, their liberties have been taken away. They're not free to leave. And that means you're in a correctional facility."
Updated Cost: $27.2 million (increased from $26.5M appropriation)
State will request annexation into city and zoning assignment. 32-bed facility confirmed.
📰 Read Q2 Article →Laurel Chamber of Commerce announces meeting with Montana Board of Investments for Friday, January 30th.
Public invited to bring questions about proposed facility to BOI representatives.
Board of Trustees holds discussion regarding the proposed state facility during their regular meeting. Board confirms no state officials have contacted the district regarding how the facility would impact students.
Key Points from Discussion:
Superintendent Matthew Torix:
"The safety of our students is our highest priority. The building of this Forensic Detention Facility in such close proximity to our elementary school is not supported by the Board on the grounds of safety for the students we serve."
Context: This meeting occurred one day before the Board's formal written opposition announcement on January 27, 2026.
Laurel C.A.R.E.D. (Community Advocates for Responsible Economic Development) Facebook page published, marking the formal organization of community resistance to demand transparency and accountability.
Montana Board of Investments cancels scheduled January 30th public meeting.
Chamber announcement:
"The Montana Board of Investments is unable to participate in the previously scheduled meeting under the proposed format."
Context: Meeting venue had been moved to local high school due to overwhelming community response. BOI originally agreed to smaller town hall format.
Laurel School Board and Superintendent Matthew Torix issue written statement officially opposing "the proposed state forensic detention facility."
Key Concerns:
Chris Lorash (School Board member):
"What I find interesting is that there are two other communities that did put in a proposal to host it, but Laurel was not one of those... it's not like they don't have other places to put the facility."
Article confirms: Hardin and Miles City submitted proposals, but state chose Laurel even though city never put in formal proposal
Laurel C.A.R.E.D. meeting scheduled at Front Porch before City Council meeting at 6:30 PM
📰 Read Q2 Article →Two dozen residents pack public meeting room for nearly two hours of public comment. Council members sit in silence per city attorney's instructions.
Key Concerns Raised:
Chris Lorash (School Board Chair):
"Safety is more than just access to the building. It's the students and the teachers state of mind."
Samantha Mayes (resident):
"Backdoor deals have been made without consulting the Laurel community. We deserve answers."
Markegard's response:
"I want open and transparent government. That's what I want. That's what I want from the council members. That's what I want from the mayor and I want that from the public."
Markegard states Gianforte administration approached him and mayor in July along with Billings and Yellowstone County officials
Chamber final statement:
"At this time, the Laurel Chamber of Commerce will not be hosting any public or private meetings with the Montana Board of Investments. This was the decision of the Montana Board of Investments."
BOI's position: Will only attend required City Council meeting after submitting zoning documentation
No date known for required meeting at this time
In a tense city council workshop, new contract planner Forest Sanderson explains the lengthy three-step public process required for the facility project (Growth Policy Amendment, Annexation, and Zoning), confirming no application is yet pending. The meeting is dominated by fallout from the proposed facility, with the City Attorney reading nearly an hour of public correspondence overwhelmingly opposing the project.
Key Moments from the Meeting:
Analysis: Contradictions in CAO & Mayor's Accounts
During the workshop, both CAO Kurt Markegard and Mayor Dave Waggoner stated they were surprised by the state's selection of Laurel. The Mayor claimed, "We were surprised as you were when they announced it," while the CAO portrayed his early involvement as minimal, stating he was "really naive" and "had no idea" what the state was doing. These claims are contradicted by previously documented events.
Key claims from the CAO's speech vs. the timeline record:
Analysis: A Contradictory Stance on Zoning Regulations
During the workshop, both the CAO and the new planner heavily emphasized the required public processes for a Growth Policy amendment and zoning change, presenting them as a crucial safeguard for the community. The CAO highlighted his efforts to provide maps to the public as an act of transparency, noting he even tried to have larger maps printed.
Contradiction: This narrative, presenting local zoning law as a protective shield for Laurel, directly contradicts the CAO's own advice to the City Council on October 21, 2025. In that meeting, while framing the facility as a positive opportunity, he specifically told the council that the state "probably doesn't have to comply with local zoning laws" and could "exempt it out."
At the February 10 City Council meeting, Laurel C.A.R.E.D. submitted a formal letter during public comment requesting immediate authorization of an independent investigation into the conduct of Mayor Dave Waggoner and CAO Kurt Markegard regarding the proposed state forensic mental health facility.
Key Issues Raised:
Requested Actions:
The letter emphasizes that administrative leave during investigation is standard practice when serious questions arise - not a finding of wrongdoing, but a prudent measure to allow fair, thorough investigation without appearance of interference.
Two meetings held tonight. Mayor Waggoner is absent; Council Member Tom Canape presides in his place. CAO Kurt Markegard is also absent.
Meeting Schedule:
Canape Extends Public Comment:
Although audience participation is not standard at workshops, Canape graciously allowed 6 minutes per community member (double the standard 3-minute limit) ahead of the special meeting.
Rep. Lee Deming & Sen. Vince Ricci — Joint Letter Read Into Record:
A joint letter from State Representative Lee Deming and State Senator Vince Ricci is read into the record. Both legislators state they do not support the location of the proposed facility. Their public opposition — representing the community's elected state legislators — marks a significant development in the effort to hold the state accountable.
Regular City Council meeting. Two significant actions by Laurel C.A.R.E.D. at this meeting.
Emergency Ordinance Request Submitted:
Laurel C.A.R.E.D. formally requested that the City Council adopt an emergency zoning ordinance establishing a one-mile School Protection Buffer — prohibiting any correctional or secure detention facility from being located within one mile of any school, park, residential zone, church, or licensed daycare. A companion interim resolution was also requested from the Yellowstone County Board of Commissioners for unincorporated county land surrounding Laurel.
Placement on the March 3, 2026 agenda was requested. That same night, City Attorney Michele Braukmann sent a detailed response acknowledging the proposal, committing to evaluate its legal defensibility, and noting the City is being pressured with potential lawsuits from both the state and constituents. She committed to a formal legal recommendation by the next City Council cycle.
Community Risk Assessment Presented:
Darby Gerondale, a local business owner and community professional, presented a formal risk assessment of the proposed forensic mental health facility, examining safety, proximity, and community impact concerns.
A significant day for Laurel accountability efforts. A recall petition for Mayor Dave Waggoner was formally submitted to the county, and the regular City Council meeting took place in the evening.
Recall Petition Submitted — 10:30 AM:
Shawna Hopper and Jennifer Lorenz formally submitted a recall petition for Mayor Dave Waggoner to the county for approval.
All Eight Council Members Sign Letter to State Officials:
At the evening City Council meeting, a letter was read into the record and signed by all eight City Council members. Addressed to Governor Gianforte, the Board of Investments, and the Department of Public Health and Human Services, the letter formally requests that state officials provide answers to the community of Laurel regarding the proposed forensic mental health facility.
The agenda and packet for the March 10 City Council meeting are expected to be released today. The packet is anticipated to contain the City Attorney's formal legal recommendation to the City Council — a key development in both the Emergency School Protection Buffer Ordinance request and the Emergency Moratorium on Annexation request.
The lack of transparency is intentional. The silence is strategic. Your voice is needed.