The subcommittee heard testimony from the new owner of the Montana Club in Helena, who requested legislative approval for reassignment of a 2025 biennium Montana Historic Preservation Grant previously awarded to the former cooperative association.

Ajupaul Panu described plans to restore multiple floors of the Montana Club building, including reopening the Ratzkeller bar, renovating the second‑floor public dining and events space and reviving the sixth‑floor fine‑dining room. Panu told members his family plans to invest about $1.5 million in renovations and that the state grant would contribute to HVAC upgrades and Americans with Disabilities Act restroom improvements. “This is a Helena historic district landmark,” he said, adding he expects construction to create 35–55 full‑ and part‑time jobs and to begin major work within six to nine months.

Commerce staff had earlier told the committee some prior 2025 awards have been returned and that two additional awardees did not meet start‑up conditions. Staff asked the committee for legislative authorization to terminate the grant to Illuvium Health (the Rocky Mountain building) if the applicant does not officially withdraw, which would revert $400,000 to the preservation account. Committee members were briefed that reverting funds would increase available cash this biennium should the legislature take that action.

Why it matters: the committee must approve transfers, reassignments or terminations of previously appropriated grants. Reverting funds can affect how many projects the legislature can fund this session from the historic‑preservation account.

Details from testimony

- Project focus: HVAC upgrades for improved air quality and multi‑floor renovations to reopen historic public spaces in downtown Helena.

- Local commitments: Panu said the owners will self‑finance most renovation work and already have begun limited renovations on the Ratzkeller; he characterized the state grant as helpful to complete HVAC and ADA restroom work.

- Program mechanics: Commerce staff said statute and program rules require legislative action to reassign or terminate a grant where the awardee has not formally withdrawn; terminated awards revert to the preservation account and can be reappropriated by the legislature.

Ending: The committee heard the Montana Club owner’s testimony and indicated staff would return with any further information needed about contract reassignments and reverted awards before final appropriations are adopted.